Revolution Medicines (RVMD)
NASDAQ:RVMD
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Revolution Medicines
(NASDAQ:RVMD)
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Rating:54Neutral
Price Target:
$98.00
▼(-33.34% Downside)
Action:ReiteratedDate:04/14/26
The score is held back primarily by weak financial performance (rapidly widening losses, heavy cash burn, and limited recent revenue). Offsetting this are strong clinical/regulatory momentum and a major positive Phase 3 readout plus supportive funding commentary, while technicals are broadly neutral and valuation remains constrained by ongoing losses.
Positive Factors
Positive Phase III readout
Topline Phase 3 daraxonrasib results showing a large OS benefit materially de-risks the lead program. Over the medium term this supports regulatory filings, potential label and standard‑of‑care changes in pancreatic cancer, strengthens commercial prospects, and validates the RAS(ON) platform for partners.
Negative Factors
Accelerating cash burn
Very large negative operating and free cash flow in 2025 indicate sustained high burn to fund trials and commercial prep. Over the medium term this necessitates further external funding or asset monetization, raising dilution risk and limiting strategic flexibility if clinical timelines slip.
Read all positive and negative factors
Positive Factors
Negative Factors
Positive Phase III readout
Topline Phase 3 daraxonrasib results showing a large OS benefit materially de-risks the lead program. Over the medium term this supports regulatory filings, potential label and standard‑of‑care changes in pancreatic cancer, strengthens commercial prospects, and validates the RAS(ON) platform for partners.
Read all positive factors
Revolution Medicines (RVMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$27.01B
Dividend YieldN/A
Average Volume (3M)1.78M
Price to Earnings (P/E)―
Beta (1Y)1.02
Revenue Growth-100.00%
EPS Growth-44.24%
CountryUS
Employees616
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-1.86
Shares Outstanding198,173,400
10 Day Avg. Volume1,576,305
30 Day Avg. Volume1,775,677
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 Cap1.11
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-3.53K
Enterprise Value/Ebitda-26.42
Forecast
1Y Price Target
$155.88Price Target Upside6.03% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering19
EPS Forecast (FY)-7.77
Revenue Forecast (FY)$60.47M
Revolution Medicines Business Overview & Revenue Model
Company Description
Revolution Medicines, Inc., a clinical-stage precision oncology company, focuses on developing therapies to inhibit frontier targets in RAS-addicted cancers. The company is developing RMC-4630, an inhibitor of SHP2, which is in Phase 1/2 clinical ...
How the Company Makes Money
Revolution Medicines primarily generates revenue from collaboration and licensing arrangements rather than product sales, as it is a clinical-stage company and does not have null FDA-approved commercial products. Its revenue model is typically dri...
Revolution Medicines Earnings Call Summary
Earnings Call Date:Feb 25, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 11, 2026
Earnings Call Sentiment Positive
The call conveyed strong clinical and operational momentum: multiple registrational trials, regulatory designations (Breakthrough Therapy and a commissioner priority voucher), promising early clinical data (notably zoldonrasib combination responses), new compounds entering the clinic, and a solid cash position supplemented by a large Royalty Pharma commitment. Offsetting these positives are substantially higher R&D and G&A spending, a materially wider net loss, and elevated 2026 operating expense guidance as the company scales clinical and commercial activities. Clinical uncertainties remain (OS-driven readout timing, potential crossover risk, and difficult CRC biology), but the balance of progress and funding to execute the plan led management to accelerate investments. Overall, progress and available capital appear to outweigh the near-term financial drag from higher expenses.Positive Updates
Strong cash position and committed capital
Cash and investments of $2.03 billion at 12/31/2025 and access to up to $2.0 billion in committed capital via the Royalty Pharma agreement (first tranche of $250 million received; $1.75 billion remaining).
Negative Updates
Significant increase in R&D spending
Q4 2025 R&D expenses were $294.9 million versus $188.1 million in Q4 2024, an increase of approximately 56.8%, driven by higher clinical trial and manufacturing costs and increased headcount/stock-based compensation.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong cash position and committed capital
Cash and investments of $2.03 billion at 12/31/2025 and access to up to $2.0 billion in committed capital via the Royalty Pharma agreement (first tranche of $250 million received; $1.75 billion remaining).
