Vertex Pharmaceuticals Incorporated stock research
FY2025 Q1
Vertex Pharmaceuticals (VRTX) Gross Margin — Quarter Ended Mar 31, 2025
Revenue decreased from the prior quarter while cost of revenue declined at a greater proportion, causing gross profit to narrow but gross margin to improve. Compared to the same quarter one year earlier, revenue was higher and gross profit was higher, yet gross margin weakened as cost of revenue grew at a faster rate than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue decreased from the prior quarter while cost of revenue declined at a greater proportion, causing gross profit to narrow but gross margin to improve. Compared to the same quarter one year earlier, revenue was higher and gross profit was higher, yet gross margin weakened as cost of revenue grew at a faster rate than revenue.
- The strongest observable margin driver is the change in cost of revenue relative to revenue. In the current quarter, cost of revenue decreased while revenue also decreased, but the cost decline was proportionally larger, which lifted gross margin.
- Gross margin improved compared to the prior quarter, reversing the prior quarter's level. However, gross margin weakened compared to the same quarter one year earlier.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
86.9%
Gross profit
$2.4B
Revenue
$2.8B
Cost of revenue
$363.0M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
-0.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $2.6B | $2.3B | $371.9M | 85.9% |
| Sep 30, 2024 | $2.8B | $2.4B | $392.6M | 85.8% |
| Dec 31, 2024 | $2.9B | $2.5B | $423.4M | 85.5% |
| Mar 31, 2025 | $2.8B | $2.4B | $363.0M | 86.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.4 pts
Year-over-year change
Mar 31, 2024
-0.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the change in cost of revenue relative to revenue. In the current quarter, cost of revenue decreased while revenue also decreased, but the cost decline was proportionally larger, which lifted gross margin.
Gross margin improved compared to the prior quarter, reversing the prior quarter's level. However, gross margin weakened compared to the same quarter one year earlier.
Monitor the trajectory of cost of revenue, which declined from the prior quarter but increased from the year-ago quarter, as its relative growth rate can directly affect gross margin.