10-Q · August 4, 2026
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…
Earnings analysis · 10-Q
VRTX earnings analysis
Filed November 3, 2026 · Our reading of the company's report
The latest report
Vertex delivered strong top-line growth in Q3, with revenue up 12% year over year to $3,440.8M, led by ALYFTREK, CASGEVY and JOURNAVX. However, acquisition-related compensation, transaction costs, amortization and…
Read full summary
Vertex delivered strong top-line growth in Q3, with revenue up 12% year over year to $3,440.8M, led by ALYFTREK, CASGEVY and JOURNAVX. However, acquisition-related compensation, transaction costs, amortization and higher interest expense reduced operating margin to 20.7% from 38.6% and diluted GAAP EPS to $2.56 from $4.20. Liquidity remains adequate, but the $10.0B Crinetics acquisition introduced substantial integration, execution and debt-refinancing risks.
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
- $2.56
What stood out
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Revenue growth remained strong
Third-quarter revenue was $3,440.8M, up 12% from $3,076.4M in Q3 2025 and approximately 3.3% above Q2 2026 revenue of $3,331.0M. U.S. revenue rose 10% to $2,169.1M and ex-U.S. revenue rose 16% to $1,271.7M year over year.
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New products drove diversification
Newer products continued to scale: ALYFTREK revenue increased 186% to $705.8M, CASGEVY increased 487% to $99.2M, and JOURNAVX increased 197% to $58.3M year over year.
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Commercial uptake accelerated
CASGEVY revenue increased 30% sequentially to $99.2M, while JOURNAVX prescriptions exceeded 750,000 in Q3, up more than 40% from Q2 and more than four times the 170,000 prescriptions in Q3 2025.
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Operating cash generation held up
Operating cash flow increased to $3,196.6M for the first nine months of 2026 from $3,133.4M in the prior-year period. Capital expenditures were $342.9M, or approximately 10.7% of nine-month revenue of $9,761.6M.
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Pipeline and commercial portfolio expanded
The Crinetics acquisition added PALSONIFY, which generated $10.1M of September revenue, and added $5.1B of atumelnant in-process R&D and $3.0B of PALSONIFY marketed-product intangible assets to the balance sheet.
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Liquidity remains adequate
Management reported $9,821.2M of cash, cash equivalents and marketable securities at September 30, 2026 and stated that product-sales cash flow plus available liquidity should fund operations for at least the next 12 months.
What to watch
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Crinetics integration and execution risk
The newly disclosed Crinetics integration risk is material: Vertex paid $10.0B in total consideration, recorded $8.1B of additional intangible assets, and incurred $409.6M of accelerated equity-award expense. The filing cautions that integration failure, employee retention issues, or weaker PALSONIFY and atumelnant performance could adversely affect results.
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Debt and interest-rate exposure increased
Acquisition financing increased leverage and refinancing needs. Vertex had $4.5B outstanding under the 2026 Term Loan at September 30, 2026, with $1.0B due in August 2027, $1.0B due in September 2028 and $2.5B due in August 2029; a 1% unfavorable rate change would increase first-year interest expense by $45.0M.
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Margins pressured by acquisition costs
Profitability declined sharply as acquisition-related costs and amortization weighed on results. Q3 operating income fell to $712.9M from $1,186.2M year over year, diluted GAAP EPS fell to $2.56 from $4.20, and cost of sales rose to 15.3% of product revenue from 13.5%.
Management's outlook
The 10-Q provides no quantitative revenue or EPS guidance and does not state a change versus prior guidance. Management said cash flows from product sales plus cash, cash equivalents and current marketable securities are expected to fund operations for at least the next 12 months.
Earlier filings 4
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…
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…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.