Viatris (VTRS) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenues reached $3.5–$3.52 billion, up 8% reported and 3% operationally year-over-year, with strong growth in Greater China and new product launches.

• Net earnings were $176–$176.4 million, reversing a $3.0–$3.04 billion net loss in Q1 2025, which included a $2.9–$2.94 billion goodwill impairment charge.

• Adjusted EBITDA was $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, with multiple product launches and regulatory milestones achieved.

• Reaffirmed 2026 guidance and expects over $2.5 billion in cash available for deployment.

Financial highlights

• Total revenues: $3.5–$3.52 billion (+8% reported, +3% operational); adjusted gross margin: 56% (unchanged year-over-year).

• Free cash flow (excluding one-time costs): $459 million; operating cash flow: $388.3 million.

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

• Top 10 products accounted for 40% of net sales.

Outlook and guidance

• 2026 revenue guidance: $14.45–$14.95 billion; adjusted EBITDA: $4.15–$4.45 billion; adjusted EPS: $2.33–$2.47.

• Free cash flow guidance: $1.95–$2.35 billion, excluding $700 million in restructuring costs.

• Most restructuring savings expected to improve operating cash flow; annual savings of $600–$700 million once fully implemented.

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

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