Vertex Beats Estimates as Revenue Hits $3.44 Billion and Adjusted EPS $4.76

Vertex Pharmaceuticals (Nasdaq: VRTX) reported third-quarter revenue of $3.44 billion, above the $3.43 billion analysts expected, and adjusted earnings of $4.76 per diluted share against the $4.75 consensus, in an 8-K filed Monday. Revenue rose 12% from $3.08 billion a year earlier.

Cystic fibrosis drives revenue

Cystic fibrosis medicines generated $3.27 billion of the quarter's revenue, up from $3.04 billion. ALYFTREK contributed $705.8 million, against $247.0 million a year earlier, while TRIKAFTA/KAFTRIO fell to $2.44 billion from $2.65 billion.

Newer products grew from a small base. CASGEVY revenue was $99.2 million, JOURNAVX $58.3 million and PALSONIFY $10.1 million, the last recorded after the Crinetics Pharmaceuticals acquisition closed on Sept. 1.

Profit measures diverge

GAAP net income was $654 million, or $2.56 per diluted share, compared with $1.1 billion, or $4.20, a year earlier. The company said the year-over-year decline is primarily due to expenses related to the Crinetics acquisition, including about $500 million of compensation and transaction-related expenses.

Non-GAAP net income was $1.2 billion in each of the two quarters. Combined GAAP R&D, acquired IPR&D and SG&A expenses were $2.2 billion, against $1.5 billion a year earlier.

Cash, cash equivalents and marketable securities were $9.8 billion at Sept. 30, down from $12.3 billion at Dec. 31, 2025. The company attributed the decline mainly to $9.0 billion of net cash used for the Crinetics acquisition and share repurchases, partly offset by a $4.5 billion term loan.

Guidance raised

Vertex raised its full-year 2026 total revenue guidance to $13.15 billion to $13.25 billion from $13.1 billion to $13.2 billion. Analysts' average full-year estimate of $13.28 billion sits slightly above the top of the new range. The company also raised its combined GAAP R&D, acquired IPR&D and SG&A expense guidance to $7.15 billion to $7.2 billion.

For the fourth quarter, analysts expect adjusted EPS of $4.63 on revenue of $3.53 billion. The company's povetacicept action date for IgA nephropathy is Nov. 30, 2026.