Revolution Medicines (RVMD)
NASDAQ:RVMD
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Revolution Medicines
(NASDAQ:RVMD)
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Rating:59Neutral
Price Target:
$108.00
▲(15.87% Upside)
Action:ReiteratedDate:02/26/26
Overall score reflects a tension between weak current financial performance (zero recent revenue, rapidly widening losses, and heavy cash burn) and stronger forward-looking signals from the earnings call and price trend (late-stage trial momentum, regulatory wins, and ample financing capacity). Valuation is constrained by ongoing losses (negative P/E) and no dividend support.
Positive Factors
Late-stage clinical footprint
A broad Phase III program and >2,500 patients dosed materially de-risks individual assets and diversifies clinical timing. Multiple registrational trials across tumor types create several potential regulatory/catalyst paths and make the franchise less dependent on a single trial outcome.
Negative Factors
Rapid cash burn and widening losses
Substantial and accelerating operating losses and negative cash flow materially erode equity and raise ongoing funding needs. Persistent high burn pressures flexibility, increases dilution risk over time, and constrains optionality if clinical setbacks delay approvals or readouts.
Read all positive and negative factors
Positive Factors
Negative Factors
Late-stage clinical footprint
A broad Phase III program and >2,500 patients dosed materially de-risks individual assets and diversifies clinical timing. Multiple registrational trials across tumor types create several potential regulatory/catalyst paths and make the franchise less dependent on a single trial outcome.
Read all positive factors
Revolution Medicines (RVMD) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$18.47B
Dividend YieldN/A
Average Volume (3M)2.10M
Price to Earnings (P/E)―
Beta (1Y)1.06
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. Volume1,939,162
30 Day Avg. Volume2,099,924
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-2.15K
Enterprise Value/Ebitda-16.07
Forecast
1Y Price Target
$141.67Price Target Upside51.99% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering17
EPS Forecast (FY)-7.74
Revenue Forecast (FY)$54.38M
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 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 fir...
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
Neutral
93.21
Price Trends
101.48
Negative
89.47
Positive
65.66
Positive
Market Momentum
-1.35
Positive
38.18
Neutral
14.65
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For RVMD, the sentiment is Neutral. The current price of 93.21 is below the 20-day moving average (MA) of 98.12, below the 50-day MA of 101.48, and above the 200-day MA of 65.66, indicating a neutral trend. The MACD of -1.35 indicates Positive momentum. The RSI at 38.18 is Neutral, neither overbought nor oversold. The STOCH value of 14.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $4.10B | 36.27 | 15.25% | ― | 17.92% | -26.13% | |
59 Neutral | $18.47B | -13.39 | -63.10% | ― | -100.00% | -44.24% | |
56 Neutral | $7.87B | -8.19 | -25.88% | ― | ― | -5.21% | |
52 Neutral | $3.23B | -32.35 | -29.22% | ― | 74.91% | 31.54% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
50 Neutral | $12.26B | -33.22 | -68.82% | ― | 20.39% | 34.00% |
* Healthcare Sector Average
RVMD
Revolution Medicines
93.21
55.11
144.65%
CORT
Corcept Therapeutics
38.53
-18.15
-32.02%
IONS
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74.24
42.52
134.05%
LEGN
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17.49
-17.90
-50.58%
PCVX
Vaxcyte
54.71
-16.06
-22.69%
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.