Vertex sustains a stable revenue trajectory with 7.8% year-over-year growth in 2026Q1, supported by structural gross margins that remain resilient between 85% and 87%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 12.26B | 12.07B | 11.02B | 9.87B | 8.93B | 7.57B | 6.21B | 4.16B | 3.05B | 2.49B | 1.7B | 1.03B | 580.41M | 1.21B | 1.53B | 1.41B | 143.37M | 102.05M | 175.5M | 199.01M | 216.36M | 160.89M | 102.72M | 69.14M | 161.09M | 167.49M | 78.13M | 61.6M | 44.4M | 43.8M | 13.3M |
| Revenue Growth % | 10.41% | 9.57% | 11.66% | 10.51% | 17.91% | 22.06% | 49.07% | 36.59% | 22.46% | 46.2% | 64.89% | 77.86% | -52.11% | -20.63% | 8.25% | 883.91% | 40.49% | -41.85% | -11.81% | -8.02% | 34.47% | 56.63% | 48.56% | -57.08% | -3.82% | 114.38% | 26.83% | 38.74% | 1.37% | 229.32% | -39.82% |
| Cost of Goods Sold | 1.68B | 1.81B | 1.53B | 1.26B | 1.08B | 904.2M | 736.3M | 547.76M | 409.54M | 275.12M | 210.46M | 125.54M | 60.99M | 130.28M | 279.88M | 80.5M | 12.73M | 14.2M | 15.69M | 13.9M | 12.17M | 10.1M | 5.65M | 3.13M | 28.28M | 39.63M | 4.08M | -3.4M | -4.5M | -3.6M | -3.2M |
| COGS % of Revenue | - | 14.97% | 13.89% | 12.79% | 12.1% | 11.94% | 11.86% | 13.16% | 13.44% | 11.05% | 12.36% | 12.16% | 10.51% | 10.75% | 18.33% | 5.71% | 8.88% | 13.92% | 8.94% | 6.99% | 5.63% | 6.28% | 5.5% | 4.52% | 17.56% | 23.66% | 5.22% | -5.52% | -10.14% | -8.22% | -24.06% |
| Gross Profit | 10.57B | 10.27B | 9.49B | 8.61B | 7.85B | 6.67B | 5.47B | 3.62B | 2.64B | 2.21B | 1.49B | 906.79M | 519.43M | 1.08B | 1.25B | 1.33B | 130.64M | 87.85M | 159.82M | 185.11M | 204.19M | 150.79M | 97.07M | 66.02M | 132.8M | 127.86M | 74.05M | 65M | 48.9M | 47.4M | 16.5M |
| Gross Margin % | 86.28% | 85.03% | 86.11% | 87.21% | 87.9% | 88.06% | 88.14% | 86.84% | 86.56% | 88.95% | 87.64% | 87.84% | 89.49% | 89.25% | 81.67% | 94.29% | 91.12% | 86.08% | 91.06% | 93.01% | 94.38% | 93.72% | 94.5% | 95.48% | 82.44% | 76.34% | 94.78% | 105.52% | 110.14% | 108.22% | 124.06% |
| Gross Profit Growth % | - | 8.2% | 10.25% | 9.64% | 17.69% | 21.96% | 51.29% | 37.04% | 19.18% | 48.39% | 64.5% | 74.58% | -51.98% | -13.27% | -6.24% | 918.16% | 48.71% | -45.03% | -13.66% | -9.34% | 35.41% | 55.35% | 47.04% | -50.29% | 3.87% | 72.68% | 13.92% | 32.92% | 3.16% | 187.27% | -36.05% |
| Operating Expenses | 5.8B | 5.51B | 9.72B | 4.78B | 3.54B | 3.89B | 2.61B | 2.41B | 1.97B | 1.82B | 1.48B | 1.37B | 1.16B | 1.28B | 1.24B | 1.11B | 825.22M | 679.98M | 618.2M | 597.78M | 429.57M | 292.53M | 234.3M | 238.72M | 252.41M | 196.01M | 112.73M | 104.6M | 81.3M | 66.6M | 46.3M |
| OpEx % of Revenue | - | 45.61% | 88.23% | 48.38% | 39.67% | 51.37% | 42.11% | 57.97% | 64.78% | 73.16% | 86.98% | 133.02% | 200.01% | 105.71% | 81.4% | 78.58% | 575.58% | 666.33% | 352.24% | 300.37% | 198.55% | 181.82% | 228.1% | 345.26% | 156.69% | 117.03% | 144.29% | 169.81% | 183.11% | 152.05% | 348.12% |
| Selling, General & Admin | 1.85B | 1.75B | 1.46B | 1.14B | 944.7M | 840.1M | 770.5M | 658.5M | 557.62M | 496.08M | 432.83M | 377.08M | 305.41M | 362.34M | 436.8M | 400.72M | 187.8M | 129.3M | 101.91M | 84.73M | 57.86M | 43.99M | 42.14M | 39.08M | 49.39M | 47.34M | 27.81M | 26.1M | 18.1M | 11.4M | 7.9M |
