Vertex Pharmaceuticals (WBO:VRTX) EBIT: €4,350 Mil (TTM As of Mar. 2026)


WBO:VRTX Vertex Pharmaceuticals Inc WBO:VRTX
90 GF Score
Price €410.10
GF Value €439.78
Valuation Fairly Valued
! 4 Warning Signs
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What is Vertex Pharmaceuticals EBIT?

Vertex Pharmaceuticals WBO:VRTX +2.51% 90 EBIT is €4,350 Mil as of Mar. 2026. GuruFocus rates WBO:VRTX with a GF Score™ of 90/100 and a GF Value™ of €439.78 (Fairly Valued). The stock has 4 warning signs investors should review.

Vertex Pharmaceuticals's earnings before interest and taxes (EBIT) for the three months ended in Mar. 2026 was €985 Mil. Its earnings before interest and taxes (EBIT) for the trailing twelve months (TTM) ended in Mar. 2026 was €4,350 Mil.

EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Vertex Pharmaceuticals's annualized ROC % for the quarter that ended in Mar. 2026 was 24.10%. Vertex Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 117.72%.

EBIT is also linked to Joel Greenblatt's definition of earnings yield. Vertex Pharmaceuticals's Earnings Yield (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 4.37%.


Vertex Pharmaceuticals  (WBO:VRTX) EBIT Explanation

1. EBIT or Operating Income is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Vertex Pharmaceuticals's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=3940.248 * ( 1 - 17.68% )/( (13280.127 + 13636.034)/ 2 )
=3243.6121536/13458.0805
=24.10 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=21899.122 - 2975.678 - ( 5643.317 - max(0, 3297.465 - 9565.654+5643.317))
=13280.127

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=22909.006 - 3004.577 - ( 6268.395 - max(0, 3356.719 - 10146.709+6268.395))
=13636.034

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Vertex Pharmaceuticals's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=3940.248/( ( (2632.882 + max(690.886, 0)) + (2848.877 + max(521.595, 0)) )/ 2 )
=3940.248/( ( 3323.768 + 3370.472 )/ 2 )
=3940.248/3347.12
=117.72 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1753.091 + 1440.527 + 728.719) - (2975.678 + 146.717 + 109.056)
=690.886

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(1726.626 + 1528.195 + 623.493) - (3004.577 + 0 + 352.142)
=521.595

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. It is also linked to Joel Greenblatt's definition of Earnings Yield:

Vertex Pharmaceuticals's Earnings Yield (Joel Greenblatt) % for today is calculated as:

Earnings Yield (Joel Greenblatt) %=EBIT (TTM)/Enterprise Value (Q: Mar. 2026 )
=4349.512/99441.983
=4.37 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Vertex Pharmaceuticals EBIT Related Terms


Vertex Pharmaceuticals EBIT Historical Data

* Premium members only.

The historical data trend for Vertex Pharmaceuticals's EBIT can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Vertex Pharmaceuticals EBIT Chart

Vertex Pharmaceuticals Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
EBIT
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2,470.83 4,047.12 4,056.72 266.54 3,976.65

Vertex Pharmaceuticals Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
EBIT Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 953.77 1,115.57 1,109.39 1,139.49 985.06

WBO:VRTX vs REGN, ALNY, RVMD: EBIT Comparison

For the Biotechnology subindustry, Vertex Pharmaceuticals's EV-to-EBIT, along with its competitors' market caps and EV-to-EBIT data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Vertex Pharmaceuticals EV-to-EBIT vs Biotechnology Industry

For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's EV-to-EBIT distribution charts can be found below:

* The bar in red indicates where Vertex Pharmaceuticals's EV-to-EBIT falls into.


WBO:VRTX
90GF Score
Vertex Pharmaceuticals Inc WBO:VRTX
EBIT is just one metric. See GF Score™, valuation, warning signs, and more.
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Vertex Pharmaceuticals EBIT Calculation

EBIT, sometimes also called Earnings Before Interest and Taxes, is a measure of a firm's profit that includes all expenses except interest and income tax expenses. It is the difference between operating revenues and operating expenses. When a firm does not have non-operating income, then Operating Income is sometimes used as a synonym for EBIT and operating profit.

EBIT for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was €4,350 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about EBIT →
What does a EBIT of €4,350 Mil mean?
Vertex Pharmaceuticals (WBO:VRTX) has a EBIT of €4,350 Mil as of Mar. 2026. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Vertex Pharmaceuticals.
Is Vertex Pharmaceuticals' EBIT too high?
Vertex Pharmaceuticals' current EBIT is €4,350 Mil. Overall, Vertex Pharmaceuticals has a GF Score™ of 90/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Vertex Pharmaceuticals' EBIT compare to REGN and ALNY?
Vertex Pharmaceuticals' EBIT of €4,350 Mil can be compared against companies in the Biotechnology industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good EBIT for a Biotechnology company?
A good EBIT depends on the Biotechnology industry context. However, EBIT should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high EBIT mean?
A high EBIT can signal that a stock is expensive relative to its fundamentals. Earnings before interest and taxes is the difference between operating revenue and operating expenses. View historical data on Vertex Pharmaceuticals. Vertex Pharmaceuticals's current EBIT is €4,350 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Vertex Pharmaceuticals stock overvalued right now?
Based on GuruFocus' analysis, Vertex Pharmaceuticals (WBO:VRTX) is currently considered Fairly Valued. The stock's GF Value™ is €439.78, compared to a current price of €410.10 — trading 6.7% below its estimated fair value. The current EBIT is €4,350 Mil. Vertex Pharmaceuticals' overall GF Score™ is 90/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is EBIT calculated?
EBIT is calculated from a company's financial statements. For Vertex Pharmaceuticals (WBO:VRTX), the current EBIT is €4,350 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Vertex Pharmaceuticals (WBO:VRTX) Overvalued in 2026?

Based on GuruFocus' analysis, Vertex Pharmaceuticals stock appears to be undervalued. The current stock price of €410.10 is trading 6.7% below its estimated GF Value™ of €439.78. GuruFocus considers Vertex Pharmaceuticals to be Fairly Valued.

Key valuation signals for WBO:VRTX:

  • EBIT: €4,350 Mil
  • GF Value™: €439.78 vs. price of €410.10 (6.7% below fair value)
  • GF Score™: 90/100 with 4 warning signs

No single metric tells the full story. See the WBO:VRTX stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.


Vertex Pharmaceuticals Business Description

Address 50 Northern Avenue, Boston, MA, USA, 02210
Vertex Pharmaceuticals is a global biotechnology company that discovers and develops small-molecule drugs for the treatment of serious diseases. Its key drugs are Kalydeco, Orkambi, Symdeko, and Trikafta/Kaftrio, and Alyftrek for cystic fibrosis, where Vertex therapies remain the standard of care globally. Vertex has diversified its portfolio through Casgevy, a gene-editing therapy for beta thalassemia and sickle-cell disease, and Journavx, a non-opioid pain medication approved for the treatment of moderate-to-severe acute pain in adults. Additionally, Vertex is evaluating small-molecule inhibitors of APOL1-mediated kidney diseases. Vertex is also investigating cell therapies to deliver a potential functional cure for type 1 diabetes.
90GF Score

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EBIT is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

€410.10
Price
€439.78
GF Value