Vertex Pharmaceuticals (NASDAQ:VRTX) Posts Quarterly Earnings Results, Misses Expectations By $0.02 EPS

Vertex Pharmaceuticals (NASDAQ:VRTX) announced its quarterly earnings results on Thursday. The pharmaceutical company reported $5.03 EPS for the quarter, missing the consensus estimate of $5.05 by ($0.02), FiscalAI reports. The firm had revenue of $3.19 billion during the quarter, compared to the consensus estimate of $3.18 billion. Vertex Pharmaceuticals had a net margin of 32.94% and a return on equity of 24.90%. The company’s quarterly revenue was up 9.5% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.98 EPS.

Here are the key takeaways from Vertex Pharmaceuticals’ conference call:

• Vertex reported strong results (Q4 revenue $3.2B, FY2025 $12B) and guided 2026 revenue of $12.95B–$13.1B with >$500M expected from non‑CF products, supported by $12.3B cash and ~$2B of share repurchases.
• ALYFTREK showed a mean sweat‑chloride reduction of 9.6 mmol in 2–5 year olds with 65% reaching <30 mmol, is on track for global submissions in H1 2026, and Vertex is advancing next‑gen CF programs (VX‑828, VX‑581, VX‑522) with key readouts planned in 2026.
• Povetacicept (dual BAFF/APRIL) delivered substantial phase II proteinuria reductions and GFR stabilization, has Breakthrough Therapy designation and a rolling BLA (first module filed Dec 2025), and could complete the BLA in H1 2026 pending a supportive phase III interim; plans also include PMN and a gMG proof‑of‑concept study.
• Commercial launches gained traction—CASGEVY reached $116M FY revenue with growing patient initiations and broad payer access, while JOURNAVX achieved ~550k prescriptions in 2025 and the company plans to materially expand prescriptions and field force in 2026 to drive diversification.
• Near‑term headwinds include higher planned operating expenses ($5.65B–$5.75B), a higher non‑GAAP tax rate (19.5%–20.5%), and temporary gross‑to‑net pressure as patient support programs for new launches normalize, which could compress near‑term revenue conversion.

Vertex Pharmaceuticals Stock Up 5.7%

Shares of NASDAQ:VRTX opened at $491.47 on Friday. The company has a market cap of $124.70 billion, a price-to-earnings ratio of 32.06 and a beta of 0.30. The business has a 50 day moving average price of $459.98 and a 200 day moving average price of $427.76. Vertex Pharmaceuticals has a twelve month low of $362.50 and a twelve month high of $519.68.

Insider Buying and Selling

In related news, EVP Jonathan Biller sold 1,925 shares of the company’s stock in a transaction on Wednesday, February 11th. The shares were sold at an average price of $460.43, for a total transaction of $886,327.75. Following the completion of the transaction, the executive vice president directly owned 20,819 shares in the company, valued at $9,585,692.17. This represents a 8.46% decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Charles F. Wagner, Jr. sold 14,000 shares of the firm’s stock in a transaction on Wednesday, December 3rd. The stock was sold at an average price of $456.00, for a total transaction of $6,384,000.00. Following the completion of the sale, the executive vice president owned 37,725 shares in the company, valued at $17,202,600. This represents a 27.07% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. Over the last quarter, insiders sold 99,352 shares of company stock worth $45,037,314. 0.20% of the stock is currently owned by company insiders.