| SG&A % of Revenue | - | 14.52% | 13.29% | 11.52% | 10.58% | 11.09% | 12.42% | 15.82% | 18.3% | 19.93% | 25.43% | 36.53% | 52.62% | 29.9% | 28.6% | 28.41% | 130.99% | 126.7% | 58.07% | 42.57% | 26.74% | 27.34% | 41.02% | 56.53% | 30.66% | 28.26% | 35.59% | 42.37% | 40.77% | 26.03% | 59.4% |
| Research & Development | 3.95B | 3.75B | 3.63B | 3.16B | 2.66B | 3.05B | 1.83B | 1.75B | 1.42B | 1.32B | 1.05B | 996.17M | 855.51M | 918.78M | 806.18M | 707.71M | 637.42M | 550.68M | 516.29M | 513.05M | 371.71M | 248.54M | 192.16M | 199.64M | 203.02M | 148.67M | 84.92M | 72.2M | 58.7M | 51.6M | 35.2M |
| R&D % of Revenue | - | 31.09% | 32.94% | 32.05% | 29.74% | 40.28% | 29.48% | 42.15% | 46.48% | 53.23% | 61.55% | 96.5% | 147.4% | 75.81% | 52.79% | 50.17% | 444.6% | 539.63% | 294.18% | 257.8% | 171.81% | 154.48% | 187.08% | 288.74% | 126.03% | 88.77% | 108.7% | 117.21% | 132.21% | 117.81% | 264.66% |
| Other Operating Expenses | 700K | 0 | 4.63B | 475.5M | -57.5M | 0 | 13.06M | 0 | -790K | 0 | 4.13M | -6.71M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 6.3M | 4.5M | 3.6M | 3.2M |
| Operating Income | 4.78B | 4.76B | -232.9M | 3.83B | 4.31B | 2.78B | 2.86B | 1.2B | 635.15M | 123.24M | 9.94M | -468.66M | -692.41M | -903.45M | 2.33M | 113.82M | -696.08M | -613.41M | -462.71M | -419.79M | -229.04M | -149.87M | -154.81M | -264.53M | -119.6M | -91.8M | -38.68M | -39.6M | -32.4M | -19.2M | -29.8M |
| Operating Margin % | 38.97% | 39.43% | -2.11% | 38.83% | 48.23% | 36.73% | 46.03% | 28.77% | 20.84% | 4.95% | 0.58% | -45.4% | -119.3% | -74.54% | 0.15% | 8.07% | -485.51% | -601.1% | -263.65% | -210.94% | -105.86% | -93.15% | -150.71% | -382.59% | -74.25% | -54.81% | -49.51% | -64.29% | -72.97% | -43.84% | -224.06% |
| Operating Income Growth % | - | 2144.1% | -106.08% | -11.04% | 54.83% | -2.6% | 138.51% | 88.55% | 415.36% | 1140.37% | 102.12% | 32.31% | 23.36% | -38841.34% | -97.95% | 116.35% | -13.48% | -32.57% | -10.22% | -83.28% | -52.82% | 3.19% | 41.48% | -121.17% | -30.28% | -137.33% | 2.32% | -22.22% | -68.75% | 35.57% | -12.45% |
| EBITDA | 4.93B | 4.97B | -27.1M | 4.01B | 4.46B | 2.91B | 2.97B | 1.3B | 707.57M | 184.64M | 71.33M | -406.32M | -629.15M | -855.08M | 40.52M | 148.86M | -665.62M | -583.3M | -430.51M | -392.33M | -203.17M | -122.58M | -125.17M | -241.09M | -94.17M | -73.84M | -29.59M | -33.3M | -27.9M | -15.6M | -26.6M |
| EBITDA Margin % | 40.27% | 41.14% | -0.25% | 40.66% | 49.89% | 38.39% | 47.79% | 31.34% | 23.22% | 7.42% | 4.19% | -39.36% | -108.4% | -70.55% | 2.65% | 10.55% | -464.27% | -571.59% | -245.3% | -197.14% | -93.91% | -76.19% | -121.86% | -348.69% | -58.46% | -44.09% | -37.87% | -54.06% | -62.84% | -35.62% | -200% |
| EBITDA Growth % | 1013.48% | 18431.73% | -100.68% | -9.93% | 53.24% | -1.96% | 127.35% | 84.36% | 283.22% | 158.84% | 117.56% | 35.42% | 26.42% | -2210.12% | -72.78% | 122.36% | -14.11% | -35.49% | -9.73% | -93.11% | -65.74% | 2.06% | 48.08% | -156.01% | -27.54% | -149.57% | 11.15% | -19.35% | -78.85% | 41.35% | -16.67% |
