VRTX Vertex Pharmaceuticals Incorporated - Common Stock

NASDAQ · Biotechnology · View on SEC EDGAR ↗
$436.65
Price · May 20, 2026
Fundamentals as of May 5, 2026

VRTX Stock Snapshot Price, market cap, P/E, EPS, ROE, debt/equity, 52-week range

Price
$436.65
Market Cap
$115.15B
P/E (TTM)
29.6
EPS (TTM)
$15.32
Revenue (TTM)
$12.00B
Div Yield
ROE
22.1%
Debt/Equity
52W Range
$363 – $508

VRTX Stock Price Chart Daily OHLCV with technical indicators — pan, zoom, and customize your view

10-Year Performance Revenue, net income, margins and EPS trends

Revenue & Net Income $12.00B
8-point trend, +293.8%
2018-12-31 2025-12-31
EPS $15.32
8-point trend, +89.4%
2018-12-31 2025-12-31
Free Cash Flow $3.19B
8-point trend, +171.9%
2018-12-31 2025-12-31
Margins 32.9%

Valuation P/E, P/S, P/B, EV/EBITDA ratios — is the stock expensive or cheap?

Metric
5Y trend
VRTX
Peer Median
P/E (TTM)
5-point trend, +21.4%
29.6
18.2
P/S (TTM)
5-point trend, +30.0%
9.6
8.3
P/B
5-point trend, +11.5%
6.2
6.1
Price / FCF
5-point trend, +55.4%
36.1

Profitability Gross, operating and net margins; ROE, ROA, ROIC

Metric
5Y trend
VRTX
Peer Median
Operating Margin
5-point trend, -5.3%
34.8%
Net Profit Margin
5-point trend, +6.5%
32.9%
8.7%
ROA
5-point trend, -11.8%
16.4%
3.3%
ROE
5-point trend, -7.5%
22.1%
12.3%
ROIC
5-point trend, -19.4%
19.0%

Financial Health Debt, liquidity, solvency — balance sheet strength

Metric
5Y trend
VRTX
Peer Median
Current Ratio
5-point trend, -35.0%
2.9
3.6
Quick Ratio
5-point trend, -44.5%
2.2

Growth Revenue, EPS and net income growth: YoY, 3Y CAGR, 5Y CAGR

Metric
5Y trend
VRTX
Peer Median
Revenue YoY
5-point trend, +58.4%
8.9%
Revenue CAGR 3Y
5-point trend, +58.4%
10.3%
Revenue CAGR 5Y
5-point trend, +58.4%
14.1%
EPS YoY
5-point trend, +70.0%
8.3%
Net Income YoY
5-point trend, +68.8%
9.0%

Per Share Metrics EPS, book value per share, cash flow per share, dividend per share

Metric
5Y trend
VRTX
Peer Median
EPS (Diluted)
5-point trend, +70.0%
$15.32

Capital Efficiency Asset turnover, inventory turnover, receivables turnover

Metric
5Y trend
VRTX
Peer Median

VRTX Analyst Consensus Bullish and bearish analyst opinions, 12-month price target, upside

BUY 39 analysts
  • Strong Buy 13 33.3%
  • Buy 19 48.7%
  • Hold 6 15.4%
  • Sell 0 0.0%
  • Strong Sell 1 2.6%

12-Month Price Target

28 analysts · 2026-05-20
Median target $556.50 +27.4%
Mean target $549.29 +25.8%

Earnings History EPS actual vs estimate, surprise %, beat rate, next earnings date

Avg Surprise
-0.02%
Period EPS Actual EPS Est Surprise
March 31, 2026 $4.47 $4.40 0.07%
Dec. 31, 2025 $5.03 $5.17 -0.14%
Sept. 30, 2025 $4.80 $4.65 0.15%
June 30, 2025 $4.52 $4.37 0.15%
March 31, 2025 $4.06 $4.37 -0.31%

