VRTX's Q4 Earnings Miss Mark, Revenues Beat on Higher Product Sales

Vertex Pharmaceuticals VRTX reported adjusted earnings of $5.03 per share for the fourth quarter of 2025, missing the Zacks Consensus Estimate of $5.07. However, earnings rose around 26.4% year over year on higher product revenues.

Fourth-quarter total revenues of $3.19 billion beat the Zacks Consensus Estimate of $3.17 billion. Total revenues rose 10% year over year, primarily driven by higher sales of cystic fibrosis (CF) drugs, led by Trikafta/Kaftrio and contributions from its three new drugs, Alyftrek, Journavx and Casgevy.

Vertex’s total revenues rose 12% year over year in the United States to $2.06 billion, driven by strong demand for CF drugs, CF channel inventory benefit and higher realized net prices in CF. Outside the U.S. market, sales increased 5% to $1.13 billion, driven by strong CF growth and contribution from Casgevy.

In the past six months, shares of Vertex have risen 18.2% compared with the industry’s rally of 22%.

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VRTX's Q4 Earnings in Detail

Trikafta generated sales worth $2.57 billion, down 5.5% year over year. The product’s sales were almost in line with the Zacks Consensus Estimate.

Alyftrek, a next-in-class triple combination regimen for CF, generated sales worth $380.1 million in the fourth quarter compared with $247 million in the third quarter. Vertex said that the U.S. and European launch of Alyftrek is progressing well across all patient groups.

Revenues from other products increased 24.2% year over year to $237.4 million. This included revenues from Vertex and partner CRISPR Therapeutics’ CRSP one-shot gene therapy, Casgevy, sales from Vertex’s new pain drug, Journavx (suzetrigine), as well as sales of VRTX’s other CF products, Symdeko (marketed as Symkevi in Europe), Orkambi and Kalydeco.

Casgevy is approved for two blood disorders, sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT). Vertex leads the global development and commercialization of Casgevy under the terms of the 2021 agreement, with support from CRISPR Therapeutics.

Vertex recorded $54.3 million in Casgevy sales during the fourth quarter compared with $16.9 million recorded in the third quarter. As previously stated, Vertex realized its goal of more than $100 million of Casgevy revenues in 2025. Casgevy generated sales worth $115.8 million in 2025.

Journavx generated $26.7 million in sales in the fourth quarter compared with $19.6 million in the third quarter. Journavx, a novel non-opioid pain medicine (suzetrigine), was approved in the United States in January 2025.

VRTX's Q4 Cost Discussion

Adjusted research and development (R&D) expenses declined 2.9% year over year to $873.3 million.

Adjusted selling, general and administrative (SG&A) expenses rose 39.4% to $432.3 million in the fourth quarter, primarily to support the launch of Journavx.

During the fourth quarter, Vertex recorded acquired in-process research and development (AIPR&D) costs of $56.5 million compared with $87.5 million in the year-ago quarter.

Adjusted operating income rose 14.3% year over year to $1.37 billion in the quarter.

VRTX's Full-Year 2025 Results

For 2025, Vertex generated revenues of $12 billion, implying 9% growth year over year.

For the same period, the company reported adjusted earnings of $18.40 per share, up from 42 cents in 2024.

VRTX's 2026 Guidance

The company expects total revenues to be in the range of $12.95-$13.10 billion for 2026, reflecting 8% to 9% growth versus the prior year. The Zacks Consensus Estimate for total revenues is pegged at $12.91 billion for 2026.

Importantly, Vertex expects its non-CF product revenues to be more than $500 million in 2026, reflecting higher patient infusions for Casgevy and a ramp-up in Journavx prescriptions.

Combined adjusted R&D, AIPR&D and SG&A expense guidance for 2026 is in the band of $5.65-$5.75 billion. The adjusted tax rate is expected to be in the range of 19.5%-20.5%.

In the first quarter of 2026, the company expects total revenue growth of approximately 7% year over year.

VRTX’s Recent Pipeline Updates

Vertex is rapidly advancing its mid- to late-stage pipeline in other disease areas like acute and neuropathic pain, APOL1-mediated kidney disease, IgA nephropathy (IgAN) and primary membranous nephropathy (pMN).

Enrollment has been completed in the phase III study on povetacicept for IgAN. A rolling BLA filing for povetacicept in IgAN was initiated in the fourth quarter of 2025. The company expects to complete the submission in the first half of 2026 for potential accelerated approval in the United States.

Vertex has also initiated a pivotal phase II/III study of povetacicept for a second potential renal indication, pMN.

Vertex is conducting pivotal phase III studies on suzetrigine in diabetic peripheral neuropathy (DPN) and plans to complete enrollment in both studies by the end of 2026. It is also conducting a phase II study with the oral formulation of the next-gen Nav1.8 inhibitor, VX-993, in DPN.

Vertex plans to begin global regulatory submission seeking label expansion for Casgevy in patients aged five to 11 years with SCD and TDT. For the FDA submission, Vertex intends to use the Commissioner’s National Priority Voucher to significantly cut down the review period.

Vertex recently completed a pivotal study evaluating Alyftrek in children with CF aged two to five years. The company plans to submit global regulatory filings seeking approval for Alyftrek in the given patient population in the first half of 2026.

Vertex Pharmaceuticals Incorporated Price, Consensus and EPS Surprise

Vertex Pharmaceuticals Incorporated price-consensus-eps-surprise-chart | Vertex Pharmaceuticals Incorporated Quote

VRTX’s Zacks Rank & Stocks to Consider

Vertex currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the biotech sector are Alkermes ALKS and Castle Biosciences CSTL, both currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Alkermes’ 2026 earnings per share have increased from $1.54 to $1.91. ALKS shares have risen 16.2% over the past six months.

Alkermes’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average earnings surprise being 4.58%.

Over the past 60 days, Castle Biosciences’ 2026 loss per share estimates have narrowed from $1.06 to 96 cents. CSTL shares have rallied 64.7% over the past six months.

Castle Biosciences’ earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 66.11%.

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This article originally published on Zacks Investment Research (zacks.com).

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