Vertex Pharmaceuticals' (VRTX -2.10%) stable of cystic fibrosis (CF) therapies is one of the biggest monopolies among biotech companies. The company was founded in 1989 and, after dabbling in infectious diseases, struck gold when it switched to genetic medicines.
Prior to Vertex's innovations, CF care was focused on clearing lung mucus, preventing infections, and managing symptoms. Vertex pioneered CFTR modulators, small-molecule drugs that target the underlying genetic defects in the CFTR protein that can cause cystic fibrosis.
Its first CF drug was CFTR modulator Kalydeco, which received Food and Drug Administration (FDA) approval in 2012. The company now has four CF therapies, led by the Trikafta/Kaftrio combination, which brought in $4.8 billion in sales through the first six months, and Alyftrek, which brought in $998 million through that period.
Of its $3.33 billion in second-quarter revenue, $3.2 billion came from CF therapies, about 96%. That ratio should soon change, however.
Image source: Getty Images
A breakout is already in progress
Vertex has said it is expecting $500 million or more in 2026 sales from non-opioid pain reliever Journavx and Casgevy, a gene-editing therapy developed with CRISPR Therapeutics (CRSP -1.20%), a potentially curative one-time treatment for severe sickle cell disease and another genetic blood disease, beta-thalassemia.
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Vertex also just released positive Phase 2b trial data on APOL1-Mediated Kidney Disease (AKMD) therapy inaxaplin. The company found that the oral therapy reduced protein leaking in urine, a leading sign of kidney damage, with no serious side effects. The patient pool for AKMD is unknown but is considered to be in the millions. The therapy is also being tested in a separate trial on patients with diabetes-related kidney disease.
Because no FDA-approved therapies target the genetic cause of AMKD, inaxaplin is positioned to capture first-in-class, first-mover market share. Analysts see the therapy as having the potential for at least $1 billion in annual sales.
The results in AMKD patients with moderate proteinuria may allow for a broader label for inaxaplin than previously expected. Vertex has already tested it in patients with focal segmental glomerulosclerosis (FSGS), a rare, severe, and destructive form of kidney disease where scar tissue forms on the glomeruli, the tiny filtering units of the kidneys. In the study, patients experienced a 43.4% reduction in urine albumin-to-creatinine ratio (UACR) after 13 weeks.
Its focus on other rare diseases could soon pay off
Looking beyond its recent trial with inaxaplin, Vertex has a large pipeline with several other promising late-stage candidates.
Povetacicept, acquired through its $4.9 billion purchase of Alpine Immune Sciences in 2024, positions Vertex in autoimmune conditions such as IgA nephropathy and generalized myasthenia gravis. It is an affinity-optimized Fc fusion protein. The drug has a Prescription Drug User Fee Act (PDUFA) date of Nov. 30, so it could be approved later this year or early next year.
The company is also testing zimloceucel, a stem-cell-derived therapy to treat type 1 diabetes. Its goal is to restore endogenous insulin production and potentially cure type 1 diabetes without requiring lifelong immunosuppression.
Its financial strength supports its pipeline expansion
The company's second-quarter revenue of $3.33 billion represents a 12% year-over-year rise. Vertex also raised its full-year revenue target to $13.1 billion to $13.2 billion, up from earlier guidance of $12.95 billion to $13.1 billion.
Earnings per share (EPS) were $4.31 in the quarter, up 8% over the same period a year ago. The company has solid cash flows, allowing it to close its largest acquisition to date on Sept. 1, a $10 billion purchase of Crinetics Pharmaceuticals, known for its endocrine disease therapies.
Crinetics' lead therapy is Palsonify, the only oral therapy approved for adults with acromegaly, a rare hormonal condition that causes some bones, organs, and other tissues to grow larger.
The purchase of Crinetics also brings along another promising late-stage therapy. Atumelnant is a once-daily pill to treat congenital adrenal hyperplasia, a rare endocrine condition that adversely affects the adrenal glands, which produce hormones that help regulate metabolism, the immune system, blood pressure, and other key functions. Atumelnant is also being tested to treat Cushing's syndrome.
Vertex is ready for the next step
The company's shares are up more than 15% so far this year, but considering its growth potential, that doesn't appear to be just from hype. Vertex has increased annual revenue by more than 600% over the past decade and has used profits from its CF franchise to broaden its base into other rare-disease areas.
The Crinetics purchase is expected to take years to pay off, but Vertex is sticking to a proven game plan by purchasing therapies that target severe diseases in which the underlying biology is well understood, patient populations are concentrated, and existing treatment options are severely lacking.
This exact strategy is what turned its CF business into a massive financial success. Beyond aligning with its core philosophy, the acquisition provides Vertex with new revenue streams beyond its CF treatments.
Vertex’s Crinetics Deal Balances Growth with Integration RiskVertex Pharmaceuticals NASDAQ: VRTX outlined updates across its kidney disease pipeline at the American Society of Nephrology Kidney Week 2026, highlighting data for povetacicept in IgA nephropathy and inaxaplin in APOL1-mediated kidney disease, or AMKD.
Chief Executive Officer and President Reshma Kewalramani said the company has four renal diseases in mid- or late-stage development: AMKD, IgA nephropathy, membranous nephropathy and autosomal dominant polycystic kidney disease, or ADPKD. She said Vertex views the combined opportunity across those diseases as potentially comparable to a $10 billion franchise, though she characterized that as her view of the market opportunity.
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CRISPR Therapeutics Gains After Earnings as Pipeline Hope GrowsKewalramani said povetacicept, acquired through Vertex’s Alpine acquisition, is being developed for B-cell-driven diseases including IgA nephropathy, membranous nephropathy and myasthenia gravis. She added that the FDA action date for povetacicept in IgA nephropathy is Nov. 30.
Povetacicept Phase III Interim Results
Richard Lafayette, professor of medicine at Stanford University, reviewed interim results from RAINIER, a global Phase III randomized, double-blind, placebo-controlled study of povetacicept in adults with biopsy-proven IgA nephropathy.
How Royalty Pharma Prints Cash Without Biotech's Biggest RisksPatients entered the study with urine protein-to-creatinine ratios above 0.75 grams per gram and estimated glomerular filtration rates above 30 mL/min. They were receiving maximally tolerated renin-angiotensin system inhibition, with stable use of other standard therapies, including SGLT2 inhibitors, mineralocorticoid receptor antagonists and, where available, endothelin blockers.
Participants were randomized two-to-one to receive povetacicept or placebo every four weeks. Lafayette said the interim analysis at 36 weeks showed a 52% reduction in proteinuria with povetacicept. He described the reduction as rapid, sustained and consistent across evaluated subgroups, including those defined by age, race, baseline proteinuria, kidney function, hematuria and SGLT2 inhibitor use.
The presentation also cited an approximately 80% reduction in galactose-deficient IgA1, a disease-related biomarker, at the end of the interim analysis period. More than 80% of treated patients with baseline hematuria had resolution by 20 weeks, according to Lafayette. Nearly half of patients reached a urine protein-to-creatinine ratio below 0.5 grams per gram, while nearly one in six achieved normal proteinuria by week 36.
Lafayette said the safety profile observed to date was similar to placebo, aside from generally mild injection-site reactions. There were no deaths reported during the interim period. He said povetacicept is administered as a once-monthly subcutaneous injection and is expected to be available in an auto-injector format in the open-label extension.
While Lafayette called the results “transformational efficacy,” he cautioned that comparisons with other BAFF/APRIL-targeting therapies remain premature. He said longer-term estimated glomerular filtration rate, or eGFR, results will be important for comparing kidney-function protection across treatments.
Inaxaplin and APOL1-Mediated Kidney Disease
Akinlolu Ojo, executive dean of the School of Medicine at the University of Kansas, discussed results from the AMPLIFIED study of inaxaplin in patients with AMKD who were not included in the Phase III AMPLITUDE trial.
AMPLIFIED included two cohorts: patients with low levels of proteinuria and patients with moderate proteinuria who also had diabetic kidney disease. Ojo said participants were already receiving contemporary background therapy for chronic kidney disease and, where applicable, diabetic nephropathy.
He said inaxaplin produced substantial and clinically meaningful reductions in urinary protein excretion in both cohorts. In the cohort with diabetic kidney disease, proteinuria reductions ranged from 17% to 25%. Ojo noted that confidence intervals crossed one in that cohort but argued the magnitude of reduction could still have longer-term clinical significance, citing historical results from the RENAAL trial of losartan in diabetic nephropathy.
Ojo said the larger Phase III AMPLITUDE study is fully enrolled, with 522 total participants, including 66 patients carried forward from a Phase IIb study and 456 newly enrolled Phase III participants. Vertex expects to share interim-analysis results early next year.
He said AMKD patients typically experience eGFR declines of roughly 5 to 8 mL/min per year, making a one-year kidney-function endpoint meaningful in this population. Kewalramani clarified that Vertex’s agreement with the FDA for potential accelerated approval of inaxaplin is based on one-year eGFR results, rather than proteinuria alone.
Commercial and Access Plans
Chief Commercial Officer Duncan McKechnie said Vertex has been engaging with commercial payers and pharmacy benefit managers regarding povetacicept since July 2025. He said about 70% of IgA nephropathy patients are commercially insured and that the company expects to provide more specific coverage updates during the first half of 2027.
McKechnie said Vertex expects some patients to receive treatment on a case-by-case basis before formal coverage arrangements are established and plans to offer a bridge program. He also said the company is not expecting payers to require step therapy through other APRIL/BAFF products.
Kewalramani said Vertex plans to discuss the future development path for inaxaplin in diabetic kidney disease with the FDA after AMPLITUDE results are available.
About Vertex Pharmaceuticals (NASDAQ:VRTX)Vertex Pharmaceuticals Incorporated is a global biotechnology company focused on developing and commercializing medicines for serious diseases. Founded in 1989 and headquartered in Boston, Massachusetts, the company applies expertise in the science of human disease to discover therapies that address significant unmet medical needs.
Vertex is best known for its cystic fibrosis portfolio, which includes Kalydeco, Orkambi, Symdeko/Symkevi, and Trikafta/Kaftrio. These medicines target the underlying cause of cystic fibrosis for patients with specific mutations in the CFTR gene.
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Shares of Vertex, Inc. (NASDAQ:VERX – Get Free Report) have received an average rating of “Hold” from the fifteen research firms that are presently covering the firm, Marketbeat Ratings reports. One analyst has rated the stock with a sell rating, seven have issued a hold rating and seven have issued a buy rating on the company. The average 1-year price objective among analysts that have updated their coverage on the stock in the last year is $17.50.
VERX has been the subject of several research reports. Stephens reduced their target price on Vertex from $20.00 to $18.00 and set an “overweight” rating for the company in a report on Tuesday, August 4th. Robert W. Baird decreased their target price on Vertex from $19.00 to $17.00 and set an “outperform” rating for the company in a research report on Tuesday, August 4th. Morgan Stanley restated an “equal weight” rating and set a $15.00 price target (down from $19.00) on shares of Vertex in a research note on Tuesday, July 21st. DA Davidson cut their price target on Vertex from $15.00 to $12.00 and set a “neutral” rating on the stock in a research report on Tuesday, August 4th. Finally, Weiss Ratings raised Vertex from a “sell (e+)” rating to a “sell (d)” rating in a research report on Wednesday, August 5th.
View Our Latest Analysis on VERX
Vertex Price Performance
Shares of NASDAQ:VERX opened at $14.67 on Thursday. The company’s fifty day moving average price is $12.88 and its 200 day moving average price is $12.62. Vertex has a 12 month low of $10.21 and a 12 month high of $26.34. The company has a debt-to-equity ratio of 1.40, a current ratio of 0.87 and a quick ratio of 0.87. The firm has a market capitalization of $2.38 billion, a P/E ratio of 733.87 and a beta of 0.83.
Vertex (NASDAQ:VERX – Get Free Report) last released its quarterly earnings data on Monday, August 3rd. The company reported $0.20 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.19 by $0.01. The company had revenue of $203.97 million during the quarter, compared to the consensus estimate of $202.21 million. Vertex had a net margin of 0.45% and a return on equity of 29.00%. Vertex’s revenue for the quarter was up 10.5% on a year-over-year basis. During the same quarter in the prior year, the firm posted $0.15 earnings per share. As a group, sell-side analysts predict that Vertex will post 0.58 earnings per share for the current fiscal year.
Hedge Funds Weigh In On Vertex
Institutional investors have recently modified their holdings of the business. Healthcare of Ontario Pension Plan Trust Fund purchased a new stake in Vertex in the 1st quarter valued at $37,796,000. Arrowstreet Capital Limited Partnership boosted its stake in Vertex by 1,906.8% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 935,668 shares of the company’s stock worth $11,125,000 after purchasing an additional 889,042 shares during the period. Counterpoint Mutual Funds LLC purchased a new position in Vertex during the 1st quarter worth $4,836,000. Renaissance Technologies LLC grew its position in Vertex by 8.1% during the 1st quarter. Renaissance Technologies LLC now owns 290,500 shares of the company’s stock worth $3,454,000 after purchasing an additional 21,700 shares during the last quarter. Finally, Y Intercept Hong Kong Ltd grew its position in Vertex by 35.6% during the 1st quarter. Y Intercept Hong Kong Ltd now owns 256,289 shares of the company’s stock worth $3,047,000 after purchasing an additional 67,270 shares during the last quarter. 70.32% of the stock is owned by institutional investors and hedge funds.
Vertex Company Profile
(Get Free Report)
Vertex, Inc is a tax technology company that provides software and services to help businesses manage tax determination, compliance and reporting. Its solutions are designed to support complex transaction tax requirements across sales and use tax, value-added tax, goods and services tax, communications tax, and other indirect taxes.
The company’s offerings include cloud-based and enterprise tax software, tax calculation engines, compliance and returns management tools, tax data management, and related professional services.
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APPLETON, Wis.--(BUSINESS WIRE)--IGEN, an industry leader in excise tax compliance automation, today announced an expansion of its strategic collaboration with Vertex, Inc., the Decision-to-Defense™ global indirect tax and compliance company. Together, the companies are bringing to the market a joint solution for a persistent challenge for tax teams: managing excise and global indirect tax as a single, connected process rather than as separate workstreams. For enterprises in highly regulated in.
BOSTON--(BUSINESS WIRE)--Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today announced that Daniel Brennan has been appointed to its Board of Directors as an independent director. Mr. Brennan has more than 35 years of experience in finance roles at leading healthcare companies, including more than 25 years at Boston Scientific Corporation, a medical device and healthcare technology company. Mr. Brennan retired last year from serving as Boston Scientific's Executive Vice President, Chief Fi.
KING OF PRUSSIA, Pa., Oct. 20, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX) (“Vertex” or the “Company”), the Decision-to-Defense™ global indirect tax and compliance company, today announced that Sarah Vlasic, Vice President of Enterprise Data and AI Workforce Productivity, has been named a winner of the 2026 Info-Tech Women Leading IT Award by Info-Tech Research Group. This award recognizes exceptional women who are championing technology, fostering inclusive workplaces, and inspiring the next generation of IT leaders.
Vlasic leads Vertex's enterprise-wide data and AI transformation. She helped build the company's AI operating model, which takes AI out of pilots and into daily work in product development, go-to-market, services, and customer engagement. She is also responsible for establishing the governance framework, so AI can be used responsibly at scale, and for modernizing Vertex's data foundation to give leaders reliable, real-time insights.
“Sarah has been instrumental in turning our AI-first vision into how Vertex actually works every day,” said Aneel Jaeel, Chief Operations Officer at Vertex. “She pairs strategic clarity with a real commitment to her people, and this recognition reflects the impact she's had across our business and the broader technology community.”
Outside of her day-to-day role, Vlasic mentors women in technology as an active member of Vertex's WISE (Women in Search of Excellence) community. She currently serves on the University of Nevada, Las Vegas (UNLV) Lee Business School Corporate Advisory Board and has led Leadership Circles at the University of Colorado Boulder, helping develop the next generation of women leaders in business and technology through industry expertise, thought leadership, and professional development.
“I’m incredibly grateful and honored to receive this recognition from Info-Tech. While my name may be on the award, it truly reflects the hard work, passion, and dedication of the incredible teams that are turning AI from a concept into real business value at Vertex,” said Vlasic. “I’m fortunate to work alongside people who challenge what’s possible every day, embrace new ways of working, and continuously push us forward. I’m especially proud to help create opportunities for women in technology to grow, lead, and make a meaningful impact, and I’m proud to be part of an organization that supports and encourages that journey.”
The 2026 Info-Tech Award winners were selected from a competitive pool of hundreds of nominees. The full list of 2026 winners is available at infotech.com/events/infotech-awards.
About Info-Tech Research Group
Info-Tech Research Group is the “get things done” partner for over 30,000 IT, HR, and marketing leaders worldwide. The fastest growing research and advisory firm, Info-Tech enables leaders to make well-informed decisions and transform their organizations through AI, strategic foresight, step-by-step methodologies, practical tools, industry-leading advisory, and training programs. For nearly 30 years, tens of thousands of private and public organizations have trusted Info-Tech to lead their most important initiatives through periods of change and deliver outcomes that truly matter.
To learn more about Info-Tech’s HR research and advisory services, visit McLean & Company, and for data-driven software buying insights and vendor evaluations, visit the firm's SoftwareReviews platform. Media professionals can register for unrestricted access to research across IT, HR, and software, and hundreds of industry analysts through the firm's Media Insiders program. To gain access, contact [email protected].
For information about Info-Tech Research Group or to access the latest research, visit infotech.com and connect via LinkedIn and X.
About Vertex
Vertex is the Decision-to-Defense™ global indirect tax and compliance company. Vertex helps enterprises bring control to indirect tax and compliance across the full transaction lifecycle — from tax determination and e-invoicing through reporting, filing, and audit defense — to make outcomes easier to prove and improve over time. Trusted by more than 60% of the Fortune 500, Vertex combines decades of tax expertise, deep global tax and compliance knowledge, and embedded integrations to help organizations operate globally with confidence. With headquarters in North America and offices in South America and Europe, Vertex's purpose is to ensure businesses and communities thrive through trusted transactions.
For more information, visit www.vertexinc.com or follow us on X and LinkedIn; or subscribe on YouTube.
KING OF PRUSSIA, Pa., Oct. 15, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX), the Decision-to-Defense™ global indirect tax and compliance company, today announced that it will release third quarter 2026 financial results after the market close on Wednesday, November 4, 2026. A conference call to discuss the results will be held at 5:00 p.m. Eastern Time that same day.
Those wishing to participate should register in advance for the live event at https://vertex-earnings-q3-2026.open-exchange.net/
A live webcast of the event will also be available at the company’s investor relations website at https://ir.vertexinc.com. An audio-only replay of the conference call will be available on the investor relations website for one year.
About Vertex
Vertex is the Decision-to-Defense™ global indirect tax and compliance company. Vertex helps enterprises bring control to indirect tax and compliance across the full transaction lifecycle — from tax determination and e-invoicing through reporting, filing, and audit defense — to make outcomes easier to prove and improve over time. Trusted by more than 60% of the Fortune 500, Vertex combines decades of tax expertise, deep global tax and compliance knowledge, and embedded integrations to help organizations operate globally with confidence. With headquarters in North America and offices in South America and Europe, Vertex's purpose is to ensure businesses and communities thrive through trusted transactions.
For more information, visit www.vertexinc.com or follow us on X and LinkedIn.