| D&A (Non-Cash Add-back) | 158.8M | 207.2M | 205.8M | 181.3M | 148.3M | 125.6M | 109.52M | 106.94M | 72.42M | 61.4M | 61.4M | 62.34M | 63.26M | 48.37M | 38.19M | 35.04M | 30.46M | 30.11M | 32.2M | 27.46M | 25.87M | 27.29M | 29.64M | 23.44M | 25.43M | 17.96M | 9.1M | 6.3M | 4.5M | 3.6M | 3.2M |
| EBIT | 5.03B | 4.76B | 279.1M | 4.42B | 4.29B | 2.79B | 3.17B | 1.45B | 672.71M | 53.61M | 14.07M | -473.59M | -662.01M | -953.39M | 47.04M | 98.13M | -735.35M | -628.99M | -458.38M | -412.67M | -225.39M | -141.74M | -137.23M | -172.7M | -147.96M | -115.1M | -37.44M | -50.6M | -47.8M | -19.2M | -39.5M |
| Net Interest Income | 474.5M | 477.6M | 567.5M | 570.6M | 89.8M | -56.6M | -36M | 5.2M | -34.12M | -57.55M | -81.43M | -84.21M | -72.86M | -22.93M | -14.71M | -37.68M | -17.32M | -8.18M | 2.86M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 484.8M | 490.9M | 598.1M | 614.7M | 144.6M | 4.9M | 22.2M | 63.68M | 0 | 11.75M | 0 | 0 | 0 | 0 | 1.94M | 1.88M | 1.96M | 5.01M | 16.33M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 10.3M | 13.3M | 30.6M | 44.1M | 54.8M | 61.5M | 58.15M | 58.5M | 34.12M | 69.3M | 81.43M | 84.21M | 72.86M | 22.73M | 16.65M | 36.57M | 19.27M | 13.19M | 13.47M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 389.9M | -117.5M | 481.4M | 547.8M | -75M | -51.7M | 260.6M | 197.42M | -34.91M | -138.93M | -77.3M | -90.92M | -42.46M | -366.11M | -59.11M | -53.38M | -58.55M | -28.17M | 2.86M | 28.51M | 21.1M | -53.55M | -11.44M | 67.76M | 28.3M | -2.79M | -16.16M | 10.3M | 0 | 0 | 0 |
| Pretax Income | 5.17B | 4.64B | 248.5M | 4.38B | 4.23B | 2.73B | 3.12B | 1.39B | 600.24M | -15.69M | -67.37M | -559.58M | -734.88M | -976.12M | -12.38M | 60.45M | -754.63M | -642.18M | -464.18M | -426.91M | -206.89M | -173.39M | -158.5M | -347.35M | -119.66M | -117.89M | -53.61M | -40.3M | 0 | 0 | -39.5M |
| Pretax Margin % | 42.15% | 38.45% | 2.25% | 44.38% | 47.39% | 36.05% | 50.23% | 33.51% | 19.7% | -0.63% | -3.96% | -54.21% | -126.61% | -80.54% | -0.81% | 4.29% | -526.35% | -629.28% | -264.48% | -214.52% | -95.63% | -107.77% | -154.31% | -502.38% | -74.28% | -70.39% | -68.62% | -65.42% | - | - | -296.99% |
| Income Tax | 827.4M | 690M | 784.1M | 760.2M | 910.4M | 388.3M | 405.15M | 218.11M | -1.49B | -107.32M | 16.66M | 30.38M | 6.96M | -288.57M | 38.75M | 19.27M | 0 | 0 | -30.73M | -21.39M | -18.5M | 61.68M | 29.01M | 24.06M | -10.98M | -1.92M | 976K | 1.4M | 700K | 600K | 10.2M |
| Effective Tax Rate % | 16.02% | 14.86% | 315.53% | 17.36% | 21.51% | 14.22% | 13% | 15.64% | -247.71% | 684.07% | -24.74% | -5.43% | -0.95% | 29.56% | -313.01% | 31.87% | 0% | 0% | 6.62% | 5.01% | 8.94% | -35.57% | -18.3% | -6.93% | 9.18% | 1.63% | -1.82% | -3.47% | - | - | -25.82% |
| Net Income | 4.34B | 3.95B | -535.6M | 3.62B | 3.32B | 2.34B | 2.71B | 1.18B | 2.1B | 263.48M | -112.05M | -558.12M | -738.55M | -445.03M | -107.03M | 29.57M | -754.63M | -641.58M | -459.85M | -391.28M | -206.89M | -203.42M | -166.25M | -196.77M | -108.62M | -66.23M | -39.66M | -41M | -33.1M | -19.8M | -40M |
