A month has gone by since the last earnings report for Vertex Pharmaceuticals (VRTX Quick QuoteVRTX - Free Report) . Shares have added about 6.9% in that time frame, outperforming the S&P 500.

But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is Vertex due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.

Q2 Earnings & Revenues Beat Estimates

Vertex reported adjusted earnings of $4.52 per share for the second quarter of 2025, surpassing the Zacks Consensus Estimate of $4.24. In the year-ago quarter, the company reported an adjusted loss of $12.83 per share, reflecting the costs related to the acquisition of Alpine Immune Sciences in the second quarter of 2024.

Total revenues of $2.96 billion beat the Zacks Consensus Estimate of $2.89 billion. Total revenues rose 12% year over year, primarily driven by higher sales of Trikafta/Kaftrio and early contribution from its three new drugs, Alyftrek, Journavx and Casgevy.

The company recorded $20.7 million of collaboration revenues in the second quarter versus nil in the year-ago quarter.

Its total revenues rose 14% year over year in the United States to $1.85 billion, driven by strong demand and favorable gross-to-net compared to last year. Outside the U.S. market, sales increased 8% to $1.12 billion, driven by strong CF growth and a contribution from Casgevy.

Quarter in Detail

The company currently markets four CF products — Trikafta/Kaftrio, Symdeko (marketed as Symkevi in Europe), Orkambi and Kalydeco.

Trikafta generated sales worth $2.55 billion, up 4.2% year over year. The product’s sales narrowly missed the Zacks Consensus Estimate of $2.56 billion but beat our model estimate of $2.50 billion.

Alyftrek generated sales worth $156.8 million in the second quarter compared with $53.9 million recorded in the first quarter of 2025. Management said it is seeing a steady uptake from all patient groups who are eligible for treatment with Alyftrek in the United States, including treatment-naive patients, patients who had discontinued previous CFTR modulator treatment, and those switching from Trikafta. However, the switch from Trikafta to Alyftrek has been modest due to significant Trikafta brand loyalty from patients.

Vertex expects that the majority of patients in the United States who are currently on Trikafta to switch to Alyftrek over time.

Revenues from other products increased 20.2% year over year to $236.1 million. This included revenues from Casgevy, Journavx, as well as sales of VRTX’s other CF products, Symdeko/Symkevi, Orkambi and Kalydeco.

Casgevy sales of $30.4 million surged 114.1% on a sequential basis, reflecting strong adoption. The global launch of Casgevy continues with an acceleration seen in the second quarter in patient initiations, cell collections and infusions.

Vertex now has 75 activated authorized treatment centers or ATCs in all regions where the therapy is approved. More than 115 patients have initiated cell collection since launch, and 29 patients have received infusions of Casgevy. Vertex is also making rapid progress in the drug’s access and reimbursement. Vertex expects Casgevy revenues to ramp up as the year progresses, as more patients are treated in geographies where the drug has secured regulatory approval and reimbursement. 

Journavx generated sales worth $12 million in the second quarter. Journavx’s launch metrics and early reimbursement progress look promising. On the conference call, the company mentioned that since its launch in mid-March to mid-July, over 110,000 prescriptions have been written for Journavx across both hospital and retail settings. 

Vertex said that physicians and patients have reported positive experiences with the drug while the company is making rapid contracting and formulary progress. It has reached agreements with two of the three large national PBMs to make Journavx available to their customers and is hoping to strike a deal with the third before year end. Vertex also has unrestricted access within 16 state Medicaid plans. Overall, Vertex expects coverage across commercial, Medicare and Medicaid payers to continue to expand through 2025.

Vertex expects higher sales from Journavx in the second half due to gains in sustainable payer coverage. However, there may be revenue variability from quarter to quarter.

Costs Rise

Adjusted research and development (R&D) expenses were up 25.9% year over year to $878.1 million to support the development of its pipeline, including four ongoing pivotal phase III studies.

Adjusted selling, general and administrative (SG&A) expenses increased 28.2% to $359.4 million in the reported quarter to support the launch of Journavx.

During the second quarter, Vertex recorded acquired in-process research and development (AIPR&D) costs of $2.2 million compared with $4.44 billion reported in the year-ago quarter, which included the costs related to the acquisition of Alpine Immune Sciences.

Adjusted operating income was almost $1.33 billion in the second quarter against an adjusted operating loss of $3.15 billion in the year-ago quarter.

VRTX’s 2025 Guidance

The company maintained its total revenue guidance for full-year 2025. Vertex continues to expect total revenues in the range of $11.85-$12 billion for 2025.

The revenue range indicates growth of 8% at the midpoint, driven by continued CF franchise growth, including contribution from Alyftrek, the continued uptake of Casgevy in approved regions and initial sales from Journavx, primarily in the second half.

Combined adjusted R&D, AIPR&D and SG&A expense guidance for 2025 is in the band of $4.9-$5 billion. The company expects to be at the high end of this guidance range.

Adjusted AIPR&D charges are expected to be approximately $100 million in 2025.  The impact of tariffs on costs is expected to be immaterial in 2025, based on tariffs already in place due to Vertex’s low exposure to China and its geographically diverse supply chain 

The adjusted tax rate was maintained in the range of 20.5%-21.5%. 

In May 2025, Vertex announced a new $4 billion share repurchase program, building upon its existing $3 billion share repurchase program, which was authorized in 2023 and had $570 million remaining as of June 30.

Vertex announced that its chief scientific officer (CSO), Dr. David Altshuler, will retire, effective August 1, 2026. Mark Bunnage, SVP of Global Research, will assume the role of CSO effective Feb. 1, 2026.

How Have Estimates Been Moving Since Then?

In the past month, investors have witnessed a upward trend in estimates revision.

VGM Scores

Currently, Vertex has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a score of D on the value side, putting it in the bottom 40% for value investors.

Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook

Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Vertex has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

Performance of an Industry Player

Vertex is part of the Zacks Medical - Biomedical and Genetics industry. Over the past month, Agios Pharmaceuticals (AGIO Quick QuoteAGIO - Free Report) , a stock from the same industry, has gained 8.4%. The company reported its results for the quarter ended June 2025 more than a month ago.

Agios Pharmaceuticals reported revenues of $12.45 million in the last reported quarter, representing a year-over-year change of +44.6%. EPS of -$1.93 for the same period compares with -$1.69 a year ago.

For the current quarter, Agios Pharmaceuticals is expected to post a loss of $1.94 per share, indicating a change of -146.2% from the year-ago quarter. The Zacks Consensus Estimate has changed -1.1% over the last 30 days.

Agios Pharmaceuticals has a Zacks Rank #4 (Sell) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of F.