Third Quarter 2026
Filed Nov 2, 2026Vertex Reports Third Quarter 2026 Financial Results — Achieved total revenue of $3.44 billion, a 12% increase compared to third quarter 2025 — Raising full-year revenue guidance to $13.15 billion to $13.25 billion
Total revenue increased 12% to $3.44 billion, supported by CF therapies and newer products, while full-year revenue guidance was raised. GAAP net income declined to $654 million because of Crinetics Pharmaceuticals acquisition-related expenses, while non-GAAP net income was $1.2 billion.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total revenues, three months ended September 30GAAP | $3.44B | – | 12% |
| Product revenues, net, three months ended September 30GAAP | $3.44B | – | – |
| Cost of sales, three months ended September 30GAAP | 526.1 | – | – |
| Non-GAAP cost of sales, three months ended September 30non-GAAP | $496.2M | – | – |
| Research and development expenses, three months ended September 30GAAP | $1.32B | – | – |
| Non-GAAP research and development expenses, three months ended September 30non-GAAP | $935.6M | – | – |
| Acquired in-process research and development expenses, three months ended September 30GAAP | $40.6M | – | – |
| Selling, general and administrative expenses, three months ended September 30GAAP | $844.1M | – | – |
| Non-GAAP selling, general and administrative expenses, three months ended September 30non-GAAP | $556.3M | – | – |
| Combined GAAP R&D, acquired IPR&D, and SG&A expenses, three months ended September 30GAAP | $2.2B | – | – |
| Combined non-GAAP R&D, acquired IPR&D, and SG&A expenses, three months ended September 30non-GAAP | $1.53B | – | – |
| Income from operations, three months ended September 30GAAP | $712.9M | – | – |
| Non-GAAP operating income, three months ended September 30non-GAAP | $1.41B | – | – |
| Interest income, three months ended September 30GAAP | 118.4 | – | – |
| Interest expense, three months ended September 30GAAP | (36.0) | – | – |
| Other (expense) income, net, three months ended September 30GAAP | (11.9) | – | – |
| Income before provision for income taxes, three months ended September 30GAAP | 783.4 | – | – |
| Provision for income taxes, three months ended September 30GAAP | 129.8 | – | – |
| GAAP effective tax rate, three months ended September 30GAAP | 16.6 % | – | – |
| Non-GAAP effective tax rate, three months ended September 30non-GAAP | 18.0 % | – | – |
| Net income, three months ended September 30GAAP | $653.6M | – | – |
| Non-GAAP net income, three months ended September 30non-GAAP | $1.21B | – | – |
| Basic net income per common share, three months ended September 30GAAP | $ 2.58 | – | – |
| Diluted net income per common share, three months ended September 30GAAP | $ 2.56 | – | – |
| Non-GAAP net income per diluted common share, three months ended September 30non-GAAP | $ 4.76 | – | – |
| Total revenues, nine months ended September 30GAAP | $9.76B | – | – |
| Income from operations, nine months ended September 30GAAP | $3.10B | – | – |
| Non-GAAP operating income, nine months ended September 30non-GAAP | $4.15B | – | – |
| Net income, nine months ended September 30GAAP | $2.78B | – | – |
| Non-GAAP net income, nine months ended September 30non-GAAP | $3.57B | – | – |
| Diluted net income per common share, nine months ended September 30GAAP | $ 10.90 | – | – |
| Non-GAAP net income per diluted common share, nine months ended September 30non-GAAP | $ 13.96 | – | – |
| GAAP effective tax rate, nine months ended September 30GAAP | 18.8 % | – | – |
| Non-GAAP effective tax rate, nine months ended September 30non-GAAP | 19.6 % | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| U.S. total revenueContinued strong CF patient demand, including from new initiations of ALYFTREK; higher realized net prices in CF versus the prior year; and contributions from CASGEVY, JOURNAVX, and PALSONIFY. | $2.17B | – | 10% |
| Outside the U.S. total revenueStrong CF performance across multiple geographies, including ALYFTREK uptake; increased CASGEVY infusions; and a favorable impact from foreign exchange. | $1.27B | – | 16% |
| TRIKAFTA/KAFTRIOCF product revenue. | $2.44B | – | – |