| Net Margin % | 35.4% | 32.74% | -4.86% | 36.68% | 37.2% | 30.92% | 43.7% | 28.27% | 68.8% | 10.59% | -6.58% | -54.06% | -127.25% | -36.72% | -7.01% | 2.1% | -526.35% | -628.7% | -262.02% | -196.61% | -95.63% | -126.43% | -161.85% | -284.59% | -67.43% | -39.54% | -50.76% | -66.56% | -74.55% | -45.21% | -300.75% |
| Net Income Growth % | 538.7% | 838.09% | -114.8% | 8.96% | 41.84% | -13.63% | 130.43% | -43.88% | 695.83% | 335.14% | 79.92% | 24.43% | -65.96% | -315.79% | -461.91% | 103.92% | -17.62% | -39.52% | -17.53% | -89.12% | -1.71% | -22.36% | 15.51% | -81.15% | -64% | -67.01% | 3.27% | -23.87% | -67.17% | 50.5% | -86.05% |
| Net Income (Continuing) | 4.34B | 3.95B | -535.6M | 3.62B | 3.32B | 2.34B | 2.71B | 1.18B | 2.09B | 91.64M | -84.03M | -588.18M | -741.83M | -687.55M | -51.13M | 41.18M | -754.63M | -642.18M | -459.85M | -391.28M | -207.94M | -203.42M | -166.25M | -266.41M | -136.96M | -80.23M | -31.58M | -41M | -33.1M | -19.8M | -40M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 13.73M | 181.61M | 153.66M | 21.18M | 0 | 235.2M | 178.67M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 16.93 | 15.32 | -2.08 | 13.89 | 12.82 | 9.01 | 10.29 | 4.51 | 8.09 | 1.04 | -0.46 | -2.31 | -3.14 | -1.98 | -0.50 | 0.14 | -3.77 | -3.70 | -3.27 | -3.03 | -1.83 | -2.28 | -2.12 | -2.56 | -1.43 | -0.89 | -0.59 | -0.80 | -0.65 | -0.41 | -1.07 |
| EPS Growth % | 530.1% | 836.54% | -114.97% | 8.35% | 42.29% | -12.44% | 128.16% | -44.25% | 677.88% | 326.09% | 80.09% | 26.43% | -58.59% | -296% | -457.14% | 103.71% | -1.89% | -13.15% | -7.92% | -65.57% | 19.74% | -7.55% | 17.19% | -79.02% | -60.67% | -50.85% | 26.25% | -23.08% | -58.54% | 61.68% | -69.84% |
| EPS (Basic) | - | 15.46 | -2.08 | 14.05 | 12.97 | 9.09 | 10.44 | 4.58 | 8.25 | 1.06 | -0.46 | -2.32 | -3.14 | -1.98 | -0.50 | 0.14 | -3.77 | -3.70 | -3.27 | -3.03 | -1.83 | -2.28 | -2.12 | -2.56 | -1.43 | -0.89 | -0.59 | -0.80 | -0.65 | -0.41 | -1.07 |
| Diluted Shares Outstanding | 256.3M | 258M | 257.9M | 260.5M | 259.1M | 259.9M | 263.4M | 260.67M | 259.19M | 253.22M | 244.69M | 241.31M | 235.31M | 224.91M | 211.95M | 208.81M | 200.4M | 173.26M | 140.56M | 128.99M | 113.22M | 89.24M | 78.57M | 77M | 75.75M | 74.46M | 67.68M | 51.04M | 50.6M | 48.53M | 37.38M |
| Basic Shares Outstanding | 254.1M | 255.7M | 257.5M | 257.7M | 256.1M | 257.7M | 259.84M | 256.73M | 254.29M | 248.86M | 243.59M | 240.84M | 234.92M | 224.83M | 211.95M | 204.89M | 200.4M | 173.26M | 140.56M | 128.99M | 113.22M | 89.24M | 78.57M | 77M | 75.75M | 74.46M | 67.68M | 51.04M | 50.6M | 48.53M | 37.38M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
IRA pricing negotiation exposure
According to the latest quarterly financial data, Vertex Pharmaceuticals maintained a steady revenue trajectory, reporting $3.0 billion in 2026Q1, which represents a 7.8% year-over-year increase, reflecting the continued dominance of its cystic fibrosis franchise despite the challenges of scaling new, more complex therapeutic modalities.
