10-Q · May 5, 2026
Vertex Pharmaceuticals reported Q1 2026 results with revenues of $2.99 billion, an 8% increase from $2.77 billion year-over-year. EPS of $4.47 beat analyst expectations, although revenue was slightly below consensus…
Earnings analysis · 10-Q
VRTX earnings analysis
Filed August 4, 2026 · Our reading of the company's report
The latest report
Vertex delivered Q2 revenue of $3.334B, up 12% year over year and 11.6% sequentially, with GAAP diluted EPS of $4.31 versus $4.02 in Q1 2026. Growth was broad-based across CF, CASGEVY and JOURNAVX, while gross margin…
Read full summary
Vertex delivered Q2 revenue of $3.334B, up 12% year over year and 11.6% sequentially, with GAAP diluted EPS of $4.31 versus $4.02 in Q1 2026. Growth was broad-based across CF, CASGEVY and JOURNAVX, while gross margin declined to 85.3% and operating margin to 37.4% as cost mix and commercialization spending increased. Liquidity remains substantial at $13.642B, but the planned approximately $10.0B Crinetics acquisition and associated $4.5B term loan materially raise execution and capital-allocation stakes.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $4.31
What stood out
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Double-digit revenue growth and sequential EPS gain
Q2 revenue was $3.334B, up 12% from $2.965B in Q2 2025 and up from $2.987B in Q1 2026. GAAP diluted EPS was $4.31, versus $4.02 in Q1 2026.
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ALYFTREK supports CF franchise growth
CF revenue increased 11% to $3.208B. ALYFTREK rose 266% to $573.6M, more than offsetting a 2% decline in TRIKAFTA/KAFTRIO to $2.497B and a 29% decline in older CF products to $137.1M.
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New products rapidly scale
Non-CF launches accelerated: CASGEVY revenue reached $76.4M, up 151% year over year, while JOURNAVX reached $49.6M, up 313%. JOURNAVX prescriptions totaled approximately 535,000 during Q2.
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Operating cash flow and liquidity strengthened
Operating cash flow rose to $2.554B in the first six months of 2026 from $1.892B a year earlier. Cash, equivalents and marketable securities increased 11% to $13.642B, and working capital increased 17% to $8.606B.
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Povetacicept creates a near-term catalyst
The FDA accepted the povetacicept BLA for accelerated approval in IgAN, with a November 30, 2026 PDUFA action date. Management is also preparing for the anticipated launch if approved.
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CF access expansion remains a growth driver
Vertex expects CF patient adoption to grow through approvals, reimbursement, younger-patient treatment and geographic expansion; ALYFTREK was reimbursed in 25 countries as of Q2 2026.
What to watch
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$10.0B Crinetics deal adds execution and leverage risk
A new risk-factor update centers on the approximately $10.0B Crinetics acquisition. Vertex plans to fund it with cash and a $4.5B delayed-draw term loan; failure to close, integrate Crinetics, or realize PALSONIFY/atumelnant benefits could impair expected returns.
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Product mix drove gross-margin compression
Gross margin compressed as cost of sales rose to 14.7% of product revenue from 13.8% a year earlier, implying gross margin of 85.3% versus 86.2%. The company attributes the increase principally to product mix.
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ALYFTREK royalty arbitration remains unresolved
Royalty Pharma alleges ALYFTREK's royalty burden is approximately 8%, compared with Vertex's stated 4% position. The dispute could lead to alleged unpaid royalties, damages, fees and interest if Vertex's interpretation is unsuccessful.
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Commercial spending is rising faster than revenue
SG&A increased 37% to $582.2M as Vertex added headcount and commercial investment for JOURNAVX and a potential povetacicept launch. Management says it expects to continue investing in commercialization capabilities.
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Acquisition reduces financial-income cushion
Future net interest income is expected to decline following the anticipated Crinetics acquisition; Q2 net interest income was $120.6M. The acquisition financing also includes a leverage covenant of 3.50x, expandable to 4.00x after a material acquisition.
Management's outlook
The 10-Q does not provide quantitative revenue or EPS guidance. Management states it expects the Crinetics acquisition to close in Q3 2026, subject to customary conditions; povetacicept's FDA PDUFA target action date is November 30, 2026.
Earlier filings 4
10-K · February 13, 2026
Vertex shows revenue and margin momentum across 2025 with Q4 revenue of $3.19 billion and high gross margins (~85% range), driven by broad commercial launches (JOURNAVX, CASGEVY) and continued strength in CF medicines.…
10-Q · November 4, 2025
Vertex reported Q3 revenue of $3,076.4 million (product revenue) up $304.5 million or ~11.0% versus Q3 2024 and diluted EPS of $4.20, beating consensus. Gross margin expanded modestly to ~86.6% while operating margin…
10-Q · August 5, 2025
Vertex reported Q2 2025 revenue of $2,964.7 million (up from $2,645.6 million a year earlier) and GAAP diluted EPS of $3.99. The company returned to strong operating profitability with operating income of $1,151.1…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.