Peer Comparison Key metrics vs sector peers

Ticker Market Cap P/E Rev YoY Net Margin ROE Gross Margin
VRTX $115.15B 29.6 8.9% 32.9% 22.1%
ABBV 96.8 8.6% 6.9% 15367.3%
AMGN $176.35B 23.0 10.0% 21.0% 95.9%
GILD $152.32B 18.1 2.4% 28.9% 40.5%
REGN $106.21B 18.6 0.99% 31.4% 14.7%
ALNY $52.64B 170.7 65.2% 8.5% 60.4%
RVMD
NTRA $32.00B -150.7 35.9% -9.0% -14.1%

Full Fundamentals All metrics by year — income statement, balance sheet, cash flow

Income Statement 16
Annual Income Statement data for VRTX
Metric Trend 202520242023202220212020201920182018201720162015
Revenue 11-point trend, +1062.5% $12.00B $11.02B $9.87B $8.93B $7.57B $6.21B $4.16B $3.05B · $2.49B $1.70B $1.03B
Cost of Revenue 11-point trend, +1309.5% $1.65B $1.53B $1.26B $1.08B $904M $736M $548M $410M · $275M $210M $117M
R&D Expense 7-point trend, +206.4% · · · · $3.05B $1.83B $1.75B $1.42B · $1.32B $1.05B $996M
SG&A Expense 11-point trend, +365.5% $1.75B $1.46B $1.14B $945M $840M $770M $658M $558M · $496M $433M $377M
Operating Expenses 11-point trend, +422.1% $7.83B $11.25B $6.04B $4.62B $4.79B $3.35B $2.97B $2.41B · $2.37B $1.69B $1.50B
Operating Income 11-point trend, +993.9% $4.17B $-233M $3.83B $4.31B $2.78B $2.86B $1.20B $635M · $123M $10M $-467M
Interest Expense 4-point trend, -16.1% · · · · · $58M $59M $72M · $69M · ·
Other Non-op 11-point trend, -14.7% $-8M $-86M $-23M $-165M $5M $297M $192M $-790.0K · $-81M $4M $-7M
Pretax Income 11-point trend, +932.4% $4.64B $248M $4.38B $4.23B $2.73B $3.12B $1.39B $600M · $-16M $-67M $-558M
Income Tax 11-point trend, +2171.2% $690M $784M $760M $910M $388M $405M $218M $-1.49B · $-107M $17M $30M
Net Income 11-point trend, +810.6% $3.95B $-536M $3.62B $3.32B $2.34B $2.71B $1.18B $2.10B · $263M $-112M $-556M
EPS (Basic) 11-point trend, +769.3% $15.46 $-2.08 $14.05 $12.97 $9.09 $10.44 $4.58 $8.24 · $1.06 $-0.46 $-2.31
EPS (Diluted) 11-point trend, +763.2% $15.32 $-2.08 $13.89 $12.82 $9.01 $10.29 $4.51 $8.09 · $1.04 $-0.46 $-2.31
Shares (Basic) 11-point trend, +6.0% 255,700,000 257,900,000 257,700,000 256,100,000 257,700,000 259,800,000 256,700,000 254,292,000 · 248,858,000 244,685,000 241,312,000
Shares (Diluted) 11-point trend, +6.9% 258,000,000 257,900,000 260,500,000 259,100,000 259,900,000 263,400,000 260,700,000 259,185,000 · 253,225,000 244,685,000 241,312,000
EBITDA 11-point trend, +1183.5% $4.38B $-26M $4.01B $4.46B $2.91B $2.97B $1.30B $708M · $185M $71M $-405M
Balance Sheet 27
Annual Balance Sheet data for VRTX
Metric Trend 202520242023202220212020201920182018201720162015
Cash & Equivalents 11-point trend, +611.4% $5.08B $4.57B $10.37B $10.50B $6.79B $5.99B $3.11B $2.65B · $1.67B $1.18B $715M
Short-term Investments 11-point trend, +364.9% $1.52B $1.55B $849M $274M $730M $671M $699M $518M · $423M $251M $328M
