A Business at a Glance
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VERTEX PHARMACEUTICALS INC / MA
VRTX
$123.2B
Mkt Cap
$477.36
+0.90%
VERTEX PHARMACEUTICALS INC / MA (VRTX) has a current P/E ratio of 31.2, compared to its historical median P/E of 24.6. The stock is currently considered Fair based on its historical valuation range.
VERTEX PHARMACEUTICALS INC / MA (VRTX) has a 5-year average return on invested capital (ROIC) of 51.3%. This indicates strong capital allocation and a potential competitive advantage.
VERTEX PHARMACEUTICALS INC / MA (VRTX) has a market capitalization of $121.3B. It is classified as a large-cap stock.
VERTEX PHARMACEUTICALS INC / MA (VRTX) does not currently pay a regular dividend. However, the company returns capital to shareholders through share buybacks, with a buyback yield of 1.59%.
Based on historical P/E analysis, VERTEX PHARMACEUTICALS INC / MA (VRTX) appears fair. The current P/E of 31.2 is 27% above its historical median of 24.6. The estimated fair value CAGR (P/E method) is 10.7%.
VERTEX PHARMACEUTICALS INC / MA (VRTX) operates in the Pharmaceutical Preparations industry, within the Healthcare sector.
Vertex is a global biotechnology company focused on discovering, developing, and commercializing transformative medicines for serious diseases in specialty markets. The company's marketed products span four disease areas: cystic fibrosis (CF), where it offers five CFTR modulators including ALYFTREK, TRIKAFTA, SYMDEKO, ORKAMBI, and KALYDECO used by approximately three-quarters of CF patients in major markets; sickle cell disease and transfusion-dependent beta thalassemia, treated with CASGEVY, an ex-vivo CRISPR/Cas9 gene-editing therapy approved in the U.S., Europe, Canada, and the Middle East; and acute pain, where JOURNAVX, a first-in-class selective NaV1.8 inhibitor, was approved in January 2025. The company's business model combines internal research with business development to access emerging technologies, generating revenue primarily through specialty pharmacy and distributor arrangements globally, with direct sales to authorized treatment centers for CASGEVY and government contracts for reimbursement access. Vertex's mid- and late-stage pipeline includes five pivotal programs: povetacicept for IgA nephropathy and primary membranous nephropathy, inaxaplin for APOL1-mediated kidney disease, suzetrigine for diabetic peripheral neuropathy, zimislecel for type 1 diabetes, and VX-407 for autosomal dominant polycystic kidney disease. The company's competitive moat rests on validated targets addressing causal human biology, predictive biomarkers, rapid regulatory pathways, and a serial innovation strategy designed to follow first-in-class therapies with best-in-class candidates, with geographic reach spanning more than 60 countries across six continents.
【Pipeline advancement and commercial diversification】 Management expects continued strong performance from the CF franchise driven by ALYFTREK adoption and geographic expansion, with the company targeting the majority of CF patients to transition to ALYFTREK over time given its clinical benefits and extended patent protection through 2039. The renal franchise is anticipated to become a significant growth driver, with povetacicept expected to deliver potential accelerated approval in IgA nephropathy in the first half of 2026 and interim analysis data from inaxaplin expected in late 2026 or early 2027, while suzetrigine Phase 3 enrollment in diabetic peripheral neuropathy is expected to complete by end of 2026. CASGEVY is positioned for meaningful revenue contribution with strong visibility given the well-understood patient treatment journey and expanding authorized treatment center network across the U.S., Europe, and the Middle East. JOURNAVX is expected to more than triple prescriptions in 2026 compared to 2025 levels, with gross-to-net normalization anticipated in late 2026 and early 2027 as patient support programs sunset and payer coverage expands, driving the acute pain franchise toward multi-billion-dollar potential.
| Metric | Target | Period |
|---|---|---|
| Total Revenue | $12.95 billion–$13.1 billion | FY2026 |
| Non-CF Products Revenue | $500 million or more | FY2026 |
| Gross Margin | just under 86% | FY2026 |
| Combined Non-GAAP Operating Expenses (R&D, Acquired IPR&D, and SG&A) | $5.65 billion–$5.75 billion | FY2026 |
| Non-GAAP Effective Tax Rate | 19.5%–20.5% | FY2026 |
Total Revenue (FY2026): “We are reiterating our 2026 total revenue guidance of $12.95 billion-$13.1 billion, representing growth of 8%-9%.”
