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Recursion Pharmaceuticals (RXRX - Free Report) ended the recent trading session at $3.66, demonstrating a +1.39% change from the preceding day's closing price. The stock's performance was ahead of the S&P 500's daily gain of 0.28%. Elsewhere, the Dow saw an upswing of 1.02%, while the tech-heavy Nasdaq depreciated by 0.02%.

The stock of biotechnology company has fallen by 9.07% in the past month, lagging the Medical sector's gain of 1.01% and the S&P 500's gain of 0.67%.

The investment community will be paying close attention to the earnings performance of Recursion Pharmaceuticals in its upcoming release. The company is expected to report EPS of -$0.24, up 33.33% from the prior-year quarter. Simultaneously, our latest consensus estimate expects the revenue to be $8.42 million, showing a 62.57% escalation compared to the year-ago quarter.

RXRX's full-year Zacks Consensus Estimates are calling for earnings of -$0.93 per share and revenue of $42.82 million. These results would represent year-over-year changes of +35.42% and -42.66%, respectively.

Additionally, investors should keep an eye on any recent revisions to analyst forecasts for Recursion Pharmaceuticals. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

The Zacks Rank system ranges from #1 (Strong Buy) to #5 (Strong Sell). It has a remarkable, outside-audited track record of success, with #1 stocks delivering an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has shifted 0.72% downward. Currently, Recursion Pharmaceuticals is carrying a Zacks Rank of #3 (Hold).

The Medical - Biomedical and Genetics industry is part of the Medical sector. This group has a Zacks Industry Rank of 98, putting it in the top 40% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

SALT LAKE CITY, Oct. 15, 2026 (GLOBE NEWSWIRE) -- Recursion (Nasdaq: RXRX), a leading clinical-stage company pioneering AI-enabled drug discovery and development decoding biology to radically improve lives, today announced a $200 million underwritten offering of common stock with leading healthcare and institutional investors, including Janus Henderson Investors, Invus, Longaeva Partners, ARK Invest, Driehaus Capital Management and other prominent healthcare specialists and mutual funds, as well as business and clinical updates across its pipeline, including updated Phase 1b/2 data for REC-4881 in Familial Adenomatous Polyposis (FAP), promising early data in the Phase 1 DAHLIA trial for REC-1245, and a key milestone with Sanofi optioning a potential first-in-class immunology development candidate from their collaboration.

Potential first-in-class dual targeting inhibitor oral small molecule to enter Sanofi’s development pipeline, with phase 1 clinical study currently planned to begin in 2027

 | Source:

Recursion Pharmaceuticals

Salt Lake City, UT, Oct. 15, 2026 (GLOBE NEWSWIRE) -- Recursion Pharmaceuticals, Inc. (“Recursion”) (NASDAQ: RXRX), a leading clinical-stage company pioneering AI-enabled drug discovery and development decoding biology to radically improve lives, today announced that Sanofi has optioned the first development candidate from the two companies’ multi-program research collaboration.

The option triggered a $10 million milestone payment to Recursion, bringing total upfront and milestone payments received from Sanofi under the collaboration to $144 million; Recursion is eligible for more than $300 million in additional milestones under the program, with double digit royalties on net product sales, if approved.

“The most important test of any technology platform in drug discovery is whether it can translate into differentiated medicines,” said Najat Khan, Ph.D., President and Chief Executive Officer of Recursion. “Together with Sanofi, we tackled a difficult design problem against a dual target product profile with high potential and delivered a molecule that Sanofi has now selected for its development pipeline. With additional programs advancing across our collaboration, this milestone is another important demonstration of how our platform can translate computational capabilities into differentiated medicines — and do so repeatedly.”

The potential first-in-class oral small molecule was designed to achieve a differentiated profile against a challenging dual target implicated in inflammatory disease. Optimizing for this target pair required navigating complex and competing chemistry constraints to achieve the desired balance of drug-like properties. The candidate was delivered by the combination of Recursion’s integrated AI-enabled drug design platform and small-molecule chemistry capabilities with Sanofi’s deep expertise in drug discovery and immunology. Recursion applied multiple computational design approaches across iterative cycles of prediction, chemical design, synthesis, and experimental validation to rapidly explore and optimize a complex chemical space.

"By combining Sanofi's drug discovery and clinical and translational knowledge in immunology with Recursion's AI-driven platform, we were able to move with speed and precision in a space where that balance is notoriously hard to achieve,” said Alyssa Johnsen, Therapeutic Area Head, Development, Immunology & Inflammation, Sanofi. “This new development candidate has potential to deliver a differentiated oral medicine with highly selective dual targeting that could be a meaningful advance for people living with inflammatory diseases who still lack adequate treatment options."

The candidate has now been added to Sanofi’s development pipeline and is expected to enter phase 1 clinical trials in 2027, with Sanofi funding and leading further development and commercialization to advance the program toward patients.

Building a growing portfolio through the Recursion-Sanofi collaboration

The Recursion-Sanofi collaboration was established to discover and advance a portfolio of potentially first- and best-in-class small molecule medicines across immunology and oncology by combining Sanofi’s deep therapeutic-area and drug-development expertise with Recursion’s integrated capabilities across biology, AI-enabled molecular design and chemistry.

 With the first development candidate optioned, the collaboration has now achieved six progress-based milestones across five programs. Sanofi’s selection of the development candidate triggered a $10 million milestone payment to Recursion, bringing total upfront and milestone payments under the collaboration to $144 million to date.

Recursion remains eligible for more than $300 million in additional milestones under the program, with an average of low double-digit royalties on net product sales if successfully commercialized. The $10 million milestone payment will be recognized as revenue in the third quarter of 2026, and ends Recursion’s operational requirements related to this candidate, with all future payments resulting in profit to Recursion. 

Additional programs across the collaboration continue to advance. Over the next 12 months, other programs in the joint portfolio have the potential to reach development candidate and other progress-based milestones.

About Recursion

Recursion (NASDAQ: RXRX) is a leading clinical-stage company pioneering AI-enabled drug discovery and development decoding biology to radically improve lives. Recursion is advancing a portfolio of differentiated investigational medicines across its wholly owned and partnered pipeline in oncology, rare disease, neuroscience, immunology, and other therapeutic areas with significant unmet need. Enabling its mission is the Recursion OS, an AI-native, end-to-end drug discovery and development platform integrating biology, chemistry, and clinical development into a unified intelligence system. Powered by proprietary multimodal data, purpose-built AI models, and bilingual teams fluent in both science and AI, the Recursion OS is designed to translate complex science into medicines that matter — faster, better, and at scale — for patients who are waiting.

Recursion's platform infrastructure is anchored in Salt Lake City, Utah and Milton Park, Oxfordshire, where its automated biology and chemistry laboratories generate proprietary data at industrial scale. Recursion also maintains offices in New York, Montréal, and London, three global hubs for talent and leadership at the intersection of AI and scientific innovation.

Forward-Looking Statements

This document contains information that includes or is based upon "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995, including, without limitation, those regarding the expected timing of the initiation of phase 1 clinical trials for the development candidate optioned by Sanofi; the potential of such development candidate, including its potential to be a first-in-class, differentiated oral medicine for inflammatory diseases; Sanofi’s funding and leadership of further development and commercialization of such development candidate; Recursion’s eligibility to receive future milestone payments and royalties under its collaboration with Sanofi, and the expected timing of revenue recognition for the $10 million milestone payment; the potential for additional programs in the collaboration to reach development candidate and other progress-based milestones over the next 12 months; the ability of Recursion’s platform to repeatedly translate computational capabilities into differentiated medicines; and all other statements that are not historical facts. Forward-looking statements may or may not include identifying words such as "plan," "will," "may," "could," "should," "expect," "anticipate," "intend," "believe," "estimate," "project," "designed to," "potential," "continue," and similar terms. These statements are subject to known or unknown risks and uncertainties that could cause actual results to differ materially from those expressed or implied in such statements, including but not limited to: challenges inherent in pharmaceutical research and development, including the timing and results of preclinical and clinical programs, where the risk of failure is high and failure can occur at any stage prior to or after regulatory approval due to lack of sufficient efficacy, safety considerations, or other factors; our ability to leverage and enhance our drug discovery platform; the performance and limitations of our artificial intelligence and machine learning models and the data on which they are trained; our reliance on third parties, including collaborators, contract research organizations, and manufacturers; our ability to initiate clinical trials and enroll patients on expected timelines; competition from other therapies and platforms; our ability to obtain financing for development activities and other corporate purposes; the success of our collaboration activities and our collaborators' discretion over option exercises, program advancement, and funding, including the risk that Sanofi may delay, deprioritize, or discontinue development of the optioned development candidate; our ability to obtain regulatory approval of, and ultimately commercialize, drug candidates; our ability to obtain, maintain, and enforce intellectual property protections; cyberattacks or other disruptions to our technology systems; our ability to attract, motivate, and retain key employees and manage our growth; inflation and other macroeconomic issues; and other risks and uncertainties such as those described under the heading "Risk Factors" in our filings with the U.S. Securities and Exchange Commission, including our Annual Report on Form 10-K and our subsequent Quarterly Reports on Form 10-Q. All forward-looking statements speak only as of the date of this document and are based on management's current estimates, projections, and assumptions, and Recursion undertakes no obligation to correct or update any such statements, whether as a result of new information, future developments, or otherwise, except to the extent required by applicable law.

