Vertex Pharmaceuticals (VRTX)
NASDAQ:VRTX
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Vertex Pharmaceuticals
(NASDAQ:VRTX)
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Rating:72Outperform
Price Target:
$492.00
▲(10.83% Upside)
Action:ReiteratedDate:04/01/26
The score is supported by strong fundamentals (high margins, solid 2025 profitability, conservative leverage) and a constructive earnings outlook with 2026 growth guidance and advancing launches/pipeline. It is held back by weak current technical momentum and the company’s recent volatility in earnings and cash flow (notably the 2024 downturn) alongside near-term margin/tax headwinds from higher 2026 investment and a higher expected tax rate.
Positive Factors
High gross margins
Vertex’s structurally high gross margins (Q4 85.7%) reflect durable pricing power and a scalable specialty‑drug model. Sustained margins support continued R&D and commercial investment, funding pipeline progression and shareholder returns through varying revenue cycles.
Negative Factors
Earnings and cash‑flow volatility
Material swings in operating cash flow and free cash flow (2024 negative OCF/FCF; 2025 FCF down) reduce predictability for funding launches and pipeline execution. Persistent volatility can constrain capital allocation and increase reliance on cash reserves or external financing.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Vertex’s structurally high gross margins (Q4 85.7%) reflect durable pricing power and a scalable specialty‑drug model. Sustained margins support continued R&D and commercial investment, funding pipeline progression and shareholder returns through varying revenue cycles.
Read all positive factors
Vertex Pharmaceuticals (VRTX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$112.77B
Dividend YieldN/A
Average Volume (3M)1.37M
Price to Earnings (P/E)29.3
Beta (1Y)0.59
Revenue Growth10.53%
EPS GrowthN/A
CountryUS
Employees6,100
SectorHealthcare
Sector Strength45
IndustryBiotechnology
Share Statistics
EPS (TTM)5.03
Shares Outstanding254,034,200
10 Day Avg. Volume1,227,083
30 Day Avg. Volume1,371,662
Financial Highlights & Ratios
PEG Ratio-0.03
Price to Book (P/B)6.21
Price to Sales (P/S)9.60
P/FCF Ratio36.30
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue9.27
Enterprise Value/Gross Profit10.74
Enterprise Value/Ebitda23.10
Forecast
1Y Price Target
$557.23Price Target Upside25.52% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering25
EPS Forecast (FY)19.33
Revenue Forecast (FY)$13.03B
Vertex Pharmaceuticals Business Overview & Revenue Model
Company Description
Vertex Pharmaceuticals Incorporated, a biotechnology company, engages in developing and commercializing therapies for treating cystic fibrosis. The company markets SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO to treat patients with cystic fibrosis who h...
How the Company Makes Money
Vertex primarily makes money by selling prescription medicines, with the large majority of revenue historically generated from its cystic fibrosis franchise. Key CF products include TRIKAFTA/KAFTRIO (elexacaftor/tezacaftor/ivacaftor), SYMDEKO/SYMK...
Vertex Pharmaceuticals Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyVertex Pharmaceuticals Earnings Call Summary
Earnings Call Date:Feb 12, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call presents a broadly positive picture: strong top-line growth (Q4 +10%, FY +9%), strong margins and profitability (Q4 net income +24%, EPS +26%), a solid cash position, active capital returns, and multiple important commercial launches (CF next-gen, KASJEVY, Genavix) plus rapid advancement of a diversified pipeline (notably an emerging renal franchise with regulatory progress for povitacept). Near-term headwinds include a $200M Russia decline, gross-to-net effects from patient support programs impacting Genavix revenue, timing variability for cell therapy infusions, and increased operating investments and a higher expected tax rate in 2026. Key clinical/regulatory readouts (RAINIER, AMPLITUDE, other pivotal data) represent binary events that could materially affect future prospects. Overall, the positives (diversified growth, strong financials, multiple product and regulatory milestones) outweigh the near-term operational and timing challenges.Positive Updates
Strong Revenue Growth
Q4 2025 total revenue of $3.2B, up 10% year-over-year; full year 2025 revenue of $12.0B, up 9% versus 2024.
Negative Updates
Regional Sales Headwind — Russia Decline
International CF revenue growth (+2% YoY) was partly offset by a previously communicated $200M decline in Russia sales for the year, weighing on international growth.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Revenue Growth
Q4 2025 total revenue of $3.2B, up 10% year-over-year; full year 2025 revenue of $12.0B, up 9% versus 2024.
