Analyst Confidence Strong on Vertex (VERX) Following Fourth-Quarter Results

Vertex, Inc. (NASDAQ:VERX) is one of the 12 Best Beaten Down Technology Stocks to Buy According to Wall Street Analysts.

As of February 18, 2026, more than half of covering analysts remain bullish on Vertex, Inc. (NASDAQ:VERX), indicating 53.97% upside potential with a consensus price target of $19.00.

On February 12, 2026, Adam Hotchkiss, an analyst at Goldman Sachs, reduced Vertex, Inc. (NASDAQ:VERX)’s price target from $25 to $23 while keeping his Buy rating. The downgrade came after Q4 2025 results, which were followed by a 13% drop in share price.

The firm remains confident in the company’s outlook despite concerns regarding short-term free cash flow volatility. Its optimism stems from management’s FY26 guidance, which indicates a strong surge in overall future performance. The firm’s view was inclined toward slowing growth of subscription revenue and ARR due to softness in upsell activity, higher churn, and lower entitlement growth.

Vertex, Inc. (NASDAQ:VERX) reported Q4 2025 results on the previous day. The release featured 9.1% year-over-year growth in revenue ($194.7 million), thanks to a 23% YoY growth in cloud revenue. The company posted a net revenue retention rate of 105% and ARR YoY growth of 11.3% to $671.0 million.

The adjusted EBITDA margin increased to 21.8%, while the non-GAAP net income was $27.8 million with an EPS of $0.17. While the company’s full-year 2025 revenue was $748.4 million (+12.2% YoY), it guided for 2026 revenue of $823.5–$831.5 million and cloud growth of 25%. As part of its $150 million buyback program, the company bought back $10 million worth of shares.

Vertex, Inc. (NASDAQ:VERX), a leading provider of indirect tax and e-invoicing solutions, uses AI-powered offerings to accelerate enterprise revenue growth, profitability, and operational efficiency in global markets.

While we acknowledge the potential of VERX as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: 14 Oversold Value Stocks to Invest in Right Now and Cathie Wood’s 10 Stock Picks with Huge Upside Potential. Disclosure: None.  Follow Insider Monkey on Google News.