Media Contact
[email protected]

Investor Contact
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Shares of Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX – Get Free Report) fell 4.3% during trading on Tuesday. The company traded as low as $4.74 and last traded at $4.5750. Approximately 14,149,966 shares traded hands during mid-day trading, a decline of 24% from the average session volume of 18,554,494 shares. The stock had previously closed at $4.78.

Analysts Set New Price Targets Several analysts have recently weighed in on the stock. Wall Street Zen upgraded shares of Recursion Pharmaceuticals from a “strong sell” rating to a “sell” rating in a research report on Saturday, August 29th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research report on Friday, July 17th. Finally, Morgan Stanley set a $5.30 target price on Recursion Pharmaceuticals in a research note on Monday, August 17th. Two research analysts have rated the stock with a Buy rating, two have given a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average price target of $8.06.

Read Our Latest Stock Analysis on Recursion Pharmaceuticals

The stock has a 50-day moving average of $3.52 and a two-hundred day moving average of $3.38. The company has a market cap of $2.29 billion, a P/E ratio of -4.11 and a beta of 1.04. The company has a debt-to-equity ratio of 0.01, a quick ratio of 5.03 and a current ratio of 5.03. Recursion Pharmaceuticals (NASDAQ:RXRX – Get Free Report) last issued its earnings results on Wednesday, August 5th. The company reported ($0.25) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($0.01). The firm had revenue of $7.67 million during the quarter, compared to analysts’ expectations of $10.97 million. Recursion Pharmaceuticals had a negative return on equity of 50.41% and a negative net margin of 945.94%.During the same period in the prior year, the company earned ($0.41) EPS. On average, research analysts anticipate that Recursion Pharmaceuticals, Inc. will post -0.94 EPS for the current fiscal year.

Insider Activity In related news, Director Robert Hershberg sold 25,000 shares of the stock in a transaction on Tuesday, October 6th. The shares were sold at an average price of $5.00, for a total transaction of $125,000.00. Following the transaction, the director owned 162,156 shares of the company’s stock, valued at approximately $810,780. This trade represents a 13.36% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, CEO Najat Khan sold 22,408 shares of the stock in a transaction on Tuesday, September 8th. The shares were sold at an average price of $3.52, for a total transaction of $78,876.16. Following the transaction, the chief executive officer directly owned 2,072,890 shares in the company, valued at approximately $7,296,572.80. This represents a 1.07% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 157,408 shares of company stock valued at $643,576. Corporate insiders own 6.65% of the company’s stock.

Institutional Inflows and Outflows Institutional investors and hedge funds have recently modified their holdings of the stock. MCF Advisors LLC purchased a new position in shares of Recursion Pharmaceuticals in the second quarter worth about $27,000. WINTON GROUP Ltd boosted its holdings in Recursion Pharmaceuticals by 85.2% during the 2nd quarter. WINTON GROUP Ltd now owns 192,800 shares of the company’s stock valued at $708,000 after acquiring an additional 88,700 shares during the period. Squarepoint Ops LLC boosted its holdings in Recursion Pharmaceuticals by 85.8% during the 2nd quarter. Squarepoint Ops LLC now owns 98,426 shares of the company’s stock valued at $361,000 after acquiring an additional 45,438 shares during the period. Arizona State Retirement System grew its position in Recursion Pharmaceuticals by 6.5% during the 2nd quarter. Arizona State Retirement System now owns 129,619 shares of the company’s stock worth $476,000 after acquiring an additional 7,913 shares during the last quarter. Finally, Corient Private Wealth LP bought a new position in Recursion Pharmaceuticals during the 2nd quarter worth approximately $189,000. 89.06% of the stock is owned by institutional investors.

Recursion Pharmaceuticals Company Profile (Get Free Report)

Recursion Pharmaceuticals, Inc is a clinical-stage biotechnology company that uses biology, chemistry, automation and machine learning to discover and develop new medicines. The company’s technology platform is designed to generate and analyze large volumes of biological and chemical data, helping researchers identify potential drug candidates and better understand disease mechanisms.

Recursion has focused its research and development activities on areas including oncology, rare diseases and neuroscience.

Recommended Stories Five stocks we like better than Recursion Pharmaceuticals Skydance Just Became a Media Giant—With an $80 Billion Debt Load Could Velo3D Be the Next Defense Buyout Target? Penguin Solutions Is Soaring as AI Memory Demand Explodes Alphabet’s Chart Is Coiling—and the Fundamentals May Be Ready to Back It Up Receive News & Ratings for Recursion Pharmaceuticals Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Recursion Pharmaceuticals and related companies with MarketBeat.com's FREE daily email newsletter.

In the latest close session, Recursion Pharmaceuticals (RXRX - Free Report) was down 3.14% at $4.63. This move lagged the S&P 500's daily gain of 0.58%. Meanwhile, the Dow experienced a rise of 0.49%, and the technology-dominated Nasdaq saw an increase of 0.45%.

Coming into today, shares of the biotechnology company had gained 31.68% in the past month. In that same time, the Medical sector lost 4.26%, while the S&P 500 gained 0.84%.

Analysts and investors alike will be keeping a close eye on the performance of Recursion Pharmaceuticals in its upcoming earnings disclosure. The company is forecasted to report an EPS of -$0.24, showcasing a 33.33% upward movement from the corresponding quarter of the prior year. In the meantime, our current consensus estimate forecasts the revenue to be $8.42 million, indicating a 62.57% growth compared to the corresponding quarter of the prior year.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.94 per share and revenue of $40.32 million. These totals would mark changes of +34.72% and -46.01%, respectively, from last year.

Investors might also notice recent changes to analyst estimates for Recursion Pharmaceuticals. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To exploit this, we've formed the Zacks Rank, a quantitative model that includes these estimate changes and presents a viable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has moved 2.17% lower. Recursion Pharmaceuticals is currently a Zacks Rank #3 (Hold).

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 179, positioning it in the bottom 28% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Don't forget to use Zacks.com to keep track of all these stock-moving metrics, and others, in the upcoming trading sessions.

Ten stocks worth more than $2 billion each have more than a third of their float sold short. At the top of the list, one company has more than 80% of its float sold short.

ONDS stock is heavily shorted. See all of the details here.  A Benzinga Pro screen of stocks with market caps above $2 billion and 14-day average volume above 1 million shares was run on Sept. 25, 2026 and turned up the group.

Several of them also trade heavily, meaning a lot of borrowed shares could come back into the market fast if a catalyst hits.

Venture Global Inc. (NYSE:VG) stands out with short interest at 80.47% of its float, the highest on the screen by a wide margin. The company is also the largest on the list, with a $32.19 billion market cap and about 14.47 million shares changing hands on an average day.

Minimed Group Inc. (NASDAQ:MMED) ranks second at 47.64% and a $5.61 billion valuation.

Crypto Miners Draw BetsBitcoin (CRYPTO:BTC) miners feature prominently. CleanSpark Inc. (NASDAQ:CLSK) shows 42.81% short interest, with average volume of 20.67 million shares. Bitdeer Technologies Group (NASDAQ:BTDR) is at 37.06%.

Both companies have leaned into AI and high-performance computing as a second business alongside mining. Bears appear doubtful.

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AI and Drone PlaysOndas Holdings Inc. (NASDAQ:ONDS) posts 40.96% short interest. It is also the most heavily traded stock on the list, averaging 82.57 million shares a day. Liquidity on that scale can speed up a squeeze once it starts.

SoundHound AI Inc. (NASDAQ:SOUN) sits just behind at 40.47%. The voice-AI company averages nearly 29 million shares a day and has long been a favorite target of retail traders and short sellers alike.

Biotech BearsTwo gene- and AI-focused drug developers round out the biotech group. Beam Therapeutics Inc. (NASDAQ:BEAM) shows 38.98% short interest. Recursion Pharmaceuticals Inc. (NASDAQ:RXRX) comes in at 34.95%, with average volume above 20 million shares.

Coffee and CareTwo names fall outside the tech and biotech themes. Dutch Bros Inc. (NYSE:BROS) carries 39.78% short interest, a high figure for a consumer chain. Acadia Healthcare Company Inc. (NASDAQ:ACHC) is at 35.48%.

Reminders: Highly shorted stocks are battlegrounds where negative fundamentals meet speculative trading.​ Short squeezes can deliver huge, fast gains, but at high risk and volatility.​ Monitoring the short interest leaderboard can help identify which stocks might be the next short squeeze, but timing such trades remains extremely challenging.​ Always conduct due diligence, as the volatility often reflects deep underlying risks and business uncertainty. Read Next

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Recursion Pharmaceuticals (NASDAQ:RXRX) outlined its strategy, clinical pipeline and partnership progress at Morgan Stanley’s Global Healthcare Conference, with CEO and President Najat Khan emphasizing the company’s shift toward an end-to-end, AI-enabled drug discovery and development platform.

