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By Brian Nelson, CFA
Vertex Pharmaceuticals (VRTX) recently reported mixed fourth quarter 2025 results with revenue exceeding the consensus forecast, but non-GAAP earnings per share of $5.03 coming in a bit light relative to consensus. Total revenue increased 10% in the quarter, to $3.19 billion compared to the fourth quarter of 2024 thanks to “continued performance of cystic fibrosis (CF) therapies and additional growth from diversification into additional disease areas.”
In the U.S., total revenue increased 12%, while total revenue increased 5% outside the U.S. GAAP and non-GAAP net income were $1.2 billion and $1.3 billion, respectively, compared to $913 million and $1.0 billion, respectively, for the fourth quarter of 2024. Management had the following to say about the results:
2025 marked a year of strong revenue growth, commercial diversification, and pipeline advancement. Our focus in 2026 remains on executing across the CF franchise, bringing CASGEVY to more patients around the globe and continuing to launch JOURNAVX, as we also prepare for the anticipated near‑term commercialization of povetacicept in IgAN. With expanding leadership in CF, exciting commercial momentum, and multiple mid- and late-stage programs advancing, Vertex is well positioned to deliver long‑term value for patients and shareholders.
Looking to 2026, management expects total revenue in the range of $12.95-$13.1 billion with non-CF product revenue of $500 million or greater. Combined non-GAAP R&D, AIPR&D and SG&A expenses are expected to be $5.65-$5.75 billion. Vertex ended the year with $6.6 billion in cash and marketable securities and no debt. We continue to like Vertex as key biotech exposure in the Best Ideas Newsletter portfolio.
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Brian Nelson owns shares in SPY, SCHG, QQQ, QQQM, DIA, VOT, RSP, and IWM. Valuentum owns SPY, SCHG, QQQ, QQQM, VOO, and DIA. Brian Nelson’s household owns shares in HON, DIS, HAS, NKE, DIA, RSP, SCHG, QQQ, QQQM, and VOO. Some of the other securities written about in this article may be included in Valuentum’s simulated newsletter portfolios. Contact Valuentum for more information about its editorial policies.
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