Vertex (NASDAQ:VERX) Shares Gap Up After Strong Earnings

Vertex, Inc. (NASDAQ:VERX) shares gapped up before the market opened on Thursday following a stronger than expected earnings report. The stock had previously closed at $15.92, but opened at $18.21. Vertex shares last traded at $17.6980, with a volume of 518,354 shares trading hands.

The company reported $0.26 EPS for the quarter, beating analysts’ consensus estimates of $0.22 by $0.04. The firm had revenue of $213.28 million for the quarter, compared to the consensus estimate of $209.72 million. Vertex had a net margin of 0.45% and a return on equity of 29.00%. The firm’s revenue was up 11.0% on a year-over-year basis. During the same period in the previous year, the firm posted $0.17 earnings per share.

Key Vertex News

Here are the key news stories impacting Vertex this week:

• Positive Sentiment: Vertex reported Q3 2026 earnings of $0.26 per share, above the $0.22 consensus estimate, and revenue of $213.28 million, topping expectations of $209.72 million. Revenue rose 11% year over year, while EPS increased from $0.17 a year earlier—results that may support investor optimism. Vertex Q3 2026 results
• Positive Sentiment: Needham raised its price target to $30 from $20 and maintained a Buy rating, signaling increased confidence in Vertex’s prospects. Needham recommendations
• Neutral Sentiment: Piper Sandler lifted its target to $20 from $16 but kept a Neutral rating, reflecting a more cautious stance than Needham. Piper Sandler recommendations

Analysts Set New Price Targets

A number of research firms have recently weighed in on VERX. DA Davidson set a $16.00 price target on shares of Vertex in a research note on Thursday. TD Cowen reduced their price objective on Vertex from $16.00 to $15.00 and set a “buy” rating for the company in a research report on Tuesday, October 13th. BMO Capital Markets boosted their target price on Vertex from $14.00 to $15.00 and gave the company a “market perform” rating in a research note on Tuesday, August 4th. Morgan Stanley lowered Vertex from an “overweight” rating to an “equal weight” rating and dropped their target price for the stock from $19.00 to $15.00 in a research report on Tuesday, July 21st. Finally, Needham & Company LLC raised their price target on Vertex from $20.00 to $30.00 and gave the stock a “buy” rating in a research note on Thursday. Six analysts have rated the stock with a Buy rating, six have given a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat.com, Vertex presently has an average rating of “Hold” and a consensus price target of $18.79.

Institutional Trading of Vertex

Large investors have recently added to or reduced their stakes in the business. Healthcare of Ontario Pension Plan Trust Fund acquired a new position in shares of Vertex during the 1st quarter worth $37,796,000. Arrowstreet Capital Limited Partnership raised its holdings in shares of Vertex by 1,906.8% during the 1st quarter. Arrowstreet Capital Limited Partnership now owns 935,668 shares of the company’s stock valued at $11,125,000 after purchasing an additional 889,042 shares in the last quarter. Renaissance Technologies LLC raised its holdings in shares of Vertex by 8.1% during the 1st quarter. Renaissance Technologies LLC now owns 290,500 shares of the company’s stock valued at $3,454,000 after purchasing an additional 21,700 shares in the last quarter. North Star Asset Management Inc. acquired a new stake in shares of Vertex in the 2nd quarter valued at $2,899,000. Finally, Allianz Asset Management GmbH acquired a new stake in shares of Vertex in the 2nd quarter valued at $2,182,000. 70.32% of the stock is owned by institutional investors.

Vertex Stock Performance

The firm has a market cap of $2.84 billion, a price-to-earnings ratio of 875.19 and a beta of 0.77. The firm’s 50 day moving average is $13.28 and its 200-day moving average is $13.30. The company has a debt-to-equity ratio of 1.40, a quick ratio of 0.87 and a current ratio of 0.87.

Vertex Company Profile

Vertex, Inc is a tax technology company that provides software and services to help businesses manage tax determination, compliance and reporting. Its solutions are designed to support complex transaction tax requirements across sales and use tax, value-added tax, goods and services tax, communications tax, and other indirect taxes.

The company’s offerings include cloud-based and enterprise tax software, tax calculation engines, compliance and returns management tools, tax data management, and related professional services.