Want to see RVMD full AI Analyst Report?
Top Page
Revolution Medicines
(NASDAQ:RVMD)
Select Model
Select Model
Rating:56Neutral
Price Target:
$200.00
▼(-5.38% Downside)
Action:Reiterated
Date:10/14/26
The score reflects a balance between strong clinical/regulatory momentum and funding capacity (positive earnings call, large cash and committed capital) versus weak and deteriorating financial performance marked by rapidly widening losses and accelerating cash burn. Technical indicators add a modest near-term caution, and valuation is not supportive given negative earnings and no dividend yield provided.
Positive Factors
Commercial Validation
FDA approval converts daraxonrasib from an investigational asset into a commercial oncology product and validates the company’s ability to advance a targeted therapy through Phase 3 development. It also creates a foundation for recurring product revenue and broader precision-oncology market participation.
Negative Factors
Heavy Cash Burn
The company is consuming cash at a very high and accelerating rate while its commercial revenue base is still developing. Persistent negative operating and free cash flow can increase future financing requirements, constrain capital allocation, and raise dilution or leverage risk if spending remains elevated.
Read all positive and negative factors
Positive Factors
Negative Factors
Commercial Validation
FDA approval converts daraxonrasib from an investigational asset into a commercial oncology product and validates the company’s ability to advance a targeted therapy through Phase 3 development. It also creates a foundation for recurring product revenue and broader precision-oncology market participation.
Read all positive factors
Revolution Medicines (RVMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$41.64B
Dividend YieldN/A
Average Volume (3M)2.18M
Price to Earnings (P/E)―
Beta (1Y)1.63
Revenue GrowthN/A
EPS Growth-95.67%
CountryUS
Employees883
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-8.86
Shares Outstanding214,336,410
10 Day Avg. Volume2,458,401
30 Day Avg. Volume2,184,832
Financial Highlights & Ratios
PEG Ratio-0.20
Price to Book (P/B)9.28
Price to Sales (P/S)0.00
P/FCF Ratio-16.57
Enterprise Value/Market Cap0.88
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-3.98K
Enterprise Value/Ebitda-21.73
Forecast
1Y Price Target
$257.41Price Target Upside21.78% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering24
EPS Forecast (FY)-9.49
Revenue Forecast (FY)$206.28M
Revolution Medicines Business Overview & Revenue Model
Company Description
Revolution Medicines, Inc. is a precision oncology firm operating in the clinical development stage, dedicated to creating innovative treatments that target novel pathways crucial for RAS-driven cancers. Its pipeline includes several promising dru...
How the Company Makes Money
Revolution Medicines primarily generates revenue through collaboration and licensing arrangements rather than product sales, because (to the extent publicly available information indicates) it does not have commercial-stage, approved drugs that ge...
Revolution Medicines Earnings Call Summary
Earnings Call Date:Aug 05, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 04, 2026
Earnings Call Sentiment Positive
The call conveyed strong positive clinical and regulatory momentum: a pivotal Phase III PDAC result (published in NEJM) with FDA NDA acceptance, robust expanded access uptake, multiple encouraging lung cancer combination datasets (high ORRs, high DCRs and early durability signals), an advancing global Phase III program across indications, and a healthy balance sheet ($3.9B) to fund commercialization and aggressive development. Offsetting these positives were materially higher operating expenses, a widened quarterly net loss (partly driven by a $151M noncash warrant charge), and remaining uncertainties around European timelines, CRC strategy details (deferred to Q4), and potential trial integrity risks from broad EAP access. On balance, the clinical wins, regulatory progress and financial resources substantially outweigh the increased spend and uncertainties, supporting an overall optimistic view.Positive Updates
Paradigm-Changing Phase III Pancreatic Cancer Results
RASolute 302 Phase III data presented at ASCO and published in The New England Journal of Medicine demonstrated statistically significant and clinically meaningful improvements in overall survival, progression-free survival and patient-reported quality of life for daraxonrasib monotherapy versus chemotherapy in previously treated metastatic pancreatic cancer. The company’s NDA for daraxonrasib in pancreatic cancer has been accepted for review by the U.S. FDA and the EMA initiated an expedited phase review under its Cancer Medicines Pathfinder project.
Negative Updates
Substantial Increase in R&D Spending
R&D expense rose to $395 million in Q2 2026 from $224 million in Q2 2025, an increase of approximately 76.3%, driven by increased clinical trial and manufacturing costs for daraxonrasib and zoldonrasib and higher personnel-related costs.
Read all updates
Q2-2026 Updates
Positive
Negative
Paradigm-Changing Phase III Pancreatic Cancer Results
RASolute 302 Phase III data presented at ASCO and published in The New England Journal of Medicine demonstrated statistically significant and clinically meaningful improvements in overall survival, progression-free survival and patient-reported quality of life for daraxonrasib monotherapy versus chemotherapy in previously treated metastatic pancreatic cancer. The company’s NDA for daraxonrasib in pancreatic cancer has been accepted for review by the U.S. FDA and the EMA initiated an expedited phase review under its Cancer Medicines Pathfinder project.