Non-CF Products Revenue (FY2026): “We continue to have high confidence in our outlook for revenue of $500 million or more from non-CF products driven by growing CASGEVY infusions, where we have good line of sight given the length of the patient journey and a meaningful ramp in JOURNAVX prescriptions and revenue as gross to net normalizes through the second half of the year.”
Gross Margin (FY2026): “Our outlook for full year gross margin remains at just under 86%, reflecting the growing non-CF product mix impact and ongoing investments in manufacturing network and process development for various products.”
Combined Non-GAAP Operating Expenses (R&D, Acquired IPR&D, and SG&A) (FY2026): “We are also reiterating our combined non-GAAP operating expense guidance of $5.65 billion-$5.75 billion, reflecting continued investment in our late-stage clinical pipeline and commercial infrastructure and activities for new launches and revenue diversification.”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2025 Earnings Call, Q3 FY2025 Earnings Call, Q2 FY2025 Earnings Call, Q1 FY2025 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 12.2B | 12.0B | 11.0B | 9.9B | 8.9B | 7.6B |
| Net Income | 4.3B | 4.0B | -536M | 3.6B | 3.3B | 2.3B |
| EPS | $17.04 | $15.32 | $-2.08 | $13.89 | $12.82 | $9.01 |
| Free Cash Flow | 3.7B | 3.2B | -790M | 3.3B | 3.9B | 2.4B |
| ROIC | 32.5% | 29.0% | -3.1% | 58.8% | 94.4% | 77.6% |
| Gross Margin | - | 86.2% | 46.2% | 87.2% | 87.9% | 88.1% |
| Debt/Equity | 0.00 | 0.11 | 0.11 | 0.05 | 0.06 | 0.10 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 4.7B | 4.2B | -233M | 3.8B | 4.3B | 2.8B |
| Operating Margin | 38.3% | 34.8% | -2.1% | 38.8% | 48.2% | 36.7% |
| ROE | 22.4% | 22.5% | -3.2% | 23.0% | 27.7% | 24.9% |
| Shares Outstanding | 254M | 258M | 258M | 261M | 259M | 260M |
| Metric | |||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Income Statement | |||||||||||||
| Revenue | 580M | 1.0B | 1.7B | 2.5B | 3.0B | 4.2B | 6.2B | 7.6B | 8.9B | 9.9B | 11.0B | 12.0B | 12.2B |
| Gross Margin | 93.2% | 88.7% | 87.6% | 77.8% | 86.6% | 86.8% | 88.1% | 88.1% | 87.9% | 87.2% | 46.2% | 86.2% | N/A |
| R&D | 856M | 996M | 1.0B | 1.3B | 1.4B | 1.8B | 1.8B | 3.1B | 2.5B | 3.2B | 3.6B | 3.9B | 3.9B |
| SG&A | 305M | 377M | 433M | 496M | 558M | 659M | 771M | 840M | 945M | 1.1B | 1.5B | 1.8B | 1.9B |
| EBIT | -692M | -467M | 9.9M | 123M | 635M | 1.2B | 2.9B | 2.8B | 4.3B | 3.8B | -233M | 4.2B | 4.7B |
| Op. Margin | -119.3% | -45.2% | 0.6% | 5.0% | 20.8% | 28.8% | 46.0% | 36.7% | 48.2% | 38.8% | -2.1% | 34.8% | 38.3% |
| Net Income | -738M | -556M | -112M | 263M | 2.1B | 1.2B | 2.7B | 2.3B | 3.3B | 3.6B | -536M | 4.0B | 4.3B |
