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Viatris Q3 Earnings Beat on Stronger Margins, Revenues Fall Y/Y
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Key Takeaways
Viatris reported Q3 adjusted EPS of 71 cents, beating estimates of 64 cents, as margins improved.
Greater China sales rose 14.2%, cushioning supply disruptions and competition in other markets.
Viatris raised 2026 adjusted EPS guidance to $2.56-$2.63, while Nashik disruptions threaten Q4 revenues.
Viatris (VTRS - Free Report) reported third-quarter 2026 adjusted earnings per share of 71 cents, surpassing the Zacks Consensus Estimate of 64 cents. Earnings rose 6% from 67 cents a year ago, supported by a higher adjusted gross margin.
Total revenues of $3.75 billion slipped 0.3% year over year and missed the Zacks Consensus Estimate of $3.78 billion. Greater China net sales increased 14.2%, cushioning continued supply constraints and competition in other markets.
VTRS' Q3 Sales in Detail
Total net sales declined 0.3% to $3.73 billion from $3.75 billion in the prior-year quarter. Other revenues increased to $14.8 million from $12.4 million.
New product launches, strength in North America and higher Greater China sales helped stabilize revenues. However, continued supply disruptions in Europe and Emerging Markets, along with competition affecting certain products, weighed on the top line.
Viatris' Regional Performance
Developed Markets net sales declined 1.8% to $2.22 billion from $2.26 billion, missing the Zacks Consensus Estimate of $2.23 billion. Emerging Markets sales fell 7.2% to $529.1 million from $570.4 million, below the $565.37 million estimate.
Japan, Australia and New Zealand (JANZ) generated $287.1 million in sales, down 6.3% from $306.3 million and below the $291.56 million estimate.
Greater China remained the strongest region, with sales rising to $702.6 million from $615.2 million. The result exceeded the consensus estimate of $675.37 million, reflecting continued strength across Viatris' brands portfolio.
VTRS’ shares have gained 54.4% year to date compared with the industry’s 10% growth.
Image Source: Zacks Investment Research
VTRS' Product Category Trends
Brands’ net sales increased 1% to $2.46 billion from $2.44 billion, supported by Greater China and Emerging Markets. Lipitor sales grew 14.1% to $451.9 million, Norvasc increased 5.8% to $190.2 million, and Zoloft rose 18% to $78.8 million. Creon advanced 5.4% to $98.1 million.
Meanwhile, Lyrica declined 9.7% to $114.2 million, Viagra fell 10.6% to $94.1 million, and EpiPen Auto-Injectors slipped 0.9% to $155.8 million. Influvac sales dropped 27.8% to $90.6 million.
Generics net sales decreased 2.9% to $1.27 billion from $1.31 billion. New launches and growth in certain North American products were more than offset by supply constraints in Europe and Emerging Markets. New products generated approximately $115 million in quarterly revenues across the business.
Viatris' Adjusted Costs and Margins
Adjusted gross profit rose 3.4% to $2.18 billion, while adjusted gross margin expanded to 58% from 56%. Adjusted cost of sales declined 5% to $1.57 billion, reflecting improved cost performance amid broadly flat revenues.
Adjusted research and development expenses declined 5% to $225.7 million, while adjusted selling, general and administrative expenses edged up 0.6% to $825.8 million. Adjusted EBITDA increased 3.6% to $1.20 billion. Management cited momentum in higher-margin businesses and continued cost discipline.
VTRS Raises 2026 Guidance
Viatris now expects full-year revenues of $14.70-$14.90 billion compared with the previous $14.55-$14.95 billion range. The midpoint rose to $14.80 billion from $14.75 billion, although the upper end was reduced.
Adjusted earnings per share are now projected at $2.56-$2.63, up from the previous guidance of $2.45-$2.59. Adjusted EBITDA guidance increased to $4.45-$4.55 billion from $4.30-$4.50 billion. Viatris targets approximately $450 million in new product revenues in 2026. The guidance excludes contributions from the planned Pacira BioSciences acquisition.
Viatris' Other Q3 Updates
Last month, Viatris launched Gwyn Lo, a low-dose estrogen hormonal contraceptive patch for the prevention of pregnancy in women with a body mass index below 30 kg/m², in the United States. VTRS also received FDA approval for a label expansion of Ryzumvi to treat presbyopia in adults, expanding its previously approved indication for pharmacologically induced mydriasis. Japan also approved Wakix in September for narcolepsy and excessive daytime sleepiness associated with treated obstructive sleep apnea. Viatris also highlighted the potential upcoming approval and launch of fast-acting meloxicam, a non-opioid treatment for moderate-to-severe acute pain.
