VR

Vertex Pharmaceuticals Incorporated stock research

Dec 31, 2025

FY2025 Q4

Vertex Pharmaceuticals (VRTX) Gross Margin — Quarter Ended Dec 31, 2025

Revenue increased compared to both the prior quarter and the same quarter one year earlier. Gross profit was higher than the year-ago quarter and stable relative to the prior quarter, while cost of revenue was higher than both periods, leading to a gross margin that weakened slightly from the prior quarter and was slightly lower than the year-ago quarter.

Gross margin takeaway

Quarter ended Dec 31, 2025 · FY2025 Q4

Revenue increased compared to both the prior quarter and the same quarter one year earlier. Gross profit was higher than the year-ago quarter and stable relative to the prior quarter, while cost of revenue was higher than both periods, leading to a gross margin that weakened slightly from the prior quarter and was slightly lower than the year-ago quarter.

  • The most observable margin driver was the increase in cost of revenue, which grew more than revenue, resulting in a slight compression of gross margin.
  • Compared with the immediately preceding quarter, revenue was higher while gross margin was lower. Compared with the same quarter one year earlier, both revenue and gross profit were higher, but gross margin was slightly lower.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

85.4%

Gross profit

$2.7B

Revenue

$3.2B

Cost of revenue

$466.0M

Quarter-over-quarter change

-1.1 pts

Year-over-year change

-0.1 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 31, 2025$2.8B$2.4B$363.0M86.9%
Jun 30, 2025$3.0B$2.6B$407.5M86.3%
Sep 30, 2025$3.1B$2.7B$414.8M86.5%
Dec 31, 2025$3.2B$2.7B$466.0M85.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Sep 30, 2025

-1.1 pts

Year-over-year change

Dec 31, 2024

-0.1 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The most observable margin driver was the increase in cost of revenue, which grew more than revenue, resulting in a slight compression of gross margin.

Compared with the immediately preceding quarter, revenue was higher while gross margin was lower. Compared with the same quarter one year earlier, both revenue and gross profit were higher, but gross margin was slightly lower.

Monitor the trend in cost of revenue, especially given the filing's mention of increased inventories to support recent commercial launches.