Vertex Pharmaceuticals Inc Financials
This page shows Vertex Pharmaceuticals Inc (VRTX) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).
Stable gross margins and a net-cash balance sheet show profits hinge more on spending intensity than on product economics.
Across the last three years, gross margin stayed above86.0% even as results swung from profit to loss and back, so the FY2024 break looks driven by below-gross-profit costs rather than weaker core product economics. The rebound in cash conversion backs that up: operating cash flow moved to$3.63B from-$493M the prior year while R&D kept rising.
Vertex still carries a net-cash balance sheet: cash ended FY2025 at
This is also a low-capital-intensity model: capex was
Financial Health Signals
Scored against operating companies for FY2025. Each of the six dimensions is a percentile rank within that peer group; the overall is their average, with missing dimensions counted as zero out of six. A high score means strong standing among peers, not absolute cross-industry strength. How this score is calculated →
Health score ≠ stock price. This rates the quality of Vertex Pharmaceuticals Inc's business: profitability, growth, balance sheet strength. It doesn't tell you whether the stock is a good buy at today's price. Not financial advice. Use it alongside valuation analysis and your own research.
Vertex Pharmaceuticals Inc has an operating margin of 34.8%, meaning the company retains $35 of operating profit per $100 of revenue. This strong profitability earns a score of 79/100, reflecting efficient cost management and pricing power. This is up from -2.1% the prior year.
Vertex Pharmaceuticals Inc's revenue grew 8.9% year-over-year to $12.0B, a solid pace of expansion. This earns a growth score of 66/100.
Vertex Pharmaceuticals Inc carries a low D/E ratio of 0.37, meaning only $0.37 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 65/100, indicating a strong balance sheet with room for future borrowing.
With a current ratio of 2.90, Vertex Pharmaceuticals Inc holds $2.90 in current assets for every $1 of short-term obligations. This comfortable liquidity earns a score of 76/100.
Vertex Pharmaceuticals Inc converts 26.6% of revenue into free cash flow ($3.2B). This strong cash generation earns a score of 84/100.
Vertex Pharmaceuticals Inc earns a strong 21.2% return on equity (ROE), meaning it generates $21 of profit for every $100 of shareholders' equity. This efficient capital use earns a returns score of 70/100. This is up from -3.3% the prior year.
Vertex Pharmaceuticals Inc scores 12.93, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($126.0B) relative to total liabilities ($7.0B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.
Distress-screening estimate for non-financial companies. Not computed for banks or insurers, where the Altman model does not apply.
Vertex Pharmaceuticals Inc passes 6 of 8 computable financial strength tests (1 of the nine could not be computed from available data). 3 of 4 profitability signals pass, all 2 leverage/liquidity signals pass, 1 of 2 efficiency signals pass.
For every $1 of reported earnings, Vertex Pharmaceuticals Inc generates $0.92 in operating cash flow ($3.6B OCF vs $4.0B net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.
Vertex Pharmaceuticals Inc earns $313.8 in operating income for every $1 of interest expense ($4.2B vs $13.3M). This wide margin provides strong safety for debt servicing, even if earnings decline temporarily.
Key Financial Metrics
Earnings & Revenue
Vertex Pharmaceuticals Inc generated $12.0B in revenue in fiscal year 2025. This represents an increase of 8.9% from the prior year.
Vertex Pharmaceuticals Inc's EBITDA was $4.4B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents an increase of 17154.9% from the prior year.
Vertex Pharmaceuticals Inc reported $4.0B in net income in fiscal year 2025. This represents an increase of 838.1% from the prior year.
Vertex Pharmaceuticals Inc earned $15.32 per diluted share (EPS) in fiscal year 2025. This represents an increase of 836.5% from the prior year.
Cash & Balance Sheet
Vertex Pharmaceuticals Inc generated $3.2B in free cash flow in fiscal year 2025, representing cash available after capex. This represents an increase of 504.1% from the prior year.
Vertex Pharmaceuticals Inc held $5.1B in cash against $0 in long-term debt as of fiscal year 2025.
Vertex Pharmaceuticals Inc had 254M shares outstanding in fiscal year 2025. This represents a decrease of 1.1% from the prior year.
Margins & Returns
Vertex Pharmaceuticals Inc's gross margin was 86.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is up 0.1 percentage points from the prior year.
Vertex Pharmaceuticals Inc's operating margin was 34.8% in fiscal year 2025, reflecting core business profitability. This is up 36.9 percentage points from the prior year.
