Vertex Pharmaceuticals Misses Q1 Adjusted EPS $4.06, Revenue $2.77B; Raises FY25 Guidance, Shares Fall 10%

Vertex Pharmaceuticals Inc. reported its first-quarter 2025 financial results, missing analyst expectations on both earnings and revenue. The company posted an adjusted earnings per share (EPS) of $4.06, below the estimated $4.29. Revenue came in at $2.77 billion, short of the $2.85 billion forecast. Pretax profit was $730.4 million, significantly below the $1.37 billion estimate, while adjusted operating income was $630.1 million compared to an expected $1.254 billion. Net income and adjusted net income both stood at $646.3 million. Despite the earnings miss, Vertex raised the low end of its full-year 2025 revenue guidance to a range of $11.85 billion to $12 billion, driven by growth in its cystic fibrosis (CF) franchise, the initial launch of ALYFTREK, and strong uptake of JOURNAVX, which has seen 25,000 prescriptions since launch. The market reacted negatively, with Vertex shares dropping about 10% and an estimated $15 billion in market value lost. Scotiabank maintained a sector perform rating on Vertex but lowered its price target to $442.