Vertex Pharmaceuticals IncorporatedVRTX
NasdaqGS•Healthcare•Biotechnology
Vertex Pharmaceuticals Incorporated operates as a biotechnology company in the United States, Europe, and internationally. The company offers transformative medicines for people with serious diseases with a focus on specialty markets, such as cystic fibrosis (CF), sickle cell disease (SCD), transfusion dependent beta thalassemia (TDT), and acute pain. It markets TRIKAFTA/KAFTRIO for people with CF with at least one F508del mutation for 2 years of age and older; ALYFTREK for the treatment for people with CF 6 years of age and older; SYMDEKO/SYMKEVI for treatment of patients with CF 6 years of age and older; ORKAMBI for CF patients 1 year or older; and KALYDECO for the treatment of patients with 1 month or older who have CF with ivacaftor. The company also develops CASGEVY for the treatment of SCD and TDT; JOURNAVX for the treatment of acute pain in adults; VX-522, a CFTR mRNA therapeutic designed to treat the underlying cause of CF, which is in Phase 1/2 clinical trial; inaxaplin for the treatment of APOL1-mediated kidney disease, which is in single Phase 2 trial; VX-264 for treating Type 1 Diabetes; VX-670 for the treatment of myotonic dystrophy type 1; and VX-407, a small molecule corrector for the treatment of autosomal dominant polycystic kidney disease. The company sells its products primarily to specialty pharmacy and distributors, wholesalers, retail pharmacies, hospitals, and clinics. Vertex Pharmaceuticals Incorporated was founded in 1989 and is headquartered in Boston, Massachusetts.
Vertex Pharmaceuticals Incorpor (VRTX) reported trailing twelve months revenue of $12.22B as of March 2026, a 10.1% increase year-over-year. Quarterly revenue reached $2.99B, reflecting continued top-line momentum.
Vertex Pharmaceuticals Incorpor generated $4.34B in TTM net income, with quarterly EBITDA of $1.19B. The operating margin expanded from 22.7% to 38.1%, suggesting improving cost efficiency and pricing discipline.
The spread between operating margin (38.1%) and net margin (34.5%) indicates tight cost control with minimal non-operating drag. Net margin has improved from 23.3% a year ago, signaling stronger bottom-line efficiency.
VRTX trades at a P/E of 26.0x (in line with broad market averages) and a P/S of 9.2x. The price-to-book ratio of 5.8x indicates a significant premium over book value.
The company generated $1.29B in free cash flow over the trailing twelve months, a 66.4% increase year-over-year, indicating cash generation ability. The balance sheet shows $26.48B in total assets with no in long-term debt against $19.36B in stockholders equity. Data based on the most recent quarterly reports.
Competitive analysis based on 21 quarters of fundamental data
Operating margins are under pressure, averaging 14.8%. The business may lack pricing power or face rising costs.'
ROE is low or negative, suggesting limited competitive advantage or capital allocation challenges.
Free cash flow is consistently positive and growing — a hallmark of a capital-light business that can self-fund growth.
TTM revenue has grown consistently (7 of 7 quarters up), with ~18.2% growth over the period. Strong demand durability.
Data-driven red flags and warnings across 21 quarters
The company posted negative operating margins in recent quarters — core operations are unprofitable.
FCF covers net income by 0.9x on average — earnings are well-supported by cash generation.
Limited debt-to-equity data available.
Revenue is stable or growing over recent quarters — demand appears durable.
Free cash flow is consistently positive — the business self-funds without external capital reliance.
Share count is stable — no significant dilution or buyback activity.
Quarterly standardized metrics.
Stock price and market valuation
Revenue and earnings growth across quarters
Assets, cash, debt, and leverage
Price multiples and return ratios
Operating efficiency and return metrics
Free cash flow, earnings quality, and capital allocation