Revolution Medicines (NASDAQ:RVMD) Announces Earnings Results, Misses Expectations By $1.02 EPS

Revolution Medicines (NASDAQ:RVMD) released its quarterly earnings results on Wednesday. The company reported ($3.06) EPS for the quarter, missing analysts’ consensus estimates of ($2.04) by ($1.02), FiscalAI reports. During the same quarter in the prior year, the company earned ($1.31) EPS.

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

• Positive Sentiment: Daraxonrasib’s Phase III RASolute 302 results in previously treated metastatic pancreatic cancer showed statistically significant improvements in overall survival, progression-free survival, and quality-of-life measures versus chemotherapy, with a manageable safety profile.
• Positive Sentiment: The FDA accepted Revolution Medicines’ NDA for daraxonrasib in pancreatic cancer, while the EMA began an expedited phased review; the company has also established expanded access at sites in nearly all U.S. states and Puerto Rico, providing treatment to more than 2,000 eligible patients.
• Positive Sentiment: Early combination data in first-line pancreatic and lung cancer were encouraging, including response rates of 82% for zoldonrasib plus chemotherapy in pancreatic cancer, 82% for zoldonrasib plus standard of care in G12D lung cancer, and 85% for elironrasib plus standard of care in G12C lung cancer.
• Positive Sentiment: The company is broadening its registrational pipeline, with Phase III trials underway or planned for multiple pancreatic and lung cancer settings, including RASolute 309, RASolve 307, and RASolve 308; initial Phase III lung cancer data are expected in 2027.
• Negative Sentiment: Revolution Medicines raised 2026 GAAP operating expense guidance to $2.1 billion-$2.2 billion as it accelerates manufacturing, clinical development, and commercial preparations; second-quarter net loss widened to $644 million from $248 million a year earlier.

Revolution Medicines Trading Up 2.0%

Shares of Revolution Medicines stock traded up $3.84 during trading hours on Wednesday, hitting $197.30. The company’s stock had a trading volume of 1,951,570 shares, compared to its average volume of 1,851,977. The company has a market capitalization of $41.95 billion, a PE ratio of -27.91 and a beta of 1.39. The company has a debt-to-equity ratio of 0.19, a current ratio of 6.80 and a quick ratio of 6.80. The stock has a 50 day moving average of $174.85 and a 200 day moving average of $136.44. Revolution Medicines has a 12 month low of $34.00 and a 12 month high of $198.30.

Wall Street Analysts Forecast Growth

A number of brokerages have recently commented on RVMD. HC Wainwright reissued a “buy” rating and issued a $195.00 price objective on shares of Revolution Medicines in a research report on Monday, July 6th. Evercore reissued an “outperform” rating on shares of Revolution Medicines in a research note on Tuesday, April 14th. Stifel Nicolaus reiterated a “buy” rating on shares of Revolution Medicines in a research note on Monday, April 20th. Piper Sandler lifted their target price on shares of Revolution Medicines to $172.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. Finally, Oppenheimer increased their target price on Revolution Medicines from $165.00 to $195.00 and gave the stock an “outperform” rating in a report on Monday, June 1st. Two equities research analysts have rated the stock with a Strong Buy rating, eighteen have issued a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average target price of $144.67.

Insiders Place Their Bets

In other Revolution Medicines news, insider Stephen Michael Kelsey sold 4,175 shares of Revolution Medicines stock in a transaction that occurred on Tuesday, June 16th. The shares were sold at an average price of $156.12, for a total value of $651,801.00. Following the transaction, the insider owned 291,876 shares of the company’s stock, valued at approximately $45,567,681.12. The trade was a 1.41% decrease in their ownership of the stock. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Jack Anders sold 20,000 shares of the company’s stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $168.33, for a total transaction of $3,366,600.00. Following the completion of the transaction, the chief financial officer owned 123,269 shares of the company’s stock, valued at $20,749,870.77. This trade represents a 13.96% decrease in their position. The SEC filing for this sale provides additional information. Insiders sold 132,497 shares of company stock worth $21,470,486 in the last three months. 7.60% of the stock is owned by corporate insiders.

Institutional Investors Weigh In On Revolution Medicines

Several institutional investors have recently added to or reduced their stakes in RVMD. Nextech Invest Ltd. raised its stake in shares of Revolution Medicines by 20.7% in the 4th quarter. Nextech Invest Ltd. now owns 7,601,087 shares of the company’s stock valued at $332,472,000 after purchasing an additional 1,304,347 shares during the period. Paradigm Biocapital Advisors LP grew its holdings in shares of Revolution Medicines by 6.8% during the fourth quarter. Paradigm Biocapital Advisors LP now owns 6,644,403 shares of the company’s stock worth $529,227,000 after buying an additional 421,112 shares in the last quarter. Bellevue Group AG grew its holdings in shares of Revolution Medicines by 21.7% during the third quarter. Bellevue Group AG now owns 5,573,838 shares of the company’s stock worth $260,298,000 after buying an additional 994,538 shares in the last quarter. Deerfield Management Company L.P. raised its position in Revolution Medicines by 7.9% in the 3rd quarter. Deerfield Management Company L.P. now owns 3,650,342 shares of the company’s stock valued at $170,471,000 after buying an additional 266,270 shares during the last quarter. Finally, Adage Capital Partners GP L.L.C. raised its position in Revolution Medicines by 197.1% in the 4th quarter. Adage Capital Partners GP L.L.C. now owns 2,205,555 shares of the company’s stock valued at $175,672,000 after buying an additional 1,463,155 shares during the last quarter. 94.34% of the stock is owned by institutional investors.

About Revolution Medicines

Revolution Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapies to treat RAS-dependent cancers and other diseases driven by the RAS/MAPK pathway. The company’s research efforts target historically “undruggable” proteins, aiming to inhibit critical nodes in cell signaling that promote tumor growth and therapeutic resistance.

The lead pipeline includes RMC-4630, a SHP2 inhibitor; RMC-6291, a selective KRAS G12C inhibitor; and RMC-6236, a pan-RAS inhibitor designed to address multiple RAS mutations.