Investor Relations contact:
Joe Crivelli
Vertex, Inc. [email protected]
In 2012, Vertex Pharmaceuticals (VRTX +2.44%) earned approval for the first medicine that targeted the underlying causes of cystic fibrosis (CF), a rare disease that harms patients' lungs and pancreases. Since then, the biotech has launched several more medicines, become the undisputed leader in this field, and delivered excellent stock market returns.
However, Vertex Pharmaceuticals is entering a new era with a more diversified portfolio of approved products. And recent developments could enable the company to generate significant sales in the hormone disorder market over the medium term. Here's what investors should know.
Image source: The Motley Fool.
The largest acquisition in Vertex's history In September, Vertex Pharmaceuticals closed its acquisition of Crinetics Pharmaceuticals for about $10 billion in cash. This was the largest acquisition in Vertex's history, and the company got several exciting assets in the process. Crinetics, which focuses on developing medicines for rare endocrine diseases, had one approved product called Palsonify. This medicine was approved in the U.S. last year and is indicated for the treatment of acromegaly, a rare hormonal condition in which the body produces too much growth hormone, causing patients' bones and organs to grow larger than they should.
If left untreated, acromegaly can be life-threatening. Surgery is typically the first option for patients with this disease. But Palsonify was approved as a first-line treatment in patients who are not eligible for surgery, or for whom surgery did not work. Its broad indication and fairly convenient once-daily oral dosing (the first once-daily oral pill for acromegaly) could make it a competitive option.
Vertex estimates that there are 20,000 patients diagnosed with acromegaly in the U.S., and another 35,000 outside the U.S. And according to the company, only 40% to 50% of patients achieve durable remission after surgery. So, there is an opportunity to target those who aren't so lucky. Palsonify wasn't the only exciting asset Vertex got its hands on thanks to its Crinetics acquisition.
The biotech giant also inherited Atumelnant, a medicine being developed to treat congenital adrenal hyperplasia (CAH) and Cushing's syndrome, both of which are rare hormonal disorders. Atumelnant is undergoing Phase 3 studies in CAH, and Phase 2 trials in Cushing's syndrome.
Vertex Pharmaceuticals has estimated that Palsonify and Atumelnant could eventually generate peak revenue exceeding $5 billion. Note that this is slightly less than half of the $12 billion in revenue the company reported last year. But sales growth within Vertex's core CF franchise has slowed in recent years. Meanwhile, Palsonify hit the market about a year ago, and Atumelnant could do so within the next couple of years, provided clinical trial results are strong. If these two medicines prove as successful as Vertex expects, its hormone disorder franchise could become a meaningful growth driver over the medium term.
Beyond CF and hormone disorders Of course, Vertex won't rely solely on this new franchise for top-line growth. In recent years, the company has earned approvals for such products as Casgevy, a gene-editing medicine for two rare blood diseases, and Journavx, a therapy for acute pain.
Neither is contributing meaningfully to top-line growth yet, but they should in time. Further, Vertex Pharmaceuticals is racing toward other brand-new launches. The company's povetacicept, a medicine for IgA nephropathy (a kidney disease), could earn approval by the end of November.
Vertex also has several exciting pipeline candidates, such as inaxaplin, an investigational drug for APOL-1-mediated kidney disease, among others. Amid all these diversification efforts, Vertex's core CF franchise should continue delivering consistent revenue, perhaps until the company loses patent exclusivity for its most important CF drugs in the late 2030s.
All that to say, Vertex's business looks robust. The company could make important clinical and regulatory progress over the next few years, leading to improved financial results and strong stock market returns. That makes Vertex a top healthcare stock to buy for long-term investors.
KING OF PRUSSIA, Pa., Oct. 15, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX) (“Vertex” or the “Company”), the Decision-to-Defense™ global indirect tax and compliance company and an Oracle partner, today announced that its enterprise tax determination engine, Vertex O Series Tax Engine for Oracle, has achieved Oracle Validated: Oracle Cloud Infrastructure Expertise and is now available in the Oracle Marketplace, offering added value to Oracle Cloud customers. The Vertex O Series Tax Engine for Oracle enables centralized, scalable tax determination and calculation across Oracle Cloud ERP and Oracle Cloud SCM environments, giving customers running on Oracle Cloud Infrastructure (OCI) a single source of truth for sales and use tax, VAT and country-specific requirements worldwide.
The Oracle Validated: Oracle Cloud Infrastructure Expertise recognizes partner solutions that run on or integrate with Oracle Cloud and meet Oracle's standards for interoperability and customer success. Vertex O Series Tax Engine for Oracle helps customers reduce manual tax work, improve accuracy, and scale with confidence. In the first seven months following implementation, customers processed an average of more than 150 million transactions per month on OCI, surpassing one billion total transactions, with near push-button setup through the companion Vertex Indirect Tax Accelerator for Oracle Fusion Cloud ERP helping organizations go live faster.
Oracle Marketplace is a centralized digital storefront and cloud repository of enterprise applications and services that enables Oracle customers to discover, evaluate, and deploy trusted partner solutions that extend and complement Oracle Cloud offerings.
"Tax teams running on Oracle Cloud need determination that is accurate, consistent and fast at enterprise volume. Vertex O Series Tax Engine for Oracle delivers that directly within the systems our customers already rely on," said Stephanie Powell, Oracle Partner Manager at Vertex. "Achieving Oracle Validated: Oracle Cloud Infrastructure Expertise demonstrates our commitment to delivering solutions that work seamlessly with Oracle Cloud. Through Vertex O Series Tax Engine customers can confidently leverage our capabilities alongside Oracle Cloud to achieve their business objectives. We look forward to leveraging the power of the Oracle Cloud to help us achieve our business goals.”
"The Oracle Validated: Oracle Cloud Infrastructure Expertise gives customers the confidence that Vertex meets or exceeds specified industry and Oracle standards for deploying software applications on OCI," said David Hicks, Group Vice President, ISV Ecosystem, Oracle North America. "Receiving an Oracle Validated designation signifies that the solution has completed a rigorous technical review process, helping customers reduce deployment risk while ensuring optimal technology alignment.”
Oracle Validated designation recognizes Oracle partner program members with solutions that run on Oracle Cloud. For partners earning the Oracle Validated: Oracle Cloud Infrastructure, this achievement offers customers confidence that the partner's application is supported by the Oracle Cloud Infrastructure SLA, enabling full access and control over their cloud infrastructure services as well as consistent performance.
To learn more or to deploy the solution, visit the Vertex O Series Tax Engine for Oracle listing on Oracle Marketplace.
About Vertex
Vertex is the Decision-to-Defense™ global indirect tax and compliance company. Vertex helps enterprises bring control to indirect tax and compliance across the full transaction lifecycle — from tax determination and e-invoicing through reporting, filing, and audit defense — to make outcomes easier to prove and improve over time. Trusted by more than 60% of the Fortune 500, Vertex combines decades of tax expertise, deep global tax and compliance knowledge, and embedded integrations to help organizations operate globally with confidence. With headquarters in North America and offices in South America and Europe, Vertex's purpose is to ensure businesses and communities thrive through trusted transactions.
For more information, visit www.vertexinc.com or follow us on X and LinkedIn; or subscribe on YouTube.
About Oracle’s Partner Program
The Oracle PartnerNetwork (OPN) program helps Oracle and its partners drive joint customer success and business momentum. Oracle’s partner program provides partners with choice and flexibility, offering several program pathways and a robust range of foundational benefits spanning training and enablement, go-to-market collaboration, technical accelerators, and success support. To learn more, visit https://www.oracle.com/partner/.
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BOSTON--(BUSINESS WIRE)--Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today announced new interim data from the ALYFTREK® (vanzacaftor/tezacaftor/deutivacaftor) 2 to 5 years old open-label extension study, highlighting recovery of exocrine pancreatic function in some children in that age group, allowing those children to discontinue pancreatic enzyme replacement therapy (PERT). Pancreatic exocrine insufficiency in children with cystic fibrosis (CF) was previously believed to be irreversib.
BOSTON--(BUSINESS WIRE)--Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) will report its third quarter 2026 financial results on Monday, November 2, 2026, after the financial markets close. The company will host a conference call and webcast at 4:30 p.m. ET. To access the call, please dial (833) 630-2124 (U.S.) or +1 (412) 317-0651 (International) and reference the “Vertex Pharmaceuticals Third Quarter 2026 Earnings Call.”
The conference call will be webcast live and a link to the webcast can be accessed through Vertex's website at www.vrtx.com in the "Investors" section. To ensure a timely connection, it is recommended that participants register at least 15 minutes prior to the scheduled webcast. An archived webcast will be available on the company's website.
About Vertex
Vertex is a global biotechnology company that invests in scientific innovation to create transformative medicines for people with serious diseases and conditions. The company has approved therapies for cystic fibrosis, sickle cell disease, transfusion-dependent beta thalassemia, acute pain and acromegaly, and it continues to advance clinical and research programs in these areas. Vertex also has a robust clinical pipeline of investigational therapies across a range of modalities in other serious diseases where it has deep insight into causal human biology, including IgA nephropathy, neuropathic pain, APOL1-mediated kidney disease, primary membranous nephropathy, congenital adrenal hyperplasia, ACTH-dependent Cushing's syndrome, autosomal dominant polycystic kidney disease, type 1 diabetes, generalized myasthenia gravis, and myotonic dystrophy type 1.
Vertex was founded in 1989 and has its global headquarters in Boston, with international headquarters in London. Additionally, the company has research and development sites and commercial offices in North America, Europe, Australia, Latin America and the Middle East. Vertex is consistently recognized as one of the industry's top places to work, including 16 consecutive years on Science magazine's Top Employers list and one of Fortune’s 100 Best Companies to Work For. For company updates and to learn more about Vertex's history of innovation, visit www.vrtx.com or follow us on LinkedIn, Facebook, Instagram, YouTube and X.
New appointment strengthens Vertex's board with enterprise AI, data, and cloud leadership as the company advances its AI-first transformation | Source: Vertex Inc.
KING OF PRUSSIA, Pa., Oct. 01, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX) (“Vertex” or the “Company”), the Decision-to-Defense™ global indirect tax and compliance company, today announced the appointment of Debanjan Saha to its Board of Directors, effective October 7, 2026.
Saha brings more than two decades of experience building and scaling multi-billion dollar agentic AI, data, and cloud businesses in the U.S. and globally. He has served as Chief Executive Officer of DataRobot since September 2022, leading the company's transformation from a machine learning pioneer to a leader in agentic AI serving enterprise customers worldwide. Previously, he was Vice President and General Manager of Data Analytics at Google Cloud and Vice President and General Manager at Amazon Web Services, where he led the company's database services. He began his career at IBM in a series of executive and technical leadership roles.
“Debanjan’s experience at the forefront of several major technological transitions, including cloud and now AI, brings the unique perspective that we need to meet the moment,” said Christopher Young, President and Chief Executive Officer at Vertex. “As companies increasingly embed AI into the systems and processes that run their business, that insight will be invaluable to our board and leadership team as we continue building an AI-first company and helping customers transform how indirect tax and compliance work gets done.”
Saha also serves on the board of Sorenson Communications and is a member of its audit committee. He is a Fellow of the Institute of Electrical and Electronics Engineers and a Distinguished Member of the Association for Computing Machinery. He holds Master of Science and Doctor of Philosophy degrees from the University of Maryland and a Bachelor of Technology from the Indian Institute of Technology, Kharagpur, all in computer science.
"Indirect tax touches nearly every enterprise transaction, making it a powerful area to apply AI and unlock new levels of insight, automation, and strategic value," said Saha. "Vertex has the customer trust, the domain depth, and the global footprint to lead this shift. I've spent my career scaling AI organizations through exactly this kind of inflection point, and I'm excited to help the team turn that advantage into category leadership.”
Saha's appointment expands the Vertex Board of Directors from nine to 10 members, eight of whom are independent. To learn more about Vertex's Board of Directors and leadership team, visit vertexinc.com/company/our-leadership.
About Vertex
Vertex is the Decision-to-Defense™ global indirect tax and compliance company. Vertex helps enterprises bring control to indirect tax and compliance across the full transaction lifecycle — from tax determination and e-invoicing through reporting, filing, and audit defense — to make outcomes easier to prove and improve over time. Trusted by more than 60% of the Fortune 500, Vertex combines decades of tax expertise, deep global tax and compliance knowledge, and embedded integrations to help organizations operate globally with confidence. With headquarters in North America and offices in South America and Europe, Vertex's purpose is to ensure businesses and communities thrive through trusted transactions.
For more information, visit www.vertexinc.com or follow us on X and LinkedIn; or subscribe on YouTube.
Vertex Pharmaceuticals (VRTX +0.28%) has been a clear winner for investors over time. Earnings and stock performance have progressed steadily thanks to the company's dominance in the cystic fibrosis (CF) treatment market and its success in broadening its presence into other areas.
Vertex is the world's leading provider of CF treatment, with game-changing drugs that have extended the lives of patients, and in recent years, it launched a gene editing treatment for blood disorders and a non-opioid medicine for pain. Those two newish products delivered triple- and quadruple-digit year-over-year growth, respectively, in the latest quarter.
Wall Street analysts are generally positive about Vertex and expect the stock to rise in the coming months -- and two in particular think the shares can soar another 20% or more over the next 12 months. Here's why they're right.
Image source: Getty Images.
Vertex is down from a record high Today, Vertex trades at about $527 per share, down from a record high of nearly $560 just a few weeks ago. H.C. Wainwright & Co. has a $641 price target on the shares, implying a 22% increase, and Morgan Stanley has a $665 target, suggesting a 26% gain. And at least 26 analysts have a positive recommendation on the shares.
Now, let's consider why the analysts who predict a 20% or greater gain in the coming year for Vertex may be right. As mentioned, Vertex is the leader in CF treatment, and this is expected to hold through the late 2030s thanks to the biotech's solid patent portfolio. On top of this, Vertex, which already has treatments to address about 95% of the CF population, is working on additional candidates in the pipeline that may extend this leadership even farther into the future.
And now, in the near term, Vertex could have certain catalysts ahead. First, it's important to remember we're still in the early growth stages of Casgevy, its gene editing treatment for blood disorders, and Journavx, its pain medicine. The U.S. Food and Drug Administration recently approved Casgevy for children as of age two, meaning 5,500 new patients could be eligible for treatment. Additional approvals in other countries, as well as reimbursement agreements, could further increase uptake of Casgevy in the quarters to come.
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Journavx coverage is broadening Meanwhile, coverage of Journavx is broadening, with three of the four big pharmacy benefit managers for Medicare Part D signing agreements. About 260 million Americans now have access to reimbursements for Journavx.
At the same time, November could bring major news for Vertex. The FDA is reviewing povetacicept for IgA nephropathy, a kidney disease, and is set to decide on or before Nov. 30. An approval here could further broaden Vertex's presence into a new treatment area and add a fresh revenue stream to the portfolio.
Vertex is feeling optimistic about the future, too, as the company increased its full-year revenue forecast to the range of $13.1 billion to $13.2 billion from the range of $12.95 billion to $13.1 billion.
Now, let's look at valuation: Vertex, trading at 32x forward earnings estimates, isn't dirt cheap. But it's reasonably priced considering its earnings performance over time and long-term prospects. This could encourage more investors to buy the shares.
The upcoming catalysts that I mentioned above, along with the stock's valuation, may help Vertex stock to climb 20% or more in the coming 12 months. Even more importantly, however, the company has what it takes to generate earnings growth and stock performance over the long term. This is due to its existing portfolio, solid moat (competitive advantage) in CF, and its successes in entering new treatment areas. Vertex's solid pipeline also should boost growth in the years to come as new products win approval.
All of this means that whether the most optimistic Wall Street analysts are right in their forecasts for the coming year or not, Vertex is likely to reward investors in the long run.
Corient Private Wealth LP purchased a new position in Vertex, Inc. (NASDAQ:VERX – Free Report) in the second quarter, according to its most recent Form 13F filing with the Securities & Exchange Commission. The fund purchased 153,840 shares of the company’s stock, valued at approximately $1,766,000. Corient Private Wealth LP owned about 0.09% of Vertex as of its most recent SEC filing.
Several other institutional investors and hedge funds have also made changes to their positions in the stock. Palladiem LLC purchased a new stake in Vertex during the 4th quarter worth about $88,000. Versant Capital Management Inc grew its holdings in shares of Vertex by 74.8% during the second quarter. Versant Capital Management Inc now owns 8,604 shares of the company’s stock worth $99,000 after buying an additional 3,683 shares in the last quarter. Caxton Associates LLP acquired a new position in shares of Vertex in the first quarter valued at approximately $132,000. Pictet Asset Management Holding SA raised its position in shares of Vertex by 25.4% in the first quarter. Pictet Asset Management Holding SA now owns 12,994 shares of the company’s stock valued at $154,000 after buying an additional 2,631 shares during the last quarter. Finally, PNC Financial Services Group Inc. lifted its stake in shares of Vertex by 3,088.0% during the fourth quarter. PNC Financial Services Group Inc. now owns 8,257 shares of the company’s stock valued at $165,000 after buying an additional 7,998 shares during the period. 70.32% of the stock is currently owned by hedge funds and other institutional investors.
Vertex Price Performance Vertex stock opened at $11.68 on Friday. Vertex, Inc. has a 1 year low of $10.21 and a 1 year high of $26.54. The firm has a 50 day moving average price of $12.76 and a 200 day moving average price of $12.64. The company has a market cap of $1.89 billion, a price-to-earnings ratio of 584.29 and a beta of 0.83. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.87 and a current ratio of 0.87.
Vertex (NASDAQ:VERX – Get Free Report) last issued its quarterly earnings results on Monday, August 3rd. The company reported $0.20 EPS for the quarter, topping the consensus estimate of $0.19 by $0.01. The firm had revenue of $203.97 million during the quarter, compared to analyst estimates of $202.21 million. Vertex had a net margin of 0.45% and a return on equity of 29.00%. Vertex’s revenue for the quarter was up 10.5% compared to the same quarter last year. During the same quarter in the prior year, the business posted $0.15 earnings per share. Sell-side analysts predict that Vertex, Inc. will post 0.54 earnings per share for the current year. Analyst Upgrades and Downgrades A number of analysts recently issued reports on VERX shares. TD Cowen initiated coverage on shares of Vertex in a research report on Monday, June 29th. They set a “buy” rating and a $14.00 target price on the stock. Robert W. Baird cut their price target on Vertex from $19.00 to $17.00 and set an “outperform” rating for the company in a report on Tuesday, August 4th. BMO Capital Markets increased their price target on Vertex from $14.00 to $15.00 and gave the stock a “market perform” rating in a research note on Tuesday, August 4th. Stephens decreased their price objective on Vertex from $20.00 to $18.00 and set an “overweight” rating on the stock in a report on Tuesday, August 4th. Finally, Wall Street Zen raised Vertex from a “hold” rating to a “buy” rating in a research report on Saturday, August 8th. Seven equities research analysts have rated the stock with a Buy rating, seven have issued a Hold rating and one has issued a Sell rating to the stock. According to MarketBeat, the stock presently has a consensus rating of “Hold” and an average target price of $17.43.
View Our Latest Stock Report on Vertex
Vertex Company Profile (Free Report)
Vertex, Inc (NASDAQ:VERX) is a provider of tax technology solutions for businesses. The company develops cloud-based software designed to help organizations calculate, manage and comply with transaction tax obligations across complex jurisdictions and regulatory environments.
Vertex’s product portfolio includes solutions for indirect tax determination and compliance, including sales and use tax, value-added tax and other transaction taxes. Its offerings also support tax data management, tax returns, exemption certificate management, tax reporting and related workflows.
