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Recursion Pharmaceuticals to Report Q3 Earnings: What's in the Cards?
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Key Takeaways
Recursion Pharmaceuticals is expected to report a Q3 loss of 24 cents per share and $10.92M in revenues.
Roche advanced a neuroscience target, while Sanofi optioned its first development candidate with Recursion.
Recursion expects updates on REC-4881, REC-1245 and other pipeline candidates through 2027.
Recursion Pharmaceuticals (RXRX - Free Report) , a TechBio company, is expected to beat expectations when it reports third-quarter 2026 results on Nov. 2, 2026.
The Zacks Consensus Estimate is pegged at a loss of 24 cents per share. The Zacks Consensus Estimate for third-quarter revenues is pinned at $10.92 million.
Let's see how things might have shaped up for the upcoming quarterly release.
Factors to Consider
In the absence of marketed products, Recursion generates revenues primarily through collaboration-related operating revenues and grants.
RXRX has ongoing collaboration agreements with pharmaceutical giants, including Roche, Bayer, Merck KGaA and Sanofi, to discover and develop potential therapies across oncology, neuroscience and immunology. In August, Genentech exercised the first Validated Target Option under its neuroscience collaboration with Recursion, advancing a previously unexplored target into a joint small-molecule early-discovery program.
In October, Sanofi optioned the first development candidate under its collaboration with Recursion. The potential first-in-class oral dual-targeting small molecule is designed for inflammatory diseases and is expected to enter phase I clinical studies in 2027, with Sanofi funding and leading further development. The company also collaborated with NVIDIA Corporation, a global leader in visual computing technologies, to develop a next-generation platform for creating novel therapies. RXRX is expected to provide updates on its clinical-stage pipeline programs on its third-quarter earnings call.
Recursion’s lead candidate, REC-4881, is being evaluated in the Phase Ib/II TUPELO study for familial adenomatous polyposis (FAP). Based on positive efficacy data reported to date, RXRX initiated discussions with the FDA to define a potential registration pathway in FAP and is targeting registrational study initiation in the second half of 2027, subject to the outcome of ongoing regulatory discussions. Recursion expects to provide a regulatory update by the end of 2026. The TUPELO study eligibility has also been expanded to include adults aged 18 and older and an alternative dosing cohort.
Year to date, RXRX shares have gained 6.3% compared with the industry’s 6.1% growth.
Image Source: Zacks Investment Research
Recursion’s ongoing phase I/II DAHLIA study is evaluating REC-1245, an RBM39 degrader, for solid tumors. The company expects to report additional phase I monotherapy data by 2026 end, while preliminary dose-expansion data in endometrial cancer are expected in the second half of 2027. REC-4539, an LSD1 inhibitor, is being evaluated in the phase I ENLYGHT study for solid tumors, including small-cell lung cancer and other hematologic malignancies. Initial safety and pharmacokinetic data are anticipated in the second half of 2027. Meanwhile, Recursion intends to pursue partnership opportunities to advance REC-617, a CDK7 inhibitor, and REC-3565, a MALT1 inhibitor.
Recursion is also gearing up to initiate the phase I/II ZINNIA study of REC-7735 in select patients with PIK3CA H1047R-mutant solid tumors in the second half of 2026. Additionally, RXRX is progressing REC-102, an oral ENPP1 inhibitor for hypophosphatasia, toward the completion of investigational new drug-enabling studies in the second half of 2026.
RXRX’s Earnings Surprise History
Recursion has a mixed earnings surprise history so far. The company missed estimates in one of the trailing four reported quarters and beat on the remaining three occasions, delivering an average surprise of 12.06%. In the last reported quarter, the company delivered an 8.70% negative surprise.
Earnings Whispers for RXRX
Our proven model predicts an earnings beat for Recursion this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP of RXRX: Recursion has an Earnings ESP of +2.82% as the Most Accurate Estimate of a loss of 23 cents per share is narrower than the Zacks Consensus Estimate of a loss of 24 cents.
Here are some other drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
TG Therapeutics (TGTX - Free Report) has an Earnings ESP of +71.43% and sports a Zacks Rank #1 at present.
Shares of TGTX have gained 92.6% year to date. The company’s earnings missed estimates in three of the trailing four quarters and topped in the remaining one, delivering the average surprise of 184.65%.
Iovance Biotherapeutics (IOVA - Free Report) has an Earnings ESP of +22.22% and a Zacks Rank #2 at present.
Shares of IOVA have skyrocketed 442.8% year to date. The company’s earnings beat estimates in each of the trailing four quarters, delivering the average surprise of 16.82%. Iovance Biotherapeutics is scheduled to report its third-quarter results on Nov. 5.
Pfizer (PFE - Free Report) has an Earnings ESP of +3.53% and a Zacks Rank #3 at present.
Shares of Pfizer have risen 18.9% so far this year. Pfizer beat earnings estimates in each of the last four reported quarters, delivering an average earnings surprise of 16.62%. Pfizer is scheduled to report third-quarter results on Nov. 3.