| Net Margin | -127.1% | -53.9% | -6.6% | 10.6% | 68.8% | 28.3% | 43.7% | 30.9% | 37.2% | 36.7% | -4.9% | 32.9% | 35.5% |
| Non-Recurring | 53M | 4.7M | 1.3M | -60M | 20M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Returns on Capital | |||||||||||||
| ROIC | -54.4% | -44.2% | 0.9% | 7.7% | 64.9% | 47.9% | 85.3% | 77.6% | 94.4% | 58.8% | -3.1% | 29.0% | 32.5% |
| ROE | -60.7% | -55.2% | -10.7% | 16.5% | 64.9% | 22.4% | 36.7% | 24.9% | 27.7% | 23.0% | -3.2% | 22.5% | 22.4% |
| ROA | -31.7% | -23.0% | -4.2% | 8.2% | 42.8% | 16.2% | 27.0% | 18.6% | 21.0% | 17.7% | -2.4% | 16.4% | 16.4% |
| Cash Flow | |||||||||||||
| Op. Cash Flow | -573M | -365M | 236M | 845M | 1.3B | 1.6B | 3.3B | 2.6B | 4.1B | 3.5B | -493M | 3.6B | 4.2B |
| Free Cash Flow | -624M | -411M | 180M | 746M | 1.2B | 1.5B | 3.0B | 2.4B | 3.9B | 3.3B | -790M | 3.2B | 3.7B |
| Owner Earnings | -814M | -659M | -66M | 490M | 873M | 1.1B | 2.7B | 2.1B | 3.5B | 2.8B | -1.4B | 2.7B | 3.3B |
| CapEx | 51M | 45M | 57M | 99M | 95M | 75M | 260M | 235M | 205M | 200M | 298M | 438M | 530M |
| Maint. CapEx | 63M | 62M | 61M | 61M | 72M | 107M | 110M | 126M | 148M | 181M | 207M | 210M | 217M |
| Growth CapEx | 0 | 0 | 0 | 38M | 23M | 0 | 150M | 109M | 56M | 19M | 91M | 228M | 313M |
| D&A | 63M | 62M | 61M | 61M | 72M | 107M | 110M | 126M | 148M | 181M | 207M | 210M | 217M |
| CapEx/OCF | N/A | N/A | 24.0% | 11.8% | 7.5% | 4.8% | 8.0% | 8.9% | 5.0% | 5.7% | N/A | 12.1% | 12.5% |
| Capital Allocation | |||||||||||||
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Dividend Yield | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | 0 | 0 | 0 | 0 | 350M | 186M | 539M | 1.4B | 0 | 428M | 1.2B | 2.0B | 1.9B |
| Buyback Yield | N/A | N/A | N/A | N/A | 0.8% | 0.3% | 0.9% | 2.5% | N/A | 0.4% | 1.1% | 1.7% | 1.6% |
| Stock-Based Comp | 178M | 231M | 241M | 293M | 325M | 361M | 430M | 441M | 491M | 581M | 699M | 686M | 686M |
| Debt Repayment | 0 | 0 | 3.1M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Balance Sheet | |||||||||||||
| Net Debt | -1.1B | -797M | -1.4B | N/A | N/A | -3.1B | -5.7B | -6.6B | -9.9B | -10.4B | -4.4B | -4.6B | -7.2B |
| Cash & Equiv. | 625M | 715M | 1.2B | 1.7B | 2.7B | 3.1B | 6.0B | 6.8B | 10.5B | 10.4B | 4.6B | 5.1B | 7.2B |
| Long-Term Debt | 281M | 224M | 0 | N/A | N/A | 539M | 539M | 510M | 431M | 376M | 113M | 107M | 107M |
| Debt/Equity | 0.29 | 0.26 | 0.00 | 0.74 | 0.41 | 0.11 | 0.11 | 0.10 | 0.06 | 0.05 | 0.11 | 0.11 | 0.00 |
| Interest Coverage | -10.0 | -5.5 | 0.1 | 1.8 | 8.8 | 20.5 | 49.1 | 58.7 | 99.0 | 98.8 | -9.2 | 732.2 | 732.2 |
| Equity | 1.1B | 940M | 1.2B | 2.0B | 4.4B | 6.1B | 8.7B | 10.1B | 13.9B | 17.6B | 16.4B | 18.7B | 19.4B |