Institutional Investors Weigh In On Vertex Pharmaceuticals

Institutional investors have recently added to or reduced their stakes in the company. Arrowstreet Capital Limited Partnership lifted its position in shares of Vertex Pharmaceuticals by 520.1% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 381,195 shares of the pharmaceutical company’s stock worth $149,291,000 after acquiring an additional 319,725 shares during the period. Man Group plc raised its stake in shares of Vertex Pharmaceuticals by 184.3% in the third quarter. Man Group plc now owns 362,774 shares of the pharmaceutical company’s stock valued at $142,077,000 after purchasing an additional 235,156 shares in the last quarter. Alyeska Investment Group L.P. lifted its position in Vertex Pharmaceuticals by 311.0% in the third quarter. Alyeska Investment Group L.P. now owns 267,169 shares of the pharmaceutical company’s stock worth $104,634,000 after purchasing an additional 202,169 shares during the period. Dimensional Fund Advisors LP boosted its stake in Vertex Pharmaceuticals by 20.7% during the fourth quarter. Dimensional Fund Advisors LP now owns 945,660 shares of the pharmaceutical company’s stock worth $428,726,000 after buying an additional 162,074 shares in the last quarter. Finally, Caisse de depot et placement du Quebec increased its holdings in Vertex Pharmaceuticals by 245.1% in the 3rd quarter. Caisse de depot et placement du Quebec now owns 222,262 shares of the pharmaceutical company’s stock valued at $87,047,000 after buying an additional 157,866 shares during the period. 90.96% of the stock is owned by institutional investors and hedge funds.

Key Stories Impacting Vertex Pharmaceuticals

Here are the key news stories impacting Vertex Pharmaceuticals this week:

• Positive Sentiment: Revenue and product momentum — Q4 revenue of ~$3.19B (≈+9.5% YoY) came in at or slightly above many forecasts, driven by cystic fibrosis product sales and new launches (Alyftrek, Casgevy, Journavx), supporting near-term cash flow expectations. Article Title
• Positive Sentiment: Analyst upgrade and bullish targets — Oppenheimer upgraded VRTX to “outperform” with a $540 target; several other firms recently raised targets or reiterated buys, which can drive momentum and institutional demand. Article Title
• Positive Sentiment: Pipeline diversification highlighted — Company commentary emphasized growth beyond CF (autoimmune partnerships/expansion), which reduces concentration risk and supports longer-term upside. Article Title
• Neutral Sentiment: 2026 revenue guidance roughly in-line — Management set FY2026 revenue guidance around $13.0–13.1B, largely matching Street expectations; this limits downside from guidance surprises but is not a bullish catalyst on its own. Article Title
• Neutral Sentiment: Full materials available for modeling — The slide deck and earnings call transcript are posted; analysts will parse product trends and margins to update models. Article Title
• Negative Sentiment: Small EPS miss and mixed metric comparisons — EPS was ~$5.03 vs. consensus near $5.05–$5.07; some outlets flagged revenue slightly below certain Street models, triggering near-term profit-taking. Article Title
• Negative Sentiment: Insider selling — Multiple senior executives disclosed open-market sales this week (EVPs, CAO). While common for tax/diversification, the cluster of sales can amplify short-term negative sentiment. Article Title
• Negative Sentiment: After-hours weakness — The EPS miss plus insider sales pressured shares in after-hours trading, reflecting short-term profit-taking before today’s rebound. Article Title

Wall Street Analyst Weigh In

VRTX has been the topic of several analyst reports. Cantor Fitzgerald restated an “overweight” rating and set a $590.00 price target on shares of Vertex Pharmaceuticals in a research note on Friday. Wolfe Research raised shares of Vertex Pharmaceuticals from a “peer perform” rating to an “outperform” rating and set a $548.00 target price on the stock in a research report on Tuesday, January 6th. Weiss Ratings upgraded Vertex Pharmaceuticals from a “hold (c+)” rating to a “buy (b-)” rating in a report on Wednesday, February 4th. Evercore upped their price target on Vertex Pharmaceuticals from $475.00 to $530.00 and gave the stock an “outperform” rating in a research note on Friday, January 23rd. Finally, Leerink Partners raised their price objective on Vertex Pharmaceuticals from $456.00 to $525.00 and gave the company an “outperform” rating in a research note on Monday, December 29th. Twenty-two analysts have rated the stock with a Buy rating and five have given a Hold rating to the company. According to MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus target price of $537.05.

Vertex Pharmaceuticals Company Profile

Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.

Vertex’s marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.