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Key Takeaways Vertex's inaxaplin cut UACR by 42.7% in AMKD patients with modest proteinuria.Inaxaplin also reduced UACR by 17.3% in patients with AMKD, type II diabetes and proteinuria.Vertex completed AMPLITUDE enrollment, with interim data expected in early 2027. Vertex Pharmaceuticals (VRTX - Free Report) announced positive data from the phase IIb AMPLIFIED study, which evaluated its investigational drug, inaxaplin, for the treatment of patients with APOL1-mediated kidney disease ("AMKD") and modest proteinuria and in people with AMKD and type II diabetes.
AMKD is a rapidly progressing kidney disease caused by inherited variants in the APOL1 gene. It damages kidney cells, leading to proteinuria and declining kidney function. In severe cases, the disease can progress to dialysis or a kidney transplant.
Year to date, VRTX's shares have rallied 13.6% compared with the industry’s 8% growth.
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Key Highlights of VRTX’s Phase IIb AMPLIFIED Study DataThe phase IIb AMPLIFIED study enrolled patients across two cohorts. The first cohort included patients with AMKD and modest proteinuria, while the second cohort included patients with AMKD, type II diabetes and proteinuria. Patients received inaxaplin 45 mg once daily for 13 weeks in addition to optimized standard care. The primary endpoint was the percentage change in urine albumin-to-creatinine ratio ("UACR") from baseline. The study also evaluated changes in urine protein-to-creatinine ratio ("UPCR") and the safety of inaxaplin.
In the first cohort, inaxaplin reduced the UACR by 42.7% from baseline at week 13. UPCR, another measure of proteinuria, decreased 44.7% over the same period of time. The results were consistent with earlier phase IIa findings in patients with AMKD and focal segmental glomerulosclerosis.
In the second cohort, patients receiving inaxaplin experienced a 17.3% reduction in UACR and 25.4% decline in UPCR from baseline at week 13.
Inaxaplin was generally well-tolerated in both cohorts, with no serious adverse events reported.
Vertex Completes Inaxaplin’s AMPLITUDE Study EnrollmentAlongside the AMPLIFIED results, Vertex announced that it has completed patient enrollment in the global phase II/III pivotal AMPLITUDE study. The study is evaluating inaxaplin as a 45-mg once-daily oral treatment in patients with AMKD and severe proteinuria. Its primary endpoint is the estimated glomerular filtration rate slope after two years of treatment, a measure designed to assess the impact of treatment on kidney function over time.
Vertex expects to report interim data from the study in early 2027. Positive results could potentially support accelerated approval for the drug in the United States, subject to regulatory review.
VRTX’s Zacks Rank & Stocks to ConsiderVertex currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Precigen (PGEN - Free Report) , currently sporting a Zacks Rank #1 (Strong Buy), AC Immune (ACIU - Free Report) and Aldeyra Therapeutics (ALDX - Free Report) , carrying a Zacks Rank #2 (Buy) each. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Precigen’s 2026 bottom line have improved from a loss of 2 cents to earnings per share of 25 cents. Over the same period, earnings estimates for 2027 have risen from 25 cents to 86 cents. PGEN's shares have gained 88.8% year to date.
Precigen’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 108.96%.
Over the past 60 days, estimates for AC Immune’s 2026 loss per share have narrowed from 84 cents to 60 cents. Over the same period, earnings estimates for 2027 remained unchanged at 17 cents per share. ACIU's shares have lost 13.1% year to date.
AC Immune’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 33.25%.
Over the past 60 days, loss per share estimates for Aldeyra Therapeuticshave narrowed from 43 cents to 39 cents for 2026. Over the same period, estimates for 2027 loss per share have narrowed from 22 cents to 16 cents. ALDX's shares have plunged 73.1% year to date.
Aldeyra Therapeutics’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 29.25%.
Vertex Pharmaceuticals Incorporated (NASDAQ:VRTX) on Tuesday reported data from its Phase 2b AMPLIFIED trial evaluating inaxaplin in individuals with APOL1-mediated kidney disease (AMKD).
The study tested a daily 45 mg dose alongside optimized standard care across two distinct patient groups with either modest proteinuria or co-existing type 2 diabetes.
Strong Proteinuria Reductions In Modest Proteinuria CohortIn the first group of 23 participants with modest proteinuria, 22 evaluable patients achieved a 42.7% mean decrease in urine albumin-to-creatinine ratio (UACR) from baseline after 13 weeks.
This cohort also showed a 44.7% reduction in urine protein-to-creatinine ratio (UPCR). Most participants in this group had no prior diagnosis of focal segmental glomerulosclerosis (FSGS).
These findings align closely with prior Phase 2a trial outcomes in AMKD patients with FSGS, where inaxaplin generated a 43.4% UACR reduction and a 47.6% UPCR decline at Week 13.
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Key Results For Type 2 Diabetes GroupThe second cohort enrolled 18 patients with AMKD, type 2 diabetes, and proteinuria. Among 17 evaluable participants in this group, treatment led to a 17.3% UACR drop at Week 13 compared to baseline.
Additionally, this cohort demonstrated a 25.4% decline in UPCR over the same treatment period.
Favorable Safety Profile And Future MilestonesInaxaplin displayed a favorable safety and tolerability profile across both patient groups. Researchers observed no serious adverse events linked to the treatment, and all reported adverse events remained mild or moderate.
Headache served as the most frequent side effect, affecting 7.3% of participants. Five patients experienced temporary, symptom-free elevated transaminase levels that fully resolved.
Vertex has completed participant enrollment for its Phase 2/3 AMPLITUDE study, which evaluates inaxaplin in individuals with severe proteinuria lacking other kidney disease causes.
The company expects to share interim analysis results in early 2027 after participants complete 48 weeks of treatment. Positive trial data from this interim evaluation could support a potential accelerated approval application in the U.S.
Analyst ViewWilliam Blair sees inaxaplin as underappreciated, and looks to AMPLITUDE data in early 2027 as the next key catalyst for the program.
“Beyond AMKD, with a potentially transformative growth profile in new product launches anchored by Vertex’s CF juggernaut, we continue to view the company as a core mid- to large-cap growth story in the biotech space…,” wrote analyst Myles Minter.
William Blair reiterates the Outperform rating on Vertex.
VRTX Price Action: Vertex Pharmaceuticals shares were up 2.04% at $521.14 at the time of publication on Tuesday, according to Benzinga Pro data.
BOSTON--(BUSINESS WIRE)--Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today announced positive results from the Phase 2b AMPLIFIED study of inaxaplin in people with APOL1-mediated kidney disease (AMKD) and modest proteinuria and in people with AMKD and type 2 diabetes. In this study, inaxaplin was evaluated as a 45 mg once-daily dose on top of optimized standard of care. Forty-one people were enrolled and dosed in two cohorts: 1) people with AMKD with modest proteinuria (UACR ≥0.1 g/g to.
Vertex’s Crinetics Deal Balances Growth with Integration RiskVertex Pharmaceuticals NASDAQ: VRTX is continuing to broaden its business beyond cystic fibrosis, with its renal medicine portfolio, rare endocrine assets and cell therapies among the company’s priorities, CEO and President Reshma Kewalramani said at Morgan Stanley’s 24th Annual Healthcare Conference.
Kewalramani said cystic fibrosis remains a foundational growth pillar as the company expands the global rollout of ALYFTREK, pursues access in additional countries and develops the treatment for younger patients. She also highlighted progress for CASGEVY, the company’s gene-editing therapy, and JOURNAVX, its non-opioid medicine for acute pain.
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CRISPR Therapeutics Gains After Earnings as Pipeline Hope GrowsFollowing the acquisition of Crinetics, Kewalramani identified rare endocrine disease as Vertex’s fourth pillar, citing PALSONIFY for acromegaly and atumelnant, an investigational treatment being developed for congenital adrenal hyperplasia and Cushing’s disease. She said the company sees atumelnant as having multibillion-dollar potential.
Renal Pipeline Takes Center Stage A principal near-term catalyst is povetacicept, Vertex’s investigational therapy for IgA nephropathy, or IgAN. Kewalramani said the U.S. Food and Drug Administration’s Prescription Drug User Fee Act date for the treatment is Nov. 30.
How Royalty Pharma Prints Cash Without Biotech's Biggest RisksShe said Vertex believes povetacicept can differentiate itself in a competitive IgAN market through its dual targeting of APRIL and BAFF, cytokines involved in B-cell development and maturation. Kewalramani also pointed to the therapy’s monthly, low-volume autoinjector administration, saying the 0.46-milliliter dose could be an important convenience factor for patients expected to remain on treatment long term.
The CEO cautioned that comparisons between studies are cross-trial and numerical, but said povetacicept showed the strongest numerical results on measures including proteinuria, hematuria and Gd-IgA1 levels. Vertex has also built what Kewalramani described as the largest sales force among companies entering the renal category, with the aim of reaching specialists, large clinics and community-based patients.
Vertex plans to continue the povetacicept study through two-year kidney-function follow-up rather than disclose glomerular filtration rate, or GFR, data earlier. Kewalramani said the decision reflects the company’s goal of pursuing global approvals, as regulators outside the U.S. have not broadly accepted proteinuria as an accelerated-approval endpoint and may require two-year GFR data.
Beyond IgAN, Vertex expects a Phase III readout for povetacicept in membranous nephropathy to be the next major program update. The company is also studying the treatment in myasthenia gravis in Phase II.
Inaxaplin Studies Approach Data Readouts Kewalramani also discussed inaxaplin, Vertex’s investigational treatment for APOL1-mediated kidney disease, or AMKD. The disease affects people of recent Sub-Saharan African descent and is associated with a substantially higher risk of progressive kidney disease in individuals with two APOL1 alleles, she said.
Vertex estimates that 100,000 to 150,000 people in the U.S. have AMKD, a condition for which no medicine has been specifically approved. The company’s Phase III AMPLITUDE trial is expected to produce an interim analysis in early next year, with potential accelerated approval tied to one-year GFR data. Enrollment for the full cohort is expected to finish in the second half of this year.
A separate Phase IIb study, AMPLIFY, is expected to report results in the fall. It includes patients with modest proteinuria and a cohort of patients with both AMKD and type 2 diabetes. Kewalramani said a proteinuria reduction in the 20% to 30% range would be positive in the modest-proteinuria cohort, although she declined to specify a formal success threshold.
Vertex has been supporting genetic-testing efforts to help identify potential AMKD patients, including through an arrangement involving Natera’s genetic kidney disease testing. Kewalramani said the company has identified patients through testing programs that have operated for several years and expects disease awareness and testing to be central to the eventual commercial strategy if inaxaplin is approved.
Cystic Fibrosis Growth and Earlier-Stage Programs In cystic fibrosis, Kewalramani said ALYFTREK has regulatory approval in most regions, though pricing and reimbursement discussions continue in some markets. Vertex is working to transition eligible patients from TRIKAFTA to the once-daily therapy, reach patients with certain ultra-rare mutations and expand treatment to children ages 2 to 5 before moving into still younger groups.
The company is also pursuing reimbursement in emerging markets, including Brazil and Turkey. While pricing pressure remains a feature of certain international markets, Kewalramani said Vertex has been able to maintain pricing in some countries by presenting real-world evidence showing stable lung-function outcomes.
Vertex is advancing additional cystic fibrosis candidates under its Next Gen 3.0 program, including VX-828, VX-581 and VX-272, while earlier research continues on future generations of therapies.
Other pipeline priorities include cell therapies for type 1 diabetes. Kewalramani said an investigational Type O program has cleared its investigational new drug application, enabling patient dosing in a Phase I/II study. She also cited a late-preclinical program combining NaV1.7 and NaV1.8 targets for pain treatment.
About Vertex Pharmaceuticals (NASDAQ:VRTX)Vertex Pharmaceuticals Incorporated is a global biotechnology company focused on developing and commercializing medicines for serious diseases. Founded in 1989 and headquartered in Boston, Massachusetts, the company combines research in human genetics with drug discovery and development.
Vertex is best known for its cystic fibrosis portfolio, which includes CFTR modulator therapies such as Kalydeco, Orkambi, Symdeko and the combination marketed as Trikafta in the United States and Kaftrio in other markets.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Vertex’s Crinetics Deal Balances Growth with Integration RiskVertex Pharmaceuticals NASDAQ: VRTX outlined a broadening commercial and clinical strategy at the Cantor Global Healthcare Conference, highlighting its recent Crinetics acquisition, planned renal product launch efforts and upcoming pipeline milestones across kidney disease, pain, cystic fibrosis and rare endocrine disorders.
Susie Lisa, Vertex’s senior vice president of investor relations, said the company evaluates internal programs and acquisitions through a research-and-development framework focused on causal human biology, validated biomarkers, specialty markets and streamlined regulatory pathways. She said the company pursues assets that either accelerate existing programs or establish a presence in selected disease areas.
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CRISPR Therapeutics Gains After Earnings as Pipeline Hope GrowsLisa said Vertex completed its acquisition of Crinetics last week, adding PALSONIFY, which is being launched for acromegaly, and the late-stage congenital adrenal hyperplasia candidate atumelnant. She described rare specialty endocrinology as an area with relatively de-risked development because measurements in Phase II trials can carry through to Phase III studies.
Renal Pipeline Milestones Vertex expects a November 30 PDUFA date for povetacicept in immunoglobulin A nephropathy, or IgAN. Lisa said the company’s interactions with the FDA’s renal division have been constructive and that the application remains on track.
How Royalty Pharma Prints Cash Without Biotech's Biggest RisksLisa argued that povetacicept is differentiated by its 52% reduction in urine protein-to-creatinine ratio at 36 weeks, along with hematuria resolution, reductions in galactose-deficient IgA1 and its ability to help patients reach KDIGO guideline levels. She also cited the drug’s monthly autoinjector administration and low-volume dose as potential advantages over competitors’ dosing regimens.
Vertex is also advancing povetacicept in primary membranous nephropathy, where it is in the Phase II/III portion of a 104-week study, and in a Phase II study for myasthenia gravis. The company continues to evaluate RUBY-4 data in warm autoimmune hemolytic anemia.
For inaxaplin, Vertex expects Phase II proof-of-concept data from the AMPLIFIED population-expansion study before year-end. The study includes roughly 50 patients with two APOL1 alleles, including patients with more modest proteinuria and others with heavier proteinuria and Type 2 diabetes. Lisa said the Phase III AMPLITUDE study remains on track to complete enrollment by year-end, with an interim analysis expected in early 2027.
The AMPLITUDE interim analysis will use eGFR slope versus placebo as its primary endpoint. Lisa said patients in the study experience eGFR decline at nearly twice the rate of traditional kidney-disease patients, which could make a treatment difference observable at 48 weeks.
Commercial Expansion Beyond Cystic Fibrosis Lisa said Vertex has expanded its commercial infrastructure substantially from its prior focus on cystic fibrosis. The company built separate sales and support capabilities for CASGEVY, including support for treatment centers, patients and families, and has also expanded its acute-pain organization for JOURNAVX.
Vertex initially launched JOURNAVX with roughly 100 field representatives and increased the field force to about 150 before doubling it earlier this year as reimbursed access expanded, Lisa said. The company had 260 million covered lives as of early August, she added.
According to Lisa, JOURNAVX prescription growth has been supported by physician and patient feedback, broader insurance access, field-force expansion, marketing activity and outreach to a wide range of prescribers, including emergency and trauma clinicians, anesthesiologists, orthopedic surgeons, obstetricians, dentists and plastic surgeons.
The company is targeting a tripling of JOURNAVX prescriptions in 2026 compared with 2025, Lisa said. She noted that the acute-pain market remains large, with 80 million Americans receiving a prescription annually. Vertex recently appointed Jasper van Grunsven as executive vice president to focus on the pain franchise and newer products.
Chronic Pain and Endocrinology Programs Vertex expects to complete enrollment in two Phase III studies of suzetrigine in diabetic peripheral neuropathy by year-end. Lisa said both studies are 12 weeks long, with data potentially available by mid-2027. One study includes about 1,100 patients and compares suzetrigine with placebo and pregabalin, while the other includes about 700 patients and compares the drug with placebo.
The company has focused the studies on experienced diabetic peripheral neuropathy trial sites in an effort to better manage placebo effects, Lisa said. Vertex is also evaluating combinations targeting NaV1.7 and NaV1.8 sodium channels for potential use in acute and chronic pain.
Manisha Pai, Vertex’s executive director of investor relations, said a move into musculoskeletal pain could require a commercial partner because it would involve a primary-care market. However, she said the company believes acute pain and peripheral neuropathic pain can be addressed through a specialty commercial model.
On the Crinetics portfolio, Pai said Vertex sees potential for $5 billion in peak sales from PALSONIFY and atumelnant combined, with PALSONIFY potentially reaching blockbuster status and atumelnant representing a multibillion-dollar opportunity. Atumelnant is in Phase III development for congenital adrenal hyperplasia.
Pai said Vertex is still reviewing timelines and financial details following the transaction’s closing and expects to provide updated accounting and financial information on its third-quarter earnings call. She said the company remains confident in atumelnant’s Phase II safety profile after a liver-enzyme elevation observed in one patient was reversible and was not accompanied by bilirubin elevation or clinical consequences.
About Vertex Pharmaceuticals (NASDAQ:VRTX)Vertex Pharmaceuticals Incorporated is a global biotechnology company focused on developing and commercializing medicines for serious diseases. Founded in 1989 and headquartered in Boston, Massachusetts, the company combines research in human genetics with drug discovery and development.
Vertex is best known for its cystic fibrosis portfolio, which includes CFTR modulator therapies such as Kalydeco, Orkambi, Symdeko and the combination marketed as Trikafta in the United States and Kaftrio in other markets.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
Should You Invest $1,000 in Vertex Pharmaceuticals Right Now?Before you consider Vertex Pharmaceuticals, you'll want to hear this.
MarketBeat keeps track of Wall Street's top-rated and best performing research analysts and the stocks they recommend to their clients on a daily basis. MarketBeat has identified the five stocks that top analysts are quietly whispering to their clients to buy now before the broader market catches on... and Vertex Pharmaceuticals wasn't on the list.
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Vertex’s Crinetics Deal Balances Growth with Integration RiskVertex Pharmaceuticals NASDAQ: VRTX highlighted a series of upcoming clinical, regulatory and commercial catalysts across renal disease, pain management, cystic fibrosis and endocrinology during a Wells Fargo healthcare conference appearance.
Susie Lisa, the company’s head of investor relations, said investor discussions have increasingly focused on Vertex’s expanding pipeline beyond cystic fibrosis, particularly its renal franchise. She described the coming period as “catalyst-rich,” with data updates expected in several programs through 2027.
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Renal Pipeline Takes Center Stage CRISPR Therapeutics Gains After Earnings as Pipeline Hope GrowsThe nearest expected catalyst is data in the coming months from the AMPLIFIED Phase II proof-of-concept study of inaxaplin in APOL1-mediated kidney disease. The study includes patients with two APOL1 variants in cohorts with more moderate proteinuria and with type 2 diabetes.
Lisa said the moderate-proteinuria cohort could help demonstrate the effect of APOL1 inhibition beyond patients with focal segmental glomerulosclerosis, or FSGS. Vertex previously reported results from the Phase II portion of its pivotal program in a population that included patients with high proteinuria burdens, showing a 47.6% reduction in proteinuria at 13 weeks, according to Lisa.
How Royalty Pharma Prints Cash Without Biotech's Biggest RisksShe noted that the diabetes cohort presents more uncertainty because Vertex will need to assess how much of patients’ kidney impairment is associated with APOL1-mediated disease versus type 2 diabetes. The AMPLIFIED cohorts each include more than 20 patients, she said.