Receivables 12-point trend, +1080.9% $2.05B $1.61B $1.56B $1.44B $1.14B $885M $634M $410M $311M $281M $200M $174M
Inventory 12-point trend, +2848.6% $1.69B $1.21B $739M $461M $353M $281M $168M $124M $112M $112M $78M $57M
Prepaid Expense 12-point trend, +1458.9% $853M $666M $624M $554M $546M $308M $214M $141M $150M $167M $71M $55M
Other Current Assets 10-point trend, +764.0% $111M $76M $84M $74M $59M $80M · $62M · $76M $34M $13M
Current Assets 11-point trend, +696.0% $11.20B $9.60B $14.14B $13.23B $9.56B $8.13B $4.82B $3.84B · $2.65B $1.83B $1.41B
PP&E (Net) 5-point trend, +6.8% · · · · · · $745M $812M · $789M $698M $698M
PP&E (Gross) 4-point trend, +22.2% · · · · · · · $1.26B · $1.22B $1.09B $1.03B
Accum. Depreciation 4-point trend, +34.3% · · · · · · · $451M · $432M $388M $336M
Goodwill 11-point trend, +2059.4% $1.09B $1.09B $1.09B $1.09B $1.00B $1.00B $1.00B $50M · $50M $50M $50M
Intangibles 8-point trend, +424200000.00 $424M $826M $840M $604M $400M $400M $400M $0 · · · ·
Other Non-current Assets 11-point trend, +17790.6% $1.24B $999M $895M $410M $111M $49M $69M $41M · $27M $12M $7M
Total Assets 12-point trend, +926.3% $25.64B $22.53B $22.73B $18.15B $13.43B $11.75B $8.32B $6.25B $3.56B $3.55B $2.90B $2.50B
Accounts Payable 11-point trend, +516.1% $462M $413M $365M $304M $195M $155M $88M $111M · $74M $61M $75M
Accrued Liabilities 12-point trend, +871.6% $2.97B $2.79B $2.66B $2.13B $1.68B $1.41B $1.12B $959M $453M $444M $315M $306M
Current Liabilities 11-point trend, +662.8% $3.86B $3.56B $3.55B $2.74B $2.14B $1.88B $1.33B $1.12B · $807M $793M $506M
Capital Leases 11-point trend, +4201.9% $1.85B $1.54B $349M $380M $377M $350M $84M $20M · $20M $35M $43M
Deferred Tax 4-point trend, -100.0% · · · · · · · $0 · $6M $134M $110M
Other Non-current Liabilities 11-point trend, +3894.9% $1.27B $1.01B $878M $686M $303M $108M $99M $109M · $28M $29M $32M
Total Liabilities 11-point trend, +396.6% $6.98B $6.12B $5.15B $4.24B $3.33B $3.06B $2.23B $1.81B · $1.50B $1.56B $1.40B
Common Stock 11-point trend, +3.0% $2M $3M $3M $3M $2M $3M $3M $3M · $3M $2M $2M
Retained Earnings 12-point trend, +357.7% $13.56B $9.61B $10.14B $6.52B $3.20B $859M $-1.85B $-2.99B $-5.11B $-5.12B $-5.37B $-5.26B
AOCI 12-point trend, -971.7% $-16M $128M $-14M $800.0K $16M $-68M $-2M $659.0K $-11M $-12M $21M $2M
Stockholders' Equity 11-point trend, +1885.8% $18.67B $16.41B $17.58B $13.91B $10.10B $8.69B $6.09B $4.44B · $2.04B $1.34B $940M
Liabilities + Equity 12-point trend, +926.3% $25.64B $22.53B $22.73B $18.15B $13.43B $11.75B $8.32B $6.25B $3.56B $3.55B $2.90B $2.50B
Shares Outstanding 11-point trend, +3.1% 253,991,224 256,900,000 257,700,000 257,000,000 254,500,000 259,900,000 259,000,000 255,172,000 · 253,253,362 248,300,517 246,306,818
Cash Flow 16
Annual Cash Flow data for VRTX
Metric Trend 202520242023202220212020201920182018201720162015
