Revolution Medicines (NASDAQ:RVMD) Shares Gap Down Following Weak Earnings

Revolution Medicines, Inc. (NASDAQ:RVMD) shares gapped down prior to trading on Thursday following a weaker than expected earnings announcement. The stock had previously closed at $103.24, but opened at $95.47. Revolution Medicines shares last traded at $99.8470, with a volume of 336,331 shares changing hands.

The company reported ($1.86) EPS for the quarter, missing the consensus estimate of ($1.56) by ($0.30). During the same quarter in the previous year, the firm posted ($1.12) EPS.

Key Headlines Impacting Revolution Medicines

Here are the key news stories impacting Revolution Medicines this week:

• Positive Sentiment: Evercore upgraded RVMD to “strong-buy,” signaling institutional confidence that the company’s RAS-focused programs could justify higher valuation. Read More.
• Positive Sentiment: Corporate update: Revolution said it is advancing late-stage RAS pipeline studies (progress that could drive long-term revenue potential if pivotal data are positive). Read More.
• Positive Sentiment: Media/analysis pieces are highlighting potential clinical breakthroughs in RVMD’s cancer programs, which can create upside if follow-up data confirm efficacy. Read More.
• Neutral Sentiment: Management participated in earnings commentary and the TD Cowen healthcare conference, providing additional investor access to program timelines and readouts (useful for roadmapping catalysts but not immediate stock-moving data). Read More.
• Neutral Sentiment: Earnings call transcript is available for detail on trial timing, enrollment and strategy — good for investors who want granular color on pipeline milestones. Read More.
• Negative Sentiment: Q4 results missed expectations: RVMD reported a ($1.86) EPS vs. consensus ($1.56), a wider loss versus the prior year — a near-term negative for sentiment. Read More.
• Negative Sentiment: Raised 2026 operating expense outlook to $1.6B–$1.7B to fund late‑stage RAS studies, meaning significantly higher cash burn and dilution risk before commercialization. This guidance is a key driver of the negative market reaction today. Read More.

Analyst Upgrades and Downgrades

A number of equities analysts have weighed in on RVMD shares. Benchmark restated an “overweight” rating on shares of Revolution Medicines in a research note on Tuesday, February 17th. Evercore upgraded shares of Revolution Medicines to a “strong-buy” rating in a report on Wednesday. Royal Bank Of Canada started coverage on Revolution Medicines in a report on Monday, November 3rd. They set an “outperform” rating and a $77.00 target price for the company. Weiss Ratings reiterated a “sell (d-)” rating on shares of Revolution Medicines in a report on Thursday, January 22nd. Finally, JPMorgan Chase & Co. lifted their target price on shares of Revolution Medicines from $71.00 to $82.00 and gave the company an “overweight” rating in a research note on Thursday, November 6th. Five analysts have rated the stock with a Strong Buy rating, fourteen have given a Buy rating and one has given a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has an average rating of “Buy” and an average target price of $78.94.

Insider Buying and Selling at Revolution Medicines

In other news, insider Mark A. Goldsmith sold 15,394 shares of Revolution Medicines stock in a transaction on Tuesday, December 16th. The shares were sold at an average price of $76.82, for a total transaction of $1,182,567.08. Following the transaction, the insider owned 232,469 shares in the company, valued at $17,858,268.58. This trade represents a 6.21% decrease in their position. The sale was disclosed in a legal filing with the SEC, which is available through this hyperlink. Also, COO Margaret A. Horn sold 75,000 shares of the business’s stock in a transaction that occurred on Wednesday, January 7th. The shares were sold at an average price of $100.56, for a total value of $7,542,000.00. Following the transaction, the chief operating officer owned 141,053 shares of the company’s stock, valued at approximately $14,184,289.68. This trade represents a 34.71% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders have sold a total of 113,792 shares of company stock valued at $10,734,640 over the last three months. Insiders own 8.20% of the company’s stock.

Hedge Funds Weigh In On Revolution Medicines

Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. New York State Common Retirement Fund lifted its holdings in shares of Revolution Medicines by 39.3% during the third quarter. New York State Common Retirement Fund now owns 119,807 shares of the company’s stock worth $5,595,000 after purchasing an additional 33,821 shares during the period. Raiffeisen Bank International AG acquired a new position in Revolution Medicines in the 3rd quarter valued at $921,000. NEOS Investment Management LLC raised its position in Revolution Medicines by 34.7% during the 3rd quarter. NEOS Investment Management LLC now owns 126,921 shares of the company’s stock worth $5,927,000 after buying an additional 32,694 shares during the last quarter. Tema Etfs LLC lifted its stake in shares of Revolution Medicines by 34.7% in the 3rd quarter. Tema Etfs LLC now owns 126,921 shares of the company’s stock worth $5,927,000 after acquiring an additional 32,694 shares during the period. Finally, Knights of Columbus Asset Advisors LLC acquired a new stake in shares of Revolution Medicines in the 3rd quarter worth $587,000. 94.34% of the stock is owned by institutional investors.

Revolution Medicines Trading Down 1.1%

The company has a quick ratio of 8.05, a current ratio of 8.05 and a debt-to-equity ratio of 0.16. The company’s fifty day moving average price is $98.72 and its two-hundred day moving average price is $69.89. The firm has a market cap of $19.75 billion, a PE ratio of -17.28 and a beta of 1.01.

Revolution Medicines Company Profile

Revolution Medicines is a clinical-stage biopharmaceutical company focused on discovering and developing small molecule therapies to treat RAS-dependent cancers and other diseases driven by the RAS/MAPK pathway. The company’s research efforts target historically “undruggable” proteins, aiming to inhibit critical nodes in cell signaling that promote tumor growth and therapeutic resistance.

The lead pipeline includes RMC-4630, a SHP2 inhibitor; RMC-6291, a selective KRAS G12C inhibitor; and RMC-6236, a pan-RAS inhibitor designed to address multiple RAS mutations.