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Ironwood Pharma
(NASDAQ:IRWD)
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Rating:64Neutral
Price Target:
$4.00
▼(-6.76% Downside)
Action:Reiterated
Date:10/16/26
IRWD scores as moderately attractive primarily due to improving TTM profitability and strong free cash flow, reinforced by a positive earnings update with raised 2026 guidance and ongoing deleveraging. These positives are balanced by elevated balance-sheet risk (negative equity) and weak near-term technical momentum, while the low P/E provides additional valuation support.
Positive Factors
LINZESS growth and raised guidance
Strong LINZESS demand is translating into materially higher sales expectations, with management raising both product and company guidance. Continued prescription growth and improved net price can support recurring collaboration profits, strengthen operating leverage, and provide funding for debt reduction and pipeline investment.
Negative Factors
Dependence on a single core product
Revenue concentration in LINZESS makes overall performance highly sensitive to demand, pricing, and collaboration economics for one product. Even with current growth, a setback in the franchise would have an outsized effect on cash generation, development funding, and the company’s ability to sustain its recovery.
Read all positive and negative factors
Positive Factors
Negative Factors
LINZESS growth and raised guidance
Strong LINZESS demand is translating into materially higher sales expectations, with management raising both product and company guidance. Continued prescription growth and improved net price can support recurring collaboration profits, strengthen operating leverage, and provide funding for debt reduction and pipeline investment.
Read all positive factors
Ironwood Pharma (IRWD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$571.73M
Dividend YieldN/A
Average Volume (3M)2.07M
Price to Earnings (P/E)4.3
Beta (1Y)1.02
Revenue Growth26.19%
EPS GrowthN/A
CountryUS
Employees100
SectorHealthcare
Sector Strength45
IndustryDrug Manufacturers - Specialty & Generic
Share Statistics
EPS (TTM)0.80
Shares Outstanding165,239,940
10 Day Avg. Volume1,608,258
30 Day Avg. Volume2,065,929
Financial Highlights & Ratios
PEG Ratio<0.01
Price to Book (P/B)-2.09
Price to Sales (P/S)1.85
P/FCF Ratio4.30
Enterprise Value/Market Cap1.79
Enterprise Value/Revenue2.62
Enterprise Value/Gross Profit2.63
Enterprise Value/Ebitda4.22
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)1.22
Revenue Forecast (FY)$466.57M
Ironwood Pharma Business Overview & Revenue Model
Company Description
Ironwood Pharmaceuticals, Inc. operates as a healthcare enterprise primarily dedicated to discovering, developing, and commercializing therapeutic solutions for gastrointestinal (GI) conditions. Its flagship commercial product is linaclotide, a gu...
How the Company Makes Money
Ironwood primarily makes money from LINZESS (linaclotide) sales in the United States. Under its collaboration arrangement with AbbVie, LINZESS is jointly commercialized, and Ironwood’s revenue is primarily derived from its share of collaboration p...
Ironwood Pharma Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 29, 2026
Earnings Call Sentiment Positive
The call conveyed a predominantly positive commercial and financial story driven by LINZESS: strong Q2 sales, significant YTD growth, an upward revision to full-year guidance, a pediatric label expansion, and robust quarterly profitability. Clinical progress on apraglutide (initiation of STARS-2 and supportive STARS/STARS-Extend data) and actions to strengthen the balance sheet (repayment of convertible notes and target to reduce gross leverage) are additional positives. Offsetting risks include dependence on LINZESS for revenue, early-stage enrollment uncertainty for STARS-2, remediation required after a prior dosing kit error, anticipated higher R&D/SG&A spend in H2, and a modest cash balance that increases reliance on operating cash flow and receivables.Positive Updates
Strong LINZESS Commercial Performance
Q2 U.S. net sales for LINZESS were $282.3M (14% year-over-year). Year-to-date (first half) LINZESS U.S. net sales reached $555M, up 44% YoY. Q2 EUTRx volume growth was +4% YoY and +5% year-to-date, with management expecting mid-single-digit demand growth for the full year.
Negative Updates
Concentration Risk on LINZESS
Company remains heavily dependent on LINZESS as the primary revenue driver (relying on continued price and demand improvements) which concentrates commercial risk in a single product despite strong current performance.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong LINZESS Commercial Performance
Q2 U.S. net sales for LINZESS were $282.3M (14% year-over-year). Year-to-date (first half) LINZESS U.S. net sales reached $555M, up 44% YoY. Q2 EUTRx volume growth was +4% YoY and +5% year-to-date, with management expecting mid-single-digit demand growth for the full year.
