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

Revolution Medicines (NASDAQ:RVMD) released its quarterly earnings data on Wednesday. The company reported ($3.06) earnings per share for the quarter, missing the consensus estimate of ($2.04) by ($1.02), FiscalAI reports. During the same quarter last year, the business earned ($1.31) earnings per share.

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 NASDAQ:RVMD traded up $3.84 during mid-day trading on Wednesday, reaching $197.30. 1,951,570 shares of the company’s stock were exchanged, compared to its average volume of 1,851,977. The company has a debt-to-equity ratio of 0.19, a quick ratio of 6.80 and a current ratio of 6.80. Revolution Medicines has a twelve month low of $34.00 and a twelve month high of $198.30. The firm has a market capitalization of $41.95 billion, a price-to-earnings ratio of -27.91 and a beta of 1.39. The business’s fifty day moving average price is $174.85 and its 200-day moving average price is $136.44.

Analyst Ratings Changes

RVMD has been the subject of a number of research reports. Weiss Ratings reissued a “sell (d-)” rating on shares of Revolution Medicines in a report on Friday, July 17th. Oppenheimer lifted their price target on shares of Revolution Medicines from $165.00 to $195.00 and gave the company an “outperform” rating in a report on Monday, June 1st. Piper Sandler upped their price objective on shares of Revolution Medicines to $172.00 and gave the stock an “overweight” rating in a research report on Thursday, May 7th. Mizuho increased their price objective on shares of Revolution Medicines from $185.00 to $215.00 and gave the company an “outperform” rating in a research note on Monday, July 6th. Finally, Sanford C. Bernstein started coverage on shares of Revolution Medicines in a research note on Thursday, May 21st. They issued a “market perform” rating and a $151.00 price objective for the company. Two investment 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. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and an average price target of $144.67.

Insiders Place Their Bets

In related news, insider Stephen Michael Kelsey sold 4,175 shares of the stock in a transaction on Tuesday, June 16th. The stock was sold at an average price of $156.12, for a total value of $651,801.00. Following the completion of the sale, the insider directly owned 291,876 shares in the company, valued at $45,567,681.12. This represents a 1.41% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Sushil Patel sold 5,580 shares of the firm’s stock in a transaction on Monday, June 29th. The stock was sold at an average price of $187.99, for a total value of $1,048,984.20. Following the transaction, the director directly owned 21,656 shares of the company’s stock, valued at approximately $4,071,111.44. This represents a 20.49% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Insiders sold a total of 132,497 shares of company stock valued at $21,470,486 over the last ninety days. 7.60% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Revolution Medicines

A number of hedge funds have recently made changes to their positions in RVMD. Global Retirement Partners LLC lifted its stake in shares of Revolution Medicines by 1,002.8% in the fourth quarter. Global Retirement Partners LLC now owns 397 shares of the company’s stock worth $32,000 after acquiring an additional 361 shares during the period. Arax Advisory Partners bought a new stake in Revolution Medicines in the fourth quarter valued at approximately $38,000. Los Angeles Capital Management LLC acquired a new stake in Revolution Medicines during the 4th quarter valued at approximately $59,000. Empowered Funds LLC acquired a new stake in Revolution Medicines during the 4th quarter valued at approximately $77,000. Finally, Danske Bank A S bought a new position in Revolution Medicines during the 3rd quarter worth approximately $98,000. 94.34% of the stock is currently owned by institutional investors.

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.