Khan said the company has changed materially over the past 12 to 18 months, expanding its platform beyond biology into chemistry and clinical development. She said Recursion has also reduced its cost base by about 40% on a pro forma basis following the integration with Exscientia, citing greater use of AI agents, automation and capital prioritization.

“The company has really transformed to a company with differentiated assets powered by an end-to-end AI engine with repeatability,” Khan said. Focus on novel biology and clinical programs Khan said the growth of China-originated drug innovation reinforces Recursion’s emphasis on discovering novel biology and first-in-class targets. She characterized China’s capabilities as particularly strong in optimizing known biology, while arguing that the next frontier lies in identifying new targets and connecting them to appropriate disease indications.

The company highlighted REC-4881, an oral MEK1/2 inhibitor being developed for familial adenomatous polyposis, or FAP. Khan said the program resulted from Recursion’s biology platform, which screened compounds in cells with APC gene loss, a driver of FAP. The company’s models identified the MEK1/2 inhibitor without beginning with that mechanism as a prior hypothesis, she said.

According to Khan, Phase II data showed rapid and durable reductions in polyp burden, including reductions after patients had been off treatment for three months. She said the company observed reductions in both upper and lower gastrointestinal polyps. There are no approved drugs for FAP, and current care involves surveillance and surgery, she said.

Recursion plans to present additional Phase II data at the CGA-IGC meeting in early November. Khan said the company is also in active discussions with the FDA regarding a registrational pathway. Its base case centers on progression-free survival-type measures involving clinically meaningful events such as surgery and dysplasia.

On safety, Khan said more than 85% of treatment-related adverse events observed to date have been Grade 1 or 2. Dermatitis has been the primary event, along with transient creatine phosphokinase changes. She said Recursion is managing dermatitis proactively and is evaluating intermittent dosing, in addition to its once-daily regimen, given the durability observed off treatment.

REC-1245 and broader pipeline Recursion also discussed REC-1245, a program targeting RBM39. Khan said the target emerged from the company’s genetic mapping work while it was studying CDK12-related biology. The company subsequently designed a novel degrader and moved it into clinical development within about 18 months, she said.

Khan described potential applications in genomically unstable solid tumors and pediatric transcriptionally driven tumors, including Ewing sarcoma. She said the company expects additional data later in the year and will allow the data to determine whether the program may be suited for monotherapy, combination treatment or both.

Other pipeline activity includes a Phase I program targeting PI3K-alpha H1047R, as well as IND-enabling programs in NPP1 and LSD. Khan said the company continually reviews its portfolio to concentrate resources on programs where it has the greatest conviction.

Partnership economics and platform validation Chief Financial Officer Ben Taylor said Recursion has received more than $525 million in upfront payments and milestones from partnerships, including more than a dozen achieved milestones. He said approximately $125 million of that total represents milestones.

The company’s collaboration with Roche and Genentech includes a 10-year exclusive neuroscience partnership. Khan said Genentech has opted two biology maps under the arrangement for about $30 million each and recently advanced a previously unexplored neuroscience target into joint small-molecule discovery.

For each program under the arrangement, Khan said potential milestones total roughly $300 million, along with single-digit royalties. Taylor said Roche has paid Recursion more than $250 million so far under the partnership. While Roche has access to the work product, Taylor said Recursion retains ownership of the underlying data and in-house capabilities generated through the collaboration.

Recursion’s Sanofi collaboration is focused on small molecules for intractable immunology, inflammation and oncology targets. Khan said Recursion has achieved five milestones with Sanofi and has guided to a potential development-candidate milestone for a first-in-class oral small-molecule program. She said the agreement provides for more than $300 million in milestones per program and teen-level royalties.

AI productivity claims Khan said the company is focused not only on faster drug discovery but also on improving molecule quality. She cited Recursion’s ability to move from target to development candidate in about one and a half years and said the company physically makes about 90% fewer molecules than traditional approaches because its predictions are intended to be closer to the desired endpoint.

Taylor said Recursion’s AI outputs can be tested physically in the laboratory against other compounds developed for the same targets. Khan said the company’s differentiator is the integration of proprietary data generation, computational models, laboratory validation and clinical feedback, rather than model architecture alone.

About Recursion Pharmaceuticals (NASDAQ:RXRX) Recursion Pharmaceuticals, Inc (NASDAQ: RXRX) is a biotechnology company that uses artificial intelligence, automation, and large-scale biological experimentation to accelerate the discovery and development of medicines. Its technology platform, known as the Recursion Operating System, integrates data from biology, chemistry, imaging, and machine learning to identify potential drug candidates and better understand disease biology.

The company develops therapies for areas including oncology, rare diseases, and neurological disorders.

2 Reasons Absci Could Be the Future of AI Biotech, and 1 RiskRecursion Pharmaceuticals NASDAQ: RXRX outlined its strategy, clinical pipeline and partnership progress at Morgan Stanley’s Global Healthcare Conference, with CEO and President Najat Khan emphasizing the company’s shift toward an end-to-end, AI-enabled drug discovery and development platform.

Khan said the company has changed materially over the past 12 to 18 months, expanding its platform beyond biology into chemistry and clinical development. She said Recursion has also reduced its cost base by about 40% on a pro forma basis following the integration with Exscientia, citing greater use of AI agents, automation and capital prioritization.

Get RXRX alerts:

These Are the Only 6 Stock Stocks in NVIDIA's 13F Portfolio“The company has really transformed to a company with differentiated assets powered by an end-to-end AI engine with repeatability,” Khan said.

Focus on novel biology and clinical programs Khan said the growth of China-originated drug innovation reinforces Recursion’s emphasis on discovering novel biology and first-in-class targets. She characterized China’s capabilities as particularly strong in optimizing known biology, while arguing that the next frontier lies in identifying new targets and connecting them to appropriate disease indications.

Sudden Ascent: Is Recursion Pharmaceuticals NVIDIA’s AI Favorite?The company highlighted REC-4881, an oral MEK1/2 inhibitor being developed for familial adenomatous polyposis, or FAP. Khan said the program resulted from Recursion’s biology platform, which screened compounds in cells with APC gene loss, a driver of FAP. The company’s models identified the MEK1/2 inhibitor without beginning with that mechanism as a prior hypothesis, she said.

According to Khan, Phase II data showed rapid and durable reductions in polyp burden, including reductions after patients had been off treatment for three months. She said the company observed reductions in both upper and lower gastrointestinal polyps. There are no approved drugs for FAP, and current care involves surveillance and surgery, she said.

Recursion plans to present additional Phase II data at the CGA-IGC meeting in early November. Khan said the company is also in active discussions with the FDA regarding a registrational pathway. Its base case centers on progression-free survival-type measures involving clinically meaningful events such as surgery and dysplasia.

On safety, Khan said more than 85% of treatment-related adverse events observed to date have been Grade 1 or 2. Dermatitis has been the primary event, along with transient creatine phosphokinase changes. She said Recursion is managing dermatitis proactively and is evaluating intermittent dosing, in addition to its once-daily regimen, given the durability observed off treatment.

REC-1245 and broader pipeline Recursion also discussed REC-1245, a program targeting RBM39. Khan said the target emerged from the company’s genetic mapping work while it was studying CDK12-related biology. The company subsequently designed a novel degrader and moved it into clinical development within about 18 months, she said.

Khan described potential applications in genomically unstable solid tumors and pediatric transcriptionally driven tumors, including Ewing sarcoma. She said the company expects additional data later in the year and will allow the data to determine whether the program may be suited for monotherapy, combination treatment or both.

Other pipeline activity includes a Phase I program targeting PI3K-alpha H1047R, as well as IND-enabling programs in NPP1 and LSD. Khan said the company continually reviews its portfolio to concentrate resources on programs where it has the greatest conviction.

Partnership economics and platform validation Chief Financial Officer Ben Taylor said Recursion has received more than $525 million in upfront payments and milestones from partnerships, including more than a dozen achieved milestones. He said approximately $125 million of that total represents milestones.

The company’s collaboration with Roche and Genentech includes a 10-year exclusive neuroscience partnership. Khan said Genentech has opted two biology maps under the arrangement for about $30 million each and recently advanced a previously unexplored neuroscience target into joint small-molecule discovery.

For each program under the arrangement, Khan said potential milestones total roughly $300 million, along with single-digit royalties. Taylor said Roche has paid Recursion more than $250 million so far under the partnership. While Roche has access to the work product, Taylor said Recursion retains ownership of the underlying data and in-house capabilities generated through the collaboration.

Recursion’s Sanofi collaboration is focused on small molecules for intractable immunology, inflammation and oncology targets. Khan said Recursion has achieved five milestones with Sanofi and has guided to a potential development-candidate milestone for a first-in-class oral small-molecule program. She said the agreement provides for more than $300 million in milestones per program and teen-level royalties.

