Detailed financial statements for Vertex Pharmaceuticals Incorporated (VRTX): income statement, balance sheet and cash-flow summary. Track margins, debt, liquidity and profitability trends year over year: ten fiscal years free and up to 20 with Premium.
Vertex Pharmaceuticals Incorporated is a leading biotechnology firm primarily focused on the discovery, advancement, and marketing of innovative treatments, particularly for cystic fibrosis (CF). The company offers a range of approved medications for CF patients, including SYMDEKO/SYMKEVI, ORKAMBI, and KALYDECO, which target specific mutations within the cystic fibrosis transmembrane conductance regulator gene.
Analysis Summary
Vertex Pharmaceuticals Incorporated reported revenue of $12.07B in the most recent fiscal year, growing at a 5-year CAGR of 14.2%. Net income reached $3.95B, with a 7.8% 5-year CAGR.
Trailing-twelve-month margins: gross margin 85.0%, operating margin 39.4%, net margin 32.7%. Free cash flow grew at 1.3% CAGR over 5 years.
At the current price of $503.50, VRTX trades at a P/E of 29.38 and an ROE of 21.18%. Market capitalisation stands at $127.8B, placing it among large-cap names.
Balance sheet quality for VRTX: current ratio of 2.9, net cash position of $2.73B. A debt-to-equity below 1.0 typically signals conservative capital structure, while a current ratio above 1.5 indicates comfortable short-term liquidity.
Cash flow quality is decent: free cash flow of $3.19B represents 81% conversion of reported net income. High conversion (above 90%) suggests earnings translate cleanly into cash; lower conversion may indicate working capital tightness or accounting timing differences.
Income Statement (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | $1.70B | $2.49B | $3.05B | $4.16B | $6.21B | $7.57B | $8.93B | $9.87B | $11.02B | $12.07B |
| Cost of Revenue | $210.5M | $275.1M | $409.5M | $547.8M | $736.3M | $904.2M | $1.08B | $1.26B | $1.53B | $1.81B |
| Gross Profit | $1.49B | $2.21B | $2.64B | $3.62B | $5.47B | $6.67B | $7.85B | $8.61B | $9.49B | $10.27B |
| Research & Development | $1.05B | $1.32B | $1.42B | $1.75B | $1.83B | $3.05B | $2.66B | $3.16B | $3.63B | $3.75B |
| Selling, General & Admin | $432.8M | $496.1M | $557.6M | $658.5M | $770.5M | $840.1M | $944.7M | $1.14B | $1.46B | $1.75B |
| Operating Expenses | $1.48B | $1.82B | $1.97B | $2.41B | $2.61B | $3.89B | $3.54B | $4.78B | $9.72B | $5.51B |
| Operating Income | $9.9M | $123.2M | $635.1M | $1.20B | $2.86B | $2.78B | $4.31B | $3.83B | -$232.9M | $4.76B |
| EBITDA | $75.5M | $103.3M | $706.8M | $1.56B | $3.28B | $2.92B | $4.44B | $4.61B | $486.3M | $4.86B |
| Interest Expense | $81.4M | $69.3M | $34.1M | $58.5M | $58.2M | $61.5M | $54.8M | $44.1M | $30.6M | $13.3M |
| Pre-tax Income | -$67.4M | -$15.7M | $600.2M | $1.39B | $3.12B | $2.73B | $4.23B | $4.38B | $248.5M | $4.64B |
| Income Tax | $16.7M | -$107.3M | -$1.49B | $218.1M | $405.2M | $388.3M | $910.4M | $760.2M | $784.1M | $690.0M |
| Net Income | -$112.1M | $263.5M | $2.10B | $1.18B | $2.71B | $2.34B | $3.32B | $3.62B | -$535.6M | $3.95B |
| EPS | $-0.46 | $1.06 | $8.25 | $4.58 | $10.44 | $9.09 | $12.97 | $14.05 | $-2.08 | $15.46 |
| EPS (Diluted) | $-0.46 | $1.04 | $8.09 | $4.51 | $10.29 | $9.01 | $12.82 | $13.89 | $-2.08 | $15.32 |
| Shares Outstanding (Diluted) | $244.7M | $253.2M | $259.2M | $260.7M | $263.4M | $259.9M | $259.1M | $260.5M | $257.9M | $258.0M |
Income Statement (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Revenue | $3.08B | $3.23B | $2.99B | $3.33B |
| Gross Profit | $2.66B | $2.76B | $2.59B | $2.84B |
| Operating Income | $1.19B | $1.30B | $1.14B | $1.25B |
| EBITDA | $1.36B | $1.39B | $1.31B | $1.39B |
| Net Income | $1.08B | $1.19B | $1.03B | $1.10B |
