Revolution Medicines, Inc (NASDAQ:RVMD) Sets Up For Near-Term Pullback Despite Strong Clinical Momentum

Revolution Medicines shows clinical breakthroughs that could alter its commercialization timeline, while short-term technicals and valuation metrics suggest heightened downside risk before any sustained advance.

Recent News

April 13, 2026: multiple outlets reported Phase 3 data for the company’s daraxonrasib (RMC-6236) showing notably improved outcomes in pancreatic cancer compared with standard chemotherapy; April 19, 2026: the company announced plans to present updated Phase 1 clinical data for zoldonrasib at the 2026 AACR Annual Meeting; recent corporate releases also announced enrollment and first‑patient dosing for RMC-5127 in a G12V-selective trial.

Technical Analysis

Trend strength: ADX at 40.0 signals very strong directional strength; with DI+ at 41.15 decreasing and DI- showing a dip & reversal, directional indicators skew toward bearish pressure despite trend strength.

Momentum (MACD): MACD sits positive at 10.02 but shows a decreasing trend while remaining above its signal line at 9.44; the cross above the signal line represents a bullish signal, yet the falling MACD trend signals declining bullish momentum.

Momentum/Regression Oscillator (MRO): MRO reads 38.32 with a dip & reversal, implying the price sits above the model target and faces mean-reversion risk toward fair value.

Relative Strength (RSI): RSI at 60.07 with a peak & reversal indicates loss of upward momentum and increased vulnerability to a pullback.

Price vs. averages and bands: Last close $140.55 remains above the 12‑day EMA ($135.98, increasing), above the 20‑day average ($139.55) and well above the 50‑day ($109.98) and 200‑day ($75.30) averages; Bollinger bands compress with a 1x upper at $155.20 and lower at $123.89, implying limited near-term upside before volatility re-expands.

 


Fundamental Analysis

Profitability and income statement: Net income for the period equaled -$364,892,000; EBIT registered -$352,956,000 and EBITDA -$348,254,000. EPS actual arrived at -$1.86 versus an estimate of -$1.58, a negative surprise of -$0.28 or -17.72%.

Cash, liquidity and capital structure: Cash and short-term investments total $2,025,679,000 with cash alone at $383,745,000. Total current assets $2,075,037,000 against current liabilities $290,424,000 produce a current ratio of 7.14; the cash ratio reads 6.97, signaling ample near-term liquidity. Total debt equals $158,702,000, representing 6.74% debt-to-assets and roughly 9.73% debt-to-equity, keeping leverage low.

Cash flow: Operating cash flow measured -$370,423,000 while free cash flow reached -$276,163,000; free cash flow yield shows -1.535%. Free cash growth year-over-year runs +647.27% while sequential free cash growth contracted sharply QoQ, indicating lumpy cash dynamics tied to development spend and cash events.

R&D and investment profile: Research and development expense reached $294,943,000, sustaining the pipeline investment required for multiple ongoing trials and dose-expansion activities.

Returns and valuation multiples: Return on assets equals -15.84% and return on equity -22.37%. Price-to-book stands at 11.03, above the industry peer mean ($5.07) and median ($5.998) while remaining below the industry peer high ($19.43); price-to-book shows a QoQ change of -4.38% and a YoY increase of +105.82%. Trailing PE reads -49.10 and forward PE -40.42, reflecting negative earnings; PEG sits at -3.16. WMDST values the stock as over-valued.

MOST-RECENT QUARTERLY REPORT
REPORT PERIOD ENDING: 2025-12-31
REPORT DATE: 2026-02-25
NEXT REPORT DATE: 2026-05-27
CASH FLOW  Begin Period Cash Flow $ 222.3 M
 Operating Cash Flow $ -370.42 M
 Capital Expenditures $ -1.93 M
 Change In Working Capital $ 32.2 M
 Dividends Paid —
 Cash Flow Delta $ 166.3 M
 End Period Cash Flow $ 388.6 M
 
INCOME STATEMENT REVENUE
 Total Revenue —
 Forward Revenue —
COSTS
 Cost Of Revenue —
 Depreciation $ 4.6 M
 Depreciation and Amortization $ 4.7 M
 Research and Development $ 294.9 M
 Total Operating Expenses $ 361.6 M
PROFITABILITY
 Gross Profit —
 EBITDA $ -348.25 M
 EBIT $ -352.96 M
 Operating Income $ -361.63 M
 Interest Income $ 21.3 M
 Interest Expense $ 11.9 M
 Net Interest Income $ 9.4 M
 Income Before Tax $ -364.89 M
 Tax Provision —
 Tax Rate —
 Net Income $ -364.89 M
 Net Income From Continuing Operations $ -364.89 M
EARNINGS
 EPS Estimate $ -1.58
 EPS Actual $ -1.86
 EPS Difference $ -0.28
 EPS Surprise -17.722 %
 Forward EPS $ -1.31
 