AI productivity claims Khan said the company is focused not only on faster drug discovery but also on improving molecule quality. She cited Recursion’s ability to move from target to development candidate in about one and a half years and said the company physically makes about 90% fewer molecules than traditional approaches because its predictions are intended to be closer to the desired endpoint.

Taylor said Recursion’s AI outputs can be tested physically in the laboratory against other compounds developed for the same targets. Khan said the company’s differentiator is the integration of proprietary data generation, computational models, laboratory validation and clinical feedback, rather than model architecture alone.

About Recursion Pharmaceuticals (NASDAQ:RXRX)Recursion Pharmaceuticals, Inc NASDAQ: RXRX is a biotechnology company that uses artificial intelligence, automation, and large-scale biological experimentation to accelerate the discovery and development of medicines. Its technology platform, known as the Recursion Operating System, integrates data from biology, chemistry, imaging, and machine learning to identify potential drug candidates and better understand disease biology.

The company develops therapies for areas including oncology, rare diseases, and neurological disorders.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Recursion Pharmaceuticals, Inc. (RXRX) Morgan Stanley 24th Annual Global Healthcare Conference September 15, 2026 8:30 AM EDT

Company Participants

Najat Khan - CEO, President & Director
Ben Taylor - CFO & President of Recursion UK

Conference Call Participants

Sean Laaman - Morgan Stanley, Research Division

Presentation

Sean Laaman
Morgan Stanley, Research Division

Good morning, everyone. I'm Sean Laman, head of U.S. Mid-Cap Biotech Equity Research at Morgan Stanley, and welcome to our Global Healthcare Conference. Before we commence, I'll make you aware of some important disclosures. For those disclosures, please go to the Morgan Stanley Research Disclosure website at www.morganstanley.com/researchdisclosures, and if you have any questions, please reach out to your Morgan Stanley sales representative. So, post that, we now welcome Recursion Pharmaceuticals with CEO and President Najat Khan and CFO Ben Taylor. Welcome to the both of you. Thank you.

Question-and-Answer Session

Unknown Analyst

Maybe do me a favor here and answer sort of three macro type questions and So just think about the rise of China-originated innovation. Does it change your competitive positioning and your R&D and BD playbook?

Najat Khan
CEO, President & Director

Yes. Yes, thank you so much, Sean, for the question, and it's great to be here. I would say it, in fact, reinforces what we do. I mean, Recursion started with the whole concept of better understanding and decoding biology. So a huge amount of focus for what we do is around novel biology. I was, in fact, just recently in Shanghai two weeks ago, and just the speed and the execution and the prowess in that, in optimizing known biology, was really impressive to see. And it's also reflected by all of the deals that have been done to date. But that next frontier has to be new and novel biology, really first-in-class targets. And that's evidenced by what we have in our clinical program. REC 4881, REC 1245, we'll talk a little bit more

Buying a stock that has significantly lagged broader equities is only a good idea when there are solid reasons to expect it will bounce back and perform better over the long run. But sometimes that simply isn’t the case, and it’s best to avoid beaten-down companies with dim prospects rather than hoping for a hypothetical turnaround. That brings us to Teladoc Health (TDOC -0.32%) and Recursion Pharmaceuticals (RXRX -5.23%). These two healthcare companies have lost significant market value in recent years, but they still aren't worth buying on the dip.

Image source: The Motley Fool.

1. Teladoc HealthTeladoc, a telemedicine specialist, has been struggling since its pandemic highs. The company has faced significant competition in recent years, resulting in subpar financial results, particularly in its BetterHelp virtual therapy service, which was once its biggest growth driver. There were signs that Teladoc may have been bouncing back earlier this year as the company was making progress in expanding health insurance coverage for BetterHelp, which it thought would boost demand and revenue.

However, Teladoc's second-quarter financial results dealt another blow to the bulls' hopes. Teladoc's revenue declined by 4% year over year to $606.9 million. Its loss per share of $0.21 was slightly worse than the $0.19 loss per share reported in the year-ago period. BetterHelp's revenue dropped 12% year over year, and the service's paying users dropped by 11% compared to the year-ago period. Several other platforms have copied BetterHelp's format and offer slightly differentiated services, including hybrid virtual and in-person care (BetterHelp is only virtual).

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It's going to be challenging for Teladoc to build a sustainable competitive advantage that will support consistent revenue growth over the long run, even as it continues to ramp up its insurance coverage, which some of its competitors also offer. True, Teladoc's international revenue continues to grow at a decent clip.

It jumped 7% year over year in the second quarter. But there are significant risks associated with Teladoc's international strategy, beyond competition alone. Teladoc could run into regulatory issues because different countries have varying rules and guidelines governing consultations, prescriptions, and other services it offers through its platform. The bottom line is that the company's outlook remains dim at best. The stock has lost 95% of its value in the past five years. It doesn't look likely to bounce back soon.

2. Recursion Pharmaceuticals Recursion Pharmaceuticals is a biotech company that uses artificial intelligence (AI) to accelerate drug development. This is an increasingly popular approach in the industry, and it's not hard to understand why. Despite technological progress, the process of developing drugs has become longer and more expensive over the past few decades. Drugmakers are betting that AI can help change that.

For some companies, this is a project they hope will help improve their businesses and lead to productivity and margin gains, as they already have large lineups of approved products that generate consistent revenue and earnings. That's the case with Eli Lilly (LLY -2.21%), Novo Nordisk (NVO -3.09%), and Bristol Myers Squibb (BMY -3.19%), all three of which have taken important steps to incorporate AI into their drug development activities.

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However, AI is the core of Recursion Pharmaceuticals' approach. The company uses an AI-powered operating system (OS) that tests investigational compounds and sends the most promising to clinical trials. The problem is that Recursion Pharmaceuticals' success has been limited. Although it has several attractive candidates, so do plenty of other similarly sized biotechs that don't rely on AI nearly as much.

But Recursion has no approved products and none even in phase 3 studies. Most clinical-stage biotechs are fairly risky, and Recursion's AI-powered approach hardly changes that, given it has yet to demonstrate that its strategy can deliver the results it expects. Recursion Pharmaceuticals may well prove the skeptics wrong and show that its AI-powered OS is as powerful as it claims.

But the stock has dropped 21% over the past year for a good reason, and it doesn't look attractive right now. Perhaps that will change as Recursion makes solid clinical and regulatory progress, but until then, it's probably best for most investors to stay on the sidelines.

Key Takeaways Recursion is advancing REC-4881 in FAP while pursuing a potential registrational pathway with the FDA.RXRX is expanding its oncology pipeline with REC-1245, REC-617, REC-3565, REC-4539 and REC-7735.Genentech has advanced a neuroscience target from its RXRX collaboration, further validating its platform. Recursion Pharmaceuticals (RXRX - Free Report) uses an AI-driven drug discovery platform, Recursion Operating System (OS), to identify and develop novel therapies across its pipeline. It is advancing several clinical-stage programs, with REC-4881 emerging as its most advanced internal candidate and multiple oncology assets providing additional pipeline diversification.

REC-4881, an allosteric MEK1/2 inhibitor, is being evaluated in a phase Ib/II TUPELO study for familial adenomatous polyposis (FAP), a rare inherited disorder characterized by the development of numerous colorectal polyps. Earlier clinical data showed rapid and durable reductions in polyp burden, which Recursion described as the first clinical validation of the Recursion OS. RXRX has initiated discussions with the FDA on a potential registrational pathway, while additional phase II safety and efficacy data from the TUPELO study are expected in November 2026.

Beyond REC-4881, Recursion is advancing several oncology candidates, including REC-1245 for biomarker-enriched solid tumors and lymphoma, REC-617 for advanced solid tumors and REC-3565 for B-cell malignancies, all of which are currently undergoing early-stage development. REC-4539, an LSD1 inhibitor, also entered clinical-stage development for solid tumors, with potential applicability in hematologic malignancies. Meanwhile, REC-7735, an AI-designed PI3Kα H1047R inhibitor, has received clinical-study clearance and is expected to enter a phase I/II study in the second half of 2026 for selected PIK3CA H1047R-mutant solid tumors, adding another potential catalyst to the pipeline.

Recursion is also advancing REC-102, an ENPP1 inhibitor for hypophosphatasia, following its acquisition of full rights to the program from Rallybio. The oral candidate is designed as a potential disease-modifying treatment for hypophosphatasia and expands Recursion's presence in rare diseases. In addition, Genentech (a wholly owned subsidiary of Roche) recently advanced the first neuroscience target from its collaboration with Recursion into an early discovery program, providing another potential validation of RXRX’s proprietary platform. With multiple clinical programs advancing and several potential catalysts ahead, Recursion’s expanding pipeline could strengthen its long-term growth prospects.

