Revolution Medicines (RVMD) AI Stock Analysis

• Market Cap: $15.44B
• Dividend Yield: N/A
• Average Volume (3M): 2.00M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.85
• Revenue Growth: -100.00%
• EPS Growth: -44.24%
• Country: US
• Employees: 616
• Sector: Healthcare
• Sector Strength: 45
• Industry: Biotechnology
• EPS (TTM): -1.61
• Shares Outstanding: 193,319,810
• 10 Day Avg. Volume: 1,242,866
• 30 Day Avg. Volume: 1,998,989
• PEG Ratio: 1.69
• Price to Book (P/B): 3.24
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.92
• Enterprise Value/Market Cap: 0.57
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: -2.31K
• Enterprise Value/Ebitda: -8.78
• 1Y Price Target: $81.24
• Price Target Upside: -20.90% Downside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $107.00 ▲(4.18% Upside)

The score is primarily constrained by weak operating fundamentals (near-zero revenue, widening losses, and heavy cash burn) despite a relatively strong balance sheet. Offsetting this, the earnings call highlighted meaningful clinical and regulatory momentum plus strong liquidity, while technicals show a strong trend but with overstretched RSI raising near-term risk. Valuation remains pressured due to ongoing losses and no dividend support.

Positive Factors

Strong liquidity and committed capital

A sizeable cash/investment base plus $1.75B committed capital meaningfully extends the company’s runway, funding pivotal Phase 3 trials and commercial preparation without immediate financing. This reduces near-term dilution risk and provides strategic optionality to advance programs.

Regulatory designations for daraxonrasib

Multiple FDA designations can accelerate review and lower regulatory uncertainty for daraxonrasib, improving the probability and timing of approval. These durable regulatory advantages can enhance market access, payer engagement, and partner interest for a targeted oncology asset.

Compelling clinical efficacy signals

High objective response and disease control rates in PDAC provide substantive clinical de‑risking for a difficult indication. Durable efficacy signals support progression to registrational trials, strengthen differentiation versus competitors, and underpin long-term commercial potential if confirmed in Phase 3.

Negative Factors

Sustained high cash burn

Large negative operating and free cash flows reflect burning capital to fund trials and manufacturing. Persistently high burn requires ongoing financing or monetization events, increasing dilution risk and constraining long-term investment flexibility if clinical progress slows or trial costs rise.

Widening net losses and rising expenses

Rapidly increasing operating expenses and a widening net loss indicate scaling costs outpacing any revenue. This deteriorates returns (ROE ~ -49%), pressures equity, and raises the bar for future profitability, making the company heavily outcome‑dependent on trial successes to justify continued investment.

Pre-commercial revenue model and partnership dependence

Without marketed products, revenue timing and magnitude depend on milestone payments, royalties and monetization arrangements. This structural reliance on partnership cash flows introduces execution and timing risk, and long-term revenue sustainability hinges on successful approvals and commercialization.

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 trial for the treatment of solid tumors, such as gynecologic and colorectal cancer tumors. It also develops RMC-5845, a selective inhibitor of SOS1, a protein that converts RAS (OFF) to RAS (ON) in cells; and RMC-5552, a hyperactivated selective inhibitor of mTORC1 signaling in tumors. In addition, the company is developing RMC-6291, a mutant-selective inhibitor of KRASG12C(ON) and NRASG12C(ON); and RMC-6236, a RAS-selective inhibitor of multiple RAS(ON) variants. Further, it develops RAS(ON) Inhibitors targeting KRASG13C(ON) and KRASG12D(ON). The company has a collaboration agreement with Sanofi for the research and development of SHP2 inhibitors, including RMC-4630. Revolution Medicines, Inc. was incorporated in 2014 and is headquartered in Redwood City, California.

How the Company Makes Money

Revolution Medicines generates revenue primarily through strategic collaborations, research and development partnerships, and milestone payments from other pharmaceutical companies. The company enters into agreements with larger pharmaceutical firms to co-develop and commercialize its drug candidates, often receiving upfront payments, research funding, and future royalties on sales of successfully developed products. Additionally, Revolution Medicines may also benefit from licensing agreements, wherein it grants other companies the rights to use its proprietary technologies or compounds in exchange for licensing fees.

