Recursion 2Q26 Earnings – More Clarity Provided on AI-Driven Collaborations

Research evidence excerpt

J P M O R G A N

North America Equity Research

05 August 2026

Recursion

2Q26 Earnings – More Clarity Provided on AI-Driven

Collaborations

Overweight

RXRX, RXRX US

Price (04 Aug 26):$3.31

SMid Biotechnology

Recursion Pharmaceuticals reported 2Q earnings, and we wanted to share our

thoughts.

Priyanka Grover, Ph.D. AC

(1-212) 622-5534

Anupam Rama

Net takeaways for RXRX shares

We were encouraged by Recursion’s increased partnership disclosure this

quarter, an area we believe many investors have wanted greater clarity on.

Looking ahead, we view this as a constructive step toward improved

messaging around collaborations, which could be a sentiment-based

tailwind for RXRX shares.

In the near term, the focus for RXRX shares will be on the additional phase 2

data readout from the TUPELO trial on November 2 and the 2H26 update to

define the registrational pathway.

We reiterate our Overweight rating on RXRX shares based on the potential of

REC-4881 in FAP and pipeline optionality along with partnerships.

(1-212) 622-0900

J.P. Morgan Securities LLC

Key points to consider

Notably, Recursion disclosed that Genentech exercised the first validated

target option under the parties’ neuroscience collaboration, advancing a

previously unexplored target into a small-molecule early discovery program.

This importantly provides further validation for Recursion’s AI-driven

platform. As a reminder, Recursion received ~$216M in upfront and milestone

payments from the Roche and Genentech collaboration to date.

The company reduced its 2026 OpEx guidance for the year to <$375M (vs.

<$390M prior).

REC-4881 (MEK1/2): Recursion will be presenting additional phase 2 data

from the TUPELO clinical trial at CGA-IGC annual meeting on November 2

(new, update was expected in 2H26). Management noted it remains in dialogue

with the FDA on defining a registration pathway (on track). The company is

evaluating a cohort with an alternative dosing schedule and expanding

TUPELO enrollment to 18+ years (on track).

REC-7735 (PI3Kα H1047R): The company has received FDA clearance,

with phase 1/2 ZINNIA trial expected to initiate in 2H26. Of note, it took

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