RXRX Faces Competitive Pressure in the TechBio IndustryIn the TechBio space, Relay Therapeutics (RLAY - Free Report) and Schrödinger (SDGR - Free Report) are emerging as strong competitors to Recursion Pharmaceuticals, using computationally driven platforms to discover and develop novel therapies.

RLAY is currently evaluating its lead candidate, zovegalisib (RLY-2608), a mutant-selective PI3Kα inhibitor, in the phase III ReDiscover-2 study in combination with fulvestrant in previously CDK4/6-treated, PIK3CA-mutated HR+/HER2- advanced breast cancer. It is also planning to initiate a separate late-stage frontline breast cancer study of the candidate, subject to regulatory feedback, while the phase I/II ReInspire study is evaluating zovegalisib in PIK3CA-driven vascular anomalies. Relay Therapeutics is also developing RLY-8161, an NRAS-selective inhibitor, in a phase I/II study for NRAS-mutant melanoma and other solid tumors. In addition, the company is advancing a preclinical, non-inhibitory chaperone program for Fabry disease, as well as early-stage discovery programs across both precision oncology and genetic diseases.

Schrödinger’s lead proprietary pipeline consists of SGR-1505, a MALT1 inhibitor in phase I for relapsed/refractory B-cell malignancies, and SGR-3515, a Wee1/Myt1 inhibitor undergoing phase I development for advanced solid tumors. Both programs were discovered using Schrödinger's computational capabilities, with SGR-3515 showing preliminary clinical activity and SGR-1505 demonstrating encouraging activity in B-cell malignancies in earlier updates. SDGR plans to complete its ongoing early-stage studies while seeking strategic partners to advance SGR-1505 and SGR-3515 beyond phase I.

RXRX’s Stock Price, Valuation & Estimate MovementsYear to date, RXRX shares have lost 17.4% against the industry’s 9.7% growth. During the same time frame, Recursion has also underperformed the S&P 500 and the overall medical sector, as seen in the chart below.

RXRX Mixed Stock PerformanceImage Source: Zacks Investment Research

Recursion is trading at a discount to the industry, as seen in the chart below. Going by the price/book value ratio, the company’s shares currently trade at 1.97, which is less than 3.97 for the industry. The stock is trading significantly below its five-year mean of 3.22.

RXRX Stock ValuationImage Source: Zacks Investment Research

Loss estimates for 2026 have narrowed from 99 cents per share to 92 cents over the past 30 days. During the same time frame, RXRX’s 2027 loss per share estimates have narrowed from 96 cents to 92 cents.

RXRX Estimate MovementImage Source: Zacks Investment Research

Recursion currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recursion Pharmaceuticals (NASDAQ: RXRX) is using artificial intelligence to generate and analyze biological data in an effort to improve drug discovery, advance internal therapeutic programs and support collaborations with larger pharmaceutical companies, CFO and President of Recursion U.K. Ben Taylor said during a BofA Global Research virtual conference. Taylor described AI not as a "magic wand,"

Posted by Defense World Staff on Aug 13th, 2026

California State Teachers Retirement System lifted its holdings in Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX – Free Report) by 64.0% in the 1st quarter, according to the company in its most recent disclosure with the Securities & Exchange Commission. The firm owned 574,637 shares of the company’s stock after buying an additional 224,332 shares during the period. California State Teachers Retirement System owned about 0.11% of Recursion Pharmaceuticals worth $1,764,000 as of its most recent SEC filing.

Other institutional investors and hedge funds have also modified their holdings of the company. NewEdge Advisors LLC raised its position in Recursion Pharmaceuticals by 28.1% during the second quarter. NewEdge Advisors LLC now owns 11,061 shares of the company’s stock valued at $56,000 after buying an additional 2,428 shares during the period. Equitable Holdings Inc. boosted its position in Recursion Pharmaceuticals by 7.1% during the 3rd quarter. Equitable Holdings Inc. now owns 39,400 shares of the company’s stock worth $192,000 after acquiring an additional 2,600 shares during the period. Universal Beteiligungs und Servicegesellschaft mbH boosted its position in Recursion Pharmaceuticals by 1.2% during the 4th quarter. Universal Beteiligungs und Servicegesellschaft mbH now owns 232,370 shares of the company’s stock worth $954,000 after acquiring an additional 2,753 shares during the period. Daiwa Securities Group Inc. grew its stake in Recursion Pharmaceuticals by 29.3% during the 2nd quarter. Daiwa Securities Group Inc. now owns 12,706 shares of the company’s stock valued at $64,000 after acquiring an additional 2,883 shares in the last quarter. Finally, Ascent Wealth Partners LLC grew its stake in Recursion Pharmaceuticals by 11.8% during the 1st quarter. Ascent Wealth Partners LLC now owns 28,081 shares of the company’s stock valued at $86,000 after acquiring an additional 2,974 shares in the last quarter. Hedge funds and other institutional investors own 89.06% of the company’s stock.

Recursion Pharmaceuticals Stock Down 1.8% RXRX opened at $3.29 on Thursday. Recursion Pharmaceuticals, Inc. has a fifty-two week low of $2.77 and a fifty-two week high of $7.18. The business has a 50-day moving average of $3.30 and a 200-day moving average of $3.42. The company has a debt-to-equity ratio of 0.01, a current ratio of 5.03 and a quick ratio of 5.03. The company has a market capitalization of $1.74 billion, a PE ratio of -3.16 and a beta of 1.03.

Recursion Pharmaceuticals (NASDAQ:RXRX – Get Free Report) last announced its quarterly earnings results on Wednesday, August 5th. The company reported ($0.25) earnings per share (EPS) for the quarter, missing the consensus estimate of ($0.24) by ($0.01). Recursion Pharmaceuticals had a negative net margin of 945.94% and a negative return on equity of 50.41%. The firm had revenue of $7.67 million for the quarter, compared to analyst estimates of $10.97 million. During the same quarter in the prior year, the firm earned ($0.41) earnings per share. Equities research analysts forecast that Recursion Pharmaceuticals, Inc. will post -0.9 EPS for the current fiscal year.

Wall Street Analyst Weigh In A number of research firms have recently issued reports on RXRX. JPMorgan Chase & Co. reduced their price target on shares of Recursion Pharmaceuticals from $11.00 to $10.00 and set an “overweight” rating for the company in a research report on Thursday, April 30th. Morgan Stanley boosted their price objective on shares of Recursion Pharmaceuticals from $5.00 to $5.50 and gave the company an “equal weight” rating in a research report on Thursday, May 14th. Needham & Company LLC reaffirmed a “buy” rating and set a $8.00 price objective on shares of Recursion Pharmaceuticals in a research report on Thursday, May 7th. Weiss Ratings reiterated a “sell (d-)” rating on shares of Recursion Pharmaceuticals in a research note on Friday, July 17th. Finally, Wall Street Zen downgraded shares of Recursion Pharmaceuticals from a “sell” rating to a “strong sell” rating in a research report on Saturday, August 8th. Two research analysts have rated the stock with a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat.com, the company currently has an average rating of “Hold” and a consensus target price of $8.10.

View Our Latest Research Report on RXRX

Insider Buying and Selling In other Recursion Pharmaceuticals news, CEO Najat Khan sold 23,588 shares of Recursion Pharmaceuticals stock in a transaction that occurred on Friday, June 5th. The shares were sold at an average price of $3.58, for a total value of $84,445.04. Following the completion of the sale, the chief executive officer directly owned 2,175,796 shares in the company, valued at $7,789,349.68. The trade was a 1.07% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, Director Blake Borgeson sold 30,000 shares of the business’s stock in a transaction that occurred on Tuesday, August 4th. The stock was sold at an average price of $3.25, for a total transaction of $97,500.00. Following the completion of the sale, the director directly owned 6,188,287 shares of the company’s stock, valued at $20,111,932.75. This represents a 0.48% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders sold 131,937 shares of company stock valued at $478,874 over the last quarter. Corporate insiders own 6.65% of the company’s stock.

Recursion Pharmaceuticals Company Profile (Free Report)

Recursion Pharmaceuticals, Inc (NASDAQ: RXRX) is a biopharmaceutical company that combines advanced automation, artificial intelligence and high-throughput biology to discover and develop novel therapeutics. The company’s proprietary platform integrates deep-learning algorithms with large-scale cellular imaging and chemical biology, enabling the rapid identification of potential drug candidates across a range of indications. By automating complex laboratory workflows and leveraging computational models, Recursion aims to accelerate the drug discovery process and expand the scope of targets that can be addressed.

At the core of Recursion’s offering is its digital biology platform, which captures billions of cell images under varying chemical and genetic perturbations.

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Recursion Pharmaceuticals, Inc. remains a Hold as competitive advances and slow revenue growth challenge its AI-driven drug discovery ambitions. RXRX's partnerships, notably with Genentech/Roche and Sanofi, have delivered $500M+ in milestone payments, but further commercial validation is pending. The internal pipeline, led by REC-4881 for FAP, potentially lags competitors (more data is required) and is unlikely to generate significant revenue before 2030.