Revolution Medicines Financial Statement Overview

Summary

Revolution Medicines faces significant financial challenges with declining revenues and persistent losses, common in the biotechnology industry due to high R&D costs and long product development cycles. While the balance sheet reflects strong liquidity and low leverage, the cash flow statement highlights the need for efficient cash management to sustain operations.

Income Statement

Revolution Medicines shows a declining revenue trend over the past five years, with a significant drop to zero revenue in the most recent year. Margins, including gross profit and net income, are negative, reflecting substantial losses and indicating challenges in achieving profitability.

Balance Sheet

The company has maintained a strong cash position with negative net debt, suggesting adequate liquidity. However, the consistent high levels of net losses are concerning. The debt-to-equity ratio remains low, indicating conservative leverage, which is positive for financial stability.

Cash Flow

Cash flows remain negative with increasing operating and free cash flow deficits, suggesting ongoing challenges in generating positive cash flow from operations. However, substantial financing activities have bolstered cash reserves, which can support operations in the short term.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	0.00	0.00	11.58M	35.38M	29.39M	42.98M
Gross Profit	-3.80M	0.00	11.58M	35.38M	29.39M	42.98M
EBITDA	-1.00B	-677.70M	-477.88M	-248.62M	-179.75M	-101.91M
Net Income	-960.98M	-600.09M	-436.37M	-248.71M	-187.09M	-108.16M
Balance Sheet
Total Assets	2.25B	2.56B	2.06B	811.93M	737.99M	567.40M
Cash, Cash Equivalents and Short-Term Investments	1.93B	2.29B	1.85B	644.94M	577.05M	440.74M
Total Debt	158.46M	135.84M	87.94M	64.20M	66.63M	32.66M
Total Liabilities	655.02M	293.10M	235.51M	126.74M	135.42M	92.72M
Stockholders Equity	1.60B	2.27B	1.83B	685.19M	602.57M	474.68M
Cash Flow
Free Cash Flow	-777.08M	-567.74M	-358.30M	-235.22M	-153.71M	-103.00M
Operating Cash Flow	-761.79M	-557.44M	-350.57M	-224.40M	-147.18M	-100.06M
Investing Cash Flow	-349.73M	-554.39M	-342.60M	-24.12M	-142.12M	-234.23M
Financing Cash Flow	1.13B	959.41M	1.23B	301.43M	294.18M	422.78M

Revolution Medicines Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 102.71
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: 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 102.71 is above the 20-day moving average (MA) of 80.19, above the 50-day MA of 72.87, and above the 200-day MA of 48.25, indicating a bullish trend. The MACD of 3.81 indicates Negative momentum. The RSI at 86.71 is Negative, neither overbought nor oversold. The STOCH value of 63.60 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for RVMD.

Revolution Medicines Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CORT	63 Neutral	$3.76B	42.28	16.47%	―	17.92%	-26.13%
RVMD	59 Neutral	$15.44B	-19.82	-60.76%	―	-100.00%	-44.24%
IONS	56 Neutral	$13.20B	-48.60	-39.99%	―	20.39%	34.00%
PCVX	52 Neutral	$5.87B	―	-20.83%	―	―	-5.21%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
LEGN	46 Neutral	$3.87B	-17.40	-22.60%	―	74.91%	31.54%

Revolution Medicines Corporate Events

Revolution Medicines Receives FDA Voucher for Daraxonrasib

On October 16, 2025, Revolution Medicines announced that the U.S. FDA granted them a non-transferrable voucher for their RAS(ON) multi-selective inhibitor, daraxonrasib, under the National Priority Voucher pilot program. This development is significant for the company as it enhances their market positioning and could accelerate the regulatory review process, potentially benefiting stakeholders by expediting the availability of their innovative cancer treatment.

The most recent analyst rating on (RVMD) stock is a Buy with a $72.00 price target. To see the full list of analyst forecasts on Revolution Medicines stock, see the RVMD Stock Forecast page.