D&A 11-point trend, +236.5% $210M $207M $181M $148M $126M $110M $107M $72M · $61M $61M $62M
Stock-based Comp 11-point trend, +196.9% $686M $698M $581M $491M $441M $430M $360M $325M · $293M $241M $231M
Deferred Tax 11-point trend, -171509.4% $-511M $-349M $-536M $-276M $-155M $277M $167M $-1.51B · $-127M $17M $298.0K
Amort. of Intangibles 3-point trend, +1088.2% $20M $20M $2M · · · · · · · · ·
Restructuring 6-point trend, -100.0% · · · · · $0 $0 $-184.0K · $14M $1M $2M
Other Non-cash 11-point trend, -587.7% $-707M $-514M $-308M $444M $-111M $-274M $-242M $288M · $357M $32M $-103M
Operating Cash Flow 11-point trend, +1093.7% $3.63B $-493M $3.54B $4.13B $2.64B $3.25B $1.57B $1.27B · $845M $236M $-365M
CapEx 11-point trend, +866.0% $438M $298M $200M $205M $235M $260M $75M $95M · $99M $57M $45M
Investing Cash Flow 11-point trend, -451.6% $-945M $-3.77B $-3.14B $-321M $-341M $99M $-1.24B $-202M · $-483M $51M $269M
Stock Repurchased 10-point trend, +2017400000.00 $2.02B $1.18B $428M $0 $1.43B $539M $186M $350M · $0 $0 ·
Net Stock Activity 8-point trend, -476.3% $-2.02B $-1.18B $-428M $0 $-1.43B $-539M $-192M $-350M · · · ·
Financing Cash Flow 11-point trend, -1297.0% $-2.26B $-1.49B $-562M $-68M $-1.48B $-505M $127M $-71M · $68M $133M $189M
Net Change in Cash 11-point trend, +476.0% $516M $-5.80B $-140M $3.71B $811M $2.87B $462M $991M · $436M $416M $90M
Taxes Paid 11-point trend, +86649.7% $1.57B $1.08B $1.68B $1.06B $476M $192M $25M $12M · $6M $-3M $2M
Free Cash Flow 11-point trend, +877.6% $3.19B $-790M $3.34B $3.93B $2.41B $2.99B $1.49B $1.17B · $746M $180M $-411M
Levered FCF 2-point trend, +103.7% · · · · · $2.94B $1.44B · · · · ·
Profitability 7
Annual Profitability data for VRTX
Metric Trend 202520242023202220212020201920182018201720162015
Operating Margin 11-point trend, +176.9% 34.8% -2.1% 38.8% 48.2% 36.7% 46.0% 28.8% 20.8% · 5.0% 0.58% -45.2%
Net Margin 11-point trend, +161.1% 32.9% -4.9% 36.7% 37.2% 30.9% 43.7% 28.3% 68.8% · 10.6% -6.6% -53.9%
Pretax Margin 11-point trend, +171.6% 38.7% 2.2% 44.4% 47.4% 36.0% 50.2% 33.5% 19.7% · -0.63% -4.0% -54.0%
EBITDA Margin 11-point trend, +193.2% 36.5% -0.23% 40.7% 49.9% 38.4% 47.8% 31.3% 23.2% · 7.4% 4.2% -39.2%
ROA 11-point trend, +171.3% 16.4% -2.4% 17.7% 21.0% 18.6% 27.0% 16.1% 42.8% · 8.2% -4.2% -23.0%
ROE 11-point trend, +139.9% 22.1% -3.3% 21.2% 24.7% 23.9% 32.2% 20.8% 56.9% · 15.7% -10.7% -55.2%
ROIC 11-point trend, +136.3% 19.0% 3.1% 18.0% 24.3% 23.6% 28.6% 16.6% 49.8% · -35.5% 1.1% -52.4%
Liquidity & Solvency 3
Annual Liquidity & Solvency data for VRTX
Metric Trend 202520242023202220212020201920182018201720162015
Current Ratio 11-point trend, +4.4% 2.9 2.7 4.0 4.8 4.5 4.3 3.6 3.4 · 3.3 2.3 2.8
Quick Ratio 11-point trend, -6.9% 2.2 2.2 3.6 4.5 4.0 4.0 3.3 3.2 · 2.9 2.1 2.4
Interest Coverage 2-point trend, +139.9% · · · · · 49.1 20.5 · · · · ·