2 Reasons Absci Could Be the Future of AI Biotech, and 1 RiskRecursion Pharmaceuticals NASDAQ: RXRX outlined progress across its clinical pipeline, drug-discovery partnerships and AI-enabled research platform, while lowering its 2026 cash operating expense guidance to $375 million and reaffirming expectations for an operating runway through early 2028.

The company said it now has five clinical-stage programs and has generated more than $500 million in realized cash inflows through partnerships. Management emphasized that its drug-discovery approach combines proprietary biological data, AI models and experimental validation in a continuous “lab-in-the-loop” system.

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Genentech Neuroscience Program Advances These Are the Only 6 Stock Stocks in NVIDIA's 13F PortfolioA central update was the advancement of the first neuroscience target from Recursion’s collaboration with Roche and Genentech into a joint early drug-discovery program. The company described the target as previously unexplored biology that was identified using disease-relevant cellular data, foundation models and experimental validation.

According to Recursion, the neuroscience effort used induced pluripotent stem cell-derived neuronal and microglial cells at scale, including more than 1 trillion neurons and hundreds of billions of microglia. The company said its models evaluated biological signatures across more than 17,000 genes and tens of millions of data points, generating potential targets that were subsequently assessed through multiple experimental assays.

Sudden Ascent: Is Recursion Pharmaceuticals NVIDIA’s AI Favorite?Management said the collaboration with Roche Genentech has produced more than $216 million in upfront and milestone payments to date. Recursion also cited the potential for more than $300 million in additional development, commercialization and sales milestones for each future small-molecule program under the collaboration.

The company said the milestone provides early evidence that its platform can identify and validate new biological targets rather than solely optimize work on known biology. It added that the underlying datasets could potentially be reused to identify additional neuroscience opportunities.

FAP Program to Present Additional Data Chief Medical Officer Vicki Goodman highlighted REC-4881, an oral MEK1/2 inhibitor being evaluated in familial adenomatous polyposis, or FAP. The disease causes patients to develop hundreds or thousands of polyps in the gastrointestinal tract and often requires colectomy and continued surveillance or additional procedures.

Goodman said there are no approved systemic therapies to alter the course of FAP in post-colectomy patients. Recursion estimates there are more than 50,000 such patients in the U.S. and EU5 and cited a potential addressable market exceeding $10 billion.

In the ongoing Phase II TUPELO study, patients receiving REC-4881 after colectomy showed a median 43% reduction in polyp burden after three months of treatment, Goodman said. She added that reductions were sustained after three months off treatment and were observed in both the upper and lower gastrointestinal tract. The company characterized the safety profile as manageable, with predominantly mild-to-moderate adverse events consistent with other MEK inhibitors.

Recursion is continuing enrollment in TUPELO, including a dose-optimization cohort. Additional data are scheduled for presentation at the CGA-IGC Conference in November, and the company expects to provide an update on FDA discussions later this year. Goodman said regulatory discussions have focused on reducing uncertainty around study design, including the appropriate primary endpoint, in a disease with limited regulatory precedent.

REC-7735 Set for Phase I Initiation Recursion also said the FDA cleared its investigational new drug application for REC-7735, a precision-designed PI3K inhibitor for cancers with the PIK3CA H1047R mutation. The company intends to initiate the Phase I ZINNIA trial later this year.

Goodman said REC-7735 was designed to be more than 100-fold selective for the H1047R mutation relative to wild-type PI3K. Existing PI3K inhibitors can inhibit wild-type PI3K and cause hyperglycemia, which can limit dosing and potentially lead to hyperinsulinemia that reactivates the PI3K signaling pathway, she said.

The initial dose-escalation portion of ZINNIA will enroll patients with PIK3CA H1047R-mutant solid tumors. Recursion plans to evaluate a cohort of patients vulnerable to hyperglycemia after establishing tolerability at an active dose, followed by dose optimization in ER-positive, HER2-negative breast cancer. The company said it may expand to additional tumor types based on emerging data and expects first dose-escalation data in the first half of 2028.

Management said REC-7735 was delivered as a development candidate in 10 months, following the synthesis of 242 compounds across 13 design cycles. The company said its platform identified a previously unpublished binding pocket and found no identified off-target liabilities in its preclinical work.

AI Platform and Spending Plans Recursion said it has generated and aggregated more than 50 petabytes of multimodal biological data. Management said its chemistry platform has advanced candidates using roughly 330 compounds over about a year and a half, compared with an industry benchmark cited by the company of roughly 2,500 compounds over four years for small-molecule discovery.

The company also described AI agents being deployed in biology, chemistry and clinical development. It said a target-discovery tool can help scientists interrogate biological maps in hours rather than weeks, while a chemistry design agent has reduced structural-analysis work from roughly four hours to about 30 minutes. In clinical development, management said agentic workflows have contributed to enrollment improvements of approximately 1.3 to 1.6 times historical benchmarks.

Recursion named Dr. Hoifung Poon as chief AI officer and Dr. Donovan Chin to lead drug design. Management said Poon will oversee the company’s end-to-end AI strategy, while Chin brings experience across small molecules, RNA-targeted therapeutics, proximity-based medicines and peptide modalities.

CFO Ben Taylor said the company lowered its 2026 full-year cash operating expense guidance to $375 million, representing a nearly 40% reduction from comparable 2024 pro forma expenses. He said Recursion ended the quarter with approximately $557 million in cash and equivalents and believes that balance provides operating runway through early 2028.

About Recursion Pharmaceuticals (NASDAQ:RXRX)Recursion Pharmaceuticals, Inc NASDAQ: RXRX is a biopharmaceutical company that combines advanced automation, artificial intelligence and high-throughput biology to discover and develop novel therapeutics. The company's proprietary platform integrates deep-learning algorithms with large-scale cellular imaging and chemical biology, enabling the rapid identification of potential drug candidates across a range of indications. By automating complex laboratory workflows and leveraging computational models, Recursion aims to accelerate the drug discovery process and expand the scope of targets that can be addressed.

At the core of Recursion's offering is its digital biology platform, which captures billions of cell images under varying chemical and genetic perturbations.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].

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Recursion Pharmaceuticals (RXRX - Free Report) came out with a quarterly loss of $0.25 per share versus the Zacks Consensus Estimate of a loss of $0.23. This compares to a loss of $0.41 per share a year ago. These figures are adjusted for non-recurring items.

This quarterly report represents an earnings surprise of -8.70%. A quarter ago, it was expected that this biotechnology company would post a loss of $0.3 per share when it actually produced a loss of $0.22, delivering a surprise of +26.67%.

Over the last four quarters, the company has surpassed consensus EPS estimates three times.

Recursion Pharmaceuticals, which belongs to the Zacks Medical - Biomedical and Genetics industry, posted revenues of $7.67 million for the quarter ended June 2026, missing the Zacks Consensus Estimate by 46.77%. This compares to year-ago revenues of $19.22 million. The company has topped consensus revenue estimates just once over the last four quarters.

The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.

Recursion Pharmaceuticals shares have lost about 19.1% since the beginning of the year versus the S&P 500's gain of 13%.

What's Next for Recursion Pharmaceuticals?While Recursion Pharmaceuticals has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?

There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.

Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.

Ahead of this earnings release, the estimate revisions trend for Recursion Pharmaceuticals was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.

It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is -$0.24 on $13.1 million in revenues for the coming quarter and -$0.90 on $54.08 million in revenues for the current fiscal year.

Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Medical - Biomedical and Genetics is currently in the top 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

Lexicon Pharmaceuticals (LXRX - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.

This drugmaker is expected to post quarterly loss of $0.06 per share in its upcoming report, which represents a year-over-year change of -700%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days.

Lexicon Pharmaceuticals' revenues are expected to be $6.14 million, down 78.7% from the year-ago quarter.

Salt Lake City, UT, July 31, 2026 (GLOBE NEWSWIRE) -- Recursion (Nasdaq: RXRX), a leading clinical stage TechBio company decoding biology to radically improve lives, announced that on July 27, 2026, the Compensation Committee of Recursion's Board of Directors approved the grant of inducement restricted stock unit (RSU) awards covering 3,234,866 shares of its class A common stock in the aggregate to 24 new employees under Recursion's 2024 Inducement Equity Incentive Plan (the “2024 Plan”). Each award was granted as an inducement material to the employee's commencement of employment with Recursion, or a subsidiary of Recursion, pursuant to Nasdaq Listing Rule 5635(c)(4).

Each inducement RSU award will vest as to 1/4th of the shares subject to the award on the first quarterly vesting date on or following the one-year anniversary of the vesting commencement date, and as to 1/16th of the shares on each quarterly vesting date thereafter until the inducement RSU award is fully vested, subject to the inducement RSU award recipient’s continued employment through the company vesting dates. Each inducement RSU award is subject to the terms and conditions of the 2024 Plan and the grant agreements covering the awards.

