Companies /Healthcare

Vertex Pharmaceuticals Inc

NASDAQ: VRTX Biotechnology
$547.55
â–² $0.26 (+0.05%) today
Markets closed · 7:15am ET

Q1 2025 Earnings

Reported May 5, 2025, 4:10pm ET · SEC source
$4.06
Miss −5.44%
EPS · est. $4.29
$2.8B
Miss −3.17%
Revenue · est. $2.9B
−7.1%
Trailing market
VRTX vs S&P since report
1 quarter
Consecutive EPS misses

Market Reaction

% change · around the report
−10%−5%0+5%May 5May 6report 4:10pm ETearnings−0.7%−6.5%
−10%−5%0+5%May 5May 6earnings−0.7%−6.5%
VRTX −6.5%S&P 500 −0.7%
−10%−5%0+5%May 5May 6report 4:10pm ETearnings−0.9%−6.5%
−10%−5%0+5%May 5May 6earnings−0.9%−6.5%
VRTX −6.5%NASDAQ −0.9%
−12%−6%0+6%May 5May 13report 4:10pm ETearnings+4.2%−11.0%
−12%−6%0+6%May 5May 13earnings+4.2%−11.0%
VRTX −11.0%S&P 500 +4.2%
−14%−7%0+7%May 5May 13report 4:10pm ETearnings+6.2%−11.0%
−14%−7%0+7%May 5May 13earnings+6.2%−11.0%
VRTX −11.0%NASDAQ +6.2%
−10.03%
Day of report
−3.38%
Next session
−4.01%
One week
+0.10%
30 days

S&P 500 over the same 30 days: +7.22%.

Did VRTX Beat Earnings? Q1 2025 Results

Vertex Pharmaceuticals delivered a disappointing first quarter for 2025, missing on both top and bottom lines as revenue of $2.77 billion came in 3.17% below consensus and non-GAAP EPS of $4.06 fell 5.44% short of the $4.29 estimate, with year-over-year revenue growth of just 3.1% reflecting a quarter shaped by offsetting forces. The single most disruptive factor was a $379 million intangible asset impairment charge tied to the discontinuation of its VX-264 cell-plus-device Type 1 diabetes program, which dragged GAAP operating income down to $630.10 million from $1.14 billion a year ago. International revenue also weighed on results, declining 5% to $1.11 billion as an intellectual property dispute in Russia reduced Trikafta sales, a headwind management characterized as limited and isolated. Against that backdrop, U.S. revenue rose 9% to $1.66 billion, supported by the early launch of ALYFTREK and JOURNAVX. Vertex responded to the new-launch momentum by raising the low end of its full-year revenue guidance by $100 million, establishing a new range of $11.85 billion to $12.00 billion, though shares fell sharply as investors weighed the misses and narrower-than-expected access for JOURNAVX.

Key Takeaways
  • Continued strong patient demand for TRIKAFTA/KAFTRIO globally
  • Higher net realized pricing in the U.S.
  • Early ALYFTREK launch contribution of $53.9 million
  • CASGEVY contributed $14.2 million in Q1 2025
  • U.S. revenue growth of 9% to $1.66 billion

“Vertex delivered a strong start to 2025 with notable execution across the business as we grow and diversify the revenue base, progress multiple launches and advance the R&D pipeline. We continued to expand our leadership in CF and build global momentum for CASGEVY, and we launched JOURNAVX in moderate-to-severe acute pain.”

Vertex Pharmaceuticals CEO, on the earnings call

Forward Guidance & Outlook

Vertex raised the low end of its full-year 2025 total revenue guidance by $100 million to a new range of $11.85 billion to $12.0 billion (from $11.75 billion to $12.0 billion previously). This guidance assumes continued growth in CF including the ALYFTREK launch, continued uptake of CASGEVY in multiple regions, and early contributions from the JOURNAVX launch. Combined GAAP R&D, AIPR&D and SG&A expenses guidance of $5.55 to $5.7 billion and combined non-GAAP R&D, AIPR&D and SG&A expenses guidance of $4.9 to $5.0 billion were reiterated. Non-GAAP effective tax rate guidance of 20.5% to 21.5% was also unchanged. The guidance includes an immaterial cost impact from tariffs based on currently known rates and regulations. Key pipeline milestones include potential povetacicept IgAN filing for accelerated approval in H1 2026, zimislecel T1D marketing applications in 2026, and inaxaplin AMKD interim analysis cohort enrollment completion in H2 2025.

VRTX YoY Financials

Q1 2025 vs Q1 2024 · SEC filings Q1 2024 Q1 2025
$0$800.0M$1.6B$2.4B$2.7B$2.8BRevenue$2.3B$2.4BGross Profit$1.1B$630.1MOperating Income$1.1B$646.3MNet Income
$0$800.0M$1.6B$2.4BRevenueGross ProfitOperating IncomeNet Income

VRTX Revenue by Segment

TRIKAFTA/KAFTRIO$2.5B
ALYFTREK$53.9M
Other product revenues$170.8M
CASGEVY
JOURNAVX

VRTX Revenue by Geography

United States$1.7B+9.0%
Rest of World$1.1B−5.0%

Figures from SEC filings and company reports. Not investment advice.