In October, Viatris entered into a definitive agreement to acquire Pacira BioSciences for $36.50 per share in cash, representing $1.65 billion in equity value. The transaction is expected to close by the end of November 2026.
Supply concerns remain. Viatris suspended manufacturing at its Nashik, India, facility in October following an FDA Official Action Indicated inspection classification. The company estimates a roughly $100 million revenue impact in the third quarter and anticipates a similar fourth-quarter impact, with production expected to resume in the first quarter of 2027.
Our Take on VTRS' Q3 Performance
Viatris delivered a mixed third-quarter performance, with an earnings beat despite revenues falling short of estimates. The expansion in adjusted gross margin highlights improving profitability and effective cost management, even as sales remained under pressure. Greater China continued to be a bright spot, supported by the brands portfolio, while weakness across other regions and generics restricted overall growth. The upward revision to adjusted earnings guidance suggests management remains confident in sustaining profitability improvements despite a challenging sales environment.
Looking ahead, recent regulatory approvals, new product launches and the planned Pacira acquisition could strengthen Viatris' growth prospects and support its transition toward higher-value medicines. However, persistent supply constraints, particularly the manufacturing suspension at the Nashik facility, remain a near-term concern. With another $100 million revenue impact anticipated in the fourth quarter, successful remediation and a recovery in underlying sales will be important for translating improving margins into more sustainable earnings growth.
Over the past 30 days, earnings per share estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 earnings per share have increased from $2.65 to $2.66. TGTX’s shares have risen 106.8% year to date.
TG Therapeutics’ earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with an average surprise of 184.65%.
Over the past 30 days, loss per share estimates for ImmunityBio remain unchanged at 97 cents for 2026. Over the same period, estimates for 2027 loss per share have improved from 14 cents to 11 cents. IBRX’s shares have skyrocketed 351% year to date.
ImmunityBio’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 13.40%.
Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 earnings per share have risen from $1.16 to $1.19. AMRX’s shares have surged 58.4% year to date.
Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 27.21%.
View the Zacks #1 Rank List
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Viatris Q3 Earnings Beat on Stronger Margins, Revenues Fall Y/Y
Key Takeaways
Viatris (VTRS - Free Report) reported third-quarter 2026 adjusted earnings per share of 71 cents, surpassing the Zacks Consensus Estimate of 64 cents. Earnings rose 6% from 67 cents a year ago, supported by a higher adjusted gross margin.
Total revenues of $3.75 billion slipped 0.3% year over year and missed the Zacks Consensus Estimate of $3.78 billion. Greater China net sales increased 14.2%, cushioning continued supply constraints and competition in other markets.
VTRS' Q3 Sales in Detail
Total net sales declined 0.3% to $3.73 billion from $3.75 billion in the prior-year quarter. Other revenues increased to $14.8 million from $12.4 million.
New product launches, strength in North America and higher Greater China sales helped stabilize revenues. However, continued supply disruptions in Europe and Emerging Markets, along with competition affecting certain products, weighed on the top line.
Viatris' Regional Performance
Developed Markets net sales declined 1.8% to $2.22 billion from $2.26 billion, missing the Zacks Consensus Estimate of $2.23 billion. Emerging Markets sales fell 7.2% to $529.1 million from $570.4 million, below the $565.37 million estimate.
Japan, Australia and New Zealand (JANZ) generated $287.1 million in sales, down 6.3% from $306.3 million and below the $291.56 million estimate.
Greater China remained the strongest region, with sales rising to $702.6 million from $615.2 million. The result exceeded the consensus estimate of $675.37 million, reflecting continued strength across Viatris' brands portfolio.
VTRS’ shares have gained 54.4% year to date compared with the industry’s 10% growth.
Image Source: Zacks Investment Research
VTRS' Product Category Trends
Brands’ net sales increased 1% to $2.46 billion from $2.44 billion, supported by Greater China and Emerging Markets. Lipitor sales grew 14.1% to $451.9 million, Norvasc increased 5.8% to $190.2 million, and Zoloft rose 18% to $78.8 million. Creon advanced 5.4% to $98.1 million.
Meanwhile, Lyrica declined 9.7% to $114.2 million, Viagra fell 10.6% to $94.1 million, and EpiPen Auto-Injectors slipped 0.9% to $155.8 million. Influvac sales dropped 27.8% to $90.6 million.
Generics net sales decreased 2.9% to $1.27 billion from $1.31 billion. New launches and growth in certain North American products were more than offset by supply constraints in Europe and Emerging Markets. New products generated approximately $115 million in quarterly revenues across the business.