| EPS | $4.24 | $4.69 | $4.06 | $4.33 |
| EPS (Diluted) | $4.20 | $4.65 | $4.02 | $4.31 |
Balance Sheet (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Cash & Equivalents | $1.18B | $1.67B | $2.65B | $3.11B | $5.99B | $6.79B | $10.50B | $10.37B | $4.57B | $5.09B |
| Short-term Investments | $250.6M | $423.3M | $518.1M | $699.0M | $670.7M | $729.9M | $274.5M | $849.2M | $1.55B | $1.52B |
| Receivables | $235.5M | $386.0M | $409.7M | $633.5M | $885.4M | $1.14B | $1.44B | $1.56B | $1.61B | $2.05B |
| Inventory | $77.6M | $111.8M | $124.4M | $167.5M | $280.8M | $353.1M | $460.6M | $738.8M | $1.21B | $1.69B |
| Total Current Assets | $1.83B | $2.65B | $3.84B | $4.82B | $8.13B | $9.56B | $13.23B | $14.14B | $9.60B | $11.20B |
| Property, Plant & Equipment | $698.4M | $789.4M | $812.0M | $833.3M | $1.28B | $1.42B | $1.46B | $1.45B | $2.58B | $3.08B |
| Goodwill | $50.4M | $50.4M | $50.4M | $1.00B | $1.00B | $1.00B | $1.09B | $1.09B | $1.09B | $1.09B |
| Intangible Assets | $284.3M | $29.0M | 0 | $400.0M | $400.0M | $400.0M | $603.6M | $839.9M | $825.9M | $424.2M |
| Total Assets | $2.89B | $3.55B | $6.25B | $8.32B | $11.75B | $13.43B | $18.15B | $22.73B | $22.53B | $26.14B |
| Accounts Payable | $61.5M | $74.0M | $111.0M | $87.6M | $155.1M | $195.0M | $303.9M | $364.9M | $413.0M | $461.7M |
| Short-term Debt | $300.0M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $92.3M | $82.8M |
| Total Current Liabilities | $792.5M | $807.3M | $1.12B | $1.33B | $1.88B | $2.14B | $2.74B | $3.55B | $3.56B | $3.86B |
| Long-term Debt | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | $1.85B |
| Total Liabilities | $1.56B | $1.50B | $1.81B | $2.23B | $3.06B | $3.33B | $4.24B | $5.15B | $6.12B | $7.48B |
| Retained Earnings | -$5.37B | -$5.12B | -$2.99B | -$1.85B | $858.7M | $3.20B | $6.52B | $10.14B | $9.61B | $13.56B |
| Total Equity | $1.16B | $2.03B | $4.44B | $6.09B | $8.69B | $10.10B | $13.91B | $17.58B | $16.41B | $18.67B |
| Total Debt | $840.8M | $606.4M | $586.8M | $661.7M | $931.9M | $967.4M | $899.7M | $808.4M | $1.75B | $3.88B |
| Net Debt | -$593.8M | -$1.48B | -$2.58B | -$3.15B | -$5.73B | -$6.56B | -$9.88B | -$10.41B | -$4.37B | -$2.73B |
| Working Capital | $1.04B | $1.84B | $2.72B | $3.49B | $6.26B | $7.42B | $10.49B | $10.60B | $6.03B | $7.34B |
Balance Sheet (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Cash & Equivalents | $4.94B | $5.09B | $5.49B | $6.14B |
| Total Assets | $24.86B | $26.14B | $26.48B | $27.42B |
| Total Liabilities | $7.54B | $7.48B | $7.12B | $7.18B |
| Total Equity | $17.32B | $18.67B | $19.36B | $20.25B |
| Total Debt | $1.83B | $3.88B | $1.99B | $1.98B |
Cash Flow (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Net Income | -$84.0M | $91.6M | $2.09B | $1.18B | $2.71B | $2.34B | $3.32B | $3.62B | -$535.6M | $3.95B |
| Depreciation & Amortization | $61.4M | $61.4M | $72.4M | $106.9M | $109.5M | $125.6M | $148.3M | $181.3M | $207.2M | $209.8M |
| Stock-based Compensation | $237.7M | $290.7M | $325.0M | $360.5M | $429.5M | $441.4M | $491.3M | $581.2M | $698.5M | $685.9M |
| Change in Working Capital | -$2.1M | $15.3M | $238.0M | -$66.1M | -$54.5M | -$105.2M | $340.8M | -$265.7M | -$514.8M | -$1.20B |
| Operating Cash Flow | $236.1M | $844.9M | $1.27B | $1.57B | $3.25B | $2.64B | $4.13B | $3.54B | -$492.6M | $3.63B |
| Capital Expenditure | -$56.6M | -$259.4M | -$95.5M | -$75.5M | -$259.8M | -$235.0M | -$204.7M | -$258.4M | -$297.7M | -$437.6M |
| Acquisitions | 0 | -$160.0M | 0 | -$1.15B | -$418.2M | $77.0M | -$295.9M | 0 | 0 | 0 |
| Stock Repurchased | 0 | 0 | -$350.0M | -$192.0M | -$539.1M | -$1.43B | -$172.0M | -$427.6M | -$1.18B | -$2.02B |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | $179.5M | $585.5M | $1.17B | $1.49B | $2.99B | $2.41B | $3.93B | $3.28B | -$790.3M | $3.19B |