Vertex estimates that its pivotal AMPLITUDE study population could represent approximately 150,000 patients in the U.S. and Europe. Expansion into the populations being evaluated in AMPLIFIED could add roughly 100,000 patients to the target population, Lisa said.
The company expects a Phase III interim analysis for inaxaplin in the first quarter of 2027. The 48-week analysis will evaluate change in estimated glomerular filtration rate, or eGFR, from baseline as well as proteinuria reduction. Lisa said a successful interim analysis could support a filing path while patients continue to be followed through the full two-year endpoint.
Vertex also cited a Nov. 30, 2026, PDUFA date for povetacicept in immunoglobulin A nephropathy, or IgAN. Lisa said the company is launch-ready, with a sales force already hired that includes substantial nephrology experience.
For a potential IgAN launch, Vertex plans to emphasize what Lisa described as the therapy’s clinical data, safety profile and patient-administration characteristics. She said povetacicept is designed as a once-monthly, low-volume autoinjector administered at home. The company expects to pursue both treatment-switching patients and newly diagnosed patients.
Pain Franchise Expands Commercially and Clinically Lisa said adoption of JOURNAVX for moderate-to-severe acute pain has continued to progress through formulary inclusion, treatment protocols and care pathways across hospitals, outpatient settings and ambulatory surgery centers. Vertex remains on track to triple prescriptions in 2026 compared with 2025, she said.
Other drivers include expanding reimbursed access, a doubled sales force, marketing efforts and a growing number of physician-sponsored studies. Lisa said some orthopedic physician reports have described opioid-free outcomes in more than 90% of patients following certain painful procedures, including total knee surgeries.
Vertex has more than 36,000 JOURNAVX prescribers across specialties, including emergency medicine, trauma, orthopedics, dentistry, plastic surgery, obstetrics and gynecology, and anesthesiology, according to Lisa.
The company’s current prescription mix is approximately evenly split between hospital and retail use, compared with an acute-pain market that is roughly one-third hospital and two-thirds retail. Hospital prescriptions generally cover two to five days, while retail prescriptions are typically closer to 14 days, Lisa said.
She added that patient-support programs can be triggered when reimbursement systems or prescription-processing issues prevent patients from obtaining the drug, affecting the timing of revenue recognition. Vertex expects a more normalized gross-to-net profile around mid-2027, in a range of plus or minus 50%, Lisa said.
Vertex also expects to complete enrollment by year-end in two Phase III studies of JOURNAVX in diabetic peripheral neuropathy. The 12-week studies could produce data in the first half of 2027. Lisa said the company has sought to manage placebo response risk through a limited number of experienced sites and significant site training.
Crinetics Acquisition and Broader Pipeline Vertex said its acquisition of Crinetics Pharmaceuticals had closed and that it would provide an update on the transaction’s financial impact in the next quarter. Lisa said Vertex sees approximately $5 billion in peak-sales potential from PALSONIFY in acromegaly and atumelnant in congenital adrenal hyperplasia, with atumelnant’s study in Cushing’s disease representing potential additional upside. That estimate does not include early-stage assets, she said.
Additional anticipated pipeline updates include potential data before year-end for VX-522, a next-generation cystic fibrosis therapy, and a likely update in myotonic dystrophy type 1. Vertex is also enrolling a Phase II study of povetacicept in myasthenia gravis, with data viewed as a potential catalyst over the next 12 months.
Looking toward 2027, Lisa said Vertex aims to establish a more diversified commercial revenue base across five disease-area pillars: cystic fibrosis, hematology, pain, rare endocrinology and renal disease.
About Vertex Pharmaceuticals (NASDAQ:VRTX)Vertex Pharmaceuticals Incorporated is a global biotechnology company focused on developing and commercializing medicines for serious diseases. Founded in 1989 and headquartered in Boston, Massachusetts, the company combines research in human genetics with drug discovery and development.
Vertex is best known for its cystic fibrosis portfolio, which includes CFTR modulator therapies such as Kalydeco, Orkambi, Symdeko and the combination marketed as Trikafta in the United States and Kaftrio in other markets.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Vertex, Inc. (VERX) Goldman Sachs Communacopia + Technology Conference 2026 September 9, 2026 4:05 PM EDT
Company Participants
Christopher Young - CEO, President & Director
John Schwab - Chief Financial Officer
Presentation
Unknown Analyst
All right. We can go ahead and get started. Thank you all for coming today. I have the pleasure of hosting Vertex CEO, Chris Young; and CFO, John Schwab. Chris and John, thank you both for being here with us today.
Question-and-Answer Session
Unknown Analyst
I would like to -- we're going to touch on some more near-term dynamics. But first, I'd like to start with a little bit more maybe the longer-term, higher level view of the business. So Chris and John, when you look 5 years out, what do you want Vertex to become that it's not today?
Christopher Young
CEO, President & Director
So well, first of all, thanks for having us here. A couple of points I think they're really important. Vertex really exists to help our customers manage their tax and compliance across a full life cycle of activity. We've been calling that decision to defense because we've grown up as a tax calculation company. That's what Vertex was known for. We're 45 (sic) [ 48 ] years old. But if you think about a customer's compliance requirement, it cuts across that entire life cycle from how you decide, how you categorize a product all the way through to how you calculate, prove compliance, file, pay and then ultimately defend yourself if you find yourself in an audit. And that's a life cycle. It goes on continuously. What you learn at the end of that process needs to get filter back into the upstream part of it.
And so traditionally, we focused more on the front end, the calculation piece. With our entry
Analysts are fairly divided on Vertex Pharmaceuticals (VRTX -3.15%). The biotech's shares are currently trading at $546, but price targets range from $350 to $672. Analysts at Goldman Sachs are comfortably in the bull camp. Not only does the bank have a "buy" rating and a $653 price target on the stock, but it also recently added Vertex Pharmaceuticals to its highest-conviction list. Should investors be equally excited about Vertex's prospects? Let's discuss the bull case for the drugmaker.
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Vertex's expanding portfolio Vertex's strategy is simple. The company develops innovative medicines for diseases with high unmet needs, particularly (though not always) rare conditions. There are advantages and disadvantages to this approach. On the one hand, Vertex's addressable opportunity within some areas can be small. However, the company also faces less competition than it would in larger, more competitive markets. Vertex currently generates most of its revenue from its drugs that treat cystic fibrosis (CF), a rare disease that causes thick, sticky mucus to form in the lungs, disrupting breathing, trapping germs and bacteria, and leading to chronic infections.
CF patients need to take Vertex's treatments indefinitely, and since the company has virtually no competition, it benefits from tremendous pricing power. The result is a core CF business that generates consistent revenue and earnings and could continue to do so until Vertex's most important drugs lose patent exclusivity in the late 2030s. Though it is always possible that another biotech will develop a competing therapy, none has done so yet, and it isn't for lack of trying.
Still, Vertex has been seeking to diversify its lineup to mitigate the risk posed by competition to its prospects. It has had limited success so far. Newer launches like Casgevy, a gene-editing medicine that treats two rare blood diseases, and Journavx, a therapy for acute pain, have not yet generated significant revenue. But Vertex still has an attractive pipeline, which has recently become even more compelling following an acquisition. Vertex recently bought out Crinetics Pharmaceuticals for $10 billion in cash.
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The company's portfolio now features Palsonify, a medicine approved last year for acromegaly, a rare disorder that causes patients' bones and organs to grow larger than normal, leading to various health problems. Vertex also inherited atumelnant through the acquisition. Atumelnant is an investigational medicine in phase 3 clinical trials for congenital adrenal hyperplasia, a rare, genetic hormonal disease. Vertex estimates that Palsonify and atumelnant could generate more than $5 billion in combined peak sales.
The important thing here is that the company is casting a wide net. Between Casgevy, Journavx, and Palsonify, its portfolio of approved products is slowly expanding beyond CF, and there is a good chance it will add povetacicept to that list by year-end. Povetacicept is an investigational medicine for IgA nephropathy for which Vertex has requested regulatory approval in the U.S.
Vertex should make clinical progress elsewhere, too. The company's pipeline also includes inaxaplin, a potential medicine for APOL-1-mediated kidney disease. It boasts additional assets in phase 2 and phase 3 clinical trials, too. That's in addition to its rock-solid CF portfolio that still has a solid growth runway.
A table-pounding buy Vertex Pharmaceuticals' revenue growth has slowed in recent years as it has achieved deeper penetration within its core CF market.
VRTX Revenue (Quarterly) data by YCharts
But top-line growth should jump as Journavx and Casgevy start generating more revenue (the latter recently earned an important label expansion), and it launches brand-new medicines across several therapeutic areas. There is always the risk of clinical and regulatory setbacks.
And some other pharmaceutical company might still launch competing CF therapies. But Vertex now has a large and diversified pipeline that helps mitigate these risks. Even the occasional clinical trial failure (and Vertex has experienced several in recent years) shouldn't be catastrophic for its prospects. For all those reasons, Vertex is also among my highest-conviction holdings. Long-term investors should seriously consider purchasing this stock.
The biotech industry is experiencing a strong rebound in 2026 after lagging the market in recent years. Based on several ongoing developments -- including breakthroughs in oncology and chronic weight management -- we may see a sustained run from the industry over the next few years. Even if we don't, several individual biotech companies look like strong medium-term options right now, including Vertex Pharmaceuticals (VRTX -2.25%) and Regeneron (REGN -1.88%). There is a lot to like about both of these drugmakers, but which one is the better buy? Let's find out.
Image source: The Motley Fool.
Vertex's core area is the backbone of a healthy business Vertex Pharmaceuticals doesn't have a long list of products like many of its similarly sized peers in the biotech industry. That's because it doesn't need to. The company famously dominates the market for cystic fibrosis (CF) drugs, a rare disease that causes difficulty breathing and recurrent infections.
Vertex makes consistent revenue and earnings thanks to its portfolio in this field. There is always the risk that another drugmaker will launch competing medicines and challenger Vertex. But so far, no one has been able to. Sionna Therapeutics (SION +5.93%), a small-cap biotech, recently added yet another name to the long list of candidates that have tried -- and failed -- to challenge Vertex's core franchise.
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Here's the best part. Vertex Pharmaceuticals won't lose patent exclusivity for its most important CF products until the late 2030s. In the meantime, the company is diversifying its lineup. It has earned approval for Journavx, a non-opioid medicine for acute pain, and Casgevy, a gene-editing therapy for two rare diseases.
It should also earn approval for povetacicept, a drug for IgA nephropathy (a kidney disease), by the end of November. Further, Vertex has several promising mid and late-stage candidates. As the company continues to generate significant sales in its core area and launches new products, it could deliver solid returns.
Regeneron's rebound is in full swing Regeneron faced some challenges a couple of years ago due to biosimilar competition for Eylea, a medicine for several eye-related disorders that was one of its main growth drivers. However, the company has largely moved past that headwind thanks to a new, higher-dose (HD) version of Eylea that can be administered fewer times per year. The convenience of the new formulation is attracting many patients. Sales of the original Eylea are still dropping, but Eylea HD is making up for that.
Elsewhere, Regeneron's most important growth driver is Dupixent, a medicine for COPD and eczema that it co-markets with Sanofi (SNY -0.24%). This therapy continues to post solid sales growth. Although it could lose patent exclusivity in the U.S. in 2031, Regeneron and Sanofi plan to extend its patent life, notably by developing an HD version, just as Regeneron did with Eylea.
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Regeneron also has several attractive pipeline candidates. Perhaps the most important are in the weight loss area. Regeneron is developing olatorepatide, a dual GLP-1 and GIP agonist that posted excellent phase 3 clinical trial results in China. Regeneron also has a highly differentiated weight loss medicine it is developing to help patients maintain muscle mass while they lose weight on GLP-1 drugs. Since the weight-loss market is one of the fastest-growing segments in the industry, investors should closely monitor Regeneron's progress. Between the drugmaker's current approved portfolio and pipeline, the future looks bright.
My view is that Vertex Pharmaceuticals is the better buy between the two, even though Regeneron typically generates higher revenue. Here's why.
VRTX Revenue (Quarterly) data by YCharts
First, Vertex edges Regeneron when we consider margins and free cash flow.
VRTX Gross Profit Margin (Quarterly) data by YCharts
Second, Vertex's core business has a much stronger competitive advantage. It has been defending its lead in the CF market for years, is still basically the only game in town, and benefits from substantial pricing power as a result. Dupixent is also a strong performer, but it operates in a much more competitive space, as does Eylea.
Third, although Regeneron's weight-loss candidates look promising, a clinical setback will significantly depress the stock price. And the company's strategy over the next decade also depends a lot on its ability to defend its Dupixent empire, which will be challenging.
Of note, even with Eylea HD's success, Regeneron faces stiff competition in this niche from Vabysmo, a medicine with overlapping indications and a friendlier dosing schedule than the original Eylea. Similarly, breakthroughs in immunology could pose a major challenge to Regeneron's long-term plans, even if it manages to extend Dupixent's patent life.
Meanwhile, Vertex's diversification plans are well underway, and it should make substantial progress over the next couple of years. Vertex isn't going after the weight-loss market (at least not yet). Instead, it is mostly targeting smaller areas with high unmet needs, where it will face little competition. Its success in the CF market shows the potential of this strategy. That's another reason Vertex is a better option.
KING OF PRUSSIA, Pa., Sept. 03, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX), the Decision-to-Defense™ global indirect tax and compliance company, today announced that Chris Young, President and Chief Executive Officer, and John Schwab, Chief Financial Officer, will participate in a fireside chat at the Goldman Sachs Communacopia + Technology Conference on Wednesday, September 9, 2026 at 1:05 PM Pacific Time.
A live webcast and replay of the presentation will be available on Vertex’s investor relations website at ir.vertex.com.
About Vertex
Vertex is the Decision-to-Defense™ global indirect tax and compliance company. Vertex helps enterprises bring control to indirect tax and compliance across the full transaction lifecycle — from tax determination and e-invoicing through reporting, filing, and audit defense — to make outcomes easier to prove and improve over time. Trusted by more than 60% of the Fortune 500, Vertex combines decades of tax expertise, deep global tax and compliance knowledge, and embedded integrations to help organizations operate globally with confidence. With headquarters in North America and offices in South America and Europe, Vertex's purpose is to ensure businesses and communities thrive through trusted transactions.
For more information, visit www.vertexinc.com or follow us on X and LinkedIn; or subscribe on YouTube.
Investor Relations contact:
Joe Crivelli
Vertex, Inc. [email protected]
BOSTON--(BUSINESS WIRE)--Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today announced the successful completion of the acquisition of Crinetics Pharmaceuticals, Inc. (Nasdaq: CRNX), a global pharmaceutical company focused on the discovery, development and commercialization of novel therapeutics for endocrine diseases. Vertex also announced the expansion of its executive leadership team, in support of the Company's continued growth and diversification. Completion of Acquisition of Crinetic.
Key Takeaways Vertex Pharmaceuticals' stock gained 15.4% in a month after strong results and higher 2026 guidance.Alyftrek is boosting CF sales, while Journavx and Casgevy are gaining traction as non-CF products.Povetacicept and other renal candidates could diversify revenues, with potential approvals in 2026 and 2027. Vertex Pharmaceuticals Incorporated (VRTX - Free Report) stock has risen 15.4% in a month, driven mainly by strong second-quarter results, higher 2026 guidance, growing confidence in its post-cystic fibrosis (CF) growth story and renewed optimism around its renal pipeline.
Vertex reported second-quarter revenues of $3.33 billion, up 12% year over year, and raised its full-year revenue outlook to $13.1-$13.2 billion from $12.95-$13.1 billion previously. Earnings of $4.73 per share rose around 5% year over year.
Let's take a closer look at these factors to assess the key drivers behind VRTX's recent rally and determine how investors should approach the stock after its strong price gain.
Consistent Rise in VRTX’s CF Product SalesVertex holds a leadership position in the CF market. With its five CF medicines, Vertex can treat nearly 95% of all people living with CF in core markets. Demand for its CF therapies continues to grow, as the company expands access globally and wins approvals in younger patient populations. Meanwhile, Vertex does not face any near-term headwinds from LOE or increased competition for its CF therapies.
Its CF products generated revenues of $6.1 billion in the first half of 2026, up 8.4% year over year, driven by Trikafta/Kaftrio as well as increasing contribution from Alyftrek, a next-in-class triple combination regimen and Vertex’s fifth and newest CF medicine.
Alyftrek continues to outperform expectations and generated sales worth $573.6 million in the second quarter, up 35% on a sequential basis. The rollout of Alyftrek in the United States and Europe is progressing well across all patient groups. The drug surpassed $1 billion in cumulative global revenues in the first half of 2026. Alyftrek’s once-daily dosing and improved sweat chloride profile continue to resonate with patients and doctors.
Vertex is also conducting studies to expand the labels of Alyftrek and Trikafta to additional mutations as well as to younger patients. Vertex recently began global regulatory filings for Alyftrek in children with cystic fibrosis aged 2 to 5 years.
Vertex expects incremental patients from the label expansions for Alyftrek and Trikafta, along with launches of Alyftrek in additional geographies and for treating younger patients, to drive CF growth through the rest of the year.
VRTX’s New Non-CF Drugs Show Strong Growth PotentialThe uptake of Vertex’s newly launched non-CF products, Journavx and Casgevy, was slower than expected in 2025. However, their sales are gradually picking up in 2026.
Journavx, a novel non-opioid pain medicine (suzetrigine), approved last year, has drawn significant investor attention because of the large unmet need for safer pain therapies amid the opioid crisis. Though Journavx’s sales have been slow since launch, its launch metrics and early reimbursement progress look positive. Vertex expects both sales and prescriptions to more than triple in 2026 versus 2025, reflecting the drug’s expanding market access and growing adoption. Journavx generated $49.6 million in sales in the second quarter, up 71% on a sequential basis, backed by strong underlying prescription growth.
Vertex and partner CRISPR Therapeutics’ (CRSP - Free Report) one-shot gene therapy, Casgevy, was approved for two blood disorders, sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT), in multiple regions in late 2023/early 2024. Vertex leads the global development and commercialization of Casgevy under the terms of the 2021 agreement with support from CRISPR Therapeutics.
Casgevy’s sales were $76.4 million in the second quarter, up 78% on a sequential basis and 151% on a year-over-year basis due to an increase in patient infusions. Casgevy recorded more than 100 patient initiations in the second quarter as the launch continues to progress. First-half 2026 infusions have already exceeded the total for 2025, supported by improved reimbursement and growing patient uptake across key markets. Vertex is also making rapid progress in the drug’s access and reimbursement. In July, the FDA approved Casgevy for expanded use in pediatric patients 2 years and older with TDT and SCD.
The company expects non-CF products to generate revenues of $500 million plus in 2026, representing year-over-year growth of around 185%, driven by growing Casgevy infusions and a meaningful ramp in Journavx prescriptions and revenues.
Vertex’s Expanding Renal Pipeline Could Diversify GrowthWhile Vertex’s main focus is on the development and strengthening of its CF franchise, the company also has a rapidly advancing mid - to late-stage pipeline in other disease areas beyond CF, like acute and neuropathic pain, APOL1-mediated kidney disease (AMKD), IgA nephropathy (IgAN), primary membranous nephropathy (pMN) and autosomal dominant polycystic kidney disease (ADPKD).
Many of these candidates represent multibillion-dollar opportunities. Many of these programs are in pivotal development, setting the stage for several potential regulatory filings in 2026 and early 2027, and potential new drug approvals in a couple of years.