| Total Assets | 2.3B | 2.5B | 2.9B | 3.5B | 6.2B | 8.3B | 11.8B | 13.4B | 18.2B | 22.7B | 22.5B | 25.6B | 26.5B |
| Total Liabilities | 1.2B | 1.4B | 1.6B | 1.5B | 1.8B | 2.2B | 3.1B | 3.3B | 4.2B | 5.1B | 6.1B | 7.0B | 7.1B |
| Intangibles | N/A | N/A | N/A | N/A | 0 | 400M | 400M | 400M | 604M | 840M | 826M | 424M | 419M |
| Retained Earnings | -4.7B | -5.3B | -5.4B | -5.1B | -3.0B | -1.9B | 859M | 3.2B | 6.5B | 10.1B | 9.6B | 13.6B | 14.6B |
| Working Capital | 1.2B | 901M | 1.0B | 1.8B | 2.7B | 3.5B | 6.3B | 7.4B | 10.5B | 10.6B | 6.0B | 7.3B | 7.8B |
| Current Assets | 1.5B | 1.4B | 1.8B | 2.6B | 3.8B | 4.8B | 8.1B | 9.6B | 13.2B | 14.1B | 9.6B | 11.2B | 11.7B |
| Current Liabilities | 368M | 506M | 793M | 807M | 1.1B | 1.3B | 1.9B | 2.1B | 2.7B | 3.5B | 3.6B | 3.9B | 3.9B |
| Per Share Data | |||||||||||||
| EPS | -3.14 | -2.31 | -0.46 | 1.04 | 8.09 | 4.51 | 10.29 | 9.01 | 12.82 | 13.89 | -2.08 | 15.32 | 17.04 |
| Owner EPS | -3.46 | -2.74 | -0.27 | 1.94 | 3.37 | 4.22 | 10.30 | 7.99 | 13.47 | 10.65 | -5.43 | 10.60 | 13.13 |
| Book Value | 4.58 | 3.90 | 4.75 | 8.02 | 17.12 | 23.32 | 32.96 | 38.85 | 53.69 | 67.46 | 63.73 | 72.34 | 76.18 |
| Cash Flow/Share | -2.44 | -1.52 | 0.97 | 3.34 | 4.90 | 6.01 | 12.35 | 10.17 | 15.94 | 13.57 | -1.91 | 14.07 | 17.92 |
| Dividends/Share | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A | 0.00 |
| Shares Out. | 234.9M | 240.8M | 243.6M | 253.1M | 259.1M | 260.9M | 263.5M | 259.9M | 259.1M | 260.6M | 257.5M | 258.0M | 254.2M |
| Valuation | |||||||||||||
| P/E Ratio | N/A | N/A | N/A | 145.4 | 20.0 | 49.0 | 22.6 | 24.6 | 22.3 | 29.5 | N/A | 30.2 | 28.0 |
| P/FCF | N/A | N/A | 101.2 | 51.3 | 35.6 | 38.6 | 20.5 | 24.0 | 18.9 | 32.0 | N/A | 37.4 | 32.7 |
| EV/EBIT | N/A | N/A | N/A | 294.2 | N/A | 45.4 | 19.3 | 18.2 | 14.8 | 25.0 | N/A | N/A | 24.4 |
| Price/Book | 25.9 | 31.8 | 15.7 | 18.9 | 9.4 | 9.5 | 7.1 | 5.7 | 5.3 | 6.1 | 6.4 | 6.4 | 6.3 |
| Price/Sales | 36.1 | 28.9 | 12.7 | 12.8 | 14.2 | 11.6 | 10.7 | 7.0 | 7.9 | 8.9 | 10.5 | 9.5 | 9.9 |
| FCF Yield | -2.2% | -1.4% | 1.0% | 1.9% | 2.8% | 2.6% | 4.9% | 4.2% | 5.3% | 3.1% | -0.8% | 2.7% | 3.1% |
| Market Cap | 27.9B | 29.9B | 18.2B | 38.3B | 41.8B | 57.7B | 61.3B | 57.7B | 74.0B | 106.7B | 105.3B | 119.4B | 121.3B |
| Avg. Price | 89.01 | 123.70 | 88.75 | 126.19 | 167.28 | 184.30 | 251.50 | 204.69 | 273.65 | 338.29 | 450.78 | 442.97 | 477.36 |
| Year-End Price | 118.41 | 123.95 | 74.59 | 151.17 | 161.42 | 220.97 | 232.47 | 221.93 | 285.76 | 409.27 | 408.76 | 462.90 | 477.36 |
VERTEX PHARMACEUTICALS INC / MA passes 6 of 9 quality checks, suggesting mixed fundamentals.
