Viatris Reports Third-Quarter 2026 Financial Results
Viatris Inc (VTRS) filed an SEC Form 8-K — Results of Operations and Financial Condition. Viatris Reports Third-Quarter 2026 Financial Results • Delivers Total Revenues of $3.75 Billion, U.S. GAAP Net Loss of $325 Million and Adjusted EBITDA of $1.20 Billion • Receives Regulatory Approval for RYZUMVI® for Presbyopia in the U.S. and WAKIX® in Japan • Returns Approximat
How this was made
The 30-second read
Why it matters
The guidance raise is a primary disclosure that can drive short‑term buying pressure.
Market read
The earnings release and guidance raise are material for investors in Viatris and the broader pharma sector.
What to watch
Acquisition of Pacira BioSciences could add integration risk and near‑term costs.
Viatris Reports Third-Quarter 2026 Financial Results • Delivers Total Revenues of $3.75 Billion, U.S. GAAP Net Loss of $325 Million and Adjusted EBITDA of $1.20 Billion
Third-quarter revenue was essentially flat, adjusted EBITDA and adjusted EPS increased, and full-year guidance midpoints rose, but the company recorded a larger U.S. GAAP net loss and continues to face supply constraints in Europe and Emerging Markets.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Three months ended September 30, 2026 Total RevenuesGAAP | $3.75B | – | —% |
| Three months ended September 30, 2026 Total Net SalesGAAP | $3.73B | – | —% |
| Three months ended September 30, 2026 U.S. GAAP Gross ProfitGAAP | $1.44B | – | 5% |
| Three months ended September 30, 2026 U.S. GAAP Gross MarginGAAP | 38.4 % | – | – |
| Three months ended September 30, 2026 Adjusted Gross Profitnon-GAAP | $2.18B | – | 3% |
| Three months ended September 30, 2026 Adjusted Gross Marginnon-GAAP | 58.0 % | – | – |
| Three months ended September 30, 2026 Earnings from OperationsGAAP | $261.5M | – | – |
| Three months ended September 30, 2026 U.S. GAAP Net LossGAAP | −$325.3M | – | NM |
| Three months ended September 30, 2026 U.S. GAAP Diluted Loss Per ShareGAAP | $ (0.28) | – | NM |
| Three months ended September 30, 2026 Adjusted Net Earningsnon-GAAP | $821.4M | – | 5% |
| Three months ended September 30, 2026 Adjusted EPSnon-GAAP | $ 0.71 | – | 6% |
| Three months ended September 30, 2026 EBITDAnon-GAAP | $937.5M | – | 17% |
| Three months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $1.20B | – | 4% |
| Three months ended September 30, 2026 U.S. GAAP Net Cash Provided by Operating ActivitiesGAAP | $899.4M | – | 21% |
| Three months ended September 30, 2026 Capital Expendituresother | 85.7 | – | (1)% |
| Three months ended September 30, 2026 Free Cash Flownon-GAAP | $813.7M | – | 24% |
| Nine months ended September 30, 2026 Total RevenuesGAAP | $11.02B | – | 4% |
| Nine months ended September 30, 2026 Total Net SalesGAAP | $10.99B | – | 4% |
| Nine months ended September 30, 2026 U.S. GAAP Gross ProfitGAAP | $4.05B | – | 5% |
| Nine months ended September 30, 2026 U.S. GAAP Gross MarginGAAP | 36.8 % | – | – |
| Nine months ended September 30, 2026 Adjusted Gross Profitnon-GAAP | $6.31B | – | 6% |
| Nine months ended September 30, 2026 Adjusted Gross Marginnon-GAAP | 57.2 % | – | – |
| Nine months ended September 30, 2026 Earnings (Loss) from OperationsGAAP | $188.1M | – | – |
| Nine months ended September 30, 2026 U.S. GAAP Net LossGAAP | −$267.7M | – | NM |
| Nine months ended September 30, 2026 U.S. GAAP Diluted Loss Per ShareGAAP | $ (0.23) | – | NM |
| Nine months ended September 30, 2026 Adjusted Net Earningsnon-GAAP | $2.32B | – | 10% |
| Nine months ended September 30, 2026 Adjusted EPSnon-GAAP | $ 1.99 | – | 12% |
| Nine months ended September 30, 2026 EBITDAnon-GAAP | $2.22B | – | NM |
| Nine months ended September 30, 2026 Adjusted EBITDAnon-GAAP | $3.43B | – | 9% |
| Nine months ended September 30, 2026 U.S. GAAP Net Cash Provided by Operating ActivitiesGAAP | $1.67B | – | 11% |
| Nine months ended September 30, 2026 Capital Expendituresother | 178.4 | – | (2)% |
| Nine months ended September 30, 2026 Free Cash Flownon-GAAP | $1.49B | – | 13% |
| September 30, 2026 Cash and Cash EquivalentsGAAP | $1.79B | – | – |
| September 30, 2026 Long-term DebtGAAP | $11.59B | – | – |
| September 30, 2026 Gross Debt to Adjusted EBITDAnon-GAAP | 2.9 x | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Developed MarketsNew product sales, primarily in Developed Markets, and the strength of the North American business largely offset continued supply constraints in Europe and Emerging Markets and additional competition on certain products. | $2.22B | – | (2) % |
| Greater ChinaStrong net sales in Greater China and continued strength in Greater China brands net sales. | $702.6M | – | 14 % |