BALANCE SHEET ASSETS
 Total Assets $ 2.4 B
 Intangible Assets $ 70.4 M
 Net Tangible Assets $ 1.6 B
 Total Current Assets $ 2.1 B
 Cash and Short-Term Investments $ 2.0 B
 Cash $ 383.7 M
 Net Receivables —
 Inventory —
 Long-Term Investments $ 19.6 M
LIABILITIES
 Accounts Payable $ 64.6 M
 Short-Term Debt —
 Total Current Liabilities $ 290.4 M
 Net Debt —
 Total Debt $ 158.7 M
 Total Liabilities $ 723.2 M
EQUITY
 Total Equity $ 1.6 B
 Retained Earnings $ -2.87 B
VALUATION & PER-SHARE METRICS EQUITY & PER-SHARE METRICS
 Book Value Per-Share $ 8.28
 Shares Outstanding 197.001 M
 Revenue Per-Share —
VALUATION
 Market Capitalization $ 18.0 B
 Enterprise Value $ 16.1 B
 Enterprise Multiple -46.302
Enterprise Multiple QoQ 85.358 %
Enterprise Multiple YoY 63.883 %
Enterprise Multiple IPRWA high: 67.346
median: 51.922
mean: 13.522
RVMD: -46.302
low: -114.076
 EV/R —
CAPITAL STRUCTURE
 Asset To Equity 1.443
 Asset To Liability 3.256
 Debt To Capital 0.089
 Debt To Assets 0.067
Debt To Assets QoQ -4.221 %
Debt To Assets YoY 26.93 %
Debt To Assets IPRWA high: 1.032
mean: 0.119
RVMD: 0.067
median: 0.005
low: 0.0
 Debt To Equity 0.097
Debt To Equity QoQ -1.955 %
Debt To Equity YoY 62.231 %
Debt To Equity IPRWA high: 1.524
mean: 0.143
RVMD: 0.097
median: 0.005
low: -0.893
PRICE-BASED VALUATION
 Price To Book (P/B) 11.029
Price To Book QoQ 95.625 %
Price To Book YoY 205.823 %
Price To Book IPRWA high: 19.432
RVMD: 11.029
median: 5.998
mean: 5.074
low: -10.511
 Price To Earnings (P/E) -49.102
Price To Earnings QoQ 66.577 %
Price To Earnings YoY 25.142 %
Price To Earnings IPRWA high: 74.171
mean: 0.267
median: -14.743
RVMD: -49.102
low: -119.903
 PE/G Ratio -3.162
 Price To Sales (P/S) —
Price To Sales QoQ —
Price To Sales YoY —
Price To Sales IPRWA —
FORWARD MULTIPLES
Forward P/E -40.423
Forward PE/G -2.603
Forward P/S —
EFFICIENCY OPERATIONAL
 Operating Leverage —
ASSET & SALES
 Asset Turnover Ratio —
Asset Turnover Ratio QoQ —
Asset Turnover Ratio YoY —
Asset Turnover Ratio IPRWA —
 Receivables Turnover —
Receivables Turnover Ratio QoQ —
Receivables Turnover Ratio YoY —
Receivables Turnover Ratio IPRWA —
 Inventory Turnover —
Inventory Turnover Ratio QoQ —
Inventory Turnover Ratio YoY —
Inventory Turnover Ratio IPRWA —
 Days Sales Outstanding (DSO) —
CASH CYCLE
 Cash Conversion Cycle Days (CCC) —
Cash Conversion Cycle Days QoQ —
Cash Conversion Cycle Days YoY —
Cash Conversion Cycle Days IPRWA high: 937.301
mean: 216.675
median: 192.562
RVMD: 0
low: -594.03
CAPITAL DEPLOYMENT
 Cash Conversion Ratio —
 CapEx To Revenue —
 CapEx To Depreciation -0.415
 