| ALYFTREKALYFTREK uptake and new initiations. | $705.8M | – | – |
| Other CF product revenuesIncludes KALYDECO, ORKAMBI, and SYMDEKO/SYMKEVI. | $130.5M | – | – |
| Total CF product revenues, netContinued performance of cystic fibrosis therapies. | $3.27B | – | – |
| CASGEVYIncreased infusions and expanded pediatric approvals. | $ 99.2 | 30% quarter-over-quarter growth | nearly six times the $17 million of CASGEVY sales reported in the third quarter of 2025 |
| JOURNAVXMore than 750,000 prescriptions were filled across hospital and retail settings. | $ 58.3 | 18% quarter-over-quarter growth | nearly tripling the $20 million in revenue reported in the third quarter of 2025 |
| PALSONIFYRevenue followed the closing of the Crinetics Pharmaceuticals acquisition on September 1, 2026. | $ 10.1 | – | – |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full Year 2026 outlook
- Revenue$13.15 to $13.25 billion
- Operating expensesCombined GAAP R&D, AIPR&D, and SG&A expenses: $7.15 to $7.2 billion; Combined non-GAAP R&D, AIPR&D, and SG&A expenses: Approximately $6.0 billion
- Tax rateNon-GAAP effective tax rate: Unchanged
- NoteLegacy non-CF product revenue (CASGEVY, JOURNAVX): Unchanged
- NotePALSONIFY revenue: $40 to $50 million
- NoteTotal revenue guidance continues to reflect a year-over-year benefit of approximately 150 basis points from changes in foreign exchange rates, net of Vertex’s foreign exchange hedging program.
- NoteThe difference between combined GAAP and non-GAAP R&D, AIPR&D and SG&A expenses guidance relates primarily to $650 million to $700 million of stock-based compensation expense, and approximately $500 million of compensation and transaction costs related to the Crinetics Pharmaceuticals acquisition.
- NoteCombined GAAP and non-GAAP R&D, AIPR&D and SG&A expenses guidance includes approximately $100 million of AIPR&D expenses.
Capital returns
- Vertex repurchased Vertex common stock pursuant to its share repurchase program.
What drove it
- Total revenue growth was primarily driven by continued performance of CF therapies and growth from diversification into additional disease areas.
- ALYFTREK secured reimbursement in 7 additional countries, bringing the total number of countries where ALYFTREK is reimbursed to 32.
- CASGEVY is approved in patients 12 years and older in 36 countries across North America, Europe, and the Middle East.
- More than 750,000 JOURNAVX prescriptions were filled in the third quarter across hospital and retail settings.
- Vertex completed the Crinetics Pharmaceuticals acquisition in September for a total equity value of approximately $10.0 billion, or $9.0 billion net of cash, cash equivalents, and marketable securities acquired.
Concerns
- GAAP net income was $654 million compared to $1.1 billion for the third quarter of 2025, primarily due to expenses related to the Crinetics Pharmaceuticals acquisition.
- Combined GAAP R&D, acquired IPR&D, and SG&A expenses reflected approximately $500 million of compensation and transaction-related expenses associated with the Crinetics Pharmaceuticals acquisition.
- Interest expense was $ (36.0) for the three months ended September 30, compared to $ (3.3) in the prior-year period.
- Full-year combined GAAP R&D, AIPR&D, and SG&A expense guidance increased to $7.15 to $7.2 billion from $6.3 to $6.45 billion previously.
What to watch
- The U.S. FDA assigned a PDUFA target action date of November 30, 2026 for povetacicept in IgA nephropathy.
- Vertex remains on track to complete enrollment in both Phase 3 suzetrigine studies in diabetic peripheral neuropathy by the end of 2026 and share results in mid-2027.
- Vertex expects to conduct the pre-planned interim analysis for inaxaplin in early 2027.
- Vertex expects to complete enrollment in the Phase 3 atumelnant trial in adults with CAH in the first quarter of 2027.
- Vertex expects to advance VX-017 into pivotal development in 2027.
- Vertex is on track to share interim results from the GALILEO study of VX-670 in the second half of 2026.
Balance sheet and cash flow
- Cash, cash equivalents, and total marketable securities as of September 30, 2026, were $9.8 billion, compared to $12.3 billion as of December 31, 2025.
