Viatris Raises Full-Year Guidance as China Sales Grow
The healthcare company increased its 2026 adjusted earnings per share midpoint to $2.52 from $2.40.
Viatris (VTRS) raised its full-year financial outlook after reporting a 5% reported increase in total revenues for the second quarter. The healthcare company saw total revenues reach $3.8 billion, representing a 3.5% operational increase compared to the same period last year.
Growth was driven largely by the company's performance in Greater China, where net sales grew 21% reported and 16% operational. This followed a similar trajectory in the first quarter of 2026, when the region posted 22% reported and 18% operational growth. Conversely, Emerging Markets net sales declined 2% reported and operational, reversing a 3% reported growth trend seen in the first quarter.
Profitability metrics showed expansion as U.S. GAAP gross margin rose to 38.8% from 37.2% in the prior-year quarter. Adjusted gross margin also increased to 57.5% from 56.6%. Adjusted EBITDA for the quarter was $1.2 billion, an 8% operational increase over the second quarter of 2025.
Despite the operational gains, Viatris reported a U.S. GAAP net loss of $119 million for the quarter. The loss was primarily due to a $177.8 million non-cash charge related to the planned sale of Tyrvaya rights.
The company raised the midpoints of its 2026 financial guidance across several key metrics. Total revenues were adjusted from $14.7 billion to $14.75 billion, and adjusted EBITDA was raised from $4.3 billion to $4.4 billion. The company also increased its 2026 midpoint for U.S. GAAP net cash provided by operating activities to $2.0 billion from $1.85 billion.
New product revenues totaled $101 million in the second quarter, and the company maintained its full-year expectations for that category between $450 million and $550 million. However, Viatris anticipated a revenue impact of $100 million to $150 million in the second half of 2026 resulting from product supply disruptions at its Nashik, India facility.
Viatris reduced its gross leverage ratio to 2.9x by the end of the second quarter. The company also completed the sale of its equity position in Biocon Limited for approximately $380 million and entered an agreement to sell global rights to Tyrvaya to Harrow, Inc..