Viatris (VTRS) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered $3.8B in revenue, up 5% year-over-year and 3.5% operationally, with adjusted EBITDA of $1.2B and adjusted EPS of $0.69, exceeding expectations.

• Strong commercial execution in Greater China and Developed Markets, with notable growth in complex generics, transdermal products, and new launches.

• U.S. GAAP net loss was $119M, mainly due to a $177.8M non-cash charge for the planned sale of TyrvayaⓇ product rights.

• Approximately $550M was returned to shareholders, including $270M in share repurchases and $280M in dividends.

• Gross leverage ratio reduced to 2.9x, reflecting a strengthened balance sheet.

Financial highlights

• Total revenues: $3.8B, up 5% year-over-year and 3.5% operationally; adjusted EBITDA: $1.2B; adjusted EPS: $0.69.

• Adjusted gross margin improved to 57.5% from 56.6% year-over-year.

• Free cash flow (excluding transaction/restructuring costs) was $449M for Q2 and $908M for the first half.

• $550M returned to shareholders via dividends and share repurchases to date.

• Key products like LipitorⓇ, NorvascⓇ, and CreonⓇ posted strong year-over-year sales growth.

Outlook and guidance

• Raised 2026 guidance midpoints: total revenues $14.75B, adjusted EBITDA $4.4B, adjusted EPS $2.52, and free cash flow $2.2B.

• Revenue growth led by Greater China and Emerging Markets; new product revenues projected at $450M–$550M.

• Supply disruptions at Nashik facility expected to impact H2 2026 revenues by $100M–$150M.

• Second half revenues expected to be higher due to seasonality and new launches, but adjusted EBITDA and EPS to be slightly lower.

• Restructuring program targets $700M–$850M in pre-tax charges and $600M–$700M in annual savings once fully implemented.