VRTX · 10-Q · 2026Q2 · Full report

Gross Margin Drivers

VERTEX PHARMACEUTICALS INC / MA · 2026-08-04 · Importance 59 · Surprise 48 · Matches filing data

Second-quarter 2026 cost of sales increased 20% year over year to $489.2 million, compared with 13% revenue growth to $3,333.9 million. Cost of sales as a percentage of net product revenue increased to 14.7% from 13.8% in the second quarter and to 14.0% from 13.5% in the first half. The margin pressure resulted from product-mix changes, partially offset by a lower blended royalty rate for CF medicines. ALYFTREK and TRIKAFTA/KAFTRIO carry lower royalty rates than other CF products, with stated royalty burdens of approximately 4% and 9.33%, respectively, although Royalty Pharma is disputing the ALYFTREK rate.

Key facts

• Cost of sales in Q2 2026: $489.2 million, up 20% from $407.5 million in Q2 2025; cost of sales for six months ended June 30, 2026: $882.0 million, up 14% from $770.5 million source
• Under CFF Agreement, royalty burden on TRIKAFTA/KAFTRIO is 9.33% and company's position is that ALYFTREK royalty burden is 4% source
• Cost of sales as a percentage of net product revenues in the second quarter of 2026: 14.7%, compared to 13.8% in the second quarter of 2025 source

Impact estimates