| JANZNo segment-specific driver was quantified in the filing. | $287.1M | – | (6) % |
| Emerging MarketsBrands net sales reflected continued strength, while generics were affected by continued supply constraints in Europe and Emerging Markets. | $529.1M | – | (7) % |
| BrandsContinued strength in Greater China and Emerging Markets. | $2.46B | – | 1% |
| GenericsContributions from new product launches and growth in certain products in North America were more than offset by continued supply constraints in Europe and Emerging Markets. | $1.27B | – | (3)% |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Full-year 2026 Estimated Ranges as provided on November 5, 2026 outlook
- Revenue$14,700 - $14,900
- NoteTotal Revenues midpoint: $14,800
- NoteAdjusted EBITDA: $4,450 - $4,550
- NoteAdjusted EBITDA midpoint: $4,500
- NoteAdjusted EPS: $2.56 - $2.63
- NoteAdjusted EPS midpoint: $2.60
- NoteFree Cash Flow Excluding Transaction-related and Restructuring-related Costs: $2,225 - $2,375
- NoteFree Cash Flow Excluding Transaction-related and Restructuring-related Costs midpoint: $2,300
- NoteEstimated U.S. GAAP Net Cash provided by Operating Activities: $2,025 - $2,100
- NoteEstimated U.S. GAAP Net Cash provided by Operating Activities midpoint: approximately $2.0625 billion
- NoteCapital Expenditures: $(325) - $(400)
- NoteFree Cash Flow: $1,625 - $1,775
- NoteEstimated Transaction-related and Restructuring-related Costs: ~$600
- NoteGuidance excludes any contribution from the proposed acquisition of Pacira BioSciences.
Capital returns
- Through September 30, 2026, the Company has returned approximately $717 million of capital to shareholders.
- Through September 30, 2026, the Company returned approximately $300 million through share repurchases.
- The Company has approximately $700 million remaining under its existing board-authorized share repurchase program.
What drove it
- The company generated approximately $115 million in new product revenues in the third quarter and approximately $287 million for the year.
- New product sales, North American business strength, and Greater China sales largely offset supply constraints and competition.
- U.S. GAAP gross margin was 38.4 % compared with 36.5 %, while adjusted gross margin was 58.0 % compared with 56.0 %.
- Adjusted EBITDA was $ 1,195.7, up 4% reported and 1% operational, while adjusted EPS was $ 0.71, up 6% reported and 3% operational.
- The company launched Gwyn Lo™ in the U.S. in October, received U.S. approval for RYZUMVI® for presbyopia, and received Japanese approval for WAKIX®.
Concerns
- U.S. GAAP net loss was $ (325.3), compared with $ (128.2), primarily driven by an increase in income tax provision due to losses in jurisdictions for which minimal benefit can be realized.
- The Nashik, India manufacturing facility was classified Official Action Indicated following 483 observations in May, and manufacturing was voluntarily suspended in October.
- The company estimates total revenue impact from supply constraints of approximately $100 million in the third quarter of 2026 and anticipates approximately $100 million to total revenues in the fourth quarter of 2026.
- Developed Markets net sales declined (2) %, Emerging Markets declined (7) %, JANZ declined (6) %, and Generics net sales declined (3)%.
- The proposed Pacira BioSciences acquisition has an aggregate equity value of $1.65 billion and is expected to close by the end of November 2026.
What to watch
- Delivery against approximately $450 million in expected full-year 2026 new product revenues.
- The anticipated approximately $100 million fourth-quarter 2026 total-revenue impact from supply constraints.
- Resumption of production at the Nashik facility, which the company expects during the first quarter of 2027.
- Closing of the Pacira BioSciences transaction by the end of November 2026 and its stated minimal expected impact on gross leverage ratio.
- Execution against the November 5, 2026 full-year guidance ranges, which exclude any contribution from the proposed Pacira BioSciences acquisition.
Balance sheet and cash flow
- Cash and cash equivalents were $ 1,789.2 at September 30, 2026, compared with $ 1,322.4 at December 31, 2025.
- Current portion of long-term debt and other long-term obligations was $ 1,727.5 at September 30, 2026, compared with $ 1,933.3 at December 31, 2025.
- Long-term debt was $ 11,587.5 at September 30, 2026, compared with $ 12,480.6 at December 31, 2025.
- Total debt at notional amounts was $ 12,924.0 at September 30, 2026.
- Gross debt to adjusted EBITDA was 2.9 x.