Vertex’s candidates for kidney diseases are capturing investor attention. In kidney diseases, key pipeline candidates are VX-407 for ADPKD, inaxaplin for AMKD and povetacicept for IgAN and pMN. It is believed that povetacicept and inaxaplin represent significant commercial opportunities.
Povetacicept was added to Vertex’s portfolio from the Alpine acquisition in 2024. Vertex believes povetacicept has pipeline-in-a-product potential for B-cell-mediated diseases. Povetacicept is designed to target two proteins, namely BAFF and APRIL, which are jointly responsible for the cause of multiple serious autoimmune diseases. In June 2026, the FDA accepted the regulatory filing seeking approval for povetacicept for IgAN. A final decision from the FDA is expected on Nov. 30, 2026. If approved, povetacicept would become Vertex's first commercialized nephrology product. Positive commercial progress of a competitor, Otsuka's IgAN therapy Voyxact, launched in 2025, has increased investor confidence in the IgAN market’s commercial opportunities.
Vertex is also conducting a pivotal phase II/III study of povetacicept for a second potential renal indication, pMN. Vertex is also conducting a phase II study on povetacicept for the treatment of gMG.
Vertex expects its kidney portfolio to become a significant growth driver over the next several years and diversify the company’s revenue streams.
However, Vertex has faced regular pipeline setbacks. In 2026, Vertex ended the phase I/II clinical study on mRNA therapeutic VX-522 in CF, after observing persistent tolerability issues in the study. Vertex was developing VX-522 in partnership with Moderna (MRNA - Free Report) .
VRTX’s Price, Valuation and EstimatesVertex stock has risen 22.0% so far this year, outperforming the industry’s 17.9% growth.
VRTX Stock Outperforms IndustryImage Source: Zacks Investment Research
From a valuation standpoint, Vertex is slightly expensive. Going by the price/earnings ratio, the company’s shares currently trade at 27.52 forward earnings, higher than 19.44 for the industry. The stock is also trading above its five-year mean of 25.23.
VRTX Stock ValuationImage Source: Zacks Investment Research
The Zacks Consensus Estimate for 2026 earnings has declined from $19.17 per share to $19.01 over the past 30 days, while that for 2027 has deteriorated from $20.97 per share to $20.66 per share over the same time frame.
VRTX Estimate MovementImage Source: Zacks Investment Research
Stay Invested in VRTX StockThe company has its share of headwinds like heavy dependence on the CF franchise, regular pipeline setbacks, intensifying competition as well as the risky nature of its non-CF pipeline programs.
However, Vertex dominates the CF market with drugs like Trikafta/Alyftrek and boasts a breakthrough non-CF pipeline. Vertex’s investment case has strengthened materially because the company is gradually transitioning from being predominantly a CF story toward a multi-pillar growth company.
In July 2026, Vertex agreed to acquire Crinetics Pharmaceuticals for about $10 billion, gaining Palsonify, its once-daily oral treatment for acromegaly. The acquisition will further diversify Vertex’s portfolio, adding rare endocrine diseases, which have high unmet need, as its fifth pillar. Vertex believes that Crinetics’ two lead assets, Palsonify and lead pipeline candidate atumelnant, together represent a peak sales opportunity of about $5 billion.
We believe Vertex is a good stock to have in one’s portfolio, considering its strong overall financial performance and robust pipeline progress. Vertex faces minimal competition in the CF franchise, which gives it pricing power. Vertex expects that both Casgevy and Journavx can become multibillion-dollar products in the long term. Long-term investors may retain this Zacks Rank #3 (Hold) stock for now. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BOSTON--(BUSINESS WIRE)--Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today announced management participation in four upcoming investor conferences. Susie Lisa, Senior Vice President of Investor Relations and Manisha Pai, Executive Director of Investor Relations, will participate in a fireside chat at the Wells Fargo 21st Annual Healthcare Conference on Wednesday, September 9, 2026, at 4:30 p.m. EDT. Susie Lisa and Manisha Pai will also participate in a fireside chat at the 2026 Cantor G.
Explore the exciting world of Vertex Pharmaceuticals (VRTX +1.44%) with our contributing expert analysts in this Motley Fool Scoreboard episode. Check out the video below to gain valuable insights into market trends and potential investment opportunities!
*Stock prices used were the prices of June 17, 2026. The video was published on Aug. 21, 2026.
Anand Chokkavelu has positions in Vertex Pharmaceuticals. Dan Caplinger has no position in any of the stocks mentioned. Rick Munarriz has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Vertex Pharmaceuticals. The Motley Fool has a disclosure policy.
Vertex Pharmaceuticals (VRTX -2.14%) has dominated the cystic fibrosis (CF) drug market -- where it has a virtual monopoly -- since it launched its first medicine in this field in 2012. As a result, it has performed extremely well over this period. However, the bears argue that because the biotech generates almost all of its sales from this therapeutic area, its business would crumble once it faces competition. And many thought that day was getting closer, as Sionna Therapeutics (SION -11.68%) seemed to be developing potentially better CF drugs. But recent developments have proved once again why Vertex won't easily lose its lead in its core market. Here's what investors need to know.
Image source: The Motley Fool.
Sionna's leading candidate flops First, some background on CF. The disease is caused by mutations in the CFTR gene, which produces a defective CFTR protein. Vertex Pharmaceuticals' medicines can significantly improve CFTR function, but even with these drugs, most patients don't achieve normal CFTR protein function. Sionna Therapeutics is trying to change that. The company's medicines could stabilize CFTR function in most patients, at least that's what the company argues. But Sionna recently hit a roadblock.
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The company reported phase 2 clinical trial results for one of its leading candidates, SION-719. In this study, SION-719 was being investigated as a potential add-on treatment to Vertex's Trikafta. Unfortunately, SION-719 did not achieve its activity endpoint in the trial, sending Sionna Therapeutics' stock down by about 90% overnight. This episode made at least some Wall Street analysts much more bullish on Vertex's outlook.
What this means for Vertex's prospects Sionna Therapeutics isn't giving up. The company has other pipeline candidates it is still working on. However, this setback once again highlights how challenging it is to develop novel, effective therapies for CF. Sionna Therapeutics isn't the first to fail. AbbVie (ABBV -1.56%), a pharmaceutical leader, abandoned its CF goals several years ago after multiple failures. It seems Vertex Pharmaceuticals is the only one that has cracked the code. After launching its first CF product in 2012, it earned approval for several others.
The company's latest launch in this field, Alyftrek, can be taken once daily -- versus twice a day for the one before that. And Vertex's Trikafta and Alyftrek can now target about 95% of CF patients, whereas some of the therapies it had launched before targeted a much smaller subset of this population.
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In other words, Vertex Pharmaceuticals has significantly improved its CF portfolio over time, thereby expanding its addressable market and achieving better patient outcomes. The company has had setbacks in this field, too. But it has had enough successes to continue launching new drugs and post strong financial results. There are still other biotech companies developing potential competing CF medicines, but don't hold your breath for anyone to successfully challenge Vertex anytime soon.
So, the company could continue to deliver consistent financial results from this business until its most important drugs lose patent exclusivity in the late 2030s. Vertex Pharmaceuticals has also launched newer medicines in other fields. For instance, the company's Casgevy, a gene editing medicine for two rare blood diseases -- sickle cell disease (SCD) and transfusion-dependent beta-thalassemia (TDT) -- first earned approval in 2023. Vertex Pharmaceuticals developed this drug with CRISPR Therapeutics (CRSP -2.83%). Casgevy hasn't generated much in sales yet, partly because gene-editing therapies are expensive and complicated to administer.
However, Vertex has ramped up third-party coverage for it, and it recently earned a label expansion for Casgevy for patients as young as two. This regulatory win meaningfully expands the medicine's addressable market by allowing it to treat patients before they have had substantial health problems due to TDT and SCD. Vertex's Journavx, another relatively new launch, could also eventually be highly successful as it gives patients a non-opioid option to treat acute pain. Lastly, Vertex should earn additional brand-new approvals in the next few years, further improving its portfolio. The company's dominance in CF and diversification efforts make the stock an attractive pick.
The past couple of years have been volatile for Vertex Pharmaceuticals (VRTX -2.07%). Between clinical setbacks and worse-than-expected financial results, the company has sometimes disappointed investors. However, Vertex has always bounced back, and it recently hit a new all-time high, though it has since receded from that. Even so, the future is bright for the drugmaker. Here is why there is plenty more upside ahead.
Image source: The Motley Fool.
The core business is still strong
Vertex Pharmaceuticals is best known for developing medicines that treat cystic fibrosis (CF), an area where it has no meaningful competition. Some investors worry that this might change soon, as several drugmakers are looking to launch competing CF medicines. Sionna Therapeutics, a much smaller biotech company, has an entire pipeline dedicated to that. Other companies are also on this trail, including Krystal Biotech.
However, for now, Vertex continues to dominate this field and generate significant revenue and earnings. In the second quarter, the company's sales came in at $3.33 billion, up 12% year over year. Vertex's earnings per share were $4.31, about 8% higher than the year-ago period. Potential competition in the CF area poses a significant risk to the company, given that CF revenue totaled $3.2 billion during the period. But it's not the first time that Vertex has faced this risk. Many previous attempts to challenge the company in CF have failed.
Several years ago, AbbVie (ABBV -0.54%), a pharmaceutical giant, gave up on challenging Vertex Pharmaceuticals after its leading CF programs flopped in clinical trials.
We can now add one of Sionna's leading candidates, which recently failed a mid-stage study, to that list. Meanwhile, Vertex has launched new medicines outside its core area in recent years. The company expects $500 million in non-CF revenue in 2026 -- that's not that significant, but Vertex's non-CF business should start ramping up. Vertex's Casgevy, a gene editing medicine for a pair of rare blood-related conditions, recently earned a label expansion and is now indicated to treat children as young as two. Journavx, the company's non-opioid treatment for acute pain, could also earn label expansions.
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Vertex's diversification efforts
Vertex Pharmaceuticals is racing toward the approval of povetacicept, an investigational medicine for IgA nephropathy, a kidney disease. The medicine completed a phase 3 study earlier this year and could get the nod from U.S. regulators by the end of November. Povetacicept may earn label expansions beyond that, too. The therapy could, eventually, meaningfully contribute to Vertex's financial results. Analysts estimate that it will generate well over $1 billion in annual sales at its peak.
Vertex has other promising pipeline candidates, including inaxaplin, which it is developing for APOL1-mediated kidney disease. Furthermore, the company has recently expanded its pipeline. Last month, Vertex Pharmaceuticals announced the acquisition of Crinetics Pharmaceuticals (CRNX +0.31%), a smaller biotech, for about $10 billion in cash. Crinetics' portfolio includes Palsonify, a medicine for acromegaly, a rare hormonal disease that can cause bones to get bigger, and may be life-threatening.
Crinetics also has promising pipeline candidates across other hormonal conditions. Vertex estimates that Crinetics' entire portfolio could generate $5 billion in peak sales. It may not be quite that successful, but Vertex Pharmaceuticals is casting a broad net, with multiple candidates across several therapeutic areas and clinical trial phases. The company's diversification efforts should eventually succeed, allowing it to mitigate the risk posed by another drugmaker's potential launch of CF medicines. So, the stock hasn't peaked yet.
Vertex could deliver solid returns over the next five years and beyond as its financial results improve, driven by new launches in CF and elsewhere. Investors should stick with the stock.
Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.
KING OF PRUSSIA, Pa., Aug. 13, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ:VERX) (“Vertex” or the “Company”), the Decision-to-Defense™ global indirect tax and compliance company, today released its 2026 Mid-Year U.S. Sales Tax Rates and Rules Report, revealing that the combined average U.S. sales tax rate climbed for the first time in four years to reach a 10-year high of 10.1881%.
Vertex Pharmaceuticals (VRTX +2.39%) has dominated the market for cystic fibrosis (CF) medicines since it earned approval for its first drug in this niche in 2012. To this day, most of the company's revenue comes from its CF franchise. In the second quarter, Vertex posted $3.33 billion in revenue, representing a 12% year-over-year increase. CF-related sales were $3.2 billion. If Vertex faces stiff competition in this field, the company will lose some of its pricing power, resulting in significantly lower revenue and earnings. And many analysts fear that may happen soon, given the progress Sionna Therapeutics (SION +2.83%), a clinical-stage biotech, is making. Should investors be worried about Vertex Pharmaceuticals' prospects?
Image source: The Motley Fool.
David vs. Goliath Vertex Pharmaceuticals is worth almost $123 billion, compared to Sionna's $2.2 billion. But the smaller biotech has made it its mission to disrupt the CF drug market. Sionna focuses entirely on this area. To understand why many people are taking Sionna seriously, let's first review what causes CF. A misfolded CFTR protein -- which normally helps keep mucus in the lungs thin -- is behind this rare disease. It leads to thick, sticky mucus that clogs the airways, disrupts breathing, and traps germs and bacteria, contributing to recurrent infections.
Vertex Pharmaceuticals' products work by significantly improving the shape and function of the CFTR protein, leading to much improved symptoms. However, the underlying genetic mutation remains. That's where Sionna Therapeutics comes in. The company argues that its approach could help restore the CFTR protein's normal function, something Vertex's medicines do not achieve for most people with CF. If Sionna Therapeutics can be successful, we are looking at a large addressable market. Vertex generates over $12 billion in annual revenue, and many CF patients will switch to Sionna's drugs if they are as effective as it claims. So, investors are right to be worried about Vertex's future.
Should you forget Vertex? Before selling Vertex's shares and putting your money in Sionna Therapeutics, there are several things to remember. First, this won't be the first time a company tries to challenge Vertex's dominance in CF. The list of drugmakers that have sought to dip their toes in this market even includes pharmaceutical giants like AbbVie. But so far, they have all failed, and Vertex remains the only game in town.
That's no guarantee that Sionna will also fall short, but developing CF medicines has proved incredibly challenging. That's an important factor to remember. Second, Sionna Therapeutics' most advanced programs are still in phase 2 studies. It will be a while before the company can prove in late-stage clinical trials that its approach is as effective as it claims. And that's if it gets that far. There is always the possibility that Sionna will experience clinical setbacks along the way.
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Third, Vertex Pharmaceuticals has worked hard to diversify its portfolio. Its success has been somewhat limited so far, in fairness. The company's approved lineup now features Casgevy, a gene editing medicine for two rare blood disorders, and Journavx, a treatment for acute pain. Neither is generating meaningful revenue yet, but their sales should ramp up over the next couple of years. Further, Vertex should earn approval for other candidates that may perform better.
The company submitted an application to U.S. regulators for povetacicept, an investigational drug for IgA nephropathy (a kidney disease). It could be approved by the end of November. Vertex boasts several other pipeline candidates that could make a dent in its financial results down the line. It recently announced the $10 billion acquisition of Crinetics Pharmaceuticals (CRNX -0.05%), which will add an approved product to its portfolio and a promising pipeline candidate being developed to treat a rare genetic condition called congenital adrenal hyperplasia.
This will help diversify Vertex's business. Besides, the company is still developing newer CF drugs. What does all this mean? Sionna Therapeutics' work is a risk to Vertex's future. However, the leader in the CF market remains so for now, boasts a deep pipeline, and should have a much broader, more diversified portfolio within a few years. Vertex Pharmaceuticals remains an attractive stock to buy and hold for the long term.
Growth stocks are attractive to many investors, as above-average financial growth helps these stocks easily grab the market's attention and produce exceptional returns. However, it isn't easy to find a great growth stock.
By their very nature, these stocks carry above-average risk and volatility. Moreover, if a company's growth story is over or nearing its end, betting on it could lead to significant loss.
However, the task of finding cutting-edge growth stocks is made easy with the help of the Zacks Growth Style Score (part of the Zacks Style Scores system), which looks beyond the traditional growth attributes to analyze a company's real growth prospects.
Vertex (VERX - Free Report) is on the list of such stocks currently recommended by our proprietary system. In addition to a favorable Growth Score, it carries a top Zacks Rank.
Studies have shown that stocks with the best growth features consistently outperform the market. And for stocks that have a combination of a Growth Score of A or B and a Zacks Rank #1 (Strong Buy) or 2 (Buy), returns are even better.
While there are numerous reasons why the stock of this company is a great growth pick right now, we have highlighted three of the most important factors below:
Earnings GrowthArguably nothing is more important than earnings growth, as surging profit levels is what most investors are after. And for growth investors, double-digit earnings growth is definitely preferable, and often an indication of strong prospects (and stock price gains) for the company under consideration.
While the historical EPS growth rate for Vertex is 31.2%, investors should actually focus on the projected growth. The company's EPS is expected to grow 27.1% this year, crushing the industry average, which calls for EPS growth of 23.9%.
Impressive Asset Utilization RatioAsset utilization ratio -- also known as sales-to-total-assets (S/TA) ratio -- is often overlooked by investors, but it is an important indicator in growth investing. This metric exhibits how efficiently a firm is utilizing its assets to generate sales.
Right now, Vertex has an S/TA ratio of 0.64, which means that the company gets $0.64 in sales for each dollar in assets. Comparing this to the industry average of 0.62, it can be said that the company is more efficient.
While the level of efficiency in generating sales matters a lot, so does the sales growth of a company. And Vertex is well positioned from a sales growth perspective too. The company's sales are expected to grow 10.5% this year versus the industry average of 8.1%.
Promising Earnings Estimate RevisionsSuperiority of a stock in terms of the metrics outlined above can be further validated by looking at the trend in earnings estimate revisions. A positive trend is of course favorable here. Empirical research shows that there is a strong correlation between trends in earnings estimate revisions and near-term stock price movements.
There have been upward revisions in current-year earnings estimates for Vertex. The Zacks Consensus Estimate for the current year has surged 4.2% over the past month.
Bottom LineWhile the overall earnings estimate revisions have made Vertex a Zacks Rank #2 stock, it has earned itself a Growth Score of A based on a number of factors, including the ones discussed above.
You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
This combination positions Vertex well for outperformance, so growth investors may want to bet on it.
A banner Tuesday for U.S. stocks was also a prosperous one for Vertex Pharmaceuticals' (VRTX +1.70%) shares. The company reported encouraging, if not spectacular, quarterly results, and investors bought into it sufficiently to push it to a nearly 2% gain that trading session.
A small dose of bullishness Vertex unveiled its second-quarter results after market close on Monday, hence the following day's mildly positive investor reaction.
Image source: Getty Images.
This wasn't due to erosion in the fundamentals. The pharmaceutical company's revenue was $3.33 billion, up 12% year over year on sales of the company's cystic fibrosis (CF) drugs, and its diversification into new disease areas.
Regarding geography, Vertex's U.S. sales rose by 11% to $2.06 billion; the company attributed this, again, to CF drugs, plus sales of the sickle-cell disease treatment Casgevy and the moderate-to-severe pain medication Journavx.
As for the bottom line, Vertex's net income, not under generally accepted accounting principles (non-GAAP, or adjusted), crept up by 3% to nearly $1.21 billion, or $4.73 per share.
The consensus analyst estimates were $3.22 billion in revenue and $4.72 per share for adjusted net income.
Vertex also raised its full-year 2026 guidance. It's now expecting revenue of $13.1 billion to $13.2 billion, up from the previous estimate of just under $13 billion to $13.1 billion. It did not provide a net income forecast.
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The Crinetics factor The big story with Vertex isn't its legacy business; it's the recent deal to acquire Crinetics Pharmaceuticals. In the second-quarter earnings release, Vertex said that its asset-to-be will give the company its fifth "pillar," i.e., therapeutic area, with Crinetics' focus on rare endocrine diseases.