Read all positive updates
Company Guidance
Revolution Medicines said it is switching forward-looking disclosure from GAAP net loss to GAAP operating expenses and guided full‑year 2026 GAAP operating expenses of $1.6–$1.7 billion (which includes $180–$200 million of estimated non‑cash stock‑based compensation), citing higher spend to support multiple registrational trials and expanded commercial preparation; at year‑end 2025 it reported $2.03 billion in cash and investments and an agreement with Royalty Pharma for up to $2.0 billion in committed capital (first $250 million received in June 2025; $1.75 billion remaining). For Q4 2025 R&D was $294.9 million (vs. $188.1M in Q4 2024), G&A was $66.7 million (vs. $28.2M), and net loss was $364.9 million (vs. $194.6M), which included Q4 non‑cash charges of $33.7M stock‑based compensation, $12.6M warrant expense and $11.9M non‑cash interest; the company also noted >2,500 patients dosed across its RAS(ON) inhibitors and 8 ongoing or planned Phase III registrational trials.Revolution Medicines Financial Statement Overview
Summary
Income Statement
18
Very Negative
Balance Sheet
62
Positive
Cash Flow
24
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 0.00 | 0.00 | 11.58M | 35.38M | 29.39M |
| Gross Profit | -16.56M | 0.00 | 11.58M | 35.38M | 29.39M |
| EBITDA | -1.09B | -677.70M | -477.88M | -248.62M | -179.75M |
| Net Income | -1.13B | -600.09M | -436.37M | -248.71M | -187.09M |
Balance Sheet | |||||
| Total Assets | 2.35B | 2.56B | 2.06B | 811.93M | 737.99M |
| Cash, Cash Equivalents and Short-Term Investments | 2.03B | 2.29B | 1.85B | 644.94M | 577.05M |
| Total Debt | 158.70M | 135.84M | 87.94M | 64.20M | 66.63M |
| Total Liabilities | 723.21M | 293.10M | 235.51M | 126.74M | 135.42M |
| Stockholders Equity | 1.63B | 2.27B | 1.83B | 685.19M | 602.57M |
Cash Flow | |||||
| Free Cash Flow | -913.73M | -567.74M | -358.30M | -235.22M | -153.71M |
| Operating Cash Flow | -897.74M | -557.44M | -350.57M | -224.40M | -147.18M |
| Investing Cash Flow | 118.06M | -554.39M | -342.60M | -24.12M | -142.12M |
| Financing Cash Flow | 621.52M | 959.41M | 1.23B | 301.43M | 294.18M |
Revolution Medicines Technical Analysis
Positive
147.01
Price Trends
100.98
Positive
95.22
Positive
70.07
Positive
Market Momentum
8.97
Negative
87.76
Negative
97.65
Negative
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 147.01 is above the 20-day moving average (MA) of 103.50, above the 50-day MA of 100.98, and above the 200-day MA of 70.07, indicating a bullish trend. The MACD of 8.97 indicates Negative momentum. The RSI at 87.76 is Negative, neither overbought nor oversold. The STOCH value of 97.65 is Negative, 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 81 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 |
|---|---|---|---|---|---|---|---|
70 Outperform | $4.61B | 36.27 | 15.25% | ― | 17.92% | -26.13% | |
56 Neutral | $3.27B | -32.35 | -29.22% | ― | 74.91% | 31.54% | |
56 Neutral | $8.89B | -8.19 | -25.88% | ― | ― | -5.21% | |
54 Neutral | $27.01B | -13.39 | -63.10% | ― | -100.00% | -44.24% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $12.38B | ― | -68.82% | ― | 20.39% | 34.00% |
* Healthcare Sector Average
RVMD
Revolution Medicines
147.01
110.81
306.10%
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Revolution Medicines Corporate Events
Business Operations and StrategyProduct-Related Announcements
Revolution Medicines Reports Positive Phase 3 Daraxonrasib Results
Positive
Apr 13, 2026
On April 13, 2026, Revolution Medicines reported topline data from its global Phase 3 RASolute 302 trial of daraxonrasib in previously treated metastatic pancreatic ductal adenocarcinoma. The oral KRAS inhibitor significantly improved progression-...
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.