Revolution Medicines (NASDAQ:RVMD – Get Free Report) announced its quarterly earnings results on Wednesday. The company reported ($1.90) earnings per share (EPS) for the quarter, beating the consensus estimate of ($2.35) by $0.45, FiscalAI reports. The business had revenue of $197.56 million during the quarter, compared to analysts’ expectations of $25.58 million. During the same period last year, the company earned ($1.61) EPS.
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 Trading Up 8.4%
Shares of RVMD traded up $14.97 during mid-day trading on Friday, hitting $192.62. The company had a trading volume of 2,656,890 shares, compared to its average volume of 2,806,552. Revolution Medicines has a 1-year low of $58.91 and a 1-year high of $224.31. The business’s 50-day simple moving average is $197.46 and its 200-day simple moving average is $157.18. The stock has a market cap of $41.29 billion, a PE ratio of -21.14 and a beta of 1.44. The company has a quick ratio of 11.38, a current ratio of 11.38 and a debt-to-equity ratio of 0.40.
Analyst Ratings Changes
A number of equities research analysts recently issued reports on RVMD shares. Sanford C. Bernstein upped their target price on Revolution Medicines from $151.00 to $179.00 and gave the company a “market perform” rating in a research note on Friday, August 21st. Morgan Stanley started coverage on Revolution Medicines in a research report on Thursday, September 10th. They set an “overweight” rating and a $255.00 price target for the company. Evercore reissued an “outperform” rating and issued a $320.00 price target on shares of Revolution Medicines in a report on Thursday, August 27th. Wolfe Research restated an “outperform” rating and issued a $220.00 price objective on shares of Revolution Medicines in a research report on Monday, August 10th. Finally, UBS Group increased their price objective on Revolution Medicines from $220.00 to $265.00 and gave the company a “buy” rating in a research note on Friday, August 28th. One investment analyst has rated the stock with a Strong Buy rating, twenty-one have given a Buy rating, one has given a Hold rating and one has issued a Sell rating to the company. Based on data from MarketBeat, Revolution Medicines presently has an average rating of “Moderate Buy” and a consensus price target of $263.15.
View Our Latest Stock Analysis on RVMD
Insider Activity at Revolution Medicines
In other news, insider Alan B. Sandler sold 6,309 shares of the company’s stock in a transaction on Tuesday, September 29th. The stock was sold at an average price of $202.14, for a total transaction of $1,275,301.26. Following the completion of the sale, the insider directly owned 52,559 shares in the company, valued at $10,624,276.26. This represents a 10.72% decrease in their position. The transaction was disclosed in a filing with the SEC, which is available at this link. Also, insider Mark A. Goldsmith sold 80,000 shares of the stock in a transaction on Friday, August 21st. The stock was sold at an average price of $209.20, for a total value of $16,736,000.00. Following the completion of the transaction, the insider directly owned 267,330 shares in the company, valued at $55,925,436. This trade represents a 23.03% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 290,991 shares of company stock valued at $59,422,765 over the last 90 days. 7.60% of the stock is currently owned by insiders.
More Revolution Medicines News
Here are the key news stories impacting Revolution Medicines this week:
- Positive Sentiment: Strong initial RASONQUE sales: The drug generated $197.6 million in third-quarter revenue during only about five weeks on the U.S. market, far exceeding analysts’ revenue expectations. The company said the launch followed FDA approval for certain patients with metastatic pancreatic cancer. Company results and update
- Positive Sentiment: Quarterly results beat estimates: RVMD reported a loss of $1.90 per share, narrower than the consensus estimate of $2.35, alongside the large revenue beat. The company also reported a positive European regulatory recommendation for daraxonrasib. Q3 results and sales coverage
- Positive Sentiment: Analyst optimism strengthened: HC Wainwright raised its target to $350 and kept a Buy rating. TD Cowen, RBC, Piper Sandler, Truist and Guggenheim also raised their targets, reflecting optimism about the launch and pipeline.
- Neutral Sentiment: Long-term earnings estimates were trimmed: Brookline Capital Markets lowered its FY2029 and FY2030 earnings forecasts, while retaining a Buy rating and $318 price target. The revisions temper some of the positive outlook but apply to future years.
- Negative Sentiment: High expectations leave execution risk: Commentary noted RVMD’s roughly $40 billion valuation and said further upside may depend on sustained commercial growth and pivotal clinical readouts. Strong initial sales are encouraging, but the company will need to demonstrate durable demand and pipeline progress. Valuation and outlook analysis
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.
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