Viatris' Adjusted Costs and Margins
Adjusted gross profit rose 3.4% to $2.18 billion, while adjusted gross margin expanded to 58% from 56%. Adjusted cost of sales declined 5% to $1.57 billion, reflecting improved cost performance amid broadly flat revenues.
Adjusted research and development expenses declined 5% to $225.7 million, while adjusted selling, general and administrative expenses edged up 0.6% to $825.8 million. Adjusted EBITDA increased 3.6% to $1.20 billion. Management cited momentum in higher-margin businesses and continued cost discipline.
VTRS Raises 2026 Guidance
Viatris now expects full-year revenues of $14.70-$14.90 billion compared with the previous $14.55-$14.95 billion range. The midpoint rose to $14.80 billion from $14.75 billion, although the upper end was reduced.
Adjusted earnings per share are now projected at $2.56-$2.63, up from the previous guidance of $2.45-$2.59. Adjusted EBITDA guidance increased to $4.45-$4.55 billion from $4.30-$4.50 billion. Viatris targets approximately $450 million in new product revenues in 2026. The guidance excludes contributions from the planned Pacira BioSciences acquisition.
Viatris' Other Q3 Updates
Last month, Viatris launched Gwyn Lo, a low-dose estrogen hormonal contraceptive patch for the prevention of pregnancy in women with a body mass index below 30 kg/m², in the United States. VTRS also received FDA approval for a label expansion of Ryzumvi to treat presbyopia in adults, expanding its previously approved indication for pharmacologically induced mydriasis. Japan also approved Wakix in September for narcolepsy and excessive daytime sleepiness associated with treated obstructive sleep apnea. Viatris also highlighted the potential upcoming approval and launch of fast-acting meloxicam, a non-opioid treatment for moderate-to-severe acute pain.
In October, Viatris entered into a definitive agreement to acquire Pacira BioSciences for $36.50 per share in cash, representing $1.65 billion in equity value. The transaction is expected to close by the end of November 2026.
Supply concerns remain. Viatris suspended manufacturing at its Nashik, India, facility in October following an FDA Official Action Indicated inspection classification. The company estimates a roughly $100 million revenue impact in the third quarter and anticipates a similar fourth-quarter impact, with production expected to resume in the first quarter of 2027.
Our Take on VTRS' Q3 Performance
Viatris delivered a mixed third-quarter performance, with an earnings beat despite revenues falling short of estimates. The expansion in adjusted gross margin highlights improving profitability and effective cost management, even as sales remained under pressure. Greater China continued to be a bright spot, supported by the brands portfolio, while weakness across other regions and generics restricted overall growth. The upward revision to adjusted earnings guidance suggests management remains confident in sustaining profitability improvements despite a challenging sales environment.
Looking ahead, recent regulatory approvals, new product launches and the planned Pacira acquisition could strengthen Viatris' growth prospects and support its transition toward higher-value medicines. However, persistent supply constraints, particularly the manufacturing suspension at the Nashik facility, remain a near-term concern. With another $100 million revenue impact anticipated in the fourth quarter, successful remediation and a recovery in underlying sales will be important for translating improving margins into more sustainable earnings growth.
Viatris Inc. Price, Consensus and EPS Surprise
Viatris Inc. price-consensus-eps-surprise-chart | Viatris Inc. Quote
VTRS’ Zacks Rank & Stocks to Consider
Viatris currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are TG Therapeutics (TGTX - Free Report) , ImmunityBio (IBRX - Free Report) and Amneal Pharmaceuticals (AMRX - Free Report) . TGTX sports a Zacks Rank #1 (Strong Buy), while IBRX and AMRX carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 30 days, earnings per share estimates for TG Therapeutics have risen from 92 cents to 94 cents for 2026. Over the same period, estimates for 2027 earnings per share have increased from $2.65 to $2.66. TGTX’s shares have risen 106.8% year to date.
TG Therapeutics’ earnings missed estimates in three of the trailing four quarters and beat in the remaining one, with an average surprise of 184.65%.
Over the past 30 days, loss per share estimates for ImmunityBio remain unchanged at 97 cents for 2026. Over the same period, estimates for 2027 loss per share have improved from 14 cents to 11 cents. IBRX’s shares have skyrocketed 351% year to date.
ImmunityBio’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, with the average surprise being 13.40%.
Over the past 30 days, earnings per share estimates for Amneal Pharmaceuticals have increased from $1.03 to $1.04 for 2026. Over the same period, estimates for 2027 earnings per share have risen from $1.16 to $1.19. AMRX’s shares have surged 58.4% year to date.
Amneal Pharmaceuticals’ earnings beat estimates in each of the trailing four quarters, delivering an average surprise of 27.21%.