VERTEX PHARMACEUTICALS INC / MA trades at 31.2x trailing earnings, compared to its 15-year median P/E of 24.6x, suggesting it is currently Fair relative to its historical range. On a free-cash-flow basis, the stock trades at 38.0x vs a median of 33.8x. The company's 5-year average ROIC is 51.3% with a gross margin of 79.1%. Total shareholder yield (buybacks) is 1.6%. At current prices, the estimated annualized return to fair value is +11.7%.
VERTEX PHARMACEUTICALS INC / MA (VRTX) reported annual revenue of $12.0 billion in its most recent fiscal year, based on SEC EDGAR filings.
VERTEX PHARMACEUTICALS INC / MA (VRTX) has a net profit margin of 32.9%. This is a strong margin indicating high profitability.
VERTEX PHARMACEUTICALS INC / MA (VRTX) generated $3.2 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
VERTEX PHARMACEUTICALS INC / MA (VRTX) has a debt-to-equity ratio of 0.11. This indicates a conservatively financed balance sheet.
VERTEX PHARMACEUTICALS INC / MA (VRTX) reported earnings per share (EPS) of $15.32 in its most recent fiscal year.
VERTEX PHARMACEUTICALS INC / MA (VRTX) has a return on equity (ROE) of 22.5%. This indicates the company generates strong returns for shareholders.
VERTEX PHARMACEUTICALS INC / MA (VRTX) has a 5-year average gross margin of 79.1%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 18 years of financial data for VERTEX PHARMACEUTICALS INC / MA (VRTX), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
VERTEX PHARMACEUTICALS INC / MA (VRTX) has a book value per share of $72.34, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects continued strong performance from the CF franchise driven by ALYFTREK adoption and geographic expansion, with the company targeting the majority of CF patients to transition to ALYFTREK over time given its clinical benefits and extended patent protection through 2039. The renal franchise is anticipated to become a significant growth driver, with povetacicept expected to deliver potential accelerated approval in IgA nephropathy in the first half of 2026 and interim analysis data from inaxaplin expected in late 2026 or early 2027, while suzetrigine Phase 3 enrollment in diabetic peripheral neuropathy is expected to complete by end of 2026. CASGEVY is positioned for meaningful revenue contribution with strong visibility given the well-understood patient treatment journey and expanding authorized treatment center network across the U.S., Europe, and the Middle East. JOURNAVX is expected to more than triple prescriptions in 2026 compared to 2025 levels, with gross-to-net normalization anticipated in late 2026 and early 2027 as patient support programs sunset and payer coverage expands, driving the acute pain franchise toward multi-billion-dollar potential.
Based on recent SEC filings and earnings calls, VERTEX PHARMACEUTICALS INC / MA (VRTX) has provided the following forward guidance: Total Revenue: $12.95 billion–$13.1 billion (FY2026); Non-CF Products Revenue: $500 million or more (FY2026); Gross Margin: just under 86% (FY2026); Combined Non-GAAP Operating Expenses (R&D, Acquired IPR&D, and SG&A): $5.65 billion–$5.75 billion (FY2026); Non-GAAP Effective Tax Rate: 19.5%–20.5% (FY2026).
Non-GAAP Effective Tax Rate (FY2026): “We also continue to expect our non-GAAP effective tax rate to be in the range of 19.5%-20.5% for the full year 2026.”
No recent press releases.