VRTX · Vertex Pharmaceuticals Incorporated

Vertex Pharmaceuticals reported strong first-quarter 2026 results, with total revenue of $2.99 billion, an 8% increase year-over-year, driven by continued leadership in cystic fibrosis (CF) and growing contributions from non-CF products CASGEVY and JOURNAVX. U.S. revenue rose 7% to $1.78 billion, supported by strong CF patient demand, including new ALYFTREK initiations, higher realized net prices, and contributions from CASGEVY and JOURNAVX. International revenue increased 9% to $1.21 billion, driven by CF performance across geographies, ALYFTREK uptake, increased CASGEVY revenue, and favorable foreign exchange. GAAP net income was $1.0 billion, up from $646 million in the prior year, reflecting higher product revenue partially offset by increased operating expenses and income tax expenses; the prior year also included a $379 million intangible asset impairment charge. Non-GAAP net income rose $93 million to $1.1 billion. Combined GAAP R&D, acquired IPR&D, and SG&A expenses increased to $1.5 billion from $1.4 billion, driven by commercial investment for JOURNAVX launch and renal franchise build-out. The company reiterated its full-year 2026 guidance: total revenue of $12.95 billion to $13.1 billion, non-CF product revenue of $500 million or more, combined GAAP R&D/AIPR&D/SG&A expenses of $6.3 billion to $6.45 billion, combined non-GAAP expenses of $5.65 billion to $5.75 billion, and non-GAAP effective tax rate of 19.5% to 20.5%. Management highlighted rapid pipeline progress, including completion of the rolling BLA submission for povetacicept in IgA nephropathy for accelerated approval, initiation of Phase 3 portion of the OLYMPUS study in primary membranous nephropathy, and a Phase 2 proof-of-concept study in generalized myasthenia gravis. The company also noted label expansions for ALYFTREK and TRIKAFTA in the U.S., expanding eligibility to approximately 95% of CF patients, and completion of the U.S. regulatory submission for CASGEVY in children aged 5 to less than 12 years. Cash, cash equivalents, and marketable securities stood at $13.0 billion as of March 31, 2026, up from $12.3 billion at year-end 2025, primarily due to operating cash flows partially offset by share repurchases.