Vertex Pharmaceuticals (VRTX) stock

Health Care · Biotechnology

$523.93
-$11.24 -2.10%
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Vertex Pharmaceuticals (VRTX) is a Biotechnology company in the Health Care sector, headquartered in Boston, Massachusetts. As of October 23, 2026, VRTX closed at $523.93, a market capitalization of $132.80 billion, the 91st largest company in the S&P 500. Over the last twelve months it generated $12.59 billion in revenue (+12% year over year) and $3.80 billion in free cash flow. The stock trades at 29.9x trailing earnings and 25.7x forward earnings.

  • 1-year total return: +24.0% (dividends reinvested)
  • 5-year return: +23.3% a year
  • 52-week range: $403.16 – $560.25
  • Gross margin 55.0%, operating margin 38.1%
  • FI Handbook report card: B across 10 metrics
  • 13th largest of 60 Health Care stocks in the S&P 500

VRTX price chart

1Y price change: +24.0% (price only; total returns below include dividends)

$400.00
$450.00
$500.00
$550.00
Nov2026MarMayJulSep
VRTX total returns
Total return1MYTD1Y3Y5Y10YMAX
VRTX+1.5%+15.6%+24.0%+12.5%+23.3%+20.6%+14.4%

Dividends reinvested. 3Y and longer are annualized; MAX is annualized since 1991.

VRTX key statistics

Market cap
$132.8B
#91 in S&P 500
P/E (TTM)
29.9x
Forward P/E
25.7x
EPS (TTM)
$17.52
Revenue (TTM)
$12.6B
+13%
Free cash flow
$3.8B
Gross margin
55.0%
Operating margin
38.1%
Return on equity
23.5%
Dividend yield
None
52-week range
$403.16 – $560.25
Beta
0.28
Price / sales
10.6x
EV / EBITDA
24.9x
Debt / equity
0.10x
Employees
6,400

VRTX report card

B

Ten fundamentals graded A to F against fixed thresholds. Not a buy or sell rating.

  • Revenue growth12.5%B
  • Gross margin55.0%B
  • Operating margin38.1%A
  • FCF margin30.2%A
  • Return on equity23.5%B
  • Net debt / EBITDA-1.2xA
  • Forward P/E25.7xC
  • PEG ratio1.9xC
  • Shareholder yield1.5%C
  • Share count change / yr-0.4%C

Vertex Pharmaceuticals Incorpor financials

Revenue went from $1.7B in fiscal 2016 to $12.0B in fiscal 2025, growing 24.2% a year.

FY16FY17FY18FY19FY20FY21FY22FY23FY24FY25
Vertex Pharmaceuticals Incorpor annual financial results
Fiscal year2016201720182019202020212022202320242025
Revenue$1.7B$2.5B$3.0B$4.2B$6.2B$7.6B$8.9B$9.9B$11.0B$12.0B
Gross profit$1.5B$2.2B$2.6B$3.6B$5.5B$6.7B$7.9B$8.6B$9.5B$10.3B
Operating income$9.9M$123.2M$635.1M$1.2B$2.9B$2.8B$4.3B$3.8B-$232.9M$4.2B
Net income-$112.1M$263.5M$2.1B$1.2B$2.7B$2.3B$3.3B$3.6B-$535.6M$4.0B
EPS (diluted)$-0.46$1.04$8.09$4.51$10.29$9.01$12.82$13.89$-2.08$15.32
Free cash flow$179.5M$745.5M$1.2B$1.5B$3.0B$2.4B$3.9B$3.3B-$790.3M$3.2B
Buybacks$0$0$350.0M$186.0M$539.1M$1.4B$0$427.6M$1.2B$2.0B
Diluted shares244.7M253.2M259.2M260.7M263.4M259.9M259.1M260.5M257.9M258.0M

Source: SEC filings (10-K XBRL). EPS and share counts are split-adjusted.

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What's priced into VRTX?

A reverse DCF asks what growth the current price requires. With an enterprise value of $126.9B and $3.8B of trailing free cash flow, Vertex Pharmaceuticals Incorpor needs to grow free cash flow about 23.7% a year for ten years (fading to 3.0% terminal growth) to earn a 10% annual return. For context, free cash flow grew 1.3% a year over the last five years.

P/E ratio history

Current 34.2x vs. median 32.8x (10th–90th percentile 20.9x–281.7x).

0x
200x
400x
2014201620182020202220242026

A model, not a forecast or advice. Small changes in assumptions move the answer a lot.

VRTX analyst price targets

28 analysts' average 12-month target is $571.46 (+9% vs. $523.93). Targets range from $350.00 to $667.00. 81% rate it a buy.

VRTX earnings

Next report: November 2, 2026. Last quarter's revenue was $3.3B (+12% year over year).

Report dateEPS estimateEPS actualSurprise
Aug 3, 2026$4.75$4.73-0.3%
May 4, 2026$4.31$4.47+3.8%
Feb 12, 2026$5.15$5.03-2.3%
Nov 3, 2025$4.58$4.80+4.9%
Aug 4, 2025$4.25$4.52+6.3%
May 5, 2025$4.29$4.06-5.4%
Feb 10, 2025$4.02$3.98-1.0%
Nov 4, 2024$4.13$4.38+6.0%

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VRTX news

VRTX stock FAQ

What is VRTX's market cap?

Vertex Pharmaceuticals's market capitalization is $132.80 billion as of October 23, 2026, ranking 91st in the S&P 500.

What is VRTX's P/E ratio?

VRTX trades at a trailing price-to-earnings ratio of 29.9x and a forward P/E of 25.7x. Its median P/E over the period we track is 32.8x.

Does VRTX pay a dividend?

No. Vertex Pharmaceuticals does not currently pay a regular cash dividend.

How much has VRTX stock returned?

Including reinvested dividends, VRTX returned +24.0% over one year, +23.3% a year over five years, +20.6% a year over ten years through October 23, 2026.

Is VRTX stock overvalued?

At today's price, a reverse discounted cash flow model (10% discount rate, 3% terminal growth) implies Vertex Pharmaceuticals must grow free cash flow about 24% a year for the next decade. Its free cash flow grew 1% a year over the last five years. Whether that is achievable decides if the stock is cheap or expensive. This is a model, not advice.

What is the VRTX price target?

28 analysts cover VRTX with an average 12-month price target of $571.46, +9% from the current price. 81% of them rate it a buy.

When does VRTX report earnings?

Vertex Pharmaceuticals is expected to report earnings on November 2, 2026.

How many employees does Vertex Pharmaceuticals have?

Vertex Pharmaceuticals has about 6,400 full-time employees, or $2.0 million of revenue per employee.

Sources: SEC EDGAR filings, Yahoo Finance market data (delayed), FI Handbook calculations. Last close October 23, 2026. Methodology