Revolution Medicines (RVMD)
NASDAQ:RVMD
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Revolution Medicines
(NASDAQ:RVMD)
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Rating:58Neutral
Price Target:
$137.00
▼(-7.82% Downside)
Action:ReiteratedDate:04/18/26
The score is held back primarily by weak financial performance (widening losses, minimal/zero recent revenue, and heavy cash burn). Offsetting this are strong momentum signals in the stock price and positive clinical/strategic developments (earnings call updates and Phase 3 results) supported by meaningful new capital raises, though valuation remains constrained by unprofitability and technicals look overbought.
Positive Factors
Late‑stage clinical footprint
A deep, late‑stage pipeline with eight Phase III registrational trials and >2,500 patients dosed meaningfully de‑risks the company’s development trajectory. Multiple independent registrational paths increase likelihood of one or more approvals and create sustained optionality for future revenue streams and partnerships.
Negative Factors
Large and accelerating cash burn
Steep, sustained cash burn and widening net losses create a structural dependency on external financing and dilute downside protection. Continued negative free cash flow magnifies funding needs if clinical setbacks occur, increasing shareholder dilution risk and narrowing runway absent successful regulatory or commercial milestones.
Read all positive and negative factors
Positive Factors
Negative Factors
Late‑stage clinical footprint
A deep, late‑stage pipeline with eight Phase III registrational trials and >2,500 patients dosed meaningfully de‑risks the company’s development trajectory. Multiple independent registrational paths increase likelihood of one or more approvals and create sustained optionality for future revenue streams and partnerships.
Read all positive factors
Revolution Medicines (RVMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$32.12B
Dividend YieldN/A
Average Volume (3M)2.98M
Price to Earnings (P/E)―
Beta (1Y)1.51
Revenue GrowthN/A
EPS Growth-65.84%
CountryUS
Employees616
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)-5.95
Shares Outstanding212,592,560
10 Day Avg. Volume5,257,382
30 Day Avg. Volume2,978,947
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 Cap0.99
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit-3.74K
Enterprise Value/Ebitda-28.03
Forecast
1Y Price Target
$176.95Price Target Upside19.05% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering20
EPS Forecast (FY)-7.55
Revenue Forecast (FY)$77.06M
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:May 06, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The call conveyed overwhelmingly positive clinical and strategic progress—most notably the practice‑changing RASolute 302 Phase III result (60% reduction in risk of death) and a large capital raise that materially strengthens the balance sheet—while candidly disclosing near‑term financial impacts from rapid program acceleration, elevated stock‑based compensation and higher operating expenses. Operational and regulatory timing uncertainties and trial design complexities were noted, but the program momentum, supportive data across multiple assets, and strong funding availability suggest the positives materially outweigh the headwinds.Positive Updates
Transformative Phase III RASolute 302 Results (daraxonrasib)
Daraxonrasib monotherapy met primary and key secondary endpoints in RASolute 302, demonstrating a 60% reduction in risk of death versus chemotherapy in previously treated metastatic pancreatic cancer and a median overall survival exceeding 1 year; treatment was generally well tolerated with no new safety signals.
Negative Updates
Large Increase in Operating Expenses and Net Loss
First‑quarter 2026 R&D expense rose to $344.0M from $205.7M (≈67% increase year‑over‑year) and G&A rose to $101.3M from $35.0M (≈189% increase); net loss widened to $453.8M from $213.4M (≈113% increase), driven by acceleration of clinical programs, manufacturing, headcount and commercial preparation.
Read all updates
Q1-2026 Updates
Positive
Negative
Transformative Phase III RASolute 302 Results (daraxonrasib)
Daraxonrasib monotherapy met primary and key secondary endpoints in RASolute 302, demonstrating a 60% reduction in risk of death versus chemotherapy in previously treated metastatic pancreatic cancer and a median overall survival exceeding 1 year; treatment was generally well tolerated with no new safety signals.
Read all positive updates
Company Guidance
Management's guidance and updates included numerous quantitative milestones: Q1 cash and investments were $1.9B and the company raised $2.1B net in April following an historic ~$2B dual‑tranche capital raise; Q1 stock‑based compensation was $87.3M (vs $25.1M a year ago) including a $44.6M incremental charge, and full‑year 2026 stock‑based compensation is now guided to $260–$280M (up ~$80M), with GAAP operating expense guidance of $1.7–$1.8B; Q1 R&D and G&A were $344.0M and $101.3M (vs $205.7M and $35.0M), and net loss was $453.8M (vs $213.4M). On the clinical front, RASolute‑302 showed a 60% reduction in risk of death versus chemotherapy with median overall survival >1 year and no new safety signals; daraxonrasib 1L Kaplan‑Meier 6‑month estimates were PFS 71%/OS 83% (monotherapy) and PFS 84%/OS 90% (with gemcitabine + nab‑paclitaxel); zoldonrasib in NSCLC had ORR 52%, DCR 93%, median PFS 11.1 months and 12‑month estimated OS 73%; RASolve‑301 will expand from 420 to 590 patients to boost OS power with enrollment expected to be substantially complete this year; RMC‑5127 RP2D is expected H2 2026 and RM‑055 FIH is planned for Q4 2026; the company intends to submit an NDA under the FDA Commissioner’s National Priority Voucher Program and has received FDA clearance to open an expanded access program.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
148.63
Price Trends
103.09
Positive
96.79
Positive
71.19
Positive
Market Momentum
12.34
Negative
82.38
Negative
91.36
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 148.63 is above the 20-day moving average (MA) of 108.52, above the 50-day MA of 103.09, and above the 200-day MA of 71.19, indicating a bullish trend. The MACD of 12.34 indicates Negative momentum. The RSI at 82.38 is Negative, neither overbought nor oversold. The STOCH value of 91.36 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 |
|---|---|---|---|---|---|---|---|
73 Outperform | $5.60B | -33.73 | 7.50% | ― | 12.20% | -64.76% | |
61 Neutral | $5.36B | -32.35 | -29.22% | ― | 64.66% | -66.81% | |
58 Neutral | $32.12B | -10.61 | -63.10% | ― | ― | -65.84% | |
56 Neutral | $8.24B | -6.32 | -25.88% | ― | ― | -47.05% | |
52 Neutral | $12.70B | -33.45 | -58.57% | ― | 47.40% | 32.85% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
RVMD
Revolution Medicines
151.07
113.41
301.14%
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LEGN
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PCVX
Vaxcyte
57.10
28.10
96.90%
Revolution Medicines Corporate Events
Private Placements and Financing
Revolution Medicines Raises $500 Million via Convertible Notes
Positive
Apr 17, 2026
On April 17, 2026, Revolution Medicines issued $500 million of 0.50% Convertible Senior Notes due 2033 as senior unsecured obligations under an indenture with U.S. Bank Trust Company, N.A. as trustee, establishing detailed terms for interest payme...
Business Operations and StrategyPrivate Placements and Financing
Revolution Medicines Raises Capital via Equity and Convertible Notes
Positive
Apr 16, 2026
On April 14, 2026, Revolution Medicines, Inc. entered into an underwriting agreement with a syndicate led by J.P. Morgan, TD Securities and Guggenheim to sell 10,563,381 common shares at $142.00 each, and the underwriters fully exercised a 30̴...
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.