Vertex PharmaceuticalsWBO:VRTX +2.51%90 Operating Margin % is 38.13% as of Mar. 2026, which is 16% above its 10-year median of 32.78. 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. Among 945 Biotechnology companies, Vertex Pharmaceuticals ranks better than 95.34% on this metric.
Just like Gross Margin %, it is important to see a company maintains its operating margin over time. Among the same industry, a company with higher operating margin is more efficient in its operation. It is also more stable during industry slowdown or recessions. Peter Lynch prefers those with higher margins than those with lower margins.
Be Aware
Operating Margin % can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).
If a company is facing competition, its Operating Margin % may decline. Often the Operating Margin % declines well before the company's Revenue or even profit decline. Therefore, Operating Margin % is a very important indicator of whether the company is facing problems.
For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokias Operating Margin % had already been in decline since 2002, although its Earnings per Share (Diluted) were still rising. Investors who paid attention to Operating Margin % would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).
Therefore, Operating Margin % is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.
Vertex Pharmaceuticals Operating Margin % Related Terms
Vertex Pharmaceuticals Operating Margin % Historical Data
* Premium members only.
The historical data trend for Vertex Pharmaceuticals's Operating Margin % 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.
WBO:VRTX vs REGN, ALNY, RVMD: Operating Margin % Comparison
For the Biotechnology subindustry, Vertex Pharmaceuticals's Operating Margin %, along with its competitors' market caps and Operating Margin % 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 Operating Margin % vs Biotechnology Industry
For the Biotechnology industry and Healthcare sector, Vertex Pharmaceuticals's Operating Margin % distribution charts can be found below:
* The bar in red indicates where Vertex Pharmaceuticals's Operating Margin % falls into.
Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.
Vertex Pharmaceuticals's Operating Margin % for the fiscal year that ended in Dec. 2025 is calculated as
* 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 (WBO:VRTX) has a Operating Margin % of 38.13% as of Mar. 2026. Operating margin is the ratio of total operating income to net sales. View historical data on Vertex Pharmaceuticals and its competitors. This is 16% above median its historical median of 32.78. According to the industry distribution chart, Vertex Pharmaceuticals ranks #44 out of 945 companies in the Biotechnology industry, placing it in the top 4.7%.
Is Vertex Pharmaceuticals' Operating Margin % too high?
Vertex Pharmaceuticals' current Operating Margin % of 38.13% is 16% above median its 10-year median of 32.78. Based on the distribution chart, Vertex Pharmaceuticals ranks #44 out of 945 companies in the Biotechnology industry, which is in the top quartile — a strong position relative to peers. 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' Operating Margin % compare to REGN and ALNY?
According to the Biotechnology industry distribution chart, Vertex Pharmaceuticals ranks #44 out of 945 companies for Operating Margin %. This places Vertex Pharmaceuticals in the top 5% of its industry — outperforming the majority of peers. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Margin % for a Biotechnology company?
A good Operating Margin % depends on the Biotechnology industry context. However, Operating Margin % 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 Operating Margin % mean?
A high Operating Margin % can signal that a stock is expensive relative to its fundamentals. Operating margin is the ratio of total operating income to net sales. View historical data on Vertex Pharmaceuticals and its competitors. Vertex Pharmaceuticals's current Operating Margin % is 38.13%, which is 16% above median its own 10-year median of 32.78. 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 Operating Margin % is 38.13%, which is 16% above median its 10-year median of 32.78. 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 Operating Margin % calculated?
Operating Margin % is calculated from a company's financial statements. For Vertex Pharmaceuticals (WBO:VRTX), the current Operating Margin % is 38.13% 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:
Operating Margin %: 38.13% (16% above median its 10-year median of 32.78)
GF Value™: €439.78 vs. price of €410.10 (6.7% below fair value)
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 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
Get the complete analysis for WBO:VRTX
Operating Margin % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.
Quick Browse
Personalize
Premium Gurus 
Create New Portfolio
WBO:VRTX has been successfully added to your 
