Revolution Medicines (NASDAQ:RVMD) Releases Quarterly Earnings Results, Misses Expectations By $0.46 EPS

Revolution Medicines (NASDAQ:RVMD) issued its quarterly earnings results on Wednesday. The company reported ($2.29) earnings per share for the quarter, missing the consensus estimate of ($1.83) by ($0.46), FiscalAI reports. During the same period in the previous year, the business earned ($1.13) earnings per share.

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

• Daraxonrasib delivered an unprecedented benefit in RASolute 302, meeting primary and key secondary endpoints with a 60% reduction in risk of death versus chemotherapy and a median overall survival exceeding one year; the company intends to submit an NDA, has FDA approval to start an expanded access program, and will present detailed data in an ASCO plenary.
• The company significantly strengthened its balance sheet with an historic $2 billion dual-tranche capital raise and reported $1.9 billion in cash at quarter end (plus $2.1 billion net proceeds in April), positioning it to advance four clinical-stage RAS(ON) inhibitors and next-generation programs.
• Operating costs rose sharply—Q1 stock-based compensation was $87.3M (vs. $25.1M a year ago) after a program modification—and RevMed raised full-year stock-based comp guidance by ~$80M, now expecting GAAP operating expenses of $1.7 billion to $1.8 billion, contributing to a Q1 net loss of $453.8M.
• The development plan is broad: multiple registrational trials are underway or planned across pancreatic, NSCLC, and colorectal cancer (including expansions of RASolve 301 and initiation of RASolute 303/304/305/308/309), and early-stage programs like RM-055 (catalytic RAS(ON) inhibitor) and RMC-5127 are progressing toward first-in-human studies.

Revolution Medicines Price Performance

Shares of RVMD stock traded down $8.56 during mid-day trading on Thursday, reaching $142.51. The stock had a trading volume of 2,377,159 shares, compared to its average volume of 3,496,045. Revolution Medicines has a 12-month low of $34.00 and a 12-month high of $155.70. The company has a market cap of $30.30 billion, a P/E ratio of -24.11 and a beta of 1.41. The business has a 50-day simple moving average of $112.65 and a 200 day simple moving average of $93.81. The company has a current ratio of 7.14, a quick ratio of 7.14 and a debt-to-equity ratio of 0.16.

Key Stories Impacting Revolution Medicines

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

• Positive Sentiment: Multiple analysts raised targets/ratings (RBC, Wedbush, Piper Sandler), signaling continued confidence in the commercial and clinical upside for RVMD; these raises imply double-digit upside from recent prices. Benzinga TickerReport
• Positive Sentiment: Publication in the New England Journal of Medicine and Reuters coverage highlight daraxonrasib’s strong benefit in pancreatic cancer and manageable side-effect profile; company plans to submit RASolute 302 data to global regulators — a clear pathway to potential approval and commercialization. NEJM Publication / Press Release Reuters
• Positive Sentiment: Company update: RASolute 302 showed an “unprecedented” survival benefit and management disclosed $2.2B of gross financing proceeds, strengthening the balance sheet ahead of regulatory filings and potential launch activities. Corporate Update
• Neutral Sentiment: Earnings call transcript is available for details on management’s guidance, pipeline timing, and commercialization plans — useful for traders assessing near-term catalysts and launch assumptions. Earnings Call Transcript
• Negative Sentiment: Q1 results missed expectations (EPS wider than forecast) and management raised its 2026 expense outlook as R&D and commercial preparation costs climb — this increase in near-term cash burn likely pressured the stock despite the compelling clinical readouts. Zacks MarketBeat / Press Release

Wall Street Analysts Forecast Growth

Several equities research analysts recently weighed in on the company. UBS Group assumed coverage on Revolution Medicines in a report on Friday, February 27th. They set a “buy” rating for the company. Royal Bank Of Canada increased their price objective on Revolution Medicines to $165.00 and gave the stock an “outperform” rating in a research report on Thursday. Wedbush increased their price objective on Revolution Medicines to $165.00 and gave the stock an “outperform” rating in a research report on Thursday. Piper Sandler increased their price objective on Revolution Medicines to $172.00 and gave the stock an “overweight” rating in a research report on Thursday. Finally, Evercore reiterated an “outperform” rating on shares of Revolution Medicines in a research report on Tuesday, April 14th. Four equities research analysts have rated the stock with a Strong Buy rating, sixteen have assigned a Buy rating and one has given a Sell rating to the company’s stock. Based on data from MarketBeat, the company has an average rating of “Buy” and a consensus price target of $102.18.

Insiders Place Their Bets

In related news, CFO Jack Anders sold 2,753 shares of Revolution Medicines stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $99.48, for a total transaction of $273,868.44. Following the completion of the sale, the chief financial officer owned 125,512 shares in the company, valued at approximately $12,485,933.76. This trade represents a 2.15% decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, insider Lin Wei sold 2,073 shares of Revolution Medicines stock in a transaction dated Tuesday, March 17th. The stock was sold at an average price of $99.48, for a total value of $206,222.04. Following the sale, the insider owned 101,366 shares of the company’s stock, valued at approximately $10,083,889.68. This represents a 2.00% decrease in their position. The SEC filing for this sale provides additional information. Over the last quarter, insiders have sold 184,592 shares of company stock valued at $24,499,532. Company insiders own 8.20% of the company’s stock.

Institutional Trading of Revolution Medicines

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

Revolution Medicines Company Profile

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.