Viatris Raises 2026 Guidance Midpoints After Flat Third Quarter

The Tip Desk · November 5, 2026 · 4 min read

The company lifted the 2026 adjusted EBITDA midpoint to $4.50 billion after third-quarter revenue of $3.75 billion and a $325 million GAAP net loss.

Viatris Inc. (VTRS) raised the midpoints of its 2026 financial guidance ranges for every metric after third-quarter total revenues of $3.75 billion, essentially unchanged from a year earlier on both a reported and operational basis.

The global healthcare company now estimates full-year 2026 total revenues of $14.70 billion to $14.90 billion, a midpoint of $14.80 billion, up from the $14.75 billion midpoint set on August 6. Adjusted EBITDA guidance moved to a $4.50 billion midpoint from $4.40 billion, adjusted EPS to $2.60 from $2.52, and free cash flow excluding transaction-related and restructuring-related costs to $2.30 billion from $2.20 billion. The November ranges exclude any contribution from the planned acquisition of Pacira BioSciences.

Chief Executive Scott A. Smith said the quarter reflected strong execution and reinforced confidence in the growth trajectory of the business. Interim Chief Financial Officer Paul Campbell said operational momentum across higher-margin businesses and cost discipline led to the results, and that the company is once again raising the midpoints of its financial guidance ranges across all key metrics.

Revenue growth had been faster in the two preceding quarters: 5% reported and 4% operational in the second quarter, and 8% reported and 3% operational in the first. In the third quarter, new product sales, primarily in Developed Markets, North American strength, and Greater China net sales largely offset continued supply constraints in Europe and Emerging Markets and additional competition on certain products, the company said.

Greater China net sales were $702.6 million, up 14% reported and 10% operational, after 21% reported and 16% operational growth in the second quarter and 22% reported and 18% operational growth in the first. Developed Markets net sales were $2.22 billion, down 2% reported and 1% operational. Emerging Markets net sales were $529.1 million, down 7% reported and 6% operational. JANZ net sales were $287.1 million, down 6% reported and 5% operational.

Brands net sales were $2.46 billion, up 1% reported and 1% operational. Generics net sales were $1.27 billion, down 3% reported and 3% operational, after 3% growth in the second quarter. The company said generics reflected contributions from new product launches and growth in certain North American products, more than offset by supply constraints in Europe and Emerging Markets.

Adjusted EBITDA was $1.20 billion, up 4% reported and 1% operational, after 10% reported and 8% operational growth in the second quarter. Adjusted EPS was $0.71, up 6% reported and 3% operational. U.S. GAAP gross margin was 38.4%; adjusted gross margin was 58.0%.

The U.S. GAAP net loss widened to $325 million, or $(0.28) a share, from a $128 million loss, or $(0.11) a share, a year earlier. The company said the loss was primarily driven by an increase in income tax provision due to losses in jurisdictions for which minimal benefit can be realized.

The company generated approximately $115 million in new product revenues in the quarter, about $287 million for the year, and now expects to deliver approximately $450 million in new product revenues in full-year 2026. It estimates the total revenue impact of supply constraints was approximately $100 million in the third quarter and currently anticipates an impact of approximately $100 million to total revenues in the fourth quarter.

Free cash flow was $813.7 million, up 24% from $658.1 million a year earlier; excluding $81 million of transaction-related and restructuring-related costs, free cash flow was $895 million. Through September 30, the company returned approximately $717 million of capital to shareholders, including approximately $300 million through share repurchases, and had approximately $700 million remaining under its existing board-authorized share repurchase program.

In October the company launched Gwyn Lo in the U.S., the FDA approved RYZUMVI for presbyopia in the U.S., and Japan approved WAKIX for OSAS-related excessive daytime sleepiness and narcolepsy. In October it also agreed to acquire Pacira BioSciences for $36.50 a share in cash, an aggregate equity value of $1.65 billion, expected to close by the end of November 2026. Campbell said the company expects the Pacira transaction to have minimal impact on its gross leverage ratio upon expected closing.

In September the FDA classified the company’s Nashik, India oral solid dose manufacturing facility as Official Action Indicated. In October the company voluntarily suspended manufacturing there and expects to resume production during the first quarter of 2027.