Efficiency 3
Annual Efficiency data for VRTX
Metric Trend 202520242023202220212020201920182018201720162015
Asset Turnover 11-point trend, +16.6% 0.5 0.5 0.5 0.6 0.6 0.6 0.6 0.6 · 0.8 0.6 0.4
Inventory Turnover 11-point trend, -57.1% 1.1 1.6 2.1 2.7 2.9 3.3 3.8 3.5 · 2.9 3.1 2.7
Receivables Turnover 11-point trend, -19.5% 6.6 6.9 6.6 6.9 7.5 8.2 8.0 8.5 · 10.3 9.1 8.1
Per Share 5
Annual Per Share data for VRTX
Metric Trend 202520242023202220212020201920182018201720162015
Book Value / Share 11-point trend, +1825.7% $73.49 $63.87 $68.22 $54.13 $39.69 $33.42 $23.50 $17.38 · $8.01 $4.66 $3.82
Revenue / Share 11-point trend, +987.3% $46.52 $42.73 $37.89 $34.47 $29.14 $23.56 $15.97 $11.76 · $9.83 $6.96 $4.28
Cash Flow / Share 11-point trend, +1029.4% $14.08 $-1.91 $13.58 $15.94 $10.17 $12.35 $6.02 $4.90 · $3.34 $0.96 $-1.51
Cash / Share 11-point trend, +589.9% $20.02 $17.78 $40.24 $40.87 $26.70 $23.04 $12.01 $10.39 · $6.58 $4.77 $2.90
EPS (TTM) 11-point trend, +763.2% $15.32 $-2.08 $13.89 $12.82 $9.01 $10.29 $4.51 $8.09 · $1.04 $-0.46 $-2.31
Growth Rates 9
Annual Growth Rates data for VRTX
Metric Trend 202520242023202220212020201920182018201720162015
Revenue YoY 5-point trend, -59.7% 8.9% 11.7% 10.5% 17.9% 22.1% · · · · · · ·
Revenue CAGR 3Y 3-point trend, -38.1% 10.3% 13.3% 16.7% · · · · · · · · ·
Revenue CAGR 5Y 14.1% · · · · · · · · · · ·
EPS YoY 3-point trend, +167.1% · · 8.3% 42.3% -12.4% · · · · · · ·
EPS CAGR 3Y 2-point trend, -41.8% 6.1% · 10.5% · · · · · · · · ·
EPS CAGR 5Y 8.3% · · · · · · · · · · ·
Net Income YoY 3-point trend, +165.7% · · 9.0% 41.8% -13.6% · · · · · · ·
Net Income CAGR 3Y 2-point trend, -40.9% 6.0% · 10.1% · · · · · · · · ·
Net Income CAGR 5Y 7.8% · · · · · · · · · · ·
Valuation (TTM) 10
Annual Valuation (TTM) data for VRTX
Metric Trend 202520242023202220212020201920182018201720162015
Revenue TTM 11-point trend, +1062.5% $12.00B $11.02B $9.87B $8.93B $7.57B $6.21B $4.16B $3.05B · $2.49B $1.70B $1.03B
Net Income TTM 11-point trend, +810.6% $3.95B $-536M $3.62B $3.32B $2.34B $2.71B $1.18B $2.10B · $263M $-112M $-556M
Market Cap 11-point trend, +271.5% $115.15B $103.47B $104.85B $74.22B $55.88B $61.42B $56.71B $42.28B · $37.95B $18.29B $30.99B
P/E 11-point trend, +154.3% 29.6 -193.6 29.3 22.5 24.4 23.0 48.5 20.5 · 144.1 -160.2 -54.5
P/S 11-point trend, -68.0% 9.6 9.4 10.6 8.3 7.4 9.9 13.6 13.9 · 15.3 10.7 30.0
P/B 11-point trend, -81.3% 6.2 6.3 6.0 5.3 5.5 7.1 9.3 9.5 · 18.7 15.8 33.0
P / Tangible Book 6-point trend, -20.4% 6.7 7.1 6.7 6.1 6.4 8.4 · · · · · ·
P / Cash Flow 11-point trend, +137.4% 31.7 -210.0 29.6 18.0 21.1 18.9 36.1 33.3 · 44.9 77.5 -84.8
P / FCF 11-point trend, +147.8% 36.1 -130.9 31.4 18.9 23.2 20.5 38.0 36.0 · 50.9 101.9 -75.5
Earnings Yield 11-point trend, +283.7% 3.4% -0.52% 3.4% 4.4% 4.1% 4.3% 2.1% 4.9% · 0.69% -0.62% -1.8%