"With this breadth of commercial and clinical opportunities, we look forward to bringing more medicines to more patients around the globe and in so doing, creating long-term value," Vertex quoted CEO Reshma Kewalramani as saying.
To me, the absorption of Crinetics will be the development to watch with Vertex. I think it was a smart and opportunistic deal that, while expensive at an enterprise value of $8.8 billion, could really give Vertex's business a lift if properly integrated.
KING OF PRUSSIA, Pa., Aug. 04, 2026 (GLOBE NEWSWIRE) -- Vertex Inc. (NASDAQ: VERX), the Decision-to-Defense™ global indirect tax and compliance company, today announced three additions to its leadership team to support its next phase of growth: Chatelle Lynch as Chief People Officer, Carlos Mercuriali as Senior Vice President and Regional Manager of Europe, and Bala Chandran as Chief Product and Technology Officer.
Vertex Inc (NASDAQ:VERX) reported upbeat earnings for the second quarter on Monday.
The company posted quarterly earnings of 20 cents per share which beat the analyst consensus estimate of 19 cents per share. The company reported quarterly sales of $203.970 million which beat the analyst consensus estimate of $202.296 million.
Vertex said it sees third-quarter sales of $208.000 million-$211.000 million, versus market estimates of $211.696 million.
Vertex shares fell 2% to $13.13 in pre-market trading.
These analysts made changes to their price targets on Vertex following earnings announcement.
Considering buying VERX stock? Here’s what analysts think:
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Vertex Pharmaceuticals is executing a pivotal transition year, evolving from a CF-dominated biotech to a multi-franchise growth platform. 2Q26 revenue rose 12% to $3.33 billion, with strong CF performance and early scaling of Casgevy and Journvax supporting raised FY26 guidance to $13.1–$13.2 billion. VRTX is aggressively reinvesting in pipeline and commercial launches, leveraging a $13.6 billion cash position and diversifying with the Crinetics acquisition.
Vertex (VERX - Free Report) came out with quarterly earnings of $0.2 per share, beating the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.15 per share a year ago. These figures are adjusted for non-recurring items.
This quarterly report represents an earnings surprise of +5.26%. A quarter ago, it was expected that this company would post earnings of $0.16 per share when it actually produced earnings of $0.17, delivering a surprise of +6.25%.
Over the last four quarters, the company has surpassed consensus EPS estimates two times.
Vertex, which belongs to the Zacks Internet - Software industry, posted revenues of $203.97 million for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 0.98%. This compares to year-ago revenues of $184.56 million. The company has topped consensus revenue estimates four times over the last four quarters.
The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call.
Vertex shares have lost about 35.4% since the beginning of the year versus the S&P 500's gain of 9.4%.
What's Next for Vertex?While Vertex has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock?
There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately.
Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions.
Ahead of this earnings release, the estimate revisions trend for Vertex was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here.
It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $0.21 on $211.19 million in revenues for the coming quarter and $0.79 on $827.05 million in revenues for the current fiscal year.
Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Internet - Software is currently in the bottom 44% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.
Arteris, Inc. (AIP - Free Report) , another stock in the same industry, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 6.
This company is expected to post quarterly loss of $0.05 per share in its upcoming report, which represents a year-over-year change of +54.6%. The consensus EPS estimate for the quarter has been revised 7.7% lower over the last 30 days to the current level.
Arteris, Inc.'s revenues are expected to be $23.45 million, up 42.1% from the year-ago quarter.
For the quarter ended June 2026, Vertex (VERX - Free Report) reported revenue of $203.97 million, up 10.5% over the same period last year. EPS came in at $0.20, compared to $0.15 in the year-ago quarter.
The reported revenue represents a surprise of +0.98% over the Zacks Consensus Estimate of $202 million. With the consensus EPS estimate being $0.19, the EPS surprise was +5.26%.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.
Here is how Vertex performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Annual Recurring Revenue: $703.4 million compared to the $699.88 million average estimate based on four analysts.Net Revenue Retention Rate: 105% versus the two-analyst average estimate of 105%.Revenues- Services: $29.22 million versus the four-analyst average estimate of $28.58 million. The reported number represents a year-over-year change of +9.4%.Revenues- Software subscriptions: $174.75 million versus the four-analyst average estimate of $173.47 million. The reported number represents a year-over-year change of +10.7%.View all Key Company Metrics for Vertex here>>>
Shares of Vertex have returned +0.5% over the past month versus the Zacks S&P 500 composite's +0.2% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
Vertex’s Crinetics Deal Balances Growth with Integration RiskVertex Pharmaceuticals NASDAQ: VRTX reported second-quarter 2026 revenue growth of 12% year over year to $3.3 billion, driven by continued growth in its cystic fibrosis franchise and rising contributions from newer products CASGEVY and JOURNAVX.
Chief Executive Officer and President Reshma Kewalramani said the company made progress across commercial operations, clinical development and regulatory activities during the quarter. Vertex raised its full-year revenue guidance to $13.1 billion to $13.2 billion, while maintaining its expectation that non-cystic-fibrosis products will generate at least $500 million in 2026 revenue.
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Cystic Fibrosis Franchise Continues to Expand CRISPR Therapeutics Gains After Earnings as Pipeline Hope GrowsGlobal cystic fibrosis revenue increased 11% from a year earlier, supported by uptake of ALYFTREK and continued performance from TRIKAFTA. Chief Commercial Officer Duncan McKechnie said ALYFTREK surpassed $1 billion in revenue during the first half of 2026.
In the U.S., ALYFTREK growth included patients new to therapy, patients returning to therapy and patients switching from TRIKAFTA. McKechnie said most ALYFTREK revenue continued to come from patients switching from TRIKAFTA. In Germany and the United Kingdom, more than one-third of eligible cystic fibrosis patients are now using ALYFTREK, according to the company.
How Royalty Pharma Prints Cash Without Biotech's Biggest RisksVertex has initiated global regulatory submissions for ALYFTREK in children ages 2 to 5 and is progressing submissions for TRIKAFTA in patients ages 1 to 2. The company expects data in the second half of 2026 from VX-828, its next-generation 3.0 CFTR modulator. Kewalramani said Vertex will advance future CF candidates only if they show potential to surpass ALYFTREK on measures including the number of patients reaching sweat chloride levels below 30 millimoles per liter, along with once-daily dosing and favorable drug-interaction properties.
CASGEVY and JOURNAVX Gain Momentum CASGEVY generated $76 million in second-quarter revenue, representing approximately 75% sequential growth and more than 150% growth from the prior year, McKechnie said. The company reported more CASGEVY infusions in the first half of 2026 than in all of 2025 and said the second quarter marked the third consecutive quarter with more than 100 patient initiations.
The FDA approved CASGEVY for children as young as 2 with sickle cell disease and beta thalassemia last month. Vertex said the approval came 53 days after filing and that its first pediatric patient had initiated therapy and completed cell collection. The company also cited reimbursement progress in Germany, the United Kingdom, Italy and the Middle East.
JOURNAVX, Vertex’s treatment for moderate-to-severe acute pain, recorded $50 million in second-quarter revenue, up about 70% sequentially. Prescriptions rose approximately 45% sequentially to roughly 535,000 in the quarter, bringing first-half prescriptions to more than 900,000.
McKechnie said revenue benefited from channel inventory build following a first-quarter drawdown, adding that quarterly revenue may remain affected by wholesaler and retail buying patterns. The company said JOURNAVX is now included on about 1,400 hospital pathways and 130 integrated delivery network pathways. Vertex added approximately 18,000 healthcare professional prescribers during the quarter.
JOURNAVX has coverage for approximately 260 million of a potential 320 million lives, including 180 million lives with unrestricted access, Vertex said. The company expects gross-to-net deductions to normalize in the first half of 2027 as physician education and payer access improve.
Renal Pipeline and Povi Launch Preparation Vertex is preparing for a potential U.S. launch of povetacicept, or Povi, in immunoglobulin A nephropathy. The FDA accepted the biologics license application and set a Nov. 30 PDUFA date. Kewalramani said the company plans to present the full interim data set from the RAINIER Phase III trial at a fall medical conference.
Vertex has completed hiring its renal field force, with about 90% of representatives having nephrology experience, according to McKechnie. The company expects Povi to compete based on its efficacy profile, tolerability and once-monthly, low-volume at-home autoinjector administration.
In primary membranous nephropathy, the independent data monitoring committee selected an 80-milligram subcutaneous dose administered every four weeks for the Phase III portion of the OLYMPUS study. Vertex said the committee based the decision on efficacy data involving PLA2R, a disease biomarker, and safety data.
Vertex also expects results this fall from the AMPLIFIED Phase II basket study of inaxaplin in expanded populations with APOL1-mediated kidney disease. Enrollment in the pivotal AMPLITUDE study is expected to finish by year-end, with an interim analysis planned for early 2027. The company said the potential accelerated-approval filing pathway for AMPLITUDE would be based on the one-year estimated glomerular filtration rate endpoint.
Diabetes Program and Crinetics Deal Vertex resumed dosing in its zimislecel Phase I/II/III type 1 diabetes study following a voluntary pause for manufacturing analysis. The FDA also cleared the investigational new drug application for VX-017, a type O, or universal-donor, islet-cell therapy designed for patients of all blood types.
Kewalramani said VX-017 could expand the addressable market from about 60,000 to about 120,000 patients in the U.S. and Europe. Vertex expects to begin the VX-017 Phase I/II study in the near term and plans to provide updated type 1 diabetes development and commercialization plans later this year.
The company also expects its acquisition of Crinetics Pharmaceuticals to close in the third quarter. Vertex agreed to acquire Crinetics for approximately $8.8 billion net of cash acquired and expects to fund the transaction through cash and a $4.5 billion term loan. Vertex said the transaction is expected to become accretive to non-GAAP operating income in 2029 and would establish rare endocrine diseases as its fifth commercial pillar.
Chief Operating Officer and Chief Financial Officer Charles Wagner said Vertex ended the quarter with approximately $13.6 billion in cash and investments. Second-quarter non-GAAP earnings per share rose 5% year over year to $4.73. The company reiterated combined non-GAAP operating expense guidance of $5.65 billion to $5.75 billion, while now expecting to land at the high end of that range.
About Vertex Pharmaceuticals (NASDAQ:VRTX)Vertex Pharmaceuticals Inc is a Boston-based biotechnology company focused on the discovery, development and commercialization of therapies for serious diseases. Founded in 1989, Vertex built its reputation on research-driven drug development and is best known for its work in cystic fibrosis (CF), where its portfolio of small-molecule CFTR modulators transformed standards of care for many people with the disease. The company operates research and development, manufacturing and commercial organizations and serves patients and healthcare systems in multiple international markets.
Vertex's marketed products center on CFTR modulators that target the underlying cause of cystic fibrosis rather than just treating symptoms.
This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected].
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Tax Software Specialist Vertex In Buy Zone After Base BreakoutVertex NASDAQ: VERX reported second-quarter revenue at the high end of its guidance range and raised its full-year adjusted EBITDA outlook, as the tax technology company cited cost discipline, stable customer retention and growing demand for e-invoicing solutions.
Revenue rose 10.5% year over year to $204 million, while adjusted EBITDA increased 33% to $51 million. Adjusted EBITDA margin expanded by more than four percentage points from a year earlier to 25%, according to President and Chief Executive Officer Chris Young.
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3 Small Financial Software Makers Showing Strong Chart Action “Our second quarter results demonstrate two key points,” Young said. “First, the durability of the Vertex business. Second, we are beginning to translate greater operating focus and cost discipline into meaningful earnings leverage.”
Retention Remains Stable, While Expansion Needs Improvement Vertex reported gross revenue retention of 95% and net revenue retention of 105% for the second consecutive quarter. Young said those results reflect a durable installed base and the company’s position in mission-critical tax and compliance workflows.
Vertex Should Benefit From a Renewed Focus on GlobalizationHowever, he also acknowledged that expansion within the installed base and new-logo performance “are not yet at the level we expect.” Cloud conversions have moved more slowly than anticipated this year, affecting the company’s growth outlook for cloud revenue.
Chief Financial Officer John Schwab said the slower cloud-conversion pace is primarily a timing issue rather than a loss of revenue or customers. Customers are continuing to use Vertex products in subscription or on-premise deployments, but are taking longer to move workloads to the cloud.
Young said customers are increasingly operating in mixed environments, with some Vertex products deployed in the cloud and others remaining in legacy systems. He said customer IT priorities, ERP migration timing and internal planning cycles have affected the pace of those conversions.
E-Invoicing Activity Builds Ahead of European Mandates E-invoicing was among Vertex’s strongest areas of execution during the quarter, management said. Demand has been supported by approaching mandates in France and Germany, as well as broader customer interest in managing global compliance requirements.
Young said the company recorded several six-figure enterprise e-invoicing wins during the quarter, including a mid-six-figure expansion with an existing customer related to compliance requirements in France and Finland. Vertex is aligning its country roadmap with customer demand and integrating capabilities across Vertex, Ecosio and Brinta.
Management expects e-invoicing activity to contribute to cloud growth as customers prepare for mandates. Schwab said e-invoicing adoption should begin to affect annual recurring revenue in the third quarter, with a greater revenue impact expected in the fourth quarter as transaction volumes ramp.
While mandates remain the primary catalyst for purchases, Young said some multinational customers are beginning to consider broader consolidation of e-invoicing providers as country-level requirements proliferate. Vertex expects that customers initially adopting its products for one country may expand to additional countries after successful implementations.
AI Efforts Focus on Productivity and Future Product Value Vertex said it is using artificial intelligence both to improve internal operations and to develop customer-facing tax and compliance capabilities. Young said AI-attributable revenue is not yet material, but the company is measuring progress through operational improvements, customer usage and the development of a commercial pipeline.
Active use of core AI tools across Vertex increased to 89% from 68% in January, according to management. The company said internal measures indicate a 34% improvement in engineering efficiency across most teams, while pull-request merge rates increased 30% from the January baseline.
Vertex also cited AI-driven improvements in customer delivery. AI-supported generation of e-invoicing business rules has reduced onboarding time by about 50% in applicable workflows, Young said. A country-expansion agent enabled the company to onboard roughly 3,500 rules across more than 50 formats, about 70% faster than the prior process.
The company is developing an AI-first connected tax platform and said it has seen early adoption of its Smart Categorization technology. Young said the near-term emphasis is on validating products with customers, moving appropriate capabilities into production and establishing commercial models. He expects more detail on product roadmap developments at Vertex Exchange in the fourth quarter, while characterizing 2026 primarily as a build year for AI products and 2027 as a potential commercial ramp year.
Guidance and Capital Allocation For the third quarter, Vertex forecast revenue of $208 million to $211 million and adjusted EBITDA of $55 million to $57 million. The company narrowed its full-year revenue outlook to $825 million to $830 million and raised its adjusted EBITDA guidance to $206 million to $210 million, from its prior range of $202 million to $208 million.
Vertex now expects full-year cloud revenue growth of 18%. Schwab said management incorporated the slower cloud-conversion trend, e-invoicing activity and longer sales cycles into its outlook.
Subscription software revenue increased 10.7% in the quarter, services revenue rose 9.4%, and annual recurring revenue grew 10.5%. Cloud revenue increased 17.9%, bringing year-to-date cloud revenue growth to 19.3%. Average annual revenue per direct customer rose 9.2% year over year to $142,997, while scaled customer growth was 8%.
Free cash flow was $2.7 million, affected by severance and consulting costs related to the company’s value creation plan. On a pro forma basis excluding those costs, free cash flow was $13.2 million, representing a 6.5% margin.
Vertex repurchased $26.5 million of shares during the quarter at an average price of $13.17. Since launching its $150 million repurchase program in November, the company has repurchased $56.6 million in shares, leaving $93.4 million available under the authorization.
About Vertex (NASDAQ:VERX)Vertex Energy, Inc NASDAQ: VERX is a specialty refiner and marketer of transportation fuels and petrochemical feedstocks in the United States. The company collects and processes a variety of waste petroleum products, including used motor oil and industrial lubricants, which it converts into ultra-low-sulfur diesel, asphalt, and other refined products. By leveraging proprietary re-refining technologies and strategic feedstock sourcing, Vertex Energy aims to deliver cost-effective, lower-carbon fuel solutions to wholesale and retail customers across the country.
Headquartered in Houston, Texas, Vertex operates a network of refining and blending facilities in key regions, including the Central, Northeast and Mid-Atlantic markets.
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BOSTON--(BUSINESS WIRE)--Vertex Pharmaceuticals Incorporated (Nasdaq: VRTX) today reported consolidated financial results for the second quarter ended June 30, 2026, and updated its full year 2026 revenue guidance. “Vertex delivered excellent second quarter results, expanding our leadership in cystic fibrosis; delivering strong revenue growth in sickle cell disease, beta thalassemia, and acute pain; and with the pending acquisition of Crinetics, adding rare endocrine diseases as our fifth pilla.
KING OF PRUSSIA, Pa., Aug. 03, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ: VERX) (“Vertex” or the “Company”), the Decision-to-Defense™ global indirect tax and compliance company, today announced financial results for its second quarter ended June 30, 2026.
“Vertex delivered solid second-quarter results, with revenue at the high end of our guidance and adjusted EBITDA exceeding our expectations,” said Christopher Young, President and Chief Executive Officer. “The quarter demonstrated the durability of our business and the earnings leverage we can generate through greater operating focus and discipline. Customer retention remained stable, and e-invoicing momentum improved as enterprises prepare for expanding global mandates and seek more comprehensive compliance solutions.”
“We are making tangible progress in the transformation of Vertex. Our “AI-First” strategy is beginning to improve the speed and efficiency of selected engineering and customer-delivery workflows, and we have strengthened our leadership team to accelerate product innovation, operational execution, and growth. While we have more work to do, we enter the second half with a stronger operating foundation and clear opportunities to create additional value for customers and stockholders.”
Second Quarter 2026 Financial Results
Total revenues of $204.0 million, up 10.5% year-over-year.Software subscription revenues of $174.8 million, up 10.7% year-over-year.Cloud revenues of $101.7 million, up 17.9% year-over-year.Annual Recurring Revenue (“ARR”) was $703.4 million, up 10.5% year-over-year.Average Annual Revenue per direct customer (“AARPC”) was $142,997 at June 30, 2026, compared to $130,934 at June 30, 2025, and $140,464 at March 31, 2026.Net Revenue Retention (“NRR”) was 105%, compared to 108% at June 30, 2025, and 105% at March 31, 2026.Gross Revenue Retention (“GRR”) was 95%, consistent with June 30, 2025 and March 31, 2026.Loss from operations of $4.4 million, compared to $3.9 million for the same period in the prior year.Non-GAAP operating income of $44.3 million, compared to $32.2 million for the same period in the prior year.Net income (loss) of $9.0 million, compared to $(1.0) million for the same period in the prior year.Net income per basic and diluted Class A and Class B shares of $0.06, compared to net loss per basic and diluted Class A and Class B shares of $0.01 for the same period in the prior year.Non-GAAP net income of $33.3 million and Non-GAAP diluted earnings per share (“EPS”) of $0.20.Adjusted EBITDA of $51.0 million, compared to $38.4 million for the same period in the prior year. Adjusted EBITDA margin of 25.0%, compared to 20.8% for the same period in the prior year. Definitions of certain key business metrics and the non-GAAP financial measures used in this press release and reconciliations of such measures to the most directly comparable GAAP financial measures are included below under the headings “Definitions of Certain Key Business Metrics” and “Use and Reconciliation of Non-GAAP Financial Measures.”