View the Zacks #1 Rank List
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Recursion Pharmaceuticals to Report Q3 Earnings: What's in the Cards?
Key Takeaways
Recursion Pharmaceuticals (RXRX - Free Report) , a TechBio company, is expected to beat expectations when it reports third-quarter 2026 results on Nov. 2, 2026.
The Zacks Consensus Estimate is pegged at a loss of 24 cents per share. The Zacks Consensus Estimate for third-quarter revenues is pinned at $10.92 million.
Let's see how things might have shaped up for the upcoming quarterly release.
Factors to Consider
In the absence of marketed products, Recursion generates revenues primarily through collaboration-related operating revenues and grants.
RXRX has ongoing collaboration agreements with pharmaceutical giants, including Roche, Bayer, Merck KGaA and Sanofi, to discover and develop potential therapies across oncology, neuroscience and immunology. In August, Genentech exercised the first Validated Target Option under its neuroscience collaboration with Recursion, advancing a previously unexplored target into a joint small-molecule early-discovery program.
In October, Sanofi optioned the first development candidate under its collaboration with Recursion. The potential first-in-class oral dual-targeting small molecule is designed for inflammatory diseases and is expected to enter phase I clinical studies in 2027, with Sanofi funding and leading further development. The company also collaborated with NVIDIA Corporation, a global leader in visual computing technologies, to develop a next-generation platform for creating novel therapies. RXRX is expected to provide updates on its clinical-stage pipeline programs on its third-quarter earnings call.
Recursion’s lead candidate, REC-4881, is being evaluated in the Phase Ib/II TUPELO study for familial adenomatous polyposis (FAP). Based on positive efficacy data reported to date, RXRX initiated discussions with the FDA to define a potential registration pathway in FAP and is targeting registrational study initiation in the second half of 2027, subject to the outcome of ongoing regulatory discussions. Recursion expects to provide a regulatory update by the end of 2026. The TUPELO study eligibility has also been expanded to include adults aged 18 and older and an alternative dosing cohort.
Year to date, RXRX shares have gained 6.3% compared with the industry’s 6.1% growth.
Image Source: Zacks Investment Research
Recursion’s ongoing phase I/II DAHLIA study is evaluating REC-1245, an RBM39 degrader, for solid tumors. The company expects to report additional phase I monotherapy data by 2026 end, while preliminary dose-expansion data in endometrial cancer are expected in the second half of 2027. REC-4539, an LSD1 inhibitor, is being evaluated in the phase I ENLYGHT study for solid tumors, including small-cell lung cancer and other hematologic malignancies. Initial safety and pharmacokinetic data are anticipated in the second half of 2027. Meanwhile, Recursion intends to pursue partnership opportunities to advance REC-617, a CDK7 inhibitor, and REC-3565, a MALT1 inhibitor.
Recursion is also gearing up to initiate the phase I/II ZINNIA study of REC-7735 in select patients with PIK3CA H1047R-mutant solid tumors in the second half of 2026. Additionally, RXRX is progressing REC-102, an oral ENPP1 inhibitor for hypophosphatasia, toward the completion of investigational new drug-enabling studies in the second half of 2026.
RXRX’s Earnings Surprise History
Recursion has a mixed earnings surprise history so far. The company missed estimates in one of the trailing four reported quarters and beat on the remaining three occasions, delivering an average surprise of 12.06%. In the last reported quarter, the company delivered an 8.70% negative surprise.
Earnings Whispers for RXRX
Our proven model predicts an earnings beat for Recursion this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.
Earnings ESP of RXRX: Recursion has an Earnings ESP of +2.82% as the Most Accurate Estimate of a loss of 23 cents per share is narrower than the Zacks Consensus Estimate of a loss of 24 cents.
RXRX Zacks Rank: RXRX currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Recursion Pharmaceuticals, Inc. Price, Consensus and EPS Surprise
Recursion Pharmaceuticals, Inc. price-consensus-eps-surprise-chart | Recursion Pharmaceuticals, Inc. Quote
Other Stocks to Consider
Here are some other drug/biotech stocks that have the right combination of elements to beat on earnings this time around:
TG Therapeutics (TGTX - Free Report) has an Earnings ESP of +71.43% and sports a Zacks Rank #1 at present.
Shares of TGTX have gained 92.6% year to date. The company’s earnings missed estimates in three of the trailing four quarters and topped in the remaining one, delivering the average surprise of 184.65%.
Iovance Biotherapeutics (IOVA - Free Report) has an Earnings ESP of +22.22% and a Zacks Rank #2 at present.
Shares of IOVA have skyrocketed 442.8% year to date. The company’s earnings beat estimates in each of the trailing four quarters, delivering the average surprise of 16.82%. Iovance Biotherapeutics is scheduled to report its third-quarter results on Nov. 5.
Pfizer (PFE - Free Report) has an Earnings ESP of +3.53% and a Zacks Rank #3 at present.
Shares of Pfizer have risen 18.9% so far this year. Pfizer beat earnings estimates in each of the last four reported quarters, delivering an average earnings surprise of 16.62%. Pfizer is scheduled to report third-quarter results on Nov. 3.