Financial Statements Income statement, balance sheet, cash flow — annual, last 5 years

Income Statement
2025-12-312024-12-312023-12-312022-12-312021-12-31
Revenue $12.00B$11.02B$9.87B$8.93B$7.57B
Operating Margin % 34.8%-2.1%38.8%48.2%36.7%
Net Income $3.95B$-536M$3.62B$3.32B$2.34B
Diluted EPS $15.32$-2.08$13.89$12.82$9.01
Balance Sheet
2025-12-312024-12-312023-12-312022-12-312021-12-31
Current Ratio 2.92.74.04.84.5
Quick Ratio 2.22.23.64.54.0
Cash Flow
2025-12-312024-12-312023-12-312022-12-312021-12-31
Free Cash Flow $3.19B$-790M$3.34B$3.93B$2.41B

VRTX AI Analyst Panel — Bullish and Bearish Views 2026Q2 debate: Claude, Grok, Gemini, ChatGPT on the stock's prospects

Round 1 — Opening Takes

Grok NEUTRAL 0.65
↑ Bullish

I see Vertex's bull case hinging on its fortress-like profitability from cystic fibrosis dominance, fueling R&D without debt drag as new therapies like pain drugs gain traction. Gross margin holds at 86%, proving they command premium pricing peers can't match in specialty pharma. Net margin sits at 31%, generating ample cash to fund the pipeline Morgan Stanley just pegged with a $612 target—30% above today's $469 close. Zero debt-to-equity means no interest burden, pure resilience in biotech volatility.

↓ Bearish

My strongest bear case is Vertex's stagnant earnings growth trapping it at a premium valuation that crumbles if pipeline bets falter amid patent cliffs. EPS TTM flat at $14.23 offers no acceleration to justify the ride. ROE of 21.8% lags peers like AMGN's 96%, signaling weaker capital efficiency despite the hype. P/E at 31 tops GILD's 19, baking in perfection with recent May plunge from $501 to $425 exposing sentiment fragility.

Claude NEUTRAL 0.68
↑ Bullish

Vertex is a rare pharma compounder with pricing power and fortress balance sheet. The 86% gross margin and 31% net margin tell you this is a franchise business, not a commodity play — drugs that patients need and doctors prescribe. Zero debt and a 2.36x current ratio mean management can fund R&D or M&A without dilution. Morgan Stanley's $612 target (April 2026) implies 30% upside from current levels, and that call comes after the stock already ran from $424 in May to $469 today. The market is rewarding execution, not pricing in speculation.

↓ Bearish

The valuation has already priced in years of flawless execution. At 31.3x trailing earnings and 9.8x sales, Vertex trades at a 25% premium to Amgen and a 67% premium to Gilead despite slower ROE growth. The stock has been volatile — down 15% in one week (May 9 close $425 to May 16 open $425, then recovery), signaling institutional uncertainty about pipeline or competitive threats. If a single late-stage trial fails or a competitor launches a better-in-class drug, the multiple compresses fast. Biotech multiples are mean-reverting, and this one is stretched.

Gemini NEUTRAL 0.75
↑ Bullish

Vertex is effectively a fortress of profitability that has successfully eliminated its balance sheet risk. The company currently carries a Debt/Equity ratio of 0.0, which means they are operating entirely on their own cash flow rather than relying on creditors. This financial independence is bolstered by a massive 86.28% gross margin. This indicates that for every dollar of medicine they sell, they keep over 86 cents before operating costs, showcasing incredible pricing power in the specialty pharma space.

↓ Bearish

The market has already priced in a premium for Vertex's stability, leaving little room for error if growth slows. Investors are currently paying a P/E ratio of 31.29. This means you are paying over 31 dollars for every dollar of annual earnings, which is significantly higher than peers like Gilead. Furthermore, at a P/S ratio of 9.81, the stock is trading at a high multiple relative to its actual sales. This suggests the market is betting on aggressive future expansion that the current financials may struggle to justify.