Financial Outlook
For the third quarter of 2026, the Company currently expects:
Revenues of $208.0 million to $211.0 million; andAdjusted EBITDA of $55.0 million to $57.0 million. For the full-year 2026, the Company currently expects:
Revenues of $825.0 million to $830.0 million;
Cloud revenue growth of 18%; and
Adjusted EBITDA of $206.0 million to $210.0 million. John Schwab, Chief Financial Officer added, “Our second quarter performance reflects solid execution against our strategic and financial objectives. The consistency of our first-half results and the strength of our operating model increased our confidence in the full year, allowing us to narrow our revenue guidance range while raising our adjusted EBITDA outlook. We continue to focus on balancing growth investments with operating discipline, which we expect to result in expanding profitability and stronger cash generation in the third and fourth quarters.”
The Company is unable to reconcile forward-looking Adjusted EBITDA to net income (loss), the most directly comparable GAAP financial measure, without unreasonable efforts because the Company is currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact net income (loss) for these periods but would not impact Adjusted EBITDA. Such items may include stock-based compensation expense, depreciation and amortization of capitalized software costs and acquired intangible assets, severance expense, acquisition contingent consideration, changes in the fair value of acquisition contingent earn-outs, amortization of cloud computing implementation costs, severance expenses, acquisition-related retained employee compensation, transaction costs, and other items. The unavailable information could have a significant impact on the Company’s net income (loss). The foregoing forward-looking statements reflect the Company’s expectations as of today’s date. Given the number of risk factors, uncertainties and assumptions discussed below, actual results may differ materially. The Company does not intend to update its financial outlook until its next quarterly results announcement.
Important disclosures in this earnings release about and reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are provided below under “Use and Reconciliation of Non-GAAP Financial Measures.”
Conference Call and Webcast Information
Vertex will host a conference call at 5:00 p.m. Eastern Time today, Monday, August 3, 2026, to discuss its second quarter 2026 financial results.
Those wishing to participate should register in advance for the live event at https://vertex-earnings-q2-2026.open-exchange.net/registration.
A live webcast of the event will also be available at the Company’s investor relations website at https://ir.vertexinc.com. An audio-only replay of the conference call will be available on the investor relations website for one year.
About Vertex
Vertex is the Decision-to-Defense™ global indirect tax and compliance company. Vertex helps enterprises bring control to indirect tax and compliance across the full transaction lifecycle — from tax determination and e-invoicing through reporting, filing, and audit defense — to make outcomes easier to prove and improve over time. Trusted by more than 60% of the Fortune 500, Vertex combines decades of tax expertise, deep global tax and compliance knowledge, and embedded integrations to help organizations operate globally with confidence. With headquarters in North America and offices in South America and Europe, Vertex's purpose is to ensure businesses and communities thrive through trusted transactions.
For more information, visit www.vertexinc.com or follow us on X and LinkedIn.
Forward-Looking Statements
Any statements made in this press release that are not statements of historical fact, including statements about our beliefs and expectations, are forward-looking statements and should be evaluated as such. Forward-looking statements include information concerning possible or assumed future results of operations, including descriptions of our business plan and strategies, and our stock repurchase program. Forward-looking statements are based on Vertex management’s beliefs, as well as assumptions made by, and information currently available to, them. Because such statements are based on expectations as to future financial and operating results and are not statements of fact, actual results may differ materially from those projected. Factors which may cause actual results to differ materially from current expectations include, but are not limited to: our ability to maintain and grow revenue from existing customers and new customers, and expand their usage of our solutions; our ability to maintain and expand our strategic relationships with third parties; our ability to adapt to technological change and successfully introduce new solutions or provide updates to existing solutions; risks related to failures in information technology or infrastructure; risks related to our reliance on government infrastructure to support our e-invoicing services; challenges in using and managing use of Artificial Intelligence in our business; incorrect or improper implementation, integration or use of our solutions; failure to attract and retain qualified technical and tax-content personnel; competitive pressures from other tax software and service providers and challenges of convincing businesses using native enterprise resource planning functions to switch to our software; our ability to accurately forecast our revenue and other future results of operations based on recent success; our ability to offer specific software deployment methods based on changes to customers’ and partners’ software systems; our ability to continue making significant investments in software development and equipment; our ability to sustain and expand revenues, maintain profitability, and to effectively manage our anticipated growth; our ability to successfully diversify our solutions by developing or introducing new solutions or acquiring and integrating additional businesses, products, services, or content; our ability to successfully integrate acquired businesses and to realize the anticipated benefits of such acquisitions; risks related to the fluctuations in our results of operations; risks related to our expanding international operations; our exposure to liability from errors, delays, fraud or system failures, which may not be covered by insurance; our ability to adapt to organizational changes and effectively implement strategic initiatives; risks related to our determinations of customers’ transaction tax and tax payments; risks related to changes in tax laws and regulations or their interpretation or enforcement; our ability to manage cybersecurity and data privacy risks; our involvement in material legal proceedings and audits; risks related to undetected errors, bugs or defects in our software; risks related to utilization of open-source software, business processes and information systems; our ability to effectively protect, maintain, and enhance our brand; changes in application, scope, interpretation or enforcement of laws and regulations; global economic weakness and uncertainties, including the economic uncertainty created by the changing legal, regulatory, or taxation landscape in the United States, and disruption in the capital and credit markets; business disruptions related to natural disasters, epidemic outbreaks, including a global endemic or pandemic, terrorist acts, political events, or other events outside of our control; our ability to comply with anti-corruption, anti-bribery, and similar laws; our ability to protect our intellectual property; changes in interest rates, security ratings and market perceptions of the industry in which we operate, or our ability to obtain capital on commercially reasonable terms or at all; our ability to maintain an effective system of disclosure controls and internal control over financial reporting, or ability to remediate any material weakness in our internal controls; risks related to our Class A common stock and controlled company status; risks related to our stock repurchase program; risks related to our indebtedness and adherence to the covenants under our debt instruments; our expectations regarding the effects of the Capped Call Transactions (as defined in our Form 10-K) and regarding actions of the Option Counterparties (as defined in our Form 10-K) and/or their respective affiliates; risks associated with our Value Creation Plan; and the other factors described under the heading “Risk Factors” in the Company’s Annual Report on Form 10-K for the year ended December 31, 2025 (“Form 10-K”), filed with the Securities and Exchange Commission (the “SEC”) on February 24, 2026, as may be subsequently updated by our other SEC filings. Copies of such filings may be obtained from the Company or the SEC.
All forward-looking statements reflect our beliefs and assumptions only as of the date of this press release. We undertake no obligation to update forward-looking statements to reflect future events or circumstances.
Definitions of Certain Key Business Metrics
Annual Recurring Revenue (“ARR”)
We derive the vast majority of our revenues from recurring software subscriptions. We believe ARR provides us with visibility to our projected software subscription revenues in order to evaluate the health of our business. Because we recognize subscription revenues ratably, we believe investors can use ARR to measure our expansion of existing customer revenues, new customer activity, and as an indicator of future software subscription revenues. ARR is based on monthly recurring revenues (“MRR”) from software subscriptions for the most recent month at period end, multiplied by twelve. MRR is calculated by dividing the software subscription price, inclusive of discounts, by the number of subscription covered months. MRR only includes direct customers with MRR at the end of the last month of the measurement period. AARPC represents average annual revenue per direct customer and is calculated by dividing ARR by the number of software subscription direct customers at the end of the respective period.
Net Revenue Retention (“NRR”)
We believe that our NRR provides insight into our ability to retain and grow revenues from our direct customers, as well as their potential long-term value to us. We also believe it demonstrates to investors our ability to expand existing customer revenues, which is one of our key growth strategies. Our NRR refers to the ARR expansion during the 12 months of a reporting period for all direct customers who were part of our customer base at the beginning of the reporting period. Our NRR calculation takes into account any revenues lost from departing direct customers or those who have downgraded or reduced usage, as well as any revenue expansion from migrations, new licenses for additional products or contractual and usage-based price changes.
Gross Revenue Retention (“GRR”)
We believe our GRR provides insight into and demonstrates to investors our ability to retain revenues from our existing direct customers. Our GRR refers to how much of our MRR we retain each month after reduction for the effects of revenues lost from departing direct customers or those who have downgraded or reduced usage. GRR does not take into account revenue expansion from migrations, new licenses for additional products or contractual and usage-based price changes. GRR does not include revenue reductions resulting from cancellations of customer subscriptions that are replaced by new subscriptions associated with customer migrations to a newer version of the related software solution.
Customer Count
The following table shows Vertex’s direct customers, as well as indirect small business customers sold and serviced through the Company’s one-to-many channel strategy.
CustomersQ2 2025Q3 2025Q4 2025Q1 2026Q2 2026Direct4,8624,8564,8674,8954,919Indirect504516515530540Total5,3665,3725,3825,4255,459 Use and Reconciliation of Non-GAAP Financial Measures
In addition to our results determined in accordance with accounting principles generally accepted in the U.S. (“GAAP”) and key business metrics described above, we have calculated non-GAAP cost of revenues, non-GAAP gross profit, non-GAAP gross margin, non-GAAP research and development expense, non-GAAP selling and marketing expense, non-GAAP general and administrative expense, non-GAAP operating income, non-GAAP net income, non-GAAP diluted EPS, Adjusted EBITDA, Adjusted EBITDA margin, free cash flow and free cash flow margin, which are each non-GAAP financial measures. We have provided tabular reconciliations of each of these non-GAAP financial measures to its most directly comparable GAAP financial measure.
Management uses these non-GAAP financial measures to understand and compare operating results across accounting periods, for internal budgeting and forecasting purposes, and to evaluate financial performance and liquidity. Our non-GAAP financial measures are presented as supplemental disclosure as we believe they provide useful information to investors and others in understanding and evaluating our results, prospects, and liquidity period-over-period without the impact of certain items that do not directly correlate to our operating performance and that may vary significantly from period to period for reasons unrelated to our operating performance, as well as comparing our financial results to those of other companies. Our definitions of these non-GAAP financial measures may differ from similarly titled measures presented by other companies and therefore comparability may be limited. In addition, other companies may not publish these or similar metrics. Thus, our non-GAAP financial measures should be considered in addition to, not as a substitute for, or in isolation from, the financial information prepared in accordance with GAAP, and should be read in conjunction with the consolidated financial statements included in our Annual Report on Form 10-K for the year ended December 31, 2025, as filed with the SEC on February 24, 2026 and our Quarterly Report on Form 10-Q for the quarter ended June 30, 2026, to be filed with the SEC.
We calculate these non-GAAP financial measures as follows:
Non-GAAP cost of revenues, software subscriptions is determined by adding back to GAAP cost of revenues, software subscriptions, the stock-based compensation expense, and depreciation and amortization of capitalized software and acquired intangible assets included in cost of subscription revenues for the respective periods.Non-GAAP cost of revenues, services is determined by adding back to GAAP cost of revenues, services, the stock-based compensation expense included in cost of revenues, services for the respective periods.Non-GAAP gross profit is determined by adding back to GAAP gross profit the stock-based compensation expense, and depreciation and amortization of capitalized software and acquired intangible assets included in cost of subscription revenues for the respective periods.Non-GAAP gross margin is determined by dividing non-GAAP gross profit by total revenues for the respective periods.Non-GAAP research and development expense is determined by adding back to GAAP research and development expense the stock-based compensation expense and transaction costs related to acquired technology included in research and development expense for the respective periods.Non-GAAP selling and marketing expense is determined by adding back to GAAP selling and marketing expense the stock-based compensation expense and the amortization of acquired intangible assets included in selling and marketing expense for the respective periods.Non-GAAP general and administrative expense is determined by adding back to GAAP general and administrative expense the stock-based compensation expense, amortization of cloud computing implementation costs, severance expense, acquisition-related retained employee compensation, and transaction costs included in general and administrative expense for the respective periods.Non-GAAP operating income is determined by adding back to GAAP loss or income from operations the stock-based compensation expense, depreciation and amortization of capitalized software and acquired intangible assets, amortization of cloud computing implementation costs, severance expense, acquisition contingent consideration, changes in the fair value of acquisition contingent earn-outs, acquisition-related retained employee compensation, and transaction costs included in GAAP loss or income from operations for the respective periods.Non-GAAP net income is determined by adding back to GAAP net income or loss income tax benefit or expense, stock-based compensation expense, depreciation and amortization of capitalized software and acquired intangible assets, amortization of cloud computing implementation costs, severance expense, acquisition contingent consideration, changes in the fair value of acquisition contingent earn-outs, acquisition-related retained employee compensation, and transaction costs included in GAAP income or loss from operations for the respective periods, to determine non-GAAP income or loss before income taxes. Non-GAAP income or loss before income taxes is then adjusted for income taxes calculated using the respective statutory tax rates for applicable jurisdictions, which for purposes of this determination were assumed to be 25.5%.Non-GAAP net income per diluted share of Class A and Class B common stock (“Non-GAAP diluted EPS”) is determined by dividing non-GAAP net income by the weighted average shares outstanding of all classes of common stock, inclusive of the impact of dilutive common stock equivalents to purchase such common stock, including stock options, restricted stock awards, restricted stock units and employee stock purchase plan shares. Additionally, the dilutive effect of shares issuable upon conversion of the senior convertible notes is included in the calculation of Non-GAAP diluted EPS by application of the if-converted method.Adjusted EBITDA is determined by adding back to GAAP net income or loss the net interest income or expense, income tax expense or benefit, depreciation and amortization of property and equipment, depreciation and amortization of capitalized software and acquired intangible assets, amortization of cloud computing implementation costs, severance expense, acquisition contingent consideration, changes in the fair value of acquisition contingent earn-outs, acquisition-related retained employee compensation, and transaction costs included in GAAP net income or loss for the respective periods.Adjusted EBITDA margin is determined by dividing Adjusted EBITDA by total revenues for the respective periods.Free cash flow is determined by adjusting net cash provided by (used in) operating activities by purchases of property and equipment and capitalized software additions for the respective periods.Free cash flow margin is determined by dividing free cash flow by total revenues for the respective periods. We encourage investors and others to review our financial information in its entirety, not to rely on any single financial measure and to view these non-GAAP financial measures in conjunction with the related GAAP financial measures.
