Vertex Sees 23% Cloud Growth and 11.3% ARR Jump, GS Cuts Target
Vertex posted Q4 2025 revenue of $194.7 million (+9.1% YoY), driven by a 23% jump in cloud income, ARR of $671 million (+11.3%), and a 21.8% adjusted EBITDA margin. Goldman Sachs cut its price target to $23 while 53.97% of analysts see upside to a $19 consensus target as FY26 revenue guidance ranges $823.5–831.5 million.
1. Q4 2025 Financial Results
Vertex reported Q4 2025 revenue of $194.7 million, up 9.1% year-over-year, driven by a 23% increase in cloud revenue. The company achieved ARR of $671 million, an 11.3% rise, and expanded its adjusted EBITDA margin to 21.8%, while non-GAAP net income reached $27.8 million with EPS of $0.17.
2. Analyst Price Targets and Sentiment
More than half of covering analysts project 53.97% upside, setting a consensus price target of $19.00, even as Goldman Sachs trimmed its own target from $25 to $23 while maintaining a Buy rating. The cut followed the Q4 results and a 13% drop in share price due to short-term free cash flow volatility concerns.
3. FY26 Guidance and Buyback Program
Management guided FY26 revenue between $823.5 million and $831.5 million with 25% cloud growth, reinforcing confidence in long-term performance despite subscription upsell softness and higher churn. The company also initiated a $150 million share buyback program, repurchasing $10 million to date to support shareholder value.