Chatgpt NEUTRAL 0.65
↑ Bullish

I think Vertex's strongest bullish case is that it combines standout profitability with a debt-free balance sheet, creating room to fund a robust pipeline. ROE TTM 21.81%. That means Vertex converts equity into profit at about 22 cents on the dollar, signaling efficient capital use. Gross margin TTM 86.28%. That cushion shows pricing power and scalable operations, giving Vertex resilience if costs rise. Debt/equity 0.0. With no net debt, the company has optionality to fund late-stage trials or weather downturns. If the pipeline delivers, this setup could compound earnings and cash flow into 2026Q2.

↓ Bearish

I think Vertex's valuation is the main headwind; the stock is priced for perfection, leaving little cushion for any hiccup in the pipeline. P/E TTM 31.30. That premium implies the market expects sustained growth; any slowdown can trigger multiple compression. P/S TTM 9.81. A high sales multiple means investors rely on rapid revenue gains; if growth slows, the multiple contracts. AMGN P/E 25.16. Vertex trades well above this peer, which raises downside risk if catalysts lag.

Round 2 — Responses & Rebuttals

Grok

ChatGPT, Vertex's 21.8% ROE isn't an efficiency standout as you portray it because it lags peers like Amgen's 96.2%, showing Vertex turns far less equity into profit despite zero debt removing any leverage excuse. That peer gap underscores why the 31x P/E demands faster earnings growth to hold up into 2026Q2—stagnant EPS at $14.23 leaves no margin for error if pipeline delays hit.

Claude

I need to push back on ChatGPT's ROE math here. ChatGPT said a 21.81% ROE means Vertex converts equity into profit at 'about 22 cents on the dollar'—that's backwards. ROE of 21.81% means for every dollar of shareholder equity on the balance sheet, Vertex generates 21.8 cents of annual profit. That's actually strong for pharma, not weak. The real issue ChatGPT missed is that Vertex's ROE is half of Amgen's 96%, which Grok flagged correctly. If Vertex is deploying capital half as efficiently as its peer despite the fortress balance sheet and premium margins, that's the real efficiency question—not whether 22% ROE is acceptable in isolation. The valuation premium only holds if Vertex can close that gap.

Gemini

Grok, your point about the ROE comparison to Amgen is misleading because you are ignoring the massive difference in capital structure. Amgen’s 96% ROE is heavily inflated by high leverage, whereas Vertex’s 21.81% ROE is generated with zero debt. That metric means Vertex is creating significant shareholder value using only its own operational cash rather than borrowed money. While I agree the valuation is stretched, comparing a debt-free company to a highly leveraged peer makes the capital efficiency look worse than it actually is for the business.

Chatgpt

Claude, your point about Vertex's fortress balance sheet is strong, but the stock's valuation still matters. P/E TTM is 31.3, which means investors are paying a premium for durable earnings rather than cheap growth. That premium leaves less room for error if the pipeline slows or a competitor gains traction, since the multiple can compress quickly in biotech when sentiment shifts.

Round 3 — Final Rebuttals

G
Grok

Gemini, your leverage defense of Vertex's ROE doesn't fully hold because the company's own deleveraging proves operations aren't closing the peer gap. Debt/equity stood at 0.68 in 2025Q3. That modest leverage generated 22.14% ROE, turning each equity dollar into solid but unexceptional profit. Now debt-free, ROE is 21.81%. No efficiency gain emerged without the debt tailwind—still half Amgen's output, so the comparison stands and pressures the 31x P/E for pipeline proof.

C
Claude

I want to push back on something nobody has touched yet: Vertex's revenue concentration risk. Cystic fibrosis drugs—Kalydeco, Orkambi, Trikafta—likely represent 70% or more of total revenue, and that franchise is mature. The company is betting pipeline expansion into pain, obesity, and other indications will offset CF plateau, but we haven't seen material revenue traction from those programs yet. Morgan Stanley's $612 target assumes successful launches, but if those trials slip or underperform, Vertex faces a revenue cliff that no amount of margin strength absorbs. That's the real tail risk hiding behind the 31x multiple—not just multiple compression, but actual earnings compression if the new drugs don't land. Gemini and Grok, how much of that $612 target depends on pipeline success versus CF maintenance?

