Vertex Q4 EPS beats estimates on cloud revenue growth

Vertex

11/02/2026 12:12

Overview

Indirect tax solutions provider's Q4 revenue slightly missed analyst expectations

Adjusted EPS for Q4 beat analyst expectations

Company experienced growth in cloud revenues and strategic investments in AI offerings

Outlook

Vertex expects Q1 2026 revenue between $193.5 mln and $196.5 mln

Company anticipates full-year 2026 revenue of $823.5 mln to $831.5 mln

Vertex forecasts 25% cloud revenue growth for 2026

Result Drivers

CLOUD REVENUE GROWTH - Vertex reported a 23% year-over-year increase in cloud revenues, contributing to overall revenue growth

AI OFFERINGS - Vertex's new AI-driven Smart Categorization offering gained traction with enterprise customers

E-INVOICING MANDATES - Upcoming e-invoicing mandates in France and Germany expected to drive growth

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Revenue
Slight Miss*
$194.71 mln
$194.75 mln (14 Analysts)
Q4 Adjusted EPS
Beat
$0.17
$0.16 (15 Analysts)

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 9 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the software peer group is "buy"

Wall Street's median 12-month price target for Vertex Inc is $26.00, about 74.7% above its February 10 closing price of $14.88

The stock recently traded at 20 times the next 12-month earnings vs. a P/E of 31 three months ago

Press Release: ID:nGNXc7rcb1

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)