Read all positive updates
Company Guidance
Ironwood raised full‑year 2026 guidance driven by LINZESS strength, now expecting LINZESS U.S. net sales of $1.15–$1.20 billion (greater than 30% year‑over‑year growth) supported by mid‑single‑digit prescription demand growth and improved net price; company revenue guidance is $460–$485 million and adjusted EBITDA is expected to be greater than $310 million. In Q2 LINZESS U.S. net sales were $282.3 million (H1 net sales $555 million, +44% YTD), EUTRx volume growth was +4% in Q2 and +5% YTD, and management expects sequential quarterly net sales to build with Q4 as the strongest quarter. Q2 company results included total revenue of $113 million, GAAP net income of $51.3 million and adjusted EBITDA of $83 million; the company ended the quarter with $79 million cash, $113 million collaboration receivables, repaid $200 million of convertible notes, and expects to finish 2026 with gross debt under $300 million and gross leverage below 1x while using LINZESS cash flow to further reduce debt.Ironwood Pharma Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
38
Negative
Cash Flow
79
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 389.32M | 296.15M | 351.41M | 442.74M | 410.60M | 413.75M |
| Gross Profit | 388.40M | 296.15M | 343.86M | 436.59M | 409.18M | 343.35M |
| EBITDA | 241.88M | 104.65M | 97.73M | 197.41M | 261.44M | 233.72M |
| Net Income | 129.87M | 24.02M | 880.00K | -1.00B | 175.06M | 528.45M |
Balance Sheet | ||||||
| Total Assets | 285.13M | 396.90M | 350.91M | 471.07M | 1.10B | 1.13B |
| Cash, Cash Equivalents and Short-Term Investments | 79.13M | 215.46M | 88.56M | 92.15M | 656.20M | 620.13M |
| Total Debt | 396.87M | 597.80M | 599.48M | 715.54M | 415.92M | 475.80M |
| Total Liabilities | 446.97M | 658.74M | 652.24M | 817.37M | 448.14M | 521.02M |
| Stockholders Equity | -161.84M | -261.83M | -301.33M | -346.30M | 652.38M | 605.91M |
Cash Flow | ||||||
| Free Cash Flow | 185.55M | 127.01M | 103.41M | 183.15M | 273.63M | 261.63M |
| Operating Cash Flow | 185.56M | 127.04M | 103.55M | 183.43M | 273.76M | 261.89M |
| Investing Cash Flow | -1.00K | -34.00K | -142.00K | -1.03B | -136.00K | -265.00K |
| Financing Cash Flow | -199.57M | 216.00K | -106.97M | 277.16M | -237.55M | -4.55M |
Ironwood Pharma Technical Analysis
Negative
4.29
Price Trends
4.03
Negative
3.99
Negative
4.01
Negative
Market Momentum
-0.15
Positive
37.28
Neutral
18.72
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For IRWD, the sentiment is Negative. The current price of 4.29 is above the 20-day moving average (MA) of 3.72, above the 50-day MA of 4.03, and above the 200-day MA of 4.01, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 37.28 is Neutral, neither overbought nor oversold. The STOCH value of 18.72 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for IRWD.
Ironwood Pharma Risk Analysis
Ironwood Pharma disclosed 46 risk factors in its most recent earnings report. Ironwood Pharma reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ironwood Pharma Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $10.76B | 30.95 | 7.37% | 0.63% | -10.52% | -55.45% | |
67 Neutral | $44.84B | 21.01 | 9.89% | 1.21% | 4.99% | 12.37% | |
64 Neutral | $571.73M | 4.35 | -57.40% | ― | 26.19% | ― | |
64 Neutral | $747.48M | 15.01 | 15.96% | ― | 14.31% | 34.35% | |
56 Neutral | $127.21M | -11.88 | -47.10% | 16.33% | -25.68% | -244.92% | |
54 Neutral | $2.21B | -1.28 | -55.97% | 7.27% | -4.18% | -2138.82% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
IRWD
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Ironwood Pharma Corporate Events
Business Operations and StrategyExecutive/Board Changes
Ironwood Pharma Announces CEO Transition and Leadership Changes
Positive
Oct 16, 2026
On October 12, 2026, Ironwood’s board approved a leadership transition under which Senior Vice President and Chief Commercial Officer Tammi Gaskins will become Chief Executive Officer and join the board effective January 1, 2027, while curre...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.