Revolution Medicines (NASDAQ:RVMD) Announces Earnings Results

Revolution Medicines (NASDAQ:RVMD) announced its quarterly earnings data on Wednesday. The company reported ($1.90) earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of ($2.35) by $0.45, FiscalAI reports. The firm had revenue of $197.56 million for the quarter, compared to analyst estimates of $25.58 million. During the same quarter in the previous year, the company earned ($1.61) earnings per share.

Here are the key takeaways from Revolution Medicines’ conference call:

• RASONQUE generated $197.6 million in net product revenue during roughly five weeks of U.S. commercialization, with more than 5,000 patients treated commercially and prescribing across academic and community settings. Management cautioned that early demand included finite expanded-access transitions and patients awaiting approval, so the initial results do not yet indicate the launch’s normalized trajectory.
• RASONQUE received a positive opinion from the European Medicines Agency’s CHMP, with a European Commission decision still pending, and NCCN added it as a preferred subsequent-therapy option in pancreatic cancer; the guideline also addresses settings beyond the FDA-approved indication. The company said more than 90% of U.S. pancreatic-cancer covered lives were represented by plans with reimbursed claims, although formal payer policies are still developing.
• Revolution advanced its pivotal pipeline: U.S. enrollment is complete in the first-line pancreatic cancer RASolute 303 study, global enrollment is expected to finish in the first half of 2027, and the RASONQUE–zoldonrasib doublet trial began dosing. It also initiated first-line lung cancer studies and is starting a global Phase III colorectal cancer trial, with BeOne funding and conducting that study.
• R&D and SG&A expenses rose to $417.1 million and $153.3 million, respectively, contributing to a quarterly net loss of $407.5 million. The company reiterated 2026 GAAP operating-expense guidance of $2.1 billion–$2.2 billion and expects expenses to increase in 2027 as it expands development and commercialization spending.

Revolution Medicines Stock Down 6.0%

Shares of RVMD traded down $12.06 during trading hours on Thursday, reaching $187.63. The stock had a trading volume of 3,141,181 shares, compared to its average volume of 2,785,025. Revolution Medicines has a 12 month low of $58.91 and a 12 month high of $224.31. The firm has a 50-day simple moving average of $198.21 and a 200 day simple moving average of $156.90. The company has a current ratio of 11.38, a quick ratio of 11.38 and a debt-to-equity ratio of 0.40. The company has a market capitalization of $40.22 billion, a price-to-earnings ratio of -21.24 and a beta of 1.44.

Insiders Place Their Bets

In other news, insider Alan Sandler sold 6,309 shares of the stock in a transaction that occurred on Tuesday, September 29th. The stock was sold at an average price of $202.14, for a total value of $1,275,301.26. Following the completion of the sale, the insider directly owned 52,559 shares of the company’s stock, valued at $10,624,276.26. This represents a 10.72% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, insider Stephen Kelsey sold 92,531 shares of the firm’s stock in a transaction on Friday, September 11th. The shares were sold at an average price of $202.36, for a total value of $18,724,573.16. Following the transaction, the insider owned 291,876 shares in the company, valued at approximately $59,064,027.36. This trade represents a 24.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders have sold 290,991 shares of company stock worth $59,422,765 in the last 90 days. Company insiders own 7.60% of the company’s stock.

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on RVMD. Morgan Stanley initiated coverage on Revolution Medicines in a research note on Thursday, September 10th. They set an “overweight” rating and a $255.00 price target on the stock. Truist Financial reiterated a “buy” rating and issued a $261.00 price objective (up from $241.00) on shares of Revolution Medicines in a report on Thursday. Evercore reiterated an “outperform” rating and set a $320.00 target price on shares of Revolution Medicines in a research report on Thursday, August 27th. The Goldman Sachs Group started coverage on shares of Revolution Medicines in a research report on Thursday, September 24th. They set a “buy” rating and a $267.00 target price on the stock. Finally, William Blair started coverage on shares of Revolution Medicines in a report on Friday, October 16th. They set an “outperform” rating on the stock. One equities research analyst has rated the stock with a Strong Buy rating, twenty-two have assigned a Buy rating, one has issued a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat, the stock presently has a consensus rating of “Moderate Buy” and an average target price of $247.33.

Key Revolution Medicines News

Here are the key news stories impacting Revolution Medicines this week:

• Positive Sentiment: The company said the FDA approved and it launched RASONQUE (daraxonrasib) for eligible adults with metastatic pancreatic cancer. The drug generated $198 million in net product revenue in the quarter, despite being available for only part of the period. The EU’s CHMP also recommended marketing authorization. Company earnings and corporate progress release
• Positive Sentiment: Third-quarter loss was $1.90 per share, narrower than analysts’ $2.35 loss estimate. Revenue of $197.56 million also exceeded the $25.58 million consensus estimate, reflecting the new product sales. Zacks earnings report
• Positive Sentiment: Analyst updates were supportive: Guggenheim raised its target to $298 and reiterated Buy, while Truist reaffirmed Buy and lifted its target to $261. Guggenheim rating information Truist rating information
• Negative Sentiment: RVMD still reported a quarterly loss, which widened from $1.61 per share in the year-ago quarter to $1.90. This ongoing lack of profitability may temper enthusiasm around the launch and sales outlook.

Revolution Medicines Company Profile

Revolution Medicines, Inc is a clinical-stage biopharmaceutical company focused on developing targeted therapies for patients with RAS-mutant cancers. The company’s research platform is designed to discover and develop medicines that inhibit RAS proteins, which play a central role in the growth and spread of many cancers and have historically been difficult to target.

Its investigational pipeline includes RAS(ON) inhibitors and other precision oncology candidates, including daraxonrasib (RMC-6236), a pan-RAS inhibitor being evaluated in multiple solid tumors, as well as programs directed at specific mutations such as KRAS G12C and KRAS G12D.