It has been about a month since the last earnings report for Vertex Pharmaceuticals (VRTX Quick QuoteVRTX - Free Report) . Shares have added about 14.4% in that time frame, outperforming the S&P 500.

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 catalysts.

Q2 Earnings Lag Estimates, Revenues Beat

Vertex reported adjusted earnings of $4.73 per share for the second quarter of 2026, missing the Zacks Consensus Estimate of $4.79. Earnings, however, rose around 4.6% year over year on higher product revenues, partially offset by higher operating expenses.

Second-quarter total revenues of $3.33 billion beat the Zacks Consensus Estimate of $3.23 billion. Total revenues rose 12% year over year, primarily driven by higher sales of CF drugs Trikafta/Kaftrio and Alyftrek, as well as meaningful contributions from other new products, Journavx and Casgevy. 

Its total revenues rose 11% year over year in the United States to $2.06 billion, driven by strong demand for CF drugs, higher realized net prices in CF and Casgevy and Journavx sales. Outside the U.S. market, sales increased 14% to $1.28 billion, driven by strong CF growth, contribution from Casgevy and a favorable impact from foreign exchange.

Quarter in Detail

Trikafta generated sales worth $2.50 billion, down around 2% year over year. The product’s sales slightly beat the Zacks Consensus Estimate of $2.45 billion.

Alyftrek generated sales worth $573.6 million in the second quarter, up 35% on a sequential basis. The drug surpassed $1 billion in global revenues in the first half of 2026. 

Growth was driven primarily by patients switching from Trikafta, along with new-to-therapy patients and strong uptake in Europe. Expansion into rare mutations and younger patients should support further growth.

Revenues from other CF products (including Kalydeco, Orkambi, and Symdeko/Symkevi) decreased 29.2% year over year to $137.1 million. 

Vertex expects incremental patients from the label expansions for Alyftrek and Trikafta, along with launches of Alyftrek in additional geographies and for treating younger patients, to drive CF growth through the rest of the year.

Casgevy’s sales were $76.4 million in the second quarter, up 78% on a sequential basis and 151% on a year-over-year basis due to an increase in patient infusions. 

Casgevy recorded more than 100 patient initiations in the second quarter as the launch continues to progress. First-half 2026 infusions already exceeded the total for 2025, supported by improved reimbursement and growing patient uptake across key markets.

In 2026, Vertex expects continued quarter-to-quarter variability in Casgevy infusions.

Journavx (suzetrigine) generated $49.6 million in sales in the second quarter, up 71% on a sequential basis. Journavx sales in the second quarter benefited from both strong underlying prescription growth and inventory restocking by distributors, following a reduction in channel inventory during the first quarter.

More than 535,000 prescriptions were written for Journavx across both hospital and retail settings in the quarter, compared with approximately 350,000 in the first quarter, showing that uptake is accelerating. In 2026, Vertex expects Journavx prescriptions to triple compared to 550,000 written in 2025, supported by a larger commercial field force, wider payer coverage and improving gross-to-net economics. Vertex is reasonably confident of exceeding the goal.

Journavx’s reimbursement trends are also improving, with coverage now reaching approximately 260 million lives. Vertex expanded access further by securing agreements with two additional Medicare Part D plans effective July 1. Journavx is now covered by three out of four of the major Medicare Part D PBMs. In addition, 23 states now cover Journavx through Medicaid.

Costs Rise

Adjusted research and development (R&D) expenses increased 1.2% year over year to $888.7 million.

Adjusted selling, general and administrative (SG&A) expenses rose 44.7% to $520.2 million in the reported quarter, primarily to support the launch of Journavx and the upcoming launches in renal.

During the quarter, Vertex recorded acquired in-process research and development (AIPR&D) costs of $21.4 million compared with $2.2 million in the year-ago quarter.

Adjusted operating income rose 7.5% year over year to $1.42 billion in the quarter.

Ups 2026 Sales Guidance

Vertex increased its full-year 2026 revenue guidance backed by a strong first-half performance.

The company now expects total revenues to be in the range of $13.10-$13.20 billion for 2026 compared with the previous expectation of $12.95-$13.10 billion. 

Global CF revenues grew 8% in the first half of 2026, helped by prior-year U.S. price increases and favorable foreign exchange. However, Vertex expects these benefits to fade in the second half.

Vertex expects its non-CF product revenues to be more than $500 million in 2026, representing more than 185% year-over-year growth from 2025, reflecting higher patient infusions for Casgevy and a ramp-up in Journavx prescriptions.

The revenue guidance also includes an expected 150 basis point benefit from foreign exchange.

Combined adjusted R&D, AIPR&D and SG&A expense guidance for 2026 was maintained in the range of $5.65-$5.75 billion. However, the company now expects to be at the high end of that range. Adjusted gross margin is expected to be under 86%. The adjusted tax rate is expected to be in the range of 19.5%-20.5%. Both remain unchanged from the previous expectation.

The guidance does not reflect the impact of the pending Crinetics acquisition, which is expected to be closed in the third quarter.

How Have Estimates Been Moving Since Then?

It turns out, estimates revision have trended downward during the past month.

VGM Scores

At this time, Vertex has a average Growth Score of C, though it is lagging a lot on the Momentum Score front with an F. Charting a somewhat similar path, the stock has a grade of D on the value side, putting it in the bottom 40% for this investment strategy.

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

Outlook

Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. 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, Biogen Inc. (BIIB Quick QuoteBIIB - Free Report) , a stock from the same industry, has gained 3.6%. The company reported its results for the quarter ended June 2026 more than a month ago.

Biogen reported revenues of $2.74 billion in the last reported quarter, representing a year-over-year change of +3.4%. EPS of $3.60 for the same period compares with $5.47 a year ago.

Biogen is expected to post earnings of $2.31 per share for the current quarter, representing a year-over-year change of -52%. Over the last 30 days, the Zacks Consensus Estimate has changed -19.4%.

Biogen has a Zacks Rank #3 (Hold) based on the overall direction and magnitude of estimate revisions. Additionally, the stock has a VGM Score of C.