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Ironwood Pharma (IRWD) is soaring to a new 52-week high after reaffirming its FY25 guidance and issuing FY26 guidance well above consensus this morning. For FY25, IRWD continues to expect total revenue of $290-310 mln, LINZESS U.S. net sales of $860-890 mln, and adjusted EBITDA of more than $135 mln. For FY26, it guided to total revenue of $450-475 mln, LINZESS U.S. net sales of $1.125-1.175 bln, and adjusted EBITDA of more than $300 mln. At the midpoint, the FY26 revenue outlook implies about 54% yr/yr growth.

• A key driver of the FY26 outlook is a change in LINZESS pricing dynamics. On January 1, 2026, IRWD lowered the LINZESS list price to support ongoing patient access.
• Due to the lower list price, IRWD expects higher yr/yr LINZESS net sales, as it eliminates the inflationary component of statutory required rebates across channels, including Medicaid.
• The setup also follows the November LINZESS label expansion into pediatric IBS-C, which broadened the addressable market. LINZESS also posted a strong Q3, with management noting a 12% increase in demand, and the new FY26 guide implies a notable reacceleration (2024 revenue $351.4 mln; FY25 guide $290-310 mln; FY26 guide $450-475 mln).
• On the pipeline front, apraglutide has been an overhang since April, when the FDA indicated IRWD would need to run a confirmatory Phase 3 trial in SBS-IF to support an approval filing. Around the same time, the company engaged Goldman Sachs to explore strategic alternatives.
• Alongside the guidance, IRWD provided a constructive pipeline update, noting it remains on track to initiate the confirmatory trial in 1H26 and expects to provide additional trial details in its Q4 update.

Briefing.com Analyst Insight

The FY26 guide is a clear step-up in both revenue and profitability, and that's the main reason shares are surging. The company is pointing to improved LINZESS economics in 2026, even after lowering the list price, as the rebate dynamics should be more favorable and support higher net sales. The recent pediatric IBS-C label expansion and the strong demand trends it cited in Q3 also help validate that LINZESS continues to hold up well commercially. Apraglutide adds upside potential, but it remains very risky given the need for a confirmatory Phase 3 trial and the uncertainty around outcomes. For now, the upside FY26 outlook is the key takeaway, while pipeline progress and the strategic alternatives process provide additional optionality.