A month has gone by since the last earnings report for Revolution Medicines, Inc. (RVMD). Shares have added about 9.3% in that time frame, outperforming the S&P 500.
Will the recent positive trend continue leading up to its next earnings release, or is Revolution Medicines due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers.
Q1 Loss Wider Than Expected, Nil Sales
Revolution Medicines reported a first-quarter 2026 loss of $2.29 per share, wider than the Zacks Consensus Estimate of a loss of $1.83. The company had incurred a loss of $1.13 in the year-ago quarter.
Currently, the company does not have any approved products in its portfolio. It has yet to generate revenues.
Quarter in Detail
Research and development expenses amounted to about $344 million, up 67% year over year. This significant increase was primarily driven by higher costs associated with clinical studies and manufacturing for the company’s drug candidates.
General and administrative expenses surged 189% to $101.3 million, primarily driven by higher stock-based compensation expenses, headcount costs and administrative costs, as well as increased commercial preparation activities during the quarter.
Updates 2026 Guidance
The company revised its guidance for operating expenses. It expects the figure to be between $1.7 billion and $1.8 billion (previously: $1.6-$1.7 billion), which includes non-cash stock-based compensation expense of $260-$280 million (previously: $180-$200 million).
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -8.19% due to these changes.
VGM Scores
At this time, Revolution Medicines has a poor Growth Score of F, a grade with the same score on the momentum front. Following the exact same course, the stock has a score of F on the value side, putting it in the bottom 20% quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, Revolution Medicines has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
Performance of an Industry Player
Revolution Medicines is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Alkermes (ALKS), a stock from the same industry, has gained 22.5%. The company reported its results for the quarter ended March 2026 more than a month ago.
Alkermes reported revenues of $392.91 million in the last reported quarter, representing a year-over-year change of +28.2%. EPS of -$0.40 for the same period compares with $0.13 a year ago.
For the current quarter, Alkermes is expected to post a loss of $0.04 per share, indicating a change of -107.7% from the year-ago quarter. The Zacks Consensus Estimate has changed +61.4% over the last 30 days.
Alkermes has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.
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Revolution Medicines, Inc. (RVMD): Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).