Viatris (VTRS) Q1 2026 earnings summary

Executive summary

• Q1 2026 delivered total revenues of $3.52 billion, up 8% year-over-year (3% operationally), with strong growth in Greater China and new product launches, and a return to net earnings of $176 million after a prior year loss due to goodwill impairment.

• Adjusted EBITDA reached $1.05 billion, up 14% reported and 10% operationally, with adjusted EPS of $0.59, up 18% year-over-year.

• Strong commercial execution in Greater China and North America, supported by multiple product launches and regulatory milestones, including Effexor in Japan.

• Disciplined capital allocation and cost optimization initiatives continue, with over $2.5 billion in cash available for deployment in 2026.

• Strategic focus on base business, innovative portfolio, and organizational modernization to drive sustained growth.

Financial highlights

• Q1 2026 total revenues: $3.52 billion (+8% reported, +3% operational); net sales: $3.51 billion.

• Adjusted EBITDA: $1.05 billion (+14% reported, +10% operational); adjusted EPS: $0.59 (+18%).

• Free cash flow: $348 million; $459 million excluding transaction and restructuring costs.

• Adjusted gross margin stable at 56%; U.S. GAAP gross margin: 32.9%.

• Returned $140 million to shareholders via dividends in Q1.

Outlook and guidance

• 2026 revenue guidance reaffirmed at $14.45–$14.95 billion; adjusted EBITDA $4.15–$4.45 billion; adjusted EPS $2.33–$2.47; free cash flow $1.95–$2.35 billion.

• Revenue, EBITDA, and EPS expected to be higher in H2 2026 due to seasonality and new launches.

• Free cash flow anticipated to be higher in H2, benefiting from lower one-time costs.

• Long-term organic revenue growth target of 4% by 2030, with ramp-up expected from 2027 onward.

• Guidance excludes impacts from integration, acquisition/divestiture, restructuring, asset impairments, litigation, and other contingencies.