In 1972, Reed released Transformer. Co-produced by David Bowie, the album contained the hit single "Walk on the Wild Side," which paid tribute to the hustlers and transvestites Reed had met through Andy Warhol, and the song "Perfect Day." The record is widely considered to be the pinnacle of Reed's solo career.

Following Transformer, Reed recorded a number of albums with wildly differing styles and cultivated an antagonistic and erratic persona.