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    RVMD
    Earnings call· Jun 2026(Q2 FY26)

    Revolution Medicines Q2 FY26 earnings call RVMD

    Aug 5, 2026 Source

    Executive summary

    Revolution Medicines Q2 FY26 — Daraxonrasib NDA Accepted, Strong Pipeline Progress in Pancreatic and Lung Cancers

    Revolution Medicines reported a transformational quarter, marked by the FDA's acceptance of daraxonrasib's NDA for pancreatic cancer and significant progress in its expanded access program. The company also showcased compelling clinical data for its RAS(ON) inhibitors in both pancreatic and non-small cell lung cancers, reinforcing its broad pipeline strategy. Despite increased operating expenses and net loss driven by accelerated development and commercialization efforts, the company maintains a strong financial position to advance its mission in RAS-addicted cancers.

    Highlights

    5
    • Daraxonrasib's New Drug Application (NDA) for pancreatic cancer was accepted for review by the U.S. FDA.

    • The European Medicines Agency (EMA) designated daraxonrasib as a high priority under its Cancer Medicines Pathfinder project, initiating a phase review.

    • The Expanded Access Program (EAP) for daraxonrasib has provided the drug to greater than 2,000 eligible patients across the U.S.

    • Zoldonrasib combined with standard of care chemotherapy showed compelling preliminary objective response rates of 82% and 61% in first-line RAS G12D pancreatic cancer.

    • Elironrasib in combination with pembrolizumab and chemotherapy demonstrated a highly encouraging objective response rate of 85% in first-line RAS G12C non-small cell lung cancer.

    Concerns

    3
    • Net loss for Q2 FY26 increased to $644 million, compared to $248 million for Q2 FY25.

    • Full-year 2026 GAAP operating expense expectations were updated to between $2.1 billion and $2.2 billion, reflecting increased investment.

    • A noncash charge of $151 million was incurred in Q2 FY26 related to a change in the fair value of warrants assumed from the EQRx acquisition.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full-year 2026 GAAP operating expenses
    $2.1 billion to $2.2 billion
    high materiality
    High
    Full-year 2026 noncash stock-based compensation expense
    $270 million to $290 million
    medium materiality
    High
    RASolve 301 initial readout
    2027
    high materiality
    High
    RMC-5127 recommended Phase II dose identification
    second half of this year
    medium materiality
    High
    RMC-5127 initial clinical data
    2027
    medium materiality
    High
    RM-055 first-in-human study initiation
    fourth quarter
    medium materiality
    High
    RASolve 307 initiation
    fourth quarter of 2026
    high materiality
    High
    Colorectal cancer data update and development plans
    fourth quarter of this year
    medium materiality
    High

    Operational metrics

    9
    Cash and investments balance
    $3.9 billion
    Q2 FY26

    Ended the second quarter of 2026 with this balance, including proceeds from public offerings and royalty tranche.

    R&D expenses
    $395 millionup from $224 million in Q2 FY25
    Q2 FY26

    Increase primarily due to increased clinical trial and manufacturing expenses for daraxonrasib and zoldonrasib, and increased personnel-related costs.

    G&A expenses
    $110 millionup from $41 million in Q2 FY25
    Q2 FY26

    Increase primarily due to higher personnel-related costs, increased commercialization preparation activities, and higher administrative costs.

    Net loss
    $644 millionup from $248 million in Q2 FY25
    Q2 FY26

    Included a noncash charge of $151 million related to a change in the fair value of warrants.

    Noncash charge related to warrants
    $151 million
    Q2 FY26

    Related to a change in the fair value of warrants assumed as part of the EQRx acquisition, due to an increase in stock price.

    Royalty tranche received
    $250 million
    Q2 FY26

    Second royalty tranche from funding arrangement with Royalty Pharma.

    Remaining committed flexible capital
    $1.5 billion
    as of Q2 FY26

    Additional committed flexible capital available under the funding arrangement with Royalty Pharma, subject to milestone achievement.

    Expanded Access Program patients
    >2,000
    cumulative

    Number of eligible patients provided daraxonrasib through the FDA-cleared Expanded Access Program.

    Sales force size
    ~60
    current

    Team of individuals fully trained and in place to support the PDAC launch in the U.S.

    Industry KPIs

    5
    MetricValueDetails
    Pipeline read out calendarRASolve 301 initial readout in 2027
    Regulatory approvals filingsNDA accepted for daraxonrasib in pancreatic cancer
    Clinical trial efficacy safety dataZoldonrasib + chemotherapy ORR 82% (FOLFIRINOX), 61% (gemcitabine+nab-paclitaxel) in 1L RAS G12D PDAC%
    Collaboration milestone royalty revenue$250MUSD
    Cumulative patients uptake since launch>2,000patients

    Deals & partnerships

    4
    Royalty PharmaFunding arrangement$250 million

    Received the second royalty tranche as part of a broader funding arrangement.

    Tango TherapeuticsClinical collaboration for MTA-cooperative PRMT5 inhibitors

    Evaluating RAS(ON) inhibitors in combination with MTA-cooperative PRMT5 inhibitors.

    Bristol Myers SquibbClinical collaboration for MTA-cooperative PRMT5 inhibitors

    Evaluating RAS(ON) inhibitors in combination with MTA-cooperative PRMT5 inhibitors.