About Recursion
Recursion (Nasdaq: RXRX) is a clinical stage TechBio company decoding biology to radically improve lives. Recursion is advancing a portfolio of differentiated investigational medicines across its wholly owned and partnered pipeline in oncology, rare disease, neuroscience, immunology, and other therapeutic areas with significant unmet need. Enabling its mission is the Recursion OS, an AI-native, end-to-end drug discovery and development platform integrating biology, chemistry, and clinical development into a unified intelligence system. Powered by proprietary multimodal data, purpose-built AI models, and bilingual teams fluent in both science and AI, the Recursion OS is designed to translate complex science into medicines that matter — faster, better, and at scale — for patients who are waiting.

Recursion’s platform infrastructure is anchored in Salt Lake City, Utah and Milton Park, Oxfordshire, where its automated biology and chemistry laboratories generate proprietary data at industrial scale. Recursion also maintains offices in New York, Montréal and London, three global hubs for talent and leadership at the intersection of AI and scientific innovation. Learn more at www.recursion.com, or connect on X and LinkedIn.

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Salt Lake City, UT, July 29, 2026 (GLOBE NEWSWIRE) -- Salt Lake City, UT, July 29, 2026 (GLOBE NEWSWIRE) – Recursion (Nasdaq: RXRX), a leading clinical stage TechBio company decoding biology to radically improve lives, announced today it will provide business updates and report its second quarter 2026 financial results on Wednesday, August 5, 2026, before the open of the financial markets.  Recursion will host an earnings call on Aug 5, 2026 at 8:00 AM ET / 6:00 AM MT / 1:00 PM BST.

A Small AI Company Just Took the Stage at One of the Biggest Events in Computing, and It Points to Where Drug Discovery Is Headed

In the latest close session, Recursion Pharmaceuticals (RXRX - Free Report) was down 1.87% at $2.89. This change lagged the S&P 500's daily loss of 0.19%. At the same time, the Dow lost 0.59%, and the tech-heavy Nasdaq lost 0.05%.

Shares of the biotechnology company have depreciated by 8.82% over the course of the past month, underperforming the Medical sector's gain of 6.06%, and the S&P 500's gain of 0.55%.

Analysts and investors alike will be keeping a close eye on the performance of Recursion Pharmaceuticals in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.25, marking a 39.02% rise compared to the same quarter of the previous year. At the same time, our most recent consensus estimate is projecting a revenue of $11.99 million, reflecting a 37.64% fall from the equivalent quarter last year.

For the entire fiscal year, the Zacks Consensus Estimates are projecting earnings of -$0.99 per share and a revenue of $54.08 million, representing changes of +31.25% and -27.59%, respectively, from the prior year.

Any recent changes to analyst estimates for Recursion Pharmaceuticals should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. Consequently, upward revisions in estimates express analysts' positivity towards the business operations and its ability to generate profits.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To benefit from this, we have developed the Zacks Rank, a proprietary model which takes these estimate changes into account and provides an actionable rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. At present, Recursion Pharmaceuticals boasts a Zacks Rank of #3 (Hold).

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 98, positioning it in the top 40% of all 250+ industries.

The Zacks Industry Rank evaluates the power of our distinct industry groups by determining the average Zacks Rank of the individual stocks forming the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

Remember to apply Zacks.com to follow these and more stock-moving metrics during the upcoming trading sessions.

Recursion Pharmaceuticals (RXRX - Free Report) closed the most recent trading day at $3.72, moving -3.13% from the previous trading session. The stock's change was less than the S&P 500's daily loss of 0.28%. On the other hand, the Dow registered a loss of 1.09%, and the technology-centric Nasdaq increased by 0.2%.

Coming into today, shares of the biotechnology company had gained 19.25% in the past month. In that same time, the Medical sector gained 7.8%, while the S&P 500 gained 1.64%.

The upcoming earnings release of Recursion Pharmaceuticals will be of great interest to investors. The company is forecasted to report an EPS of -$0.25, showcasing a 39.02% upward movement from the corresponding quarter of the prior year. Meanwhile, the Zacks Consensus Estimate for revenue is projecting net sales of $11.99 million, down 37.64% from the year-ago period.

Looking at the full year, the Zacks Consensus Estimates suggest analysts are expecting earnings of -$0.99 per share and revenue of $54.08 million. These totals would mark changes of +31.25% and -27.59%, respectively, from last year.

Any recent changes to analyst estimates for Recursion Pharmaceuticals should also be noted by investors. These revisions typically reflect the latest short-term business trends, which can change frequently. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research shows that these estimate changes are directly correlated with near-term stock prices. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, which varies between #1 (Strong Buy) and #5 (Strong Sell), carries an impressive track record of exceeding expectations, confirmed by external audits, with stocks at #1 delivering an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Recursion Pharmaceuticals holds a Zacks Rank of #2 (Buy).

The Medical - Biomedical and Genetics industry is part of the Medical sector. At present, this industry carries a Zacks Industry Rank of 110, placing it within the top 45% of over 250 industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RXRX in the coming trading sessions, be sure to utilize Zacks.com.

Choosing between Dyne Therapeutics (DYN +5.87%) and Recursion Pharmaceuticals (RXRX +3.54%) requires balancing the potential of targeted muscle-tissue therapies against the broad, data-driven power of artificial intelligence in drug discovery.

Dyne Therapeutics focuses on solving delivery challenges for neuromuscular diseases, while Recursion Pharmaceuticals aims to industrialize drug discovery through its proprietary digital platform. Both companies represent high-risk, high-reward opportunities within the healthcare sector for investors seeking clinical-stage innovation.

The case for Dyne TherapeuticsDyne Therapeutics operates in the field of biotech stocks by developing therapeutics that target muscle and the central nervous system. Its proprietary Forces platform aims to deliver medicine directly to affected tissues to treat conditions like Duchenne muscular dystrophy (DMD). The company relies on a loan agreement with Hercules Capital (HTGC +0.25%) as its only committed source of external capital. Customer concentration like this adds a layer of risk to the business.

The company had no revenue in FY 2025 because it is still in the development stage. Dyne reported a net loss of $446.2 million for the period, compared to a net loss of $317.4 million the prior year. This increasing loss reflects the rising costs associated with moving multiple candidates through clinical trials. High research spending is common for companies at this stage of development.

Its debt-to-equity ratio is close to 0.0x, indicating a minimal reliance on borrowed funds relative to shareholder equity. Free cash flow for FY 2025 was nearly negative $405.1 million. Free cash flow is cash from operations minus capital expenditures, which represents the money left after paying for business maintenance.

Recursion Pharmaceuticals is building an AI-native discovery platform to identify new investigational medicines across oncology and rare diseases. The company generates revenue through strategic collaborations with large partners like Roche, Genentech, and Takeda Pharmaceutical Co (TAK +5.14%). It also maintains technical relationships with Bayer, Merck & Co (MRK +3.34%), Sanofi SA (SNY +3.67%), and Nvidia (NVDA 1.39%). These partnerships provide necessary capital and validation for its proprietary digital operating system.

In FY 2025, revenue reached approximately $74.7 million, representing nearly 27% growth over the previous fiscal year. Despite this growth, the company reported a net loss of nearly $645 million for the same period.

As of its December 2025 balance sheet, the company maintained a debt-to-equity ratio of near 0.1x, indicating a strong position to meet short-term liabilities. Free cash flow for the period was approximately negative $378 million, reflecting the high costs of maintaining its data-generation capabilities and proprietary hardware.

Risk profile comparisonDyne Therapeutics faces significant liquidity risks and anticipates needing substantial additional funding to support its research pipeline. The company is highly dependent on meeting specific clinical and regulatory milestones to access remaining loan tranches from its lenders. Furthermore, it relies entirely on third-party suppliers for critical components, creating operational vulnerability. Any failure in clinical trials or the termination of intellectual property licenses with partners such as the University of Mons could significantly impact the business.

Recursion Pharmaceuticals relies entirely on the success of its AI platform to identify viable drug candidates. There is no guarantee that AI-driven discoveries will translate into successful clinical outcomes or regulatory approvals. The company also faces integration risks following its acquisition of Exscientia, which could impact its financial results if synergies are not realized. Continued operating losses may lead to shareholder dilution if the company must issue more stock to raise capital.

Valuation comparisonRecursion Pharmaceuticals carries a significant premium relative to its current revenue. Dyne Therapeutics, meanwhile, has neither of these ratios because it is not expected to generate revenue in 2026 and didn’t in 2025.

MetricDyne TherapeuticsRecursion PharmaceuticalsSector BenchmarkForward P/En/an/a389.1xP/S ration/a26.8xSector benchmark uses the SPDR XLV sector ETF.
Valuation metrics sourced from Financial Modeling Prep (FMP) and may differ from other data providers.

Which stock would I buy in 2026?Dyne Therapeutics may not have revenue, but its $3.7 billion market cap is a sign of investors’ faith in the business. Dyne is preparing its first product for Duchenne Muscular Dystrophy to enter the market in the first quarter of fiscal 2027, with its second product, DM1, expected to come to market in 2028

Long-term revenue projections are inherently more speculative, but analysts see Dyne making $53 million in sales in 2027 and $277 million in 2028, and reaching well over $1 billion in 2030. That’s a great outlook.

