With a market cap of $118.7 billion, Vertex Pharmaceuticals Incorporated (VRTX) is a global biotechnology leader specializing in the development of innovative therapies for serious diseases. Headquartered in Boston, Massachusetts, Vertex focuses on pioneering treatments for cystic fibrosis and advancing research in genetic and rare diseases, leveraging cutting-edge science to improve patient outcomes worldwide.

Shares of the biotechnology company have underperformed the broader market over the past year. VRTX has gained 11.7% over this time frame, while the broader S&P 500 Index ($SPX) has rallied nearly 22.8%. However, in 2025, VRTX’s stock rose 17.2%, compared to SPX’s 4.5% rise on a YTD basis.

Focusing on the healthcare sector, Vertex Pharmaceuticals has outpaced the VanEck Biotech ETF (BBH), which has gained 1% over the past year. Additionally, Vertex’s double-digit YTD returns surpass the ETF’s 4.2% gain over the same period.

On Feb. 10, VRTX shares closed slightly higher after the company reported Q4 results. Revenue grew 15.7% year-over-year to $2.91 billion, beating analyst estimates of $2.78 billion. However, adjusted EPS of $3.98 missed expectations of $4.02. Adjusted operating income reached $1.20 billion with a 41.2% margin, slightly exceeding projections. 

For fiscal 2025, Vertex projects total revenue between $11.75 billion and $12.0 billion, driven by continued growth in CF, including the U.S. launch of ALYFTREK, expanding adoption of CASGEVY across multiple regions, and initial contributions from JOURNAVX.

For the current fiscal year, ending in December, analysts expect VRTX’s EPS to grow 1,254.1% to $15.58 on a diluted basis. The company’s earnings surprise history is mixed. It beat the consensus estimate in three of the last four quarters while missing the forecast on another occasion.

Among the 32 analysts covering VRTX stock, the consensus is a “Moderate Buy.” That’s based on 19 “Strong Buy” ratings, 12 “Holds,” and one “Strong Sell.”

This configuration is less bullish than a month ago, with 20 analysts suggesting a “Strong Buy.”

On Feb. 11, Scotiabank raised Vertex Pharmaceuticals' price target to $450 from $433, citing strong Q4 results and higher sales expectations in cystic fibrosis.

The mean price target of $506.46 represents a 7.4% premium to VRTX’s current price levels. The Street-high price target of $615 suggests an ambitious upside potential of 30.4%.