It has been about a month since the last earnings report for Revolution Medicines, Inc. (RVMD). Shares have added about 27.9% 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.
Q3 Loss Wider Than Expected, Nil Sales
Revolution Medicines reported a third-quarter 2025 loss of $1.61 per share, wider than the Zacks Consensus Estimate of a loss of $1.39. The company had incurred a loss of 94 cents in the year-ago quarter.
Currently, Revolution Medicines does not have any approved products in its portfolio. Hence, it has yet to generate revenues.
Quarter in Detail
Research and development expenses amounted to around $263 million, up 73% year over year. This significant increase was primarily driven by higher costs associated with clinical studies and manufacturing for the company’s drug candidates, as well as increased employee-related expenses.
General and administrative expenses amounted to nearly $53 million, up 120% year over year, mainly due to higher employee-related expenses incurred during the quarter.
2025 Guidance
The company reiterated its guidance for operating expenses for the full year. It expects the figure to be between $1.03 billion and $1.09 billion, which includes non-cash stock-based compensation expense of $115-$130 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 -5.4% due to these changes.
VGM Scores
At this time, Revolution Medicines has a poor Growth Score of F, a score with the same score on the momentum front. Following the exact same course, the stock has a grade 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. Interestingly, 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 belongs to the Zacks Medical - Biomedical and Genetics industry. Another stock from the same industry, Biogen Inc. (BIIB), has gained 16.1% over the past month. More than a month has passed since the company reported results for the quarter ended September 2025.
Biogen reported revenues of $2.53 billion in the last reported quarter, representing a year-over-year change of +2.8%. EPS of $4.81 for the same period compares with $4.08 a year ago.
For the current quarter, Biogen is expected to post earnings of $1.73 per share, indicating a change of -49.7% from the year-ago quarter. The Zacks Consensus Estimate has changed -11.3% over the last 30 days.
Biogen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of B.
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Revolution Medicines, Inc. (RVMD): Free Stock Analysis Report Biogen Inc. (BIIB): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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