Recursion is also a development-stage firm with a $2 billion market cap, but its product revenue appears further off. Right now, the business generates annual revenue through milestone payments from development partners like Sanofi. That revenue is expected to be lower in 2026. The business is making progress with its AI-based discovery platform. In the first quarter, management touted its first clinical proof of concept with its polyp-related treatment, REC-4881 allosteric MEK1/2 inhibitor focused on FAP. It showed a significant reduction in precancerous polyps, a major driver of the disease’s progressive nature. Still, significant revenue for the business is seen as years away.

Both companies are more speculative buys, given that they require regulatory approvals and have greater capital needs. But given Dyne appears closer to getting its first treatment to market, it gets the nod

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Artificial intelligence is reshaping nearly every industry, but some of its biggest opportunities are emerging far from Silicon Valley. Biotechnology has spent decades producing breakthrough medicines, yet drug development has remained painfully slow, often taking 10 to 15 years while roughly 90% of candidates never reach approval.

AI is beginning to change that equation. By treating drug discovery as a massive optimization problem, AI can analyze millions of molecular combinations in weeks instead of years, dramatically shortening the path from concept to clinical testing. Few areas stand to benefit more than peptide-based medicines.

These short chains of amino acids occupy a sweet spot between traditional small-molecule drugs and complex biologics. Better yet, their modular design makes them exceptionally well suited for AI-driven discovery. For investors, that combination could create one of biotech’s most compelling long-term growth opportunities.

Why Peptides Are a Natural Fit for AI Developing conventional small-molecule drugs is often a balancing act. Improving one characteristic — such as potency, stability, or solubility — can easily compromise another.

Peptides are far more flexible. Because they’re built from amino acid building blocks, researchers can modify them with remarkable precision, almost like editing lines of computer code. That makes them an ideal playground for machine learning algorithms.

AI models can rapidly search enormous chemical libraries, predict how peptides will fold, estimate their stability, identify promising drug targets, and forecast how they’ll behave inside the human body. Work that once demanded years of laboratory trial and error can now be completed computationally in a fraction of the time.

Manufacturing and delivery have historically limited broader adoption of peptide drugs, but AI is helping overcome many of those challenges by designing molecules that are easier to produce and more effective.

The commercial results are already becoming apparent. Eli Lilly (NYSE:LLY | LLY Price Prediction) has increasingly integrated AI into candidate selection across its metabolic disease pipeline, where peptide therapies play a central role. The company’s tirzepatide franchise — Mounjaro and Zepbound — generated $36.5 billion in revenue during 2025, a 215% increase from the prior year. By comparison, Novo Nordisk‘s (NYSE:NVO) comparable GLP-1 peptide portfolio — Ozempic and Wegovy — grew 39% to $34.6 billion over the same period.

Turning a 90% failure rate into a multi-billion dollar optimization game. The biotech gold rush is moving from the lab to the motherboard. © 24/7 Wall St. AI Is Accelerating the Next Generation of Medicines Peptide drugs have already transformed the treatment of diabetes, obesity, and several forms of cancer. AI is now expanding what’s possible.

Researchers are designing entirely new classes of peptides containing non-natural amino acids that resist degradation, remain active for weeks instead of hours, and target diseased tissue with far greater precision.

For investors, established pharmaceutical leaders like Lilly remain the safest way to capitalize on this trend. It trades at a forward P/E of roughly 33, while Novo Nordisk traded around 16. Both companies generate billions in annual cash flow that can fund continued research, commercialization, and pipeline expansion. Lilly alone produced $16.8 billion in operating cash flow during 2025, a 91% increase from the previous year.

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Beyond the pharmaceutical giants, investors can also gain exposure through companies building the AI infrastructure behind drug discovery.

Schrodinger (NASDAQ:SDGR) develops physics-based molecular simulation software used by 18 of the world’s 20 largest pharmaceutical companies. The company reported 12% revenue growth during the first quarter of 2026.

Meanwhile, Recursion Pharmaceuticals (NASDAQ:RXRX) generated $66.4 million in trailing-12-month revenue, supported by multiple AI-powered research partnerships spanning peptides and other therapeutic platforms.

While AI is also improving cell-based therapies such as CAR-T, peptide medicines may reach patients more quickly thanks to simpler manufacturing processes and easier administration.

Key Takeaway Artificial intelligence won’t eliminate the risks of drug development, but it is steadily improving the odds.

For peptide medicines, AI is enabling faster discovery, more accurate molecular design, and therapies that were previously impossible to create. That combination could significantly accelerate innovation across some of medicine’s largest markets.

For most investors, the best starting point remains established leaders like Eli Lilly and Novo Nordisk, whose proven peptide franchises and robust cash generation provide a measure of stability while AI expands future opportunities. Investors seeking greater upside can complement those holdings with AI-focused platforms such as Schrodinger or Recursion Pharmaceuticals.

Clinical setbacks and premium valuations remain important risks, so diversification is essential. But as AI continues to compress years of research into months of computation, peptide drugs may become one of the clearest examples of how artificial intelligence creates value far beyond the technology sector itself. 

For patient investors, this convergence could represent one of biotech’s most exciting growth stories over the coming decade.

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Recursion Pharmaceuticals (RXRX - Free Report) ended the recent trading session at $3.23, demonstrating a +2.22% change from the preceding day's closing price. The stock's change was more than the S&P 500's daily loss of 0.1%. On the other hand, the Dow registered a gain of 0.35%, and the technology-centric Nasdaq decreased by 0.43%.

Heading into today, shares of the biotechnology company had gained 6.4% over the past month, outpacing the Medical sector's gain of 1.97% and the S&P 500's loss of 1.34%.

The investment community will be paying close attention to the earnings performance of Recursion Pharmaceuticals in its upcoming release. The company is forecasted to report an EPS of -$0.25, showcasing a 39.02% upward movement from the corresponding quarter of the prior year. Simultaneously, our latest consensus estimate expects the revenue to be $11.99 million, showing a 37.64% drop compared to the year-ago quarter.

Regarding the entire year, the Zacks Consensus Estimates forecast earnings of -$0.99 per share and revenue of $54.08 million, indicating changes of +31.25% and -27.59%, respectively, compared to the previous year.

Investors should also take note of any recent adjustments to analyst estimates for Recursion Pharmaceuticals. These recent revisions tend to reflect the evolving nature of short-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research suggests that these changes in estimates have a direct relationship with upcoming stock price performance. To utilize this, we have created the Zacks Rank, a proprietary model that integrates these estimate changes and provides a functional rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. Recursion Pharmaceuticals is currently sporting a Zacks Rank of #3 (Hold).

The Medical - Biomedical and Genetics industry is part of the Medical sector. This industry, currently bearing a Zacks Industry Rank of 158, finds itself in the bottom 36% echelons of all 250+ industries.

The strength of our individual industry groups is measured by the Zacks Industry Rank, which is calculated based on the average Zacks Rank of the individual stocks within these groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

Recursion Pharmaceuticals (RXRX - Free Report) closed the most recent trading day at $3.50, moving -6.17% from the previous trading session. The stock's performance was behind the S&P 500's daily loss of 0.41%. At the same time, the Dow lost 0.36%, and the tech-heavy Nasdaq lost 0.89%.

Shares of the biotechnology company have appreciated by 17.67% over the course of the past month, outperforming the Medical sector's gain of 0.47%, and the S&P 500's gain of 9.71%.

Investors will be eagerly watching for the performance of Recursion Pharmaceuticals in its upcoming earnings disclosure. It is anticipated that the company will report an EPS of -$0.27, marking a 46% rise compared to the same quarter of the previous year. Simultaneously, our latest consensus estimate expects the revenue to be $20.73 million, showing a 40.65% escalation compared to the year-ago quarter.

RXRX's full-year Zacks Consensus Estimates are calling for earnings of -$0.93 per share and revenue of $90.52 million. These results would represent year-over-year changes of +35.42% and +21.21%, respectively.

Investors should also pay attention to any latest changes in analyst estimates for Recursion Pharmaceuticals. Such recent modifications usually signify the changing landscape of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the business outlook.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. To capitalize on this, we've crafted the Zacks Rank, a unique model that incorporates these estimate changes and offers a practical rating system.

Ranging from #1 (Strong Buy) to #5 (Strong Sell), the Zacks Rank system has a proven, outside-audited track record of outperformance, with #1 stocks returning an average of +25% annually since 1988. Over the last 30 days, the Zacks Consensus EPS estimate has witnessed an unchanged state. As of now, Recursion Pharmaceuticals holds a Zacks Rank of #3 (Hold).

The Medical - Biomedical and Genetics industry is part of the Medical sector. Currently, this industry holds a Zacks Industry Rank of 143, positioning it in the bottom 42% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

To follow RXRX in the coming trading sessions, be sure to utilize Zacks.com.