Recursion Q3 2026: Revenue Surges 258% on Sanofi Milestone
As seen on the 24/7 Wall St. homepage on November 2, 2026.
A $10 million Sanofi milestone drove revenue 258% higher year over year, beating expectations and showing the AI platform converts into partner cash. October's raise pushed pro forma cash near $748.7 million, funding operations into 2029 and a registrational FAP trial targeted for the second half of 2027.
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Recursion's Q3 2026 revenue rose 258% from a year ago to $18.55 million, beating expectations. A $10 million milestone payment from Sanofi drove it, after the partner optioned Recursion's first immunology development candidate.
The EPS loss of $0.22 came in better than expectations, helped by the absence of in-process R&D charges tied to the REC-102 acquisition that hit Q3 2025.
The FAP program is the forward signal: Phase 2 TUPELO data showed 87% of patients had total polyp burden reductions after 12 weeks of REC-4881, with reductions persisting after the drug was stopped. CEO Najat Khan said the priority is aligning with the FDA on a registrational path and moving toward a trial in the second half of 2027. The disease has no approved pharmacologic therapies.
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An October equity raise lifted pro forma cash to approximately $748.7 million. That runway, by Recursion's own reckoning, extends into 2029 with no additional financing required, funding the registrational FAP trial and dose expansion for REC-1245 in endometrial cancer.
The Sanofi payout shows the Recursion OS platform generating partner cash at scale, and Genentech exercised its first Validated Target Option for a neuroscience target this quarter. The company reiterated 2026 cash operating expense guidance below $375 million, signaling costs fall even as the pipeline expands.
Mentioned: RXRX