Viatris (VTRS) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenues reached $3.8 billion, up 5% year-over-year and 3.5% operationally, with adjusted EBITDA of $1.2 billion and adjusted EPS of $0.69, exceeding expectations and prompting a guidance raise.

• Strong commercial execution in Greater China (21% net sales growth) and Developed Markets, supported by new product launches and FDA approvals.

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

• Strategic shift away from eye care, with divestiture of Tyrvaya and reinvestment of cost savings for growth.

• $550 million returned to shareholders YTD, including $270 million in share repurchases.

Financial highlights

• Developed Markets net sales grew 4% to $2.19 billion; Greater China surged 21% to $713.8 million; Emerging Markets down 2%; JANZ down 3%.

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

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

• Adjusted EBITDA margin for Q2 was approximately 31.6%.

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

Outlook and guidance

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

• New product revenues for 2026 expected between $450 million and $550 million.

• Supply disruptions at Nashik facility expected to impact H2 2026 revenues by $100–$150 million, fully reflected in guidance.

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

• Estimated 2026 net cash from operating activities is $1.9–$2.1 billion.