G
Gemini

Grok, I have to challenge your assertion that Vertex’s stagnant EPS at $14.23 is the primary risk, because it ignores the massive, upcoming shift in their revenue mix. Vertex is currently transitioning from a cystic fibrosis monopoly to a broader specialty platform, specifically with the launch of their non-opioid pain treatment, suzetrigine. This drug targets a massive, underserved market that could fundamentally alter their growth trajectory by 2026Q2. While the current P/E of 31.3 is high, that multiple represents the market betting on this pipeline expansion, not just the current, stable earnings base.

C
Chatgpt

I’m widening the frame, Claude, Grok, Gemini, to factor policy and competitive dynamics into Vertex’s price action. P/E TTM around 31x. That premium implies investors expect durable earnings, but it can compress if policy shifts like CMS price negotiations bite Vertex's US pricing and if a late-stage competitor data readout in 2026 confirms stronger pipeline risk, potentially capping upside into 2026Q2.

Price Forecasts

Model 3M Target 6M Target Reasoning
G Grok 3M Target $510.00 6M Target $540.00 Reasoning I think Vertex consolidates upward modestly from $494 as CF franchise cash flows defend the premium valuation into 2026Q2, but lacks acceleration without pipeline wins. The key catalyst is suzetrigine Phase 3 topline data expected by Q4 2025, which could unlock non-opioid pain revenue and bridge stagnant EPS growth. The main risk is a trial miss exposing CF concentration, compressing multiples fast. Holding 31x P/E at my 6-month $540 target means the market still demands proof of 15%+ earnings expansion to sustain the peer premium over GILD's 19x.
C Claude 3M Target $485.00 6M Target $520.00 Reasoning Vertex's bull case hinges on pipeline expansion offsetting cystic fibrosis plateau—but that expansion hasn't yet materialized in revenue. The stock trades at 31.3x trailing earnings, a premium justified only if suzetrigine and pain programs deliver material revenue by late 2026. My 3-month target of $485 reflects sideways consolidation as the market waits for Q2 2026 earnings and early suzetrigine traction signals. My 6-month target of $520 assumes Morgan Stanley's $612 thesis holds partially true—one successful late-stage readout or launch guidance revision catalyzes multiple expansion. The key risk: if Q2 earnings disappoint or pipeline delays surface, the 31x multiple compresses to 26–27x peer median, driving the stock to $420–$440. At current levels, risk-reward favors patient holders, not new longs.
G Gemini 3M Target $525.00 6M Target $575.00 Reasoning My thesis is that Vertex will transition from a cystic fibrosis niche player to a broader specialty platform, driving a valuation re-rating as the market gains confidence in their non-opioid pipeline. The primary catalyst for my 6-month target is the commercial launch and initial script data for suzetrigine, which will prove the company can scale beyond its core franchise. Conversely, a failure to secure favorable reimbursement terms for this new drug would break my thesis and force a multiple contraction. We are currently paying a P/E ratio of 31.3. This means investors are paying over 31 dollars for every dollar of annual earnings, betting that future pipeline breakthroughs will justify this premium.
C Chatgpt 3M Target $612.00 6M Target $640.00 Reasoning My thesis is Vertex can trend higher if the pipeline proves durable and the balance sheet remains a fortress. Catalyst: a positive phase 3 readout for suzetrigine or stronger Q2 guidance would push the stock. Risk: a late-stage trial disappointment or slower CF pipeline expansion could trigger multiple compression. As of now, Vertex trades around 493.84; my 3-month target is 612.

Latest News Recent headlines mentioning this company

Trading Signals Recent buy/sell signals with entry price and risk/reward ratio

My Metrics Your personal watchlist — selected rows from Full Fundamentals

📊

Pick the metrics that matter to you — click the ➕ next to any row in Full Fundamentals above.

Your selection is saved and follows you across all tickers.