Stock Analysis on Net
Stock Analysis on Net

Vertex Pharmaceuticals Inc. (NASDAQ:VRTX)

$24.99

Net Profit Margin
since 2005

Microsoft Excel

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Calculation

Vertex Pharmaceuticals Inc., net profit margin, long-term trends, calculation

Microsoft Excel
Net profit margin = 100 × Net income (loss)1 ÷ Revenues1
Dec 31, 2025 = 100 × ÷
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Dec 31, 2005 = 100 × ÷

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

1 US$ in thousands

The net profit margin exhibited significant volatility over the period from 2005 to 2025. Initially, the metric was deeply negative, indicating substantial net losses relative to revenue. A period of improvement followed, culminating in profitability, before experiencing further fluctuations, including a significant negative margin in the most recent year presented.

Early Period (2005-2009)
From 2005 through 2009, the net profit margin remained consistently negative and progressively worsened. It began at -126.43% in 2005 and reached a low of -630.27% in 2009. This suggests that net losses substantially exceeded revenues during this timeframe, potentially due to high operating costs, research and development expenses, or other factors. The magnitude of the negative margins indicates a challenging financial position.
Transition and Initial Profitability (2010-2011)
A notable shift occurred between 2009 and 2010. While still negative at -526.35%, the net profit margin improved considerably in 2010. This trend continued into 2011, where the company achieved a positive net profit margin of 2.10%, representing the first instance of profitability within the observed period. This improvement likely reflects increased revenues and/or cost control measures.
Volatility and Growth (2012-2019)
The period from 2012 to 2019 was characterized by fluctuating net profit margins. A return to negative territory was observed in 2012 (-7.01%) and 2013 (-36.72%), followed by a substantial increase in 2018, reaching a peak of 68.80%. The margin then moderated to 28.27% in 2019. This suggests periods of both success and challenge in translating revenue into profit. The significant margin in 2018 indicates a particularly profitable year, potentially driven by a successful product launch or favorable market conditions.
Recent Performance (2020-2025)
From 2020 to 2022, the net profit margin remained relatively strong, ranging from 30.92% to 37.20%. However, a significant decline occurred in 2023, with the margin falling to -4.86%. This was followed by a recovery to 32.94% in 2024, and then a further decline to 32.94% in 2025. The recent volatility suggests potential challenges in maintaining profitability, possibly related to increased competition, rising costs, or changes in revenue streams.

Overall, the net profit margin demonstrates a complex trajectory. While the company transitioned from consistent losses to periods of substantial profitability, recent years indicate renewed challenges in maintaining consistent positive margins. Further investigation into the underlying drivers of these fluctuations would be necessary to fully understand the company’s financial performance.

Comparison to Competitors

Vertex Pharmaceuticals Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel
Vertex Pharmaceuticals Inc. AbbVie Inc. Amgen Inc. Bristol-Myers Squibb Co. Danaher Corp. Eli Lilly & Co. Gilead Sciences Inc. Johnson & Johnson Merck & Co. Inc. Pfizer Inc. Regeneron Pharmaceuticals Inc. Thermo Fisher Scientific Inc.
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Dec 31, 2024
Dec 31, 2023
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Dec 31, 2019
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Dec 31, 2005

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

Comparison to Sector (Pharmaceuticals, Biotechnology & Life Sciences)

Vertex Pharmaceuticals Inc., net profit margin, long-term trends, comparison to sector (pharmaceuticals, biotechnology & life sciences)

Microsoft Excel
Vertex Pharmaceuticals Inc. Pharmaceuticals, Biotechnology & Life Sciences
Dec 31, 2025
Dec 31, 2024
Dec 31, 2023
Dec 31, 2022
Dec 31, 2021
Dec 31, 2020
Dec 31, 2019
Dec 31, 2018
Dec 31, 2017
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Dec 31, 2014
Dec 31, 2013
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Dec 31, 2005

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).

Comparison to Industry (Health Care)

Vertex Pharmaceuticals Inc., net profit margin, long-term trends, comparison to industry (health care)

Microsoft Excel
Vertex Pharmaceuticals Inc. Health Care
Dec 31, 2025
Dec 31, 2024
Dec 31, 2023
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Dec 31, 2007
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Dec 31, 2005

Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).