Read all positive updates
Company Guidance
Vertex guided full‑year 2026 total revenue of $12.95–$13.10 billion (8–9% growth vs. 2025), with at least $500 million expected from non‑CF products; they expect Q1 2026 revenue to be ~7% year‑over‑year with growth accelerating thereafter. Management forecast combined non‑GAAP operating expenses of $5.65–$5.75 billion and a non‑GAAP effective tax rate of 19.5–20.5%, noted Q4 2025 gross margin of 85.7% is a reasonable proxy for 2026, do not expect a material tariff impact, and plan continued commercial investment (including doubling the Genavix field force in Q2); they also expect Genavix prescriptions to more than triple versus ~550,000 in 2025 and for Genavix gross‑to‑net to ultimately settle at levels comparable to other branded medicines.Vertex Pharmaceuticals Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
84
Very Positive
Cash Flow
67
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 12.07B | 11.02B | 9.87B | 8.93B | 7.57B |
| Gross Profit | 10.27B | 9.49B | 8.61B | 7.85B | 6.67B |
| EBITDA | 4.97B | 486.30M | 4.61B | 4.44B | 2.92B |
| Net Income | 3.95B | -535.60M | 3.62B | 3.32B | 2.34B |
Balance Sheet | |||||
| Total Assets | 26.14B | 22.53B | 22.73B | 18.15B | 13.43B |
| Cash, Cash Equivalents and Short-Term Investments | 6.61B | 6.12B | 11.22B | 10.78B | 7.52B |
| Total Debt | 3.88B | 1.75B | 808.40M | 899.70M | 967.40M |
| Total Liabilities | 7.48B | 6.12B | 5.15B | 4.24B | 3.33B |
| Stockholders Equity | 18.67B | 16.41B | 17.58B | 13.91B | 10.10B |
Cash Flow | |||||
| Free Cash Flow | 3.19B | -790.30M | 3.28B | 3.93B | 2.41B |
| Operating Cash Flow | 3.63B | -492.60M | 3.54B | 4.13B | 2.64B |
| Investing Cash Flow | -945.40M | -3.77B | -3.14B | -321.10M | -340.90M |
| Financing Cash Flow | -2.26B | -1.49B | -562.20M | -67.70M | -1.48B |
Vertex Pharmaceuticals Technical Analysis
Neutral
443.92
Price Trends
465.84
Negative
457.38
Negative
438.21
Positive
Market Momentum
-8.60
Positive
44.86
Neutral
29.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VRTX, the sentiment is Neutral. The current price of 443.92 is below the 20-day moving average (MA) of 452.97, below the 50-day MA of 465.84, and above the 200-day MA of 438.21, indicating a neutral trend. The MACD of -8.60 indicates Positive momentum. The RSI at 44.86 is Neutral, neither overbought nor oversold. The STOCH value of 29.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for VRTX.
Vertex Pharmaceuticals Risk Analysis
Vertex Pharmaceuticals disclosed 50 risk factors in its most recent earnings report. Vertex Pharmaceuticals reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Vertex Pharmaceuticals Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $81.98B | 17.92 | 14.83% | 0.45% | 2.89% | 0.50% | |
75 Outperform | $48.40B | 14.76 | 16.82% | ― | 89.58% | ― | |
74 Outperform | $18.65B | 14.98 | 29.15% | ― | 18.09% | 3563.21% | |
72 Outperform | $112.77B | 29.32 | 22.70% | ― | 10.53% | ― | |
57 Neutral | $43.40B | 166.04 | 90.35% | ― | 53.24% | ― | |
54 Neutral | $23.14B | -17.95 | -6.03% | ― | 7.04% | -25.24% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% |
* Healthcare Sector Average
VRTX
Vertex Pharmaceuticals
443.92
-38.38
-7.96%
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Vertex Pharmaceuticals Corporate Events
Business Operations and StrategyProduct-Related AnnouncementsRegulatory Filings and Compliance
Vertex Advances FDA Filing for IgA Nephropathy Therapy
Positive
Mar 31, 2026
Vertex Pharmaceuticals has completed the rolling submission of a Biologics License Application to the U.S. Food and Drug Administration for povetacicept, seeking accelerated approval to treat immunoglobulin A nephropathy in adults. By using a prio...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.