Vertex Pharmaceuticals Inc's net profit margin was 32.9% in fiscal year 2025, showing the share of revenue converted to profit. This is up 37.8 percentage points from the prior year.
Vertex Pharmaceuticals Inc's ROE was 21.2% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is up 24.4 percentage points from the prior year.
Capital Allocation
Vertex Pharmaceuticals Inc invested $3.9B in research and development in fiscal year 2025. This represents an increase of 7.7% from the prior year.
Vertex Pharmaceuticals Inc spent $2.0B on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents an increase of 71.4% from the prior year.
Vertex Pharmaceuticals Inc invested $437.6M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents an increase of 47.0% from the prior year.
VRTX Income Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Revenue | $3.0B-6.4% | $3.2B+3.7% | $3.1B+3.8% | $3.0B+7.0% | $2.8B-4.9% | $2.9B+5.1% | $2.8B+4.8% | $2.6B |
| Cost of Revenue | $392.8M-15.7% | $466.0M+12.3% | $414.8M+1.8% | $407.5M+12.3% | $363.0M-14.3% | $423.4M+7.8% | $392.6M+5.6% | $371.9M |
| Gross Profit | $2.6B-4.8% | $2.7B+2.3% | $2.7B+4.1% | $2.6B+6.2% | $2.4B-3.3% | $2.5B+4.6% | $2.4B+4.6% | $2.3B |
| R&D Expenses | $961.6M-1.2% | $973.7M-0.4% | $977.7M-0.1% | $978.4M-0.1% | $979.7M-1.9% | $998.7M+14.0% | $875.9M-9.4% | $966.6M |
| SG&A Expenses | $493.7M+1.4% | $487.0M+9.4% | $445.1M+4.8% | $424.6M+7.1% | $396.4M+5.0% | $377.6M+1.6% | $371.8M-0.1% | $372.2M |
| Operating Income | $1.1B-5.6% | $1.2B+1.7% | $1.2B+3.0% | $1.2B+82.7% | $630.1M-38.6% | $1.0B-8.1% | $1.1B+131.8% | -$3.5B |
| Interest Expense | N/A | $3.3M0.0% | $3.3M-10.8% | $3.7M+23.3% | $3.0M+7.1% | $2.8M-62.7% | $7.5M-24.2% | $9.9M |
| Income Tax | $221.5M+58.3% | $139.9M-35.2% | $215.9M-13.7% | $250.1M+197.4% | $84.1M-62.4% | $223.5M+25.1% | $178.7M-11.7% | $202.4M |
| Net Income | $1.0B-13.4% | $1.2B+10.0% | $1.1B+4.8% | $1.0B+59.8% | $646.3M-29.2% | $913.0M-12.7% | $1.0B+129.1% | -$3.6B |
| EPS (Diluted) | $4.02 | N/A | $4.20+5.3% | $3.99+60.2% | $2.49 | N/A | $4.01+128.8% | $-13.92 |
VRTX Balance Sheet
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Total Assets | $26.5B+3.3% | $25.6B+3.1% | $24.9B+3.4% | $24.0B+5.1% | $22.9B+1.5% | $22.5B+1.3% | $22.2B+10.5% | $20.1B |
| Current Assets | $11.7B+4.7% | $11.2B+6.0% | $10.6B+1.4% | $10.4B+4.2% | $10.0B+4.3% | $9.6B-2.1% | $9.8B+9.6% | $8.9B |
| Cash & Equivalents | $5.5B+8.0% | $5.1B+2.9% | $4.9B-0.7% | $5.0B+6.4% | $4.7B+2.3% | $4.6B-12.8% | $5.2B+14.4% | $4.6B |
| Inventory | $1.8B+4.7% | $1.7B+3.7% | $1.6B+8.5% | $1.5B+10.3% | $1.4B+12.8% | $1.2B+11.6% | $1.1B+18.1% | $914.6M |
| Accounts Receivable | $2.0B-2.8% | $2.1B+5.5% | $1.9B+2.8% | $1.9B+4.9% | $1.8B+12.2% | $1.6B-8.1% | $1.8B+5.7% | $1.7B |
| Goodwill | $1.1B0.0% | $1.1B0.0% | $1.1B0.0% | $1.1B0.0% | $1.1B0.0% | $1.1B0.0% | $1.1B0.0% | $1.1B |
