10-QPeriod: Q1 FY2026

VERTEX PHARMACEUTICALS INC / MA Quarterly Report for Q1 Ended Mar 31, 2026

Filed May 5, 2026For Securities:VRTX

Summary

Vertex Pharmaceuticals Inc. reported strong financial performance for the first quarter of 2026, with total revenues increasing by 8% to $2,986.9 million compared to the same period in 2025. This growth was primarily driven by the continued strength of its cystic fibrosis (CF) therapies, particularly ALYFTREK and TRIKAFTA/KAFTRIO, and initial contributions from newer products like CASGEVY and JOURNAVX. Net income saw a significant surge of approximately 59.5% to $1,031.4 million, driven by robust revenue growth and a reduction in total costs and expenses, notably due to the absence of a large intangible asset impairment charge recorded in the prior year. The company also maintained a healthy cash position, with cash, cash equivalents, and marketable securities totaling $12,996.6 million, indicating strong liquidity and financial stability to support ongoing research, development, and commercialization efforts.

Financial Highlights

46 data points
Beta

Revenue

$2.99B

86.8% Gross Margin

Net Income

$1.03B

34.5% Net Margin

EPS (Diluted)

$4.02

Total Assets

$26.48B

Cash & Equivalents

$5.49B

Free Cash Flow

$1.29B

Financial Statements
Beta
Revenue$2.99B
Cost of Revenue$392.80M
Gross Profit$2.59B
SG&A Expenses$493.70M
Operating Expenses$1.85B
Operating Income$1.14B
Net Income$1.03B
EPS (Basic)$4.06
EPS (Diluted)$4.02
Shares Outstanding (Basic)254.10M
Shares Outstanding (Diluted)256.30M

Key Highlights

  • 1Total revenues increased by 8% to $2,986.9 million in Q1 2026 compared to Q1 2025.
  • 2Net income significantly grew by 59.5% to $1,031.4 million in Q1 2026.
  • 3Product revenues from CF therapies, especially ALYFTREK and TRIKAFTA/KAFTRIO, remain strong, with ALYFTREK showing substantial year-over-year growth.
  • 4CASGEVY contributed $42.9 million in product revenue, a significant increase from $14.2 million in Q1 2025.
  • 5Total costs and expenses decreased by 14% to $1,848.8 million, largely due to the absence of a $379 million intangible asset impairment charge recorded in Q1 2025.
  • 6The company's cash, cash equivalents, and marketable securities increased to $12,996.6 million as of March 31, 2026, reflecting strong liquidity.
  • 7Vertex continues to invest heavily in R&D, with expenses totaling $961.6 million, supporting a diversified pipeline.

Frequently Asked Questions

Revenue growth was primarily driven by the continued strong performance of Vertex's cystic fibrosis (CF) therapies, particularly ALYFTREK and TRIKAFTA/KAFTRIO. Diversification into new disease areas also contributed, with notable revenue increases from CASGEVY (for sickle cell disease and beta thalassemia) and JOURNAVX (for acute pain).

Profitability saw a substantial improvement, with net income increasing by 59.5% to $1,031.4 million in Q1 2026. This was due to strong revenue growth and a significant decrease in total costs and expenses, largely because the prior year's quarter included a substantial intangible asset impairment charge.

Vertex maintains a strong liquidity position, with total cash, cash equivalents, and marketable securities reaching $12,996.6 million as of March 31, 2026. This robust balance provides ample resources to fund operations, ongoing research and development, and strategic initiatives.

The company is involved in a confidential arbitration with Royalty Pharma plc (RP) regarding the royalty burden for ALYFTREK. RP alleges a higher royalty rate than Vertex's position. Vertex intends to vigorously defend its stance. However, no material loss contingencies were accrued as of March 31, 2026.