- Free cash flow excluding transaction-related and restructuring-related costs was $895 million for the three months ended September 30, 2026 and $1.8 billion for the nine months ended September 30, 2026.
Analysis
Viatris delivered third-quarter total revenues of $ 3,749.5, essentially flat from $ 3,759.9 in the prior-year quarter. New product sales, North American business strength and Greater China sales largely offset continued supply constraints in Europe and Emerging Markets as well as competition on certain products. Greater China was the principal reported growth market, with net sales of $ 702.6, up 14 %, while Developed Markets, Emerging Markets and JANZ declined (2) %, (7) % and (6) %, respectively. Brands net sales increased 1%, whereas Generics net sales declined (3)%.
Profitability improved on an adjusted basis. U.S. GAAP gross margin increased to 38.4 % from 36.5 %, and adjusted gross margin increased to 58.0 % from 56.0 %. Adjusted EBITDA rose to $ 1,195.7 from $ 1,154.6, while adjusted EPS increased to $ 0.71 from $ 0.67. The U.S. GAAP result moved in the opposite direction, with net loss of $ (325.3) versus $ (128.2), which the company attributed primarily to a higher income tax provision associated with losses in jurisdictions where minimal tax benefit can be realized.
Cash generation strengthened. U.S. GAAP net cash provided by operating activities was $ 899.4 in the quarter and $ 1,669.5 for the nine months. Reported free cash flow was $ 813.7 for the quarter and $ 1,491.1 for the nine months. Free cash flow excluding transaction-related and restructuring-related costs was $895 million in the quarter and $1.8 billion for the year. Through September 30, the company returned approximately $717 million to shareholders, including approximately $300 million of share repurchases, and retained approximately $700 million under its repurchase authorization.
Management raised the midpoints of all listed 2026 financial guidance metrics. The full-year total-revenue midpoint moved to $14,800, adjusted EBITDA midpoint to $4,500, adjusted EPS midpoint to $2.60, and free cash flow excluding transaction-related and restructuring-related costs midpoint to $2,300. Estimated U.S. GAAP net cash provided by operating activities is $2,025 - $2,100. The new ranges exclude contributions from the planned Pacira BioSciences acquisition.
Supply continuity is the principal operating issue entering the fourth quarter. Viatris estimated an approximately $100 million revenue impact from supply constraints during the third quarter and anticipates approximately $100 million to total revenues in the fourth quarter. The company voluntarily suspended manufacturing at its Nashik facility in October after its inspection classification became Official Action Indicated and expects production to resume during the first quarter of 2027. Separately, the planned Pacira transaction has an aggregate equity value of $1.65 billion, is expected to close by the end of November 2026, and management expects minimal impact on gross leverage ratio upon closing.
Management, verbatim
Our third-quarter results reflect strong execution and reinforce our confidence in the growth trajectory of our business.
Scott A. Smith, CEO, Viatris
With the recent U.S. launch of Gwyn Lo, approvals of RYZUMVI in the U.S. and WAKIX in Japan, the potential upcoming approval and launch of fast-acting meloxicam and our recently announced agreement to acquire Pacira BioSciences, we are taking important steps to position Viatris for sustained revenue and earnings growth.
Scott A. Smith, CEO, Viatris
Based on this performance and our confidence in the outlook for the rest of the year, we are once again raising the midpoints of our financial guidance ranges across all key metrics.
Paul Campbell, Interim CFO, Chief Accounting Officer & Corporate Controller, Viatris
Not in the filing
stated, not guessed- A prior-outlook-to-actual comparison is unavailable because the filing provides prior full-year 2026 guidance but does not report full-year 2026 actual results.
- Forward-looking U.S. GAAP net earnings (loss) guidance is not provided.
- Forward-looking U.S. GAAP diluted EPS guidance is not provided.
- Forward-looking gross margin, operating expenses and tax rate guidance are not provided.
- Quarter-over-quarter comparisons are not reported for the listed third-quarter financial metrics.
- Dividend amount and dividend payment date are not provided.
Written by an AI language model from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was checked against the filing text, and a metric whose value, prior period and change do not add up is dropped from the metrics. The model can still misread a table, in the metrics or in the text, so check a number in the filing before you rely on it. Consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Viatris disclosed Q3 2026 results, including a net loss, adjusted EBITDA growth, and a full‑year guidance raise.
Ticker impact
Viatris raised its 2026 financial guidance midpoints for all metrics in its Q3 2026 earnings release.
likely upside as market prices in higher guidance
The company reported flat revenue but improved adjusted EBITDA and announced a guidance raise, which typically supports a bullish price reaction.
Market effects
Positive for the generic and branded pharmaceuticals sector as peers may be re‑rated.
U.S. healthcare stocks could see modest gains.
Limited to pharma investors; no broad market effect.
Counterpoint
The guidance raise may be offset by the larger net loss and tax provision, suggesting caution.
Key entities
- companyViatris Inc.
Global healthcare company reporting Q3 results and raising guidance.
