Beyond the headline.
Inside the numbers.
Ticker Byline
Vertex Pharmaceuticals develops and sells medicines, led by its cystic fibrosis portfolio. The completed Crinetics acquisition adds an endocrine business, while drug launches and pipeline investment increase spending.
Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) develops and sells medicines. Cystic fibrosis treatments remain its largest business. Its portfolio also includes CASGEVY for certain blood disorders, JOURNAVX for acute pain and PALSONIFY for acromegaly, acquired with Crinetics.
The table compares the three months ended September 30. Amounts are USD millions, except per-share figures.
| Results | 2026 Q3 | 2025 Q3 |
|---|---|---|
| Revenue | 3,440.8 | 3,076.4 |
| Operating income, GAAP | 712.9 | 1,186.2 |
| Net income, GAAP | 653.6 | 1,082.9 |
| Diluted EPS, GAAP | 2.56 | 4.20 |
| Adjusted net income | 1,213.6 | 1,236.3 |
| Adjusted diluted EPS | 4.76 | 4.80 |
| Combined adjusted research and selling and administrative expenses | 1,532.5 | 1,284.6 |
The combined expense measure includes research and development, acquired in-process research and development, and selling and administrative spending. Adjusted results remove stock compensation, selected acquisition and accounting items, and related tax effects. Q3's adjustments included $502 million of acquisition-related costs, mainly cash-settled Crinetics equity awards and transaction expenses.
Cystic fibrosis product revenue rose to $3.273 billion from $3.040 billion, including ALYFTREK's growing contribution. It represented approximately 95% of total quarterly revenue.
CASGEVY revenue increased to $99.2 million from $16.9 million. JOURNAVX revenue rose to $58.3 million from $19.6 million. PALSONIFY contributed $10.1 million in September, following the Crinetics closing.
Adjusted net income fell 2% despite 12% revenue growth. Combined adjusted research and commercial expenses increased 19%, while interest expense rose to $36 million from $3.3 million.
Annual revenue is forecast at $13.15 billion to $13.25 billion, versus August's $13.1 billion to $13.2 billion. The new outlook includes $40 million to $50 million from PALSONIFY. The earlier forecast excluded the then-pending Crinetics transaction.
The expectation for CASGEVY and JOURNAVX combined remains at least $500 million. Combined adjusted research, acquired research and selling and administrative expenses are now expected at approximately $6 billion, versus $5.65 billion to $5.75 billion.
The comparable GAAP expense range increased to $7.15 billion to $7.20 billion from $6.30 billion to $6.45 billion. Current GAAP guidance includes approximately $500 million of Crinetics compensation and transaction costs; both expense measures include approximately $100 million of acquired research spending.
Vertex completed the Crinetics Pharmaceuticals acquisition on September 1, 2026. The equity value was approximately $10 billion, or $9 billion after acquired cash and marketable securities. The transaction is accounted for as a business combination.
Vertex borrowed $4.5 billion through a term loan during Q3. At September 30, debt carrying amounts were $999.6 million current and $3.497 billion long term, totaling $4.497 billion.
Cash and marketable securities totaled $9.821 billion. That comprised $6.303 billion of cash, cash equivalents and current securities, plus $3.518 billion of long-term securities. The total was $12.320 billion at December 31, 2025.
The FDA's target decision date for povetacicept in IgA nephropathy is November 30, 2026. An approval would establish Vertex's commercial kidney-disease business.
Vertex expects results from Phase 3 studies of suzetrigine in diabetic peripheral neuropathy in mid-2027. It also expects to complete enrollment in the adult Phase 3 atumelnant study for congenital adrenal hyperplasia in Q1 2027.
Analysis VRTX
Vertex raised its annual revenue outlook after closing Crinetics, but its spending forecast increased more. Our comparison explains what the earlier outlook excluded and how profit and funding changed.