Back to top

Image: Bigstock

Viatris Gears Up to Report Q1 Earnings: What's in the Cards?

Read MoreHide Full Article

Key Takeaways

  • Viatris will report Q1 2026 results on May 7, with revenues seen at $3.35B and EPS at 52 cents.
  • VTRS faces Developed Markets pressure from an FDA import alert affecting key products.
  • Emerging Markets and Greater China growth may offset weakness in JANZ and generics.

Viatris (VTRS - Free Report) , a global healthcare company, is scheduled to report first-quarter 2026 results on May 7, before the opening bell.

The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.35 billion, while the same for earnings is pinned at 52 cents per share.

VTRS Q1 Earnings: Factors to Consider

The company reports under four segments on the basis of geography — Developed Markets; Emerging Markets; Japan, Australia and New Zealand (“JANZ”); and Greater China.

In Developed Markets, the business in North America is likely to have been under pressure due to an import alert for the manufacturing facility in Indore, India. Solid growth in EpiPen, Creon and Viatris’ thrombosis portfolio is likely to have enabled it to partially absorb the anticipated competition for Dymista. Incremental revenues from new products, such as iron sucrose, are likely to have boosted the quarterly top line.

Following an inspection of Viatris' oral finished dose manufacturing facility in Indore, India, in June 2024, the company received a warning letter and import alert from the FDA in December 2024. The import alert affected 11 actively distributed products, including lenalidomide and everolimus. The Zacks Consensus Estimate for revenues from Developed Markets is pinned at $1.96 billion.

Sales from Emerging Markets are expected to have experienced growth, driven by branded business in Turkey, Mexico and certain Asian markets. The generic business is likely to have seen growth due to the stabilization of supply for certain lower-margin ARB products. The Zacks Consensus Estimate for revenues from this geography is pegged at $570.8 million.

Viatris shares have surged 22% year to date against the industry’s 11.9% decline.

Zacks Investment Research
Image Source: Zacks Investment Research

Sales in JANZ are likely to have been adversely impacted by government price regulations, a change in reimbursement policy affecting off-patent brands in Japan and competition in Australia. The Zacks Consensus Estimate for revenues from the JANZ markets is pinned at $256.1 million.

Sales in Greater China might have increased due to the company’s diversified model. The Zacks Consensus Estimate for revenues from this geography is pegged at $588.8 million.

Viatris also reports revenues under two divisions (in terms of product category) — brands and generics.

The brand business comprises the majority of the company’s portfolio. Brand performance is likely to have benefited from strong performance in Greater China and Emerging Markets, in addition to growth in certain key brands in Developed Markets.

However, the generics business is likely to have been negatively impacted by inspection at the Indore facility and competition for Wixela, partially offset by continued growth in Yupelri and Breyna in North America, strong performance across key European markets, and slight volume growth in JANZ.

On the profitability front, gross margin is likely to have been stable. Total operating expenses in the first quarter of 2026 are likely to have declined as a result of the planned cost-saving initiatives.

VTRS’ Impeccable Earnings Surprise History

Viatris’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 7.18%. In the last reported quarter, VTRS beat on earnings by 9.62%.

What Our Model Predicts for Viatris

Our proven model does not conclusively predict an earnings beat for VTRS this time around.  The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

Earnings ESP:Viatris has an Earnings ESP of -5.77% as the Most Accurate Estimate of 49 cents per share is lower than the Zacks Consensus Estimate of 52 cents. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank:VTRS currently carries a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.

Viatris Inc. Price, Consensus and EPS Surprise

Viatris Inc. Price, Consensus and EPS Surprise

Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote

Stocks to Consider

Here are some drug/biotech stocks that have the right combination of elements to beat on earnings this time around:

Agenus (AGEN - Free Report) has an Earnings ESP of +7.69% and sports a Zacks Rank #1 at present.

Shares of AGEN have risen 28% year to date. The company’s earnings beat estimates in two of the trailing four quarters, while missing the mark in the other two. Agenus delivered an average earnings surprise of 31.42%.

Inovio Pharmaceuticals (INO - Free Report) has an Earnings ESP of +3.33% and a Zacks Rank #2 at present.

Shares of INO have plunged 34.5% year to date. The company’s earnings beat estimates in each of the trailing four quarters. INO delivered an average earnings surprise of 57.94%.

Novo Nordisk (NVO - Free Report) has an Earnings ESP of +1.83% and a Zacks Rank #3 at present.

Shares of NVO have lost 12.7% year to date. The company’s earnings beat estimates in three of the trailing four quarters, while meeting the mark on the remaining occasion. Novo Nordisk delivered an average earnings surprise of 11.97%. NVO is scheduled to report its first-quarter results on May 6.

Zacks' 7 Best Strong Buy Stocks (New Research Report)

Valued at $99, click below to receive our just-released report predicting the 7 stocks that will soar highest in the coming month.

Click Here, It's Really Free

Published in