VRTX US S&P 500NASDAQ-100Russell 1000 Earnings call · transcribed from the recording
Vertex Pharmaceuticals (VRTX) · Q3 2026 results and valuation
Share price: $547.03 · 2026-11-11
Vertex Pharmaceuticals is a biopharmaceutical company that focuses on rational drug design. It operates in the United States and the United Kingdom. Source: Wikipedia
Results Q3 2026 vs Q2 2026 · previous quarter · published 2 Nov 2026 and 3 Aug 2026
Net income down 40.6% on the previous quarter. Management sounded restrained, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
−40.6%
Net income vs Q2 2026
Outlook given
Net income 653.6M vs 1.10B
Revenue +3.2%
Against the same quarter last year (Q3 2025) it is −39.6%, so it is not just seasonal.
2 · How management spoke
Restrained
Less upbeat than 67% of company calls
Answers to analysts: restrained, in line with the script.
Similar to last call.
3 · What stood out
Guidance
The increase reflects the addition of Krenetics, which Vertex Pharmaceuticals expects to contribute $40 to $50 million to full-year 2026 revenue.
Valuation
Is Vertex Pharmaceuticals undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 10.4% growth a year (3-year revenue growth), the model's fair value is $336.62 a share — the stock trades 63% above it. Today's price assumes 17.5% growth a year.
Current price
$547.03
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+17.5% for 10 yrs
Fair value / share
$336.62
Buy below
$252.46
Price vs fair value
Overvalued 63%
Price vs buy-below price
Overvalued 117%
Read between the lines
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Key theme
To that end, Vertex Pharmaceuticals has already completed its filing for potential accelerated approval in the Kingdom of Saudi Arabia, where it has been granted breakthrough status.
Source quote
“To that end, we have already completed our filing for potential accelerated approval in the Kingdom of Saudi Arabia, where it has been granted breakthrough status. Our ambition is to launch POVI globally. We estimate KSA represents an incremental 7,000 patient opportunity.”
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Guidance
Vertex Pharmaceuticals has planned engagements with the FDA to confirm their expectations for this program and look forward to updating you in the coming months.
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Figure
He has deftly helped lead Vertex Pharmaceuticals' transition from a CF only company with $4 billion in revenue in 2019, to a company...
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Fading
Commercially, Vertex Pharmaceuticals delivered strong revenue growth across all diseases, made meaningful progress in reimbursed access and continue to execute on near-term launch planning…
Source quote
“Commercially, we delivered strong revenue growth across all diseases, made meaningful progress in reimbursed access and continue to execute on near-term launch planning... And on each of those fronts, we advanced significantly in the second quarter. Clinically, we continue to make significant progress in advancing our pipeline, including completing enrollment in the...”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q3 2026. Ring: Q2 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“Our continued leadership in CF, the increasing contribution of Caschevi and Gernavix, momentum in rare endocrinology, and with POVI on the doorstep of launch, we are well positioned for continued...”
“In summary, Vertex delivered strong third-quarter results with 12% revenue growth and increasing revenue diversification beyond our leading CF business.”
“In pain, along with the strong growth in prescriptions, we're also seeing fast growth in the body of compelling Gernavix real-world data emerge, such as a recent paper detailing 80%...”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-09-30)
| Metric | Q3 2026period end 2026-09-30 | Q2 2026period end 2026-06-30 | Change | Q3 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 3.44B | 3.33B | +3.2% | 3.08B | +11.8% |
| Gross profit | 2.91B | 2.84B | +2.5% | 2.66B | +9.5% |
| Operating income | 712.9M | 1.25B | −42.8% | 1.19B | −39.9% |
| Net income | 653.6M | 1.10B | −40.6% | 1.08B | −39.6% |
| EPS | 2.56 | 4.31 | −40.6% | 4.20 | −39.0% |
| P/E today 35.2 | 33.6 | 28.9 | +4.7 | 27.6 | +6.0 |
Topics
Most discussed now
- International, from CF and from Vertex Pharmaceuticals' two more recently launched medicines, Keshavi and Jernavix, as well as a…
- A lift track has been driven predominantly by new reimbursement agreements.
- As far as the gross to net is concerned, I would make the comment that obviously negotiated agreements to secure...
- 750,000 prescriptions in one quarter, 1.6 million Americans treated, the number one oral branded analgesic would all indicate that Vertex…
Faded since Q2 2026
- Fading The Phase II portion is complete and the Phase III portion initiated last quarter.
- Fading Including, without limitation, those regarding Vertex's marketed medicines for cystic fibrosis, sickle cell disease, beta-thalassemia and…
- Fading Vertex Pharmaceuticals is pleased with the pace at which physicians and patients are embracing ALYFTREK given its improved sweat chloride…
- Fading There is high unmet need for non-opioid effective pain medicines that have not only the right efficacy, but the right...
Latest announcements
Official filings, newest first. Summaries are generated from each filing and its attachment; every figure is checked against the source.
- Results of operations · SEC 8-K
- Director or officer change · SEC 8-K
- Director or officer change · SEC 8-K
Vertex Pharmaceuticals appointed Jonathan Poole as Executive Vice President and Chief Financial Officer effective January 1, 2027, with a base salary of $750,000 and a target annual bonus of 90% of base salary.
- Results of operations · SEC 8-K
Vertex Pharmaceuticals reported total revenue of $3.33 billion for the second quarter of 2026, representing a 12% increase compared to the second quarter of 2025.
- Material agreement; Regulation FD disclosure; Other events · SEC 8-K
The Company and Parent announced the execution of a Merger Agreement on July 6, 2026, with the transaction expected to contribute to a potential of more than $5 billion in annual revenue.
- Director or officer change; Shareholder vote results · SEC 8-K
Shareholders approved the 2026 Stock and Option Plan, the appointment of Ernst & Young LLP as the independent auditor, and the 2025 executive compensation program at the May 13, 2026 meeting.
- Results of operations · SEC 8-K
Vertex Pharmaceuticals reported total revenue of $2.99 billion for the first quarter of 2026, which represents an 8% increase compared to the first quarter of 2025.
- Director or officer change · SEC 8-K
Suketu Upadhyay will not stand for re-election as a director of Vertex Pharmaceuticals at the 2026 annual meeting due to his new role as CFO of Incyte Corporation.