Vertex, Inc. and Subsidiaries
Consolidated Balance Sheets
(Unaudited) As of June 30, As of December 31,(In thousands, except per share data) 2026 2025 (unaudited) Assets Current assets: Cash and cash equivalents $ 230,489 $ 314,009 Funds held for customers 26,497 24,286 Accounts receivable, net of allowance of $12,271 and $11,466, respectively 153,432 183,446 Prepaid expenses and other current assets 81,527 38,966 Total current assets 491,945 560,707 Property and equipment, net of accumulated depreciation 220,471 209,727 Capitalized software, net of accumulated amortization 34,262 35,480 Goodwill and other intangible assets 402,734 396,006 Deferred commissions 29,166 31,907 Deferred income tax asset 127 85 Operating lease right-of-use assets 8,366 9,678 Long-term investment 15,000 15,000 Other assets 8,076 12,245 Total assets $ 1,210,147 $ 1,270,835 Liabilities and Stockholders' Equity Current liabilities: Accounts payable $ 37,313 $ 37,557 Accrued expenses 34,549 43,642 Customer funds obligations 24,639 21,802 Accrued salaries and benefits 20,612 23,992 Accrued variable compensation 27,552 34,593 Deferred revenue, current 382,151 382,839 Current portion of operating lease liabilities 4,470 4,283 Current portion of finance lease liabilities 33 55 Purchase commitment and contingent consideration liabilities, current 33,100 25,900 Total current liabilities 564,419 574,663 Deferred revenue, net of current portion 4,750 5,209 Debt, net of current portion 338,605 337,477 Operating lease liabilities, net of current portion 6,776 8,903 Finance lease liabilities, net of current portion 38 54 Purchase commitment and contingent consideration liabilities, net of current portion 40,900 79,600 Deferred income tax liabilities 13,172 5,664 Deferred other liabilities 380 345 Total liabilities 969,040 1,011,915 Stockholders' equity: Preferred shares, $0.001 par value, 30,000 shares authorized; no shares issued and outstanding — — Class A voting common stock, $0.001 par value, 300,000 shares authorized; 79,414 and 77,580 shares issued and outstanding, respectively 79 77 Class B voting common stock, $0.001 par value, 150,000 shares authorized; 82,156 and 82,156 shares issued and outstanding, respectively 82 82 Treasury stock, at cost, 3,888 and 504 shares, respectively (56,696) (10,094)Additional paid in capital 347,768 316,327 Accumulated deficit (39,571) (46,104)Accumulated other comprehensive loss (10,555) (1,368)Total stockholders' equity 241,107 258,920 Total liabilities and stockholders' equity $ 1,210,147 $ 1,270,835 Vertex, Inc. and Subsidiaries
Consolidated Statements of Comprehensive Income (Loss)
(Unaudited) Three months ended Six months ended June 30, June 30, (In thousands, except per share data)2026 2025 2026 2025 (unaudited) (unaudited)Revenues: Software subscriptions$ 174,753 $ 157,844 $ 341,899 $ 308,605 Services 29,217 26,715 58,717 53,016 Total revenues 203,970 184,559 400,616 361,621 Cost of revenues: Software subscriptions 52,170 44,459 103,346 88,704 Services 20,500 18,900 41,101 38,723 Total cost of revenues 72,670 63,359 144,447 127,427 Gross profit 131,300 121,200 256,169 234,194 Operating expenses: Research and development 24,805 20,582 49,355 41,468 Selling and marketing 51,899 48,454 104,534 96,609 General and administrative 51,142 43,392 105,481 88,420 Depreciation and amortization 6,720 6,187 13,162 12,067 Change in fair value of acquisition contingent earn-outs (100) 2,300 (5,838) (12,400)Other operating expense, net 1,277 4,149 4,524 7,408 Total operating expenses 135,743 125,064 271,218 233,572 Income (loss) from operations (4,443) (3,864) (15,049) 622 Interest income, net (344) (1,228) (1,301) (2,767)Income (loss) before income taxes (4,099) (2,636) (13,748) 3,389 Income tax benefit (13,142) (1,675) (20,281) (6,780)Net income (loss) 9,043 (961) 6,533 10,169 Other comprehensive (income) loss: Foreign currency translation adjustments, net of tax 2,737 (29,734) 9,187 (44,839)Unrealized loss on investments, net of tax — — — 9 Total other comprehensive income (loss), net of tax 2,737 (29,734) 9,187 (44,830)Total comprehensive income (loss)$ 6,306 $ 28,773 $ (2,654) $ 54,999 Net income (loss) per share of Class A and Class B, basic$ 0.06 $ (0.01) $ 0.04 $ 0.06 Net income (loss) per share of Class A and Class B, diluted$ 0.06 $ (0.01) $ 0.04 $ 0.06 Vertex, Inc. and Subsidiaries
Consolidated Statements of Cash Flows
(Unaudited) Six months ended June 30,(In thousands) 2026 2025 (unaudited)Cash flows from operating activities: Net income $6,533 $10,169 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization 56,177 45,694 Amortization of cloud computing implementation costs 2,395 2,024 Provision for subscription cancellations and non-renewals 629 (136)Amortization of deferred financing costs 1,361 1,361 Change in fair value of contingent consideration liabilities (5,838) (12,200)Stock-based compensation expense 32,270 33,034 Deferred income taxes 6,051 (1,641)Non-cash operating lease costs 2,226 1,595 Other 15 (71)Changes in operating assets and liabilities, net of the effects of business acquisition(s): Accounts receivable 29,887 22,320 Prepaid expenses and other current assets (44,994) (13,406)Deferred commissions 2,741 (258)Accounts payable (288) (5,886)Accrued expenses (9,185) 6,446 Accrued and deferred compensation (11,333) (29,766)Deferred revenue (812) 2,374 Operating lease liabilities (2,827) (2,057)Payments for purchase commitment and contingent consideration liabilities in excess of initial fair value — (200)Other 3,863 1,412 Net cash provided by operating activities 68,871 60,808 Cash flows from investing activities: Acquisition of businesses and assets, net of cash acquired (21,968) — Long-term investment — (15,000)Property and equipment additions (47,831) (42,906)Capitalized software additions (10,648) (10,565)Purchase of investment securities, available-for-sale — (2,398)Proceeds from sales and maturities of investment securities, available-for-sale — 11,607 Net cash used in investing activities (80,447) (59,262)Cash flows from financing activities: Net increase (decrease) in customer funds obligations 2,838 (3,493)Repurchases of shares (46,602) — Proceeds from purchases of stock under ESPP 1,807 1,782 Payments for taxes related to net share settlement of stock-based awards (7,936) (26,105)Proceeds from exercise of stock options 441 7,687 Payments for acquisition contingent cash earn-out (19,600) — Payments of finance lease liabilities (39) (28)Net cash used in financing activities (69,091) (20,157)Effect of exchange rate changes on cash, cash equivalents and restricted cash (642) 3,307 Net decrease in cash, cash equivalents and restricted cash (81,309) (15,304)Cash, cash equivalents and restricted cash, beginning of period 338,295 326,066 Cash, cash equivalents and restricted cash, end of period $256,986 $310,762 Reconciliation of cash, cash equivalents and restricted cash to the Condensed Consolidated Balance Sheets, end of period: Cash and cash equivalents $230,489 $284,386 Restricted cash—funds held for customers 26,497 26,376 Total cash, cash equivalents and restricted cash, end of period $256,986 $310,762 Summary of Non-GAAP Financial Measures
(Unaudited) Three months ended Six months ended June 30, June 30, (Dollars in thousands, except per share data) 2026 2025 2026 2025 Non-GAAP cost of revenues, software subscriptions $29,205 $26,556 $58,550 $52,719 Non-GAAP cost of revenues, services $19,566 $17,876 $38,496 $36,003 Non-GAAP gross profit $155,199 $140,127 $303,570 $272,899 Non-GAAP gross margin 76.1% 75.9% 75.8% 75.5%Non-GAAP research and development expense $22,365 $18,070 $43,049 $34,604 Non-GAAP selling and marketing expense $47,080 $44,648 $93,847 $86,466 Non-GAAP general and administrative expense $34,587 $38,071 $71,631 $74,673 Non-GAAP operating income $44,295 $32,182 $81,916 $63,521 Non-GAAP net income $33,256 $24,891 $61,997 $49,385 Non-GAAP diluted EPS $0.20 $0.15 $0.37 $0.30 Adjusted EBITDA $51,015 $38,369 $95,078 $75,588 Adjusted EBITDA margin 25.0% 20.8% 23.7% 20.9%Free cash flow $2,733 $19,587 $10,392 $7,337 Free cash flow margin 1.3% 10.6% 2.6% 2.0% Vertex, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures
(Unaudited) Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2026 2025 2026 2025 Non-GAAP Cost of Revenues, Software Subscriptions: Cost of revenues, software subscriptions $52,170 $44,459 $103,346 $88,704 Stock-based compensation expense (1,083) (1,233) (2,828) (3,460) Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues (21,882) (16,670) (41,968) (32,525) Non-GAAP cost of revenues, software subscriptions $29,205 $26,556 $58,550 $52,719 Non-GAAP Cost of Revenues, Services: Cost of revenues, services $20,500 $18,900 $41,101 $38,723 Stock-based compensation expense (934) (1,024) (2,605) (2,720) Non-GAAP cost of revenues, services $19,566 $17,876 $38,496 $36,003 Non-GAAP Gross Profit: Gross profit $131,300 $121,200 $256,169 $234,194 Stock-based compensation expense 2,017 2,257 5,433 6,180 Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues 21,882 16,670 41,968 32,525 Non-GAAP gross profit $155,199 $140,127 $303,570 $272,899 Non-GAAP Gross Margin: Total Revenues $203,970 $184,559 $400,616 $361,621 Non-GAAP gross margin 76.1 % 75.9 % 75.8 % 75.5 % Non-GAAP Research and Development Expense: Research and development expense $24,805 $20,582 $49,355 $41,468 Stock-based compensation expense (2,440) (2,512) (6,306) (6,864) Non-GAAP research and development expense $22,365 $18,070 $43,049 $34,604 Non-GAAP Selling and Marketing Expense: Selling and marketing expense $51,899 $48,454 $104,534 $96,609 Stock-based compensation expense (4,297) (3,235) (9,640) (9,041) Amortization of acquired intangible assets – selling and marketing expense (522) (571) (1,047) (1,102) Non-GAAP selling and marketing expense $47,080 $44,648 $93,847 $86,466 Non-GAAP General and Administrative Expense: General and administrative expense $51,142 $43,392 $105,481 $88,420 Stock-based compensation expense (5,008) (3,986) (10,891) (10,949) Severance expense(1) (2,689) (317) (10,097) (774) Acquisition-related retained employee compensation(2) (1,250) — (1,667) — Transaction costs(3) (6,250) — (8,800) — Amortization of cloud computing implementation costs – general and administrative expense (1,358) (1,018) (2,395) (2,024) Non-GAAP general and administrative expense $34,587 $38,071 $71,631 $74,673 Vertex, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited) Three months ended Six months ended June 30, June 30, (In thousands, except per share data)2026 2025 2026 2025 Non-GAAP Operating Income: Income (loss) from operations$(4,443) $(3,864) $(15,049) $622 Stock-based compensation expense 13,762 11,990 32,270 33,034 Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues 21,882 16,670 41,968 32,525 Amortization of acquired intangible assets – selling and marketing expense 522 571 1,047 1,102 Amortization of cloud computing implementation costs – general and administrative expense 1,358 1,018 2,395 2,024 Severance expense(1) 2,689 317 10,097 774 Acquisition contingent consideration — 200 — 200 Change in fair value of acquisition contingent earn-outs (100) 2,300 (5,838) (12,400) Acquisition-related retained employee compensation(2) 1,250 — 1,667 — Transaction costs(3) 7,375 2,980 13,359 5,640 Non-GAAP operating income$44,295 $32,182 $81,916 $63,521 Non-GAAP Net Income: Net income (loss)$9,043 $(961) $6,533 $10,169 Income tax benefit (13,142) (1,675) (20,281) (6,780) Stock-based compensation expense 13,762 11,990 32,270 33,034 Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues 21,882 16,670 41,968 32,525 Amortization of acquired intangible assets – selling and marketing expense 522 571 1,047 1,102 Amortization of cloud computing implementation costs – general and administrative expense 1,358 1,018 2,395 2,024 Severance expense(1) 2,689 317 10,097 774 Acquisition contingent consideration — 200 — 200 Change in fair value of acquisition contingent earn-outs (100) 2,300 (5,838) (12,400) Acquisition-related retained employee compensation(2) 1,250 — 1,667 — Transaction costs(3) 7,375 2,980 13,359 5,640 Non-GAAP income before income taxes 44,639 33,410 83,217 66,288 Income tax adjustment at statutory rate(4) (11,383) (8,519) (21,220) (16,903) Non-GAAP net income$33,256 $24,891 $61,997 $49,385 Non-GAAP Diluted EPS: Non-GAAP net income$33,256 $24,891 $61,997 $49,385 Interest expense (net of tax), convertible senior notes(5) 903 903 1,806 1,806 Non-GAAP net income used in dilutive per share computation$34,159 $25,794 $63,803 $51,191 Weighted average Class A and B common stock, diluted 161,392 162,589 161,337 162,656 Dilutive effect of convertible senior notes(5) 9,498 9,498 9,498 9,498 Total average Class A and B shares used in dilutive per share computation 170,890 172,087 170,835 172,154 Non-GAAP diluted EPS$0.20 $0.15 $0.37 $0.30 (1) The three and six months ended June 30, 2026 periods include $1,713 and $7,883, respectively, in severance costs related to the Value Creation Plan. (2) The acquisition-related compensation expenses recorded for the three and six months ended June 30, 2026 are related to the additional cash consideration payments of $10,000 to the sellers (the “Additional Cash Consideration”) in connection with the acquisition of Finta Inc. and its subsidiaries (“Brinta”). (3) The three and six months ended June 30, 2026 periods include $6,250 and $8,800, respectively, in costs incurred to support the execution of our Value Creation Plan, recorded in general and administrative expense. Amounts also include legal expenses associated with pending litigation related to claims the Company has made against a competitor. (4) Non-GAAP income before income taxes is adjusted for income taxes using the respective statutory tax rates for applicable jurisdictions, which for purposes of this determination were assumed to be 25.5%. (5) We use the if-converted method to compute diluted earnings per share with respect to our convertible senior notes. Interest expense and additional dilutive shares related to the notes are added back to the calculation when their impact is dilutive. In periods when the impact is anti-dilutive, there is no add-back of interest expense or additional dilutive shares related to the notes. Vertex, Inc. and Subsidiaries
Reconciliation of GAAP to Non-GAAP Financial Measures (continued)
(Unaudited) Three months ended Six months ended June 30, June 30, (Dollars in thousands)2026 2025 2026 2025 Adjusted EBITDA: Net income (loss)$9,043 $(961) $6,533 $10,169 Interest income, net (344) (1,228) (1,301) (2,767) Income tax benefit (13,142) (1,675) (20,281) (6,780) Depreciation and amortization – property and equipment 6,720 6,187 13,162 12,067 Depreciation and amortization of capitalized software and acquired intangible assets – cost of subscription revenues 21,882 16,670 41,968 32,525 Amortization of acquired intangible assets – selling and marketing expense 522 571 1,047 1,102 Amortization of cloud computing implementation costs – general and administrative expense 1,358 1,018 2,395 2,024 Stock-based compensation expense 13,762 11,990 32,270 33,034 Severance expense(1) 2,689 317 10,097 774 Acquisition contingent consideration — 200 — 200 Change in fair value of acquisition contingent earn-outs (100) 2,300 (5,838) (12,400) Acquisition-related retained employee compensation(2) 1,250 — 1,667 — Transaction costs(3) 7,375 2,980 13,359 5,640 Adjusted EBITDA$51,015 $38,369 $95,078 $75,588 Adjusted EBITDA Margin: Total revenues$203,970 $184,559 $400,616 $361,621 Adjusted EBITDA margin 25.0 % 20.8 % 23.7 % 20.9 %(1)The three and six months ended June 30, 2026 periods include $1,713 and $7,883, respectively, in severance costs related to the Value Creation Plan.(2)The acquisition-related compensation expenses recorded for the three and six months ended June 30, 2026 are related to the Additional Cash Consideration obligation associated with the acquisition of Brinta.(3)The three and six months ended June 30, 2026 periods include $6,250 and $8,800, respectively, in costs incurred to support the execution of our Value Creation Plan. Amounts also include legal expenses associated with pending litigation related to claims the Company has made against a competitor. Three months ended Six months ended June 30, June 30, (Dollars in thousands) 2026 2025 2026 2025 Free Cash Flow: Cash provided by operating activities $30,896 $46,003 $68,871 $60,808 Property and equipment additions (23,171) (21,512) (47,831) (42,906) Capitalized software additions (4,992) (4,904) (10,648) (10,565) Free cash flow $2,733 $19,587 $10,392 $7,337 Free Cash Flow Margin: Total revenues $203,970 $184,559 $400,616 $361,621 Free cash flow margin 1.3 % 10.6 % 2.6 % 2.0 % Investor Relations Contact:
Joe Crivelli
Vertex, Inc. [email protected]
A U.S. flag flies in front of the world headquarters of Vertex Pharmaceuticals in Boston, Massachusetts, U.S., October 23, 2019. REUTERS/Brian Snyder Purchase Licensing Rights, opens new tab
CompaniesAug 3 (Reuters) - Vertex Pharmaceuticals (VRTX.O), opens new tab on Monday raised the upper end of its annual revenue forecast, banking on robust demand for its cystic fibrosis treatments.
The company expects its annual revenue to be between $13.1 billion and $13.2 billion, compared with $12.95 billion to $13.1 billion previously. Analysts on average expect 2026 revenue of $13.07 billion, according to data compiled by LSEG.
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Vertex said its annual outlook excludes the pending Crinetics acquisition and that an updated forecast will be provided after the deal closes, which is expected in the third quarter.
Here are more details:
Vertex's $10 billion acquisition of Crinetics expands its reach beyond cystic fibrosis, adding endocrine disorders to a diversification strategy that already includes povetacicept in kidney, Casgevy in sickle cell and Journavx in pain, analysts had said.
The company's new cystic fibrosis drug, once-daily triple combination therapy Alyftrek, brought in sales of $573.6 million during the second quarter, compared with $156.8 million a year ago.
The company's older cystic fibrosis drug, combination therapy Trikafta, posted quarterly sales of $2.50 billion, missing estimates of $2.65 billion.
Cystic fibrosis is a rare and progressive genetic disorder caused by the absence of a protein regulating salt and water transport in and out of cells, leading to severe respiratory and digestive problems.
Second-quarter total revenue rose 12% to $3.33 billion from a year ago, beating estimates of $3.23 billion. The growth was driven by the continued performance of cystic fibrosis therapies, the company said.
Vertex reported quarterly profit of $4.73 per share on an adjusted basis, in line with estimates.
Reporting by Sneha S K in Bengaluru; Editing by Shreya Biswas
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KING OF PRUSSIA, Pa., July 30, 2026 (GLOBE NEWSWIRE) -- Vertex, Inc. (NASDAQ: VERX) (“Vertex” or the “Company”), the Decision-to-Defense™ global indirect tax and compliance company, today released new research pointing to a structural shift in how global enterprises must manage indirect tax and compliance. As governments move compliance obligations directly into the transaction — with invoice-level precision that varies by market and changes continuously — the research finds that indirect tax has outgrown its back-office origins and become a real-time, board-level discipline: an era Vertex defines as Decision-to-Defense.
The research identifies two compounding forces that work against every transaction record from the moment a decision is made to the moment it must be defended at audit:
Defensibility Drift™ — the widening gap between the decisions a business makes at the point of transaction and its ability to prove those outcomes to authorities across a global, fragmenting landscape of jurisdictions. Today, 58% of enterprises face highly complex indirect tax audits, 45% cite keeping up with changing tax regulations as a top compliance challenge, and 80% can reach audit readiness only through significant manual effort — with 46% of audit issues stemming from a mix of factors, not a single cause, a signature of systemic drift rather than isolated error.CompOps Drag™ (Compliance Operations Drag) — the compounding operational cost of running compliance without a coordinating discipline: the manual rework, integration friction, and delayed audit response created by fragmented tax, ERP, e-commerce, and reporting systems never designed to run continuous compliance in real time. Integrating tax with existing systems is cited by 56% of enterprise leaders as their most common challenge. 59% want easier integration above all else, and even as 94% expect closer IT-Tax-Finance collaboration, only 12% have achieved full end-to-end integration of those systems. Left ungoverned, drift and drag compound into a vicious cycle of complexity — where every new mandate, manual workaround, and failed audit deepens exposure and drains strategic capacity. Their cumulative cost has a name and a number: the Compliance Confidence Gap™ — the growing distance between the revenue an enterprise could book with defensible confidence and the revenue it conservatively reports because it cannot prove every determination. When confidence erodes, enterprises play it safe at the transaction. The result: 1 in 3 US enterprises leave $1M+ on the table every year, by their own estimate, for example by treating uncertain transactions as taxable, missing exemptions, or not reclaiming eligible indirect tax.
“For decades, indirect tax was treated as a back-office calculation — something you filed and forgot. That era is ending. Global compliance increasingly lives inside the transaction, and the enterprises that lead the next decade will be the ones that can prove, defend, and improve every outcome they decide — not just report it,” said Allison Cerra, Chief Marketing Officer at Vertex. “The enterprises we studied are not describing a tooling problem — they are describing a control problem that disjointed systems and operating models were never built to solve.”
The same lifecycle that produces the vicious cycle can compound the other way — into a virtuous cycle of control. The Decision-to-Defense approach describes what that discipline demands of any enterprise, organized around four operational pillars — Determine, Prove, Defend, and Improve — coordinated by Govern as one continuous flow:
Determine — accurate tax calculation and compliance in real time, the starting point of every decision.Prove — every determination backed by an audit-defensible source of tax truth.Defend — readiness for audit, notice, appeal, and litigation, where the determination is tested and stands.Improve — configurability and continuous learning that adapt controls and tax logic as business, regulation, and risk change. Governed end-to-end, the lifecycle turns compliance from a cost of doing business into a source of growth — where outcomes are accurate, audits are answerable, and the Compliance Confidence Gap closes.
“Our research shows that enterprises are struggling to keep pace with escalating regulatory requirements and are seeking a coordinating discipline to manage complexity,” said Tammy Kaneshige, Partner and Chief Executive Officer at Emerald Research Group. “The organizations that will pull ahead are those that stop treating compliance as a series of disconnected steps and start governing it as one continuous lifecycle.”
For more information on Vertex and its Decision-to-Defense approach to global indirect tax and compliance, visit https://www.vertexinc.com/decision-to-defense.
About the research
The findings draw on the most comprehensive evidence base Vertex has assembled on the state of indirect tax and compliance: more than 2,100 senior enterprise decision-makers surveyed in 2026 across two research firms. Emerald Research Group conducted two quantitative studies — one among 402 enterprise decision-makers in the US and Germany ($150M+/€150M+ revenue; 1,000+ employees), and one among 650 enterprise decision-makers across the US and Europe ($250M+ revenue; 1,000+ employees) — each with authority over enterprise tax and compliance software. Censuswide, on behalf of Vertex, surveyed an additional 1,050 senior IT, Finance, and Tax leaders across the UK, US, France, DACH, the Nordics, and Benelux. Full methodology and question-level sourcing are available on request.
About Vertex
Vertex is the Decision-to-Defense™ global indirect tax and compliance company. Vertex helps enterprises bring control to indirect tax and compliance across the full transaction lifecycle — from tax determination and e-invoicing through reporting, filing, and audit defense — to make outcomes easier to prove and improve over time. Trusted by more than 60% of the Fortune 500, Vertex combines decades of tax expertise, deep global tax and compliance knowledge, and embedded integrations to help organizations operate globally with confidence. With headquarters in North America and offices in South America and Europe, Vertex's purpose is to ensure businesses and communities thrive through trusted transactions.
For more information, visit www.vertexinc.com or follow us on X and LinkedIn; or subscribe on YouTube.
The information contained herein is intended for information purposes only, may change at any time in the future, and is not legal or tax advice. Any product direction and potential roadmap information is not a guarantee, may not be incorporated into any contract, and is not a commitment to deliver any material, code, or functionality. This information should not be relied upon in making purchasing, legal, or tax decisions. The development, release, and timing of any features or functionality described for Vertex’s products remains at the sole discretion of Vertex, Inc. Any statements in this release that are not historical facts are forward-looking statements as defined in the U.S. Private Securities Litigation Reform Act of 1995. All forward-looking statements are subject to various risks and uncertainties described in Vertex’s filings with the US Securities and Exchange Commission (“SEC”) that could cause actual results to differ materially from expectations. Vertex cautions readers not to place undue reliance on these forward-looking statements which Vertex has no obligation to update and which speak only as of their dates.
