Shareholders in Recursion Pharmaceuticals, Inc. (NASDAQ:RXRX) had a terrible week, as shares crashed 27% to US$4.16 in the week since its latest first-quarter results. It wasn't the greatest result, with ongoing losses and revenues of US$15m falling short of analyst predictions. The losses were a relative bright spot though, with a statutory per-share loss of US$0.50 being 10% smaller than the analysts forecast. The analysts typically update their forecasts at each earnings report, and we can judge from their estimates whether their view of the company has changed or if there are any new concerns to be aware of. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

Our free stock report includes 3 warning signs investors should be aware of before investing in Recursion Pharmaceuticals. Read for free now.NasdaqGS:RXRX Earnings and Revenue Growth May 7th 2025

Taking into account the latest results, the current consensus from Recursion Pharmaceuticals' nine analysts is for revenues of US$75.8m in 2025. This would reflect a huge 27% increase on its revenue over the past 12 months. Losses are expected to hold steady at around US$1.40. Before this earnings announcement, the analysts had been modelling revenues of US$88.3m and losses of US$1.70 per share in 2025. So there's been quite a change-up of views after the recent consensus updates, withthe analysts making a serious cut to their revenue forecasts while also reducing the estimated losses the business will incur.

View our latest analysis for Recursion Pharmaceuticals

The analysts have cut their price target 15% to US$7.43per share, suggesting that the declining revenue was a more crucial indicator than the forecast reduction in losses. It could also be instructive to look at the range of analyst estimates, to evaluate how different the outlier opinions are from the mean. Currently, the most bullish analyst values Recursion Pharmaceuticals at US$10.00 per share, while the most bearish prices it at US$3.00. This is a fairly broad spread of estimates, suggesting that analysts are forecasting a wide range of possible outcomes for the business.

Of course, another way to look at these forecasts is to place them into context against the industry itself. We can infer from the latest estimates that forecasts expect a continuation of Recursion Pharmaceuticals'historical trends, as the 37% annualised revenue growth to the end of 2025 is roughly in line with the 33% annual growth over the past three years. Compare this with the broader industry, which analyst estimates (in aggregate) suggest will see revenues grow 18% annually. So it's pretty clear that Recursion Pharmaceuticals is forecast to grow substantially faster than its industry.

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The Bottom Line

The most obvious conclusion is that the analysts made no changes to their forecasts for a loss next year. They also downgraded Recursion Pharmaceuticals' revenue estimates, but industry data suggests that it is expected to grow faster than the wider industry. Still, earnings are more important to the intrinsic value of the business. Furthermore, the analysts also cut their price targets, suggesting that the latest news has led to greater pessimism about the intrinsic value of the business.

Keeping that in mind, we still think that the longer term trajectory of the business is much more important for investors to consider. We have forecasts for Recursion Pharmaceuticals going out to 2027, and you can see them free on our platform here.

Don't forget that there may still be risks. For instance, we've identified  3 warning signs for Recursion Pharmaceuticals (2 shouldn't be ignored)  you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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