- Cash, cash equivalents and marketable securities were $ 6,303.3 as of September 30, 2026, compared to $ 6,608.1 as of December 31, 2025.
- Long-term marketable securities were $ 3,517.9 as of September 30, 2026, compared to $ 5,712.3 as of December 31, 2025.
- Short-term debt was $ 999.6 as of September 30, 2026.
- Long-term debt was $ 3,497.0 as of September 30, 2026.
- $9.0 billion net cash was used to acquire Crinetics Pharmaceuticals.
- $4.5 billion was borrowed pursuant to a term loan executed in the third quarter of 2026.
- Cash flows were provided by Vertex’s operating activities, but no operating cash flow amount was reported.
Analysis
Vertex reported third-quarter total revenue of $3.44 billion, up 12% compared to the third quarter of 2025. Growth was led by the CF portfolio, where total CF product revenues, net were $ 3,273.2. ALYFTREK revenue was $ 705.8, while TRIKAFTA/KAFTRIO revenue was $ 2,436.9. U.S. revenue increased 10% to $2.17 billion and revenue outside the U.S. increased 16% to $1.27 billion, with the company citing CF demand, ALYFTREK uptake, CASGEVY infusions and foreign exchange.
Diversification products made visible contributions. CASGEVY revenue was $ 99.2 and management reported 30% quarter-over-quarter growth. JOURNAVX revenue was $ 58.3, with more than 750,000 prescriptions filled and more than 40% quarter-over-quarter prescription growth. PALSONIFY contributed $ 10.1 following the September 1 closing of the Crinetics acquisition. The company raised full-year revenue guidance to $13.15 to $13.25 billion and continues to expect $500 million or more of combined CASGEVY and JOURNAVX revenue and $40 to $50 million of PALSONIFY revenue.
Profitability reflected acquisition costs and stepped-up commercial investment. GAAP operating income was $ 712.9, compared with $ 1,186.2, and GAAP net income was $ 653.6, compared with $ 1,082.9. Combined GAAP R&D, acquired IPR&D, and SG&A expenses were $2.2 billion compared to $1.5 billion. The company attributed the increase to renal-franchise buildout, Crinetics, JOURNAVX launch investment and approximately $500 million of Crinetics compensation and transaction-related expenses. Non-GAAP operating income was $ 1,412.1 compared with $ 1,384.8, while non-GAAP net income was $ 1,213.6 compared with $ 1,236.3.
Capital allocation and the balance sheet were materially affected by Crinetics. Vertex reported $9.0 billion of net cash used to acquire Crinetics and $4.5 billion borrowed under a term loan executed in the third quarter. Cash, cash equivalents, and total marketable securities were $9.8 billion as of September 30, 2026, compared with $12.3 billion as of December 31, 2025. The company also repurchased common stock, although it did not report the repurchase amount.
The central upcoming catalyst cited in the release is the November 30, 2026 PDUFA target action date for povetacicept in IgAN. Other disclosed milestones include completion of suzetrigine and VX-993 enrollment by the end of 2026, inaxaplin interim-analysis data in early 2027, and potential pivotal development for VX-017 in 2027. The higher expense guidance places emphasis on whether revenue growth, including CF performance and newer-product uptake, can support the expanded commercial and pipeline investment.
Management, verbatim
Vertex delivered excellent third quarter results marked by strong revenue growth across the increasingly diversified portfolio, continued advancement of the R&D pipeline, and the successful close of the Crinetics Pharmaceuticals acquisition.
Reshma Kewalramani, M.D., Chief Executive Officer and President
With the potential povetacicept approval in IgAN coming later this month, we are well positioned to establish nephrology as our fifth commercial franchise and expand the reach of our transformative medicines to even more patients.
Reshma Kewalramani, M.D., Chief Executive Officer and President
Not in the filing
stated, not guessed- Gross margin
- GAAP gross-margin guidance
- Operating cash flow amount
- Free cash flow
- Dividend amount or dividend declaration
- Share repurchase amount
- Prior-quarter total revenue
- Prior-quarter GAAP and non-GAAP profitability metrics
- Prior outlook section from the previous earnings release
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure is checked against the filing text, and a metric the filing does not print, or whose value, prior period and change do not add up, is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.