Viatris Inc.

Viatris reported second-quarter 2026 total revenues of $3.8 billion, up 3.5% operationally year over year, adjusted EBITDA of $1.2 billion, and adjusted EPS of $0.69. Adjusted gross margin was 57.5%, nearly 1% above the prior year. On a segment basis, developed markets net sales rose 2%, North America rose 1%, Europe rose 2%, emerging markets fell 2%, JANZ was flat, and Greater China rose 16%; e-commerce sales in Greater China increased 36%. For the full year 2026, the midpoint of revised guidance implies about 2% operational revenue growth, 5% adjusted EBITDA growth, and 7% adjusted EPS growth versus prior year. Management said second-half supply disruptions, mainly from Nashik, are expected to reduce total revenues by $100 million to $150 million, and that adjusted EBITDA and EPS are now expected to be slightly lower in the second half. Total revenues are expected to be weighted about 51% to the second half.

Scott Smith framed