Viatris raises 2026 profit forecast, but Q3 revenue misses estimates

Viatris raised the midpoints of its 2026 guidance after third-quarter adjusted earnings per share of 71 cents topped the consensus estimate of 65 cents.

Shares fell 1.3% at 3:59 p.m. ET, from a $19.22 close.

The company posted a U.S. GAAP net loss of $325 million, compared with a loss of $128 million in the third quarter of 2025, driven by a higher income tax provision on losses in jurisdictions where minimal benefit can be realized.

Adjusted EBITDA was $1.20 billion, up 4% on a reported basis from a year earlier.

Here's how the company did:

• Adjusted EPS: 71 cents vs. 67 cents a year earlier, 65 cents expected
• Total revenues: $3.75 billion vs. $3.76 billion a year earlier, $3.86 billion expected
• Adjusted gross margin: 58.0% vs. 56.0% a year earlier

2026 guidance

The adjusted EPS midpoint rose to $2.60 from $2.52. The range is now $2.56 to $2.63, up from $2.45 to $2.59 set on Aug. 6.

The total revenues range is now $14.70 billion to $14.90 billion, with a midpoint of $14.80 billion, up from a midpoint of $14.75 billion.

The adjusted EBITDA range is now $4.45 billion to $4.55 billion, with a midpoint of $4.50 billion, up from a midpoint of $4.40 billion.

The free cash flow range, excluding transaction-related and restructuring-related costs, is now $2.23 billion to $2.38 billion, with a midpoint of $2.30 billion, up from a midpoint of $2.20 billion.

The guidance excludes any contribution from the planned Pacira acquisition.

Segment results

Greater China net sales rose 14% to $702.6 million, or 10% on a constant-currency basis.

Developed Markets net sales fell 2% to $2.22 billion. Emerging Markets net sales fell 7% to $529.1 million, and JANZ net sales fell 6% to $287.1 million.

Brands net sales rose 1% to $2.46 billion, while generics net sales fell 3% to $1.27 billion.

The company generated about $115 million in new product revenues in the quarter and expects about $450 million in new product revenues for full-year 2026.

Viatris voluntarily suspended manufacturing at its Nashik, India oral solid dose facility in October after the FDA classified the plant's September inspection as Official Action Indicated. It expects to resume production there in the first quarter of 2027.

Supply constraints reduced total revenues by about $100 million in the third quarter and are expected to reduce them by a similar $100 million in the fourth quarter.

Pacira deal and capital returns

Viatris agreed in October to acquire all outstanding shares of Pacira BioSciences for $36.50 per share in cash, an aggregate equity value of $1.65 billion. The transaction is expected to close by the end of November 2026.

Through Sept. 30, the company had returned about $717 million to shareholders, including about $300 million through share repurchases. It has about $700 million remaining under its board-authorized repurchase program.

In the quarter, the FDA approved RYZUMVI for presbyopia in adults, and Japan's Ministry of Health, Labour and Welfare approved WAKIX for excessive daytime sleepiness associated with obstructive sleep apnea.