Cash Flow (Quarterly)
| Year | 2025-Q3 | 2025-Q4 | 2026-Q1 | 2026-Q2 |
|---|---|---|---|---|
| Operating Cash Flow | $1.24B | $498.0M | $1.43B | $1.13B |
| Capital Expenditure | -$101.8M | -$149.4M | -$133.4M | -$112.2M |
| Free Cash Flow | $1.14B | $348.6M | $1.29B | $1.01B |
| Dividends Paid | 0 | 0 | 0 | 0 |
| Stock-based Compensation | $194.9M | $157.6M | $166.4M | $170.2M |
Growth & Margins (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue Growth (YoY) | +46.2% | +22.5% | +36.6% | +49.1% | +22.1% | +17.9% | +10.5% | +11.7% | +9.6% | |
| Net Income Growth (YoY) | +335.1% | +695.8% | -43.9% | +130.4% | -13.6% | +41.8% | +9.0% | -114.8% | +838.1% | |
| EPS Growth (YoY) | +330.4% | +678.3% | -44.5% | +127.9% | -12.9% | +42.7% | +8.3% | -114.8% | +843.3% | |
| Shares Change (YoY) | +3.5% | +2.4% | +0.6% | +1.0% | -1.3% | -0.3% | +0.5% | -1.0% | +0.0% | |
| FCF Growth (YoY) | +226.1% | +100.6% | +27.2% | +100.4% | -19.5% | +63.0% | -16.5% | -124.1% | +504.1% | |
| Gross Margin | 87.6% | 88.9% | 86.6% | 86.8% | 88.1% | 88.1% | 87.9% | 87.2% | 86.1% | 85.0% |
| Operating Margin | 0.6% | 5.0% | 20.8% | 28.8% | 46.0% | 36.7% | 48.2% | 38.8% | -2.1% | 39.4% |
| EBITDA Margin | 4.4% | 4.1% | 23.2% | 37.5% | 52.9% | 38.5% | 49.7% | 46.7% | 4.4% | 40.3% |
| Net Margin | -6.6% | 10.6% | 68.8% | 28.3% | 43.7% | 30.9% | 37.2% | 36.7% | -4.9% | 32.7% |
| FCF Margin | 10.5% | 23.5% | 38.5% | 35.9% | 48.2% | 31.8% | 44.0% | 33.2% | -7.2% | 26.5% |
| Effective Tax Rate | -24.7% | 684.1% | -247.7% | 15.6% | 13.0% | 14.2% | 21.5% | 17.4% | 315.5% | 14.9% |
Per-Share Data (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| FCF Per Share | $0.73 | $2.31 | $4.53 | $5.73 | $11.37 | $9.27 | $15.15 | $12.59 | $-3.06 | $12.38 |
| Dividends Per Share | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 | $0.00 |
| Shares Outstanding (Basic) | $243.6M | $248.9M | $254.3M | $256.7M | $259.8M | $257.7M | $256.1M | $257.7M | $257.5M | $255.7M |
What to look at in Biotech
Most small biotechs lose money. Analysing them with P/E makes no sense — look at cash and pipeline.
- Cash Runway — Months of cash at current burn rate. <18 months = urgent dilution risk
- Annual cash burn — Rate at which they burn operating cash. Compare with cash position to project runway
- Total Debt — Biotech with no revenue + debt = recipe for bankruptcy
- R&D / Market cap — How much they invest in pipeline vs the company value — research-intensity indicator
- Market cap / Cash — If it trades near its cash, the market assigns ~0 value to the pipeline — opportunity or trap
Profitability
| Return on Equity | 21.18% |
| Return on Invested Capital | 18.12% |
| Return on Assets | 15.12% |
| Gross Margin | 85.03% |
| Operating Margin | 39.43% |
| Net Margin | 32.74% |
Financial Health
| Debt / Equity | 0.21 |
| Current Ratio | 2.90 |
| Piotroski F-Score | 6 |
| Altman Z-Score | 11.43 |
Key Ratios (10y)
| Year | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|---|---|
| P/E | -160.15 | 141.38 | 20.09 | 47.81 | 22.64 | 24.16 | 22.27 | 28.96 | -193.61 | 29.32 |
| P/B | 15.52 | 18.38 | 9.50 | 9.24 | 7.07 | 5.60 | 5.32 | 5.96 | 6.32 | 6.21 |
| P/S | 10.54 | 14.99 | 13.83 | 13.50 | 9.90 | 7.47 | 8.28 | 10.62 | 9.41 | 9.60 |
| Gross Margin | 87.6% | 88.9% | 86.6% | 86.8% | 88.1% | 88.1% | 87.9% | 87.2% | 86.1% | 85.0% |
| Operating Margin | 0.6% | 5.0% | 20.8% | 28.8% | 46.0% | 36.7% | 48.2% | 38.8% | -2.1% | 39.4% |
| Net Margin | -6.6% | 10.6% | 68.8% | 28.3% | 43.7% | 30.9% | 37.2% | 36.7% | -4.9% | 32.7% |
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Explore sector: Healthcare · Biotechnology
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