| Total Liabilities | $7.1B+2.1% | $7.0B-7.5% | $7.5B+9.9% | $6.9B+7.5% | $6.4B+4.3% | $6.1B-7.3% | $6.6B+23.4% | $5.4B |
| Current Liabilities | $3.9B+0.5% | $3.9B-13.7% | $4.5B+8.1% | $4.1B+9.4% | $3.8B+6.1% | $3.6B-10.3% | $4.0B+12.0% | $3.5B |
| Long-Term Debt | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Total Equity | $19.4B+3.7% | $18.7B+7.8% | $17.3B+0.8% | $17.2B+4.1% | $16.5B+0.5% | $16.4B+5.0% | $15.6B+5.8% | $14.8B |
| Retained Earnings | $14.6B+7.6% | $13.6B+9.6% | $12.4B+9.6% | $11.3B+10.1% | $10.3B+6.7% | $9.6B+10.5% | $8.7B+13.7% | $7.6B |
VRTX Cash Flow Statement
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | $1.4B+186.8% | $498.0M-59.9% | $1.2B+15.7% | $1.1B+31.0% | $818.9M+40.1% | $584.6M-57.3% | $1.4B+136.5% | -$3.8B |
| Capital Expenditures | $133.4M-10.7% | $149.4M+46.8% | $101.8M-30.1% | $145.7M+258.0% | $40.7M-56.0% | $92.6M+36.8% | $67.7M-1.9% | $69.0M |
| Free Cash Flow | $1.3B+271.4% | $348.6M-69.4% | $1.1B+22.9% | $927.4M+19.2% | $778.2M+58.2% | $492.0M-62.2% | $1.3B+134.1% | -$3.8B |
| Investing Cash Flow | -$431.9M-49.9% | -$288.1M-146.2% | -$117.0M+75.9% | -$484.5M-768.3% | -$55.8M+93.2% | -$821.9M-136.2% | -$348.0M+25.0% | -$463.7M |
| Financing Cash Flow | -$538.8M-597.9% | -$77.2M+93.3% | -$1.2B-230.6% | -$349.2M+48.7% | -$680.4M-73.9% | -$391.3M-1.0% | -$387.5M-8.1% | -$358.6M |
| Dividends Paid | N/A | N/A | N/A | N/A | N/A | N/A | N/A | N/A |
| Share Buybacks | $336.9M+162.4% | $128.4M-88.0% | $1.1B+173.4% | $391.8M-8.0% | $426.1M+2.0% | $417.9M+35.8% | $307.7M-3.9% | $320.3M |
VRTX Financial Ratios
| Metric | Q1'26 | Q4'25 | Q3'25 | Q2'25 | Q1'25 | Q4'24 | Q3'24 | Q2'24 |
|---|---|---|---|---|---|---|---|---|
| Gross Margin | 86.9%+1.5pp | 85.4%-1.1pp | 86.5%+0.3pp | 86.3%-0.6pp | 86.9%+1.4pp | 85.5%-0.4pp | 85.8%-0.1pp | 85.9% |
| Operating Margin | 38.1%+0.3pp | 37.8%-0.8pp | 38.6%-0.3pp | 38.8%+16.1pp | 22.8%-12.5pp | 35.2%-5.0pp | 40.3%+173.1pp | -132.8% |
| Net Margin | 34.5%-2.8pp | 37.3%+2.1pp | 35.2%+0.4pp | 34.8%+11.5pp | 23.3%-8.0pp | 31.4%-6.4pp | 37.7%+173.5pp | -135.8% |
| Return on Equity | 5.3%-1.0pp | 6.4%+0.1pp | 6.3%+0.2pp | 6.0%+2.1pp | 3.9%-1.6pp | 5.6%-1.1pp | 6.7%+31.0pp | -24.3% |
| Return on Assets | 3.9%-0.8pp | 4.6%+0.3pp | 4.4%+0.1pp | 4.3%+1.5pp | 2.8%-1.2pp | 4.0%-0.6pp | 4.7%+22.5pp | -17.8% |
| Current Ratio | 3.02+0.1 | 2.90+0.5 | 2.36-0.2 | 2.52-0.1 | 2.65-0.0 | 2.69+0.2 | 2.47-0.1 | 2.52 |
| Debt-to-Equity | 0.370.0 | 0.37-0.1 | 0.44+0.0 | 0.40+0.0 | 0.39+0.0 | 0.37-0.0 | 0.42+0.1 | 0.36 |
| FCF Margin | 43.4%+32.4pp | 10.9%-26.1pp | 37.0%+5.8pp | 31.3%+3.2pp | 28.1%+11.2pp | 16.9%-30.1pp | 47.0%+191.5pp | -144.5% |
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Frequently Asked Questions
What is Vertex Pharmaceuticals Inc's annual revenue?