Read all positive updates
Company Guidance
Revolution Medicines updated 2026 financial guidance, raising expected full‑year GAAP operating expenses to $2.1–$2.2 billion, which includes $270–$290 million of non‑cash stock‑based compensation; the company finished Q2 with $3.9 billion in cash and investments (including $2.2 billion gross proceeds from April offerings and a $250 million second royalty tranche) and up to $1.5 billion of additional committed capital under its Royalty Pharma arrangement. For Q2, R&D expense was $395 million (vs. $224M in Q2 2025), G&A was $110 million (vs. $41M), and net loss was $644 million (vs. $248M), which included a $151 million non‑cash charge for warrant fair‑value remeasurement. Management said the higher 2026 spend is being driven by accelerated manufacturing (commercial and clinical), increased clinical development, and stepped‑up commercial readiness, and provided programmatic timelines including completing enrollment in RASolve 301 this year with an initial readout in 2027, initiating RASolve 307 in Q4 2026, a CRC update in Q4, identifying RMC‑5127 RP2D in H2 2026 and first clinical data for some programs in 2027.Revolution Medicines Financial Statement Overview
Summary
Income Statement
12
Very Negative
Balance Sheet
64
Positive
Cash Flow
20
Very Negative
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 0.00 | 0.00 | 0.00 | 11.58M | 35.38M | 29.39M |
| Gross Profit | -9.24M | -16.56M | 0.00 | 11.58M | 35.38M | 29.39M |
| EBITDA | -1.69B | -1.09B | -589.02M | -430.28M | -239.47M | -179.75M |
| Net Income | -1.77B | -1.13B | -600.09M | -436.37M | -248.71M | -187.09M |
Balance Sheet | ||||||
| Total Assets | 4.32B | 2.35B | 2.56B | 2.06B | 811.93M | 737.99M |
| Cash, Cash Equivalents and Short-Term Investments | 3.94B | 2.03B | 2.29B | 1.85B | 644.94M | 577.05M |
| Total Debt | 641.93M | 158.70M | 135.84M | 87.94M | 64.20M | 66.63M |
| Total Liabilities | 1.72B | 723.21M | 293.10M | 235.51M | 126.74M | 135.42M |
| Stockholders Equity | 2.61B | 1.63B | 2.27B | 1.83B | 685.19M | 602.57M |
Cash Flow | ||||||
| Free Cash Flow | -1.23B | -913.73M | -567.74M | -358.30M | -235.22M | -153.71M |
| Operating Cash Flow | -1.22B | -897.74M | -557.44M | -350.57M | -224.40M | -147.18M |
| Investing Cash Flow | -1.39B | 118.06M | -554.39M | -342.60M | -24.12M | -142.12M |
| Financing Cash Flow | 3.02B | 621.52M | 959.41M | 1.23B | 301.43M | 294.18M |
Revolution Medicines Technical Analysis
Positive
211.38
Price Trends
202.23
Negative
190.05
Positive
153.30
Positive
Market Momentum
-3.35
Positive
48.97
Neutral
58.73
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVMD, the sentiment is Positive. The current price of 211.38 is above the 20-day moving average (MA) of 196.56, above the 50-day MA of 202.23, and above the 200-day MA of 153.30, indicating a neutral trend. The MACD of -3.35 indicates Positive momentum. The RSI at 48.97 is Neutral, neither overbought nor oversold. The STOCH value of 58.73 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RVMD.
Revolution Medicines Risk Analysis
Revolution Medicines disclosed 85 risk factors in its most recent earnings report. Revolution Medicines reported the most risks in the "Tech & Innovation" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Revolution Medicines Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | $23.64B | 13.95 | 29.70% | ― | 26.93% | 80.66% | |
80 Outperform | $15.95B | 19.63 | 42.49% | ― | 9.23% | 53.08% | |
66 Neutral | $23.52B | 30.76 | 13.58% | ― | 21.75% | -36.69% | |
56 Neutral | $41.64B | -21.93 | -96.44% | ― | ― | -95.67% | |
56 Neutral | $22.90B | -11.95 | -9.16% | 1.33% | -1.05% | -395.95% | |
55 Neutral | $4.04B | -11.73 | -42.27% | ― | 23.86% | 19.60% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
RVMD
Revolution Medicines
194.28
140.84
263.55%
EXEL
Exelixis
64.58
26.53
69.72%
INCY
Incyte
113.44
24.13
27.02%
GMAB
Genmab
39.57
9.70
32.47%
BNTX
BioNTech SE
91.29
-13.46
-12.85%
RLAY
Relay Therapeutics
18.41
11.65
172.34%
Revolution Medicines Corporate Events
Business Operations and StrategyPrivate Placements and Financing
Revolution Medicines Draws $250 Million Term Loan Facility
Positive
Oct 13, 2026
On October 8, 2026, following U.S. Food and Drug Administration approval of RASONQUE™ (daraxonrasib) for certain adult patients with metastatic pancreatic adenocarcinoma, Revolution Medicines drew a $250.0 million Tranche A senior secured te...
Business Operations and Strategy
Revolution Medicines Signs Long-Term Headquarters Lease Agreement
Positive
Sep 1, 2026
On August 27, 2026, Revolution Medicines agreed to lease four buildings totaling about 672,000 square feet at Seaport Boulevard in Redwood City, Calif., which it plans to use as its new headquarters. The leases, with affiliated landlords that are ...
Business Operations and StrategyProduct-Related Announcements
Revolution Medicines Wins FDA Approval for RASONQUE Therapy
Positive
Aug 26, 2026
On August 26, 2026, Revolution Medicines received U.S. Food and Drug Administration approval for RASONQUE, or daraxonrasib, as a once-daily oral treatment for adult patients with metastatic pancreatic adenocarcinoma who have failed at least one pr...
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.