How does Vertex Pharmaceuticals (VRTX) make money?

Vertex Pharmaceuticals (VRTX) generates revenue primarily from TRIKAFTA/KAFTRIO, which accounted for 83.6% of total revenue in TTM through Q1 2026. The company reported $12.3B in revenue and converted 35.4% of it into net profit, equivalent to roughly $4.34B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Vertex Pharmaceuticals (VRTX)?

Vertex Pharmaceuticals (VRTX) reported a gross profit margin of 86.3% in TTM through Q1 2026, equivalent to $10.6B in gross profit on $12.3B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Vertex Pharmaceuticals (VRTX)?

Vertex Pharmaceuticals (VRTX) reported an operating profit margin of 39% in TTM through Q1 2026, equivalent to $4.78B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Vertex Pharmaceuticals (VRTX)?

Vertex Pharmaceuticals (VRTX) reported a net profit margin of 35.4% in TTM through Q1 2026, equivalent to $4.34B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Vertex Pharmaceuticals (VRTX) profitable?

Yes. Vertex Pharmaceuticals (VRTX) reported $4.34B in net income for TTM through Q1 2026, with a net profit margin of 35.4%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Vertex Pharmaceuticals (VRTX) invest in research and development?

Vertex Pharmaceuticals (VRTX) invested $3.95B in research and development during TTM through Q1 2026, roughly 32.2% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Vertex Pharmaceuticals (VRTX) spend on capital expenditures?

Vertex Pharmaceuticals (VRTX) spent $530M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 4.3% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Vertex Pharmaceuticals (VRTX) generate?

Vertex Pharmaceuticals (VRTX) generated $3.71B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 30.3%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Vertex Pharmaceuticals (VRTX)?

Vertex Pharmaceuticals (VRTX) had an effective tax rate of 16% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Vertex Pharmaceuticals (VRTX)?

Vertex Pharmaceuticals (VRTX) reports revenue across 3 reportable product segments, led by TRIKAFTA/KAFTRIO at 83.6% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Vertex Pharmaceuticals (VRTX) generate most of its revenue?

UNITED STATES is the largest geographic market for Vertex Pharmaceuticals (VRTX), accounting for 41.7% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Vertex Pharmaceuticals Makes Money: 2026 Visual Revenue Map

Vertex Pharmaceuticals (VRTX) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 5, 2026).

Vertex Pharmaceuticals (VRTX) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Vertex Pharmaceuticals (VRTX), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
TRIKAFTA/KAFTRIO	$10.2B	83.6%
ALYFTREK	$1.22B	10%
Manufactured Product, Other	$794M	6.5%
Total	$12.3B	100%

TRIKAFTA/KAFTRIO$10.2B
ALYFTREK$1.22B
Manufactured Product, Other$794M
Total$12.3B

Vertex Pharmaceuticals (VRTX) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Vertex Pharmaceuticals (VRTX), TTM through Q1 2026
Region	Revenue (USD)	% of total
UNITED STATES	$7.67B	41.7%
Non-US	$6.92B	37.6%
Europe	$3.58B	19.5%
Other, Non U.S.	$206M	1.1%
Total	$18.4B	100%

UNITED STATES
Non-US
Europe
Other, Non U.S.
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Vertex Pharmaceuticals (VRTX) reports revenue across 3 reportable product segments; the largest segment was TRIKAFTA/KAFTRIO at 83.6%, followed by ALYFTREK (10%) and Manufactured Product, Other (6.5%). Geographically, UNITED STATES accounted for 41.7% of revenue, followed by Non-US (37.6%) and Europe (19.5%).

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