    Summit TherapeuticsClinical collaboration for daraxonrasib in combination with ivonescimab

    Evaluating daraxonrasib in combination with Summit's PD-1 VEGF bispecific antibody and platinum doublet therapy in first-line non-small cell lung cancer.

    Risks & headwinds

    3
    Increased operating expensesFY26

    Full-year 2026 GAAP operating expenses expected to be $2.1 billion to $2.2 billion

    Mitigation: Strategic investment to accelerate manufacturing, clinical development, and commercial readiness for potential launches.

    Net loss increaseQ2 FY26

    Net loss of $644 million for Q2 FY26

    Mitigation: Driven by higher operating expenses and a noncash charge related to warrants; company maintains strong financial position.

    Clinical trial crossover riskOngoing for RASolute 303

    Potential for patients in control arms of frontline PDAC studies to access commercial daraxonrasib

    Mitigation: Thoughtful geographic activation of trial sites and working with investigators to ensure trial integrity and minimize impact on overall survival analysis.

    What to watch in Q3 FY26

    5

    Colorectal Cancer Development Strategy

    Q4 2026
    CurrentDiscussion of development plans expected
    TargetClear registrational path in CRC

    Why it matters

    Provides clarity on the company's strategy and potential for a new indication, impacting future growth drivers.

    In colorectal cancer, we look forward to providing a data update and visibility into our development plans during the fourth quarter of this year.

    Q&A highlights

    6

    What does proof-of-concept look like for CRC given prior failures? How will elironrasib compete with second-gen G12C inhibitors in first-line NSCLC?

    The CRC question was deferred to a later time when more concrete plans and data can be shared. For elironrasib, management believes it has a highly competitive safety and efficacy profile, supported by monotherapy and combination data, and the company's broad portfolio targets over 70% of RAS mutations in NSCLC.

    We believe that elironrasib has a very good profile, both safety and efficacy. And we're always data-driven in terms of our decision-making. And we felt that it was important to have a robust data set available in order to make this important decision.

    asked by Marc Frahm · answered by Alan Bart Sandler

    2 min read7 chapters

    Detailed Narrative

    01

    Daraxonrasib in Pancreatic Cancer

    Revolution Medicines highlighted the transformational impact of daraxonrasib, with its New Drug Application accepted by the FDA following compelling Phase III RASolute 302 results. The EMA also recognized daraxonrasib as a high priority, initiating a phase review to accelerate assessment. The company is actively preparing for a successful launch, having established commercial infrastructure and an expanded access program to serve patients quickly and broadly.

    02

    Expanded Access Program (EAP) Success

    The FDA-cleared Expanded Access Program for daraxonrasib has seen significant progress, activating sites in almost all 50 U.S. states and Puerto Rico. The company has approved over 90% of reviewed requests, providing daraxonrasib to more than 2,000 eligible patients. This rapid uptake underscores the high unmet need and interest in daraxonrasib for previously treated metastatic pancreatic cancer.

    03

    Pancreatic Cancer Pipeline Expansion

    Beyond previously treated disease, Revolution Medicines is prosecuting a comprehensive development strategy in pancreatic cancer. Enrollment continues in Phase III RASolute 303 (first-line metastatic) and 304 (adjuvant) for daraxonrasib, and RASolute 305 (first-line metastatic) for zoldonrasib. The company also initiated RASolute 309, evaluating the novel doublet of daraxonrasib plus zoldonrasib in the first-line setting, reflecting a broad portfolio approach.

    04

    Zoldonrasib and Daraxonrasib Doublet Data in PDAC

    New data presented at ESMO GI reinforced zoldonrasib's compelling profile. In first-line RAS G12D pancreatic cancer, zoldonrasib combined with FOLFIRINOX or gemcitabine plus nab-paclitaxel showed objective response rates of 82% and 61%, respectively. The daraxonrasib plus zoldonrasib doublet demonstrated preliminary clinical activity in second and third-line RAS G12D PDAC, with objective response rates of 50% and 47%, and median progression-free survival of 9.6 months and 7.6 months, respectively.

    05

    NSCLC Pipeline and Strategy

    Non-small cell lung cancer represents another major opportunity, with RAS mutations present in approximately 30% of patients. Daraxonrasib received Breakthrough Therapy Designation for previously treated metastatic NSCLC with KRAS mutations other than G12C. The company's mutant-selective inhibitors (elironrasib, zoldonrasib, RMC-5127) have the potential to address over 70% of RAS-driven mutations in this disease, positioning Revolution Medicines uniquely to meet significant unmet needs.

    06

    Zoldonrasib and Elironrasib in First-Line NSCLC

    Highly encouraging antitumor activity was observed for zoldonrasib and elironrasib in combination with pembrolizumab and chemotherapy in first-line NSCLC. Zoldonrasib achieved an 82% objective response rate and 100% disease control rate in KRAS G12D NSCLC. Elironrasib demonstrated an 85% objective response rate, 97% disease control rate, and 95% six-month progression-free survival rate in RAS G12C NSCLC, supporting their advancement into registrational development.

    07

    Financial Position and Investment Strategy

    The company ended Q2 2026 with a strong cash and investments balance of $3.9 billion, including proceeds from recent public offerings and a royalty tranche. This financial strength supports an increased investment strategy, with full-year GAAP operating expenses now projected between $2.1 billion and $2.2 billion. This investment is driven by accelerated manufacturing, clinical development across multiple programs, and expanded commercial readiness efforts globally.

    AI-generated summary of the company’s earnings call. Not investment advice.