CAPITAL, LIQUIDITY & COVERAGE CAPITAL STRUCTURE
 Total Capital $ 1.6 B
 Net Invested Capital $ 1.6 B
 Invested Capital $ 1.6 B
 Net Tangible Assets $ 1.6 B
 Net Working Capital $ 1.8 B
LIQUIDITY
 Cash Ratio 6.975
 Current Ratio 7.145
Current Ratio QoQ -11.254 %
Current Ratio YoY -49.685 %
Current Ratio IPRWA high: 27.397
RVMD: 7.145
mean: 3.718
median: 2.827
low: 0.027
 Quick Ratio —
Quick Ratio QoQ —
Quick Ratio YoY —
Quick Ratio IPRWA —
COVERAGE & LEVERAGE
 Debt To EBITDA -0.456
 Cost Of Debt 7.498 %
 Interest Coverage Ratio -29.571
Interest Coverage Ratio QoQ 15.03 %
Interest Coverage Ratio YoY 26.986 %
Interest Coverage Ratio IPRWA high: 671.002
mean: 41.246
median: 3.11
RVMD: -29.571
low: -1571.333
 Operating Cash Flow Ratio -1.275
TIMING / LIQUIDITY
 Days Payables Outstanding (DPO) —
DIVIDENDS
 Dividend Coverage Ratio —
 Dividend Payout Ratio —
 Dividend Rate —
 Dividend Yield —
PERFORMANCE GROWTH
 Asset Growth Rate 4.556 %
 Revenue Growth —
Revenue Growth QoQ —
Revenue Growth YoY —
Revenue Growth IPRWA —
 Earnings Growth 15.528 %
Earnings Growth QoQ -32.195 %
Earnings Growth YoY -18.91 %
Earnings Growth IPRWA high: 204.0 %
RVMD: 15.528 %
mean: -17.407 %
median: -17.687 %
low: -237.5 %
MARGINS
 Gross Margin —
Gross Margin QoQ —
Gross Margin YoY —
Gross Margin IPRWA —
 EBIT Margin —
EBIT Margin QoQ —
EBIT Margin YoY —
EBIT Margin IPRWA —
 Return On Sales (ROS) —
Return On Sales QoQ —
Return On Sales YoY —
Return On Sales IPRWA —
CASH FLOW
 Free Cash Flow (FCF) $ -276.16 M
 Free Cash Flow Yield -1.535 %
Free Cash Flow Yield QoQ -34.402 %
Free Cash Flow Yield YoY -10.129 %
Free Cash Flow Yield IPRWA high: 21.452 %
median: 0.303 %
mean: 0.2 %
RVMD: -1.535 %
low: -51.848 %
 Free Cash Growth 31.094 %
Free Cash Growth QoQ -484.256 %
Free Cash Growth YoY 647.272 %
Free Cash Growth IPRWA high: 177.21 %
RVMD: 31.094 %
median: -25.381 %
mean: -33.689 %
low: -201.25 %
 Free Cash To Net Income 0.757
 Cash Flow Margin —
 Cash Flow To Earnings 1.015
VALUE & RETURNS
 Economic Value Added —
 Return On Assets (ROA) -15.843 %
Return On Assets QoQ 21.505 %
Return On Assets YoY 75.936 %
Return On Assets IPRWA high: 33.814 %
median: 1.099 %
mean: -2.526 %
RVMD: -15.843 %
low: -65.985 %
 Return On Capital Employed (ROCE) -17.1 %
 Return On Equity (ROE) -0.224
Return On Equity QoQ 17.036 %
Return On Equity YoY 160.426 %
Return On Equity IPRWA high: 0.809
median: 0.039
mean: 0.004
RVMD: -0.224
low: -1.16
 DuPont ROE —
 Return On Invested Capital (ROIC) —
Return On Invested Capital QoQ —
Return On Invested Capital YoY —
Return On Invested Capital IPRWA —

Six-Week Outlook

Clinical headlines will continue to drive headline volatility; the recent positive Phase 3 narrative supports a medium-term constructive view for the franchise, but technical signals point to a likely near-term retracement. Short-term momentum measures and an elevated MRO suggest mean reversion toward model-implied value, while liquidity and low leverage reduce downside tail risk from a balance-sheet perspective. Watch for follow-up clinical disclosures and volume shifts to re-establish directional conviction; absent fresh upside catalysts, expect consolidation or pullback pressure within the next six weeks before any decisive trend resumption.

About Revolution Medicines, Inc.

Revolution Medicines, Inc. (NASDAQ:RVMD) develops innovative targeted therapies aimed at treating RAS-addicted cancers. As a clinical-stage precision oncology company, Revolution Medicines constructs a robust research and development pipeline featuring RAS(ON) inhibitors. These inhibitors serve as monotherapy and in combination with other RAS(ON) inhibitors, RAS companion inhibitors, or additional therapeutic agents. Key RAS(ON) inhibitors in their portfolio include RMC-6236, RMC-6291, and RMC-9805, all of which currently undergo phase 1 clinical trials. The company also advances development candidates like RMC-5127, RMC-0708, and RMC-8839, focusing on various genetic targets such as G12V, Q61H, and G13C. In addition to RAS(ON) inhibitors, Revolution Medicines develops RAS companion inhibitors, including RMC-4630, which is in a phase 2 clinical trial, and RMC-5552, in a phase 1 clinical trial. Founded in 2014, Revolution Medicines operates out of Redwood City, California, and continues to explore treatments targeting G12R and other oncogenic mutations. Through its innovative approach, the company aims to provide new therapeutic options for patients battling RAS-driven cancers.



© 2026 WMDST — The World’s Most Dangerous Swing Trader. All rights reserved.