Vertex Pharmaceuticals Inc (VRTX) reported $12.0B in total revenue for fiscal year 2025. This represents a 8.9% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.
How fast is Vertex Pharmaceuticals Inc's revenue growing?
Vertex Pharmaceuticals Inc (VRTX) revenue grew by 8.9% year-over-year, from $11.0B to $12.0B in fiscal year 2025.
Is Vertex Pharmaceuticals Inc profitable?
Yes, Vertex Pharmaceuticals Inc (VRTX) reported a net income of $4.0B in fiscal year 2025, with a net profit margin of 32.9%.
What is Vertex Pharmaceuticals Inc's EBITDA?
Vertex Pharmaceuticals Inc (VRTX) had EBITDA of $4.4B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.
What is Vertex Pharmaceuticals Inc's gross margin?
Vertex Pharmaceuticals Inc (VRTX) had a gross margin of 86.2% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.
What is Vertex Pharmaceuticals Inc's operating margin?
Vertex Pharmaceuticals Inc (VRTX) had an operating margin of 34.8% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.
What is Vertex Pharmaceuticals Inc's net profit margin?
Vertex Pharmaceuticals Inc (VRTX) had a net profit margin of 32.9% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.
What is Vertex Pharmaceuticals Inc's return on equity (ROE)?
Vertex Pharmaceuticals Inc (VRTX) has a return on equity of 21.2% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.
What is Vertex Pharmaceuticals Inc's free cash flow?
Vertex Pharmaceuticals Inc (VRTX) generated $3.2B in free cash flow during fiscal year 2025. This represents a 504.1% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.
What is Vertex Pharmaceuticals Inc's operating cash flow?
Vertex Pharmaceuticals Inc (VRTX) generated $3.6B in operating cash flow during fiscal year 2025, representing cash generated from core business activities.
What are Vertex Pharmaceuticals Inc's total assets?
Vertex Pharmaceuticals Inc (VRTX) had $25.6B in total assets as of fiscal year 2025, including both current and long-term assets.
What are Vertex Pharmaceuticals Inc's capital expenditures?
Vertex Pharmaceuticals Inc (VRTX) invested $437.6M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.
How much does Vertex Pharmaceuticals Inc spend on research and development?
Vertex Pharmaceuticals Inc (VRTX) invested $3.9B in research and development during fiscal year 2025.
What is Vertex Pharmaceuticals Inc's current ratio?
Vertex Pharmaceuticals Inc (VRTX) had a current ratio of 2.90 as of fiscal year 2025, which is generally considered healthy.
What is Vertex Pharmaceuticals Inc's debt-to-equity ratio?
Vertex Pharmaceuticals Inc (VRTX) had a debt-to-equity ratio of 0.37 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.
What is Vertex Pharmaceuticals Inc's return on assets (ROA)?
Vertex Pharmaceuticals Inc (VRTX) had a return on assets of 15.4% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.
What is Vertex Pharmaceuticals Inc's Altman Z-Score?
Vertex Pharmaceuticals Inc (VRTX) has an Altman Z-Score of 12.93, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios (working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets) to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.
What is Vertex Pharmaceuticals Inc's Piotroski F-Score?
Vertex Pharmaceuticals Inc (VRTX) has a Piotroski F-Score of 6 out of 8 computable signals; 1 of the nine could not be computed from available data, so the full-scale strength rating is not shown. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7 to 9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.
Are Vertex Pharmaceuticals Inc's earnings high quality?
Vertex Pharmaceuticals Inc (VRTX) has an earnings quality ratio of 0.92x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.
Can Vertex Pharmaceuticals Inc cover its interest payments?
Vertex Pharmaceuticals Inc (VRTX) has an interest coverage ratio of 313.8x, meaning it can comfortably cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.
How financially healthy is Vertex Pharmaceuticals Inc?
Vertex Pharmaceuticals Inc (VRTX) scores 73 out of 100 on our Financial Health Score, indicating strong standing within its operating companies peer group. The score is a 0-100 composite of six dimensions (Profitability, Growth, Leverage, Liquidity, Cash Flow, Returns), each ranked as a percentile relative to companies in the same scoring family (banks against banks, REITs against REITs, and so on) rather than across all industries. It rates the quality of the business, not whether the stock is fairly priced, and is not financial advice. Learn more in our complete guide to financial health indicators.