The revenue growth appears to be driven by the persistent, non-discretionary demand for its core CFTR modulator portfolio. While the growth rate has moderated compared to previous periods, the company's ability to consistently expand its top line suggests that its existing market penetration remains highly resilient.
As reported in recent income statements, Vertex consistently sustains gross margins near 85% to 87%, a testament to the high pricing power and low variable production costs inherent in its specialized small-molecule portfolio, which remains the primary engine of the company's overall profitability profile.
These margins indicate a significant competitive moat, as the company effectively maintains its pricing power despite the evolving regulatory landscape. Investors should monitor whether the transition toward more complex gene-editing therapies eventually introduces manufacturing inefficiencies that could compress these historically high gross margin levels.
Based on the provided financial figures, Vertex demonstrates disciplined operating leverage, with operating income reaching $1.1 billion in 2026Q1, as the company successfully manages its SG&A expenses relative to gross profit growth, excluding the impact of one-time research-related charges observed in prior fiscal periods.
The company appears to be scaling its commercial infrastructure effectively, allowing for operating margins to remain robust even as R&D investment remains elevated. This suggests that the core business model is highly efficient, provided that management continues to exercise strict control over overhead as it diversifies its pipeline.
As evidenced by the 2024Q2 net loss of $3.6 billion, Vertex's reported earnings are frequently distorted by lumpy, non-recurring R&D charges, which necessitates a careful look at normalized profitability to understand the underlying cash-generating capacity of the firm's core cystic fibrosis and emerging pipeline assets.
The volatility in EPS, ranging from significant losses to strong positive figures, highlights the impact of accounting for acquired in-process research and development. Analysts should focus on operating cash flow and adjusted earnings metrics to strip away these accounting anomalies and assess the true health of the business.
Based on the historical income statement data, the 2024Q2 period represents a critical inflection point where massive R&D investment, likely tied to strategic acquisitions or pipeline advancement, temporarily obscured the company's underlying profitability, marking a transition toward a more complex, multi-therapeutic business model for the firm.
This period serves as a reminder of the high-stakes nature of the company's R&D-heavy strategy. While the immediate impact was a significant bottom-line contraction, it underscores the company's commitment to long-term growth beyond its core cystic fibrosis franchise, which remains the primary driver of its current valuation.
Quick answers to the most common questions about buying VRTX stock.
For fiscal year 2025, Vertex Pharmaceuticals Incorporated (VRTX) reported total revenue of $12.07B. This represents a 90686.5% increase compared to $13.3M in 1996.
Vertex Pharmaceuticals Incorporated (VRTX) is profitable, generating $3.95B in net income for the fiscal year ending 2025 with a net profit margin of 32.7%.
Vertex Pharmaceuticals Incorporated (VRTX) reported an operating income of $4.76B, resulting in an operating profit margin of 39.4%. This margin reflects the operational efficiency of the business before interest and taxes.
Vertex Pharmaceuticals Incorporated (VRTX) generated $10.27B in gross profit for the year, representing a gross profit margin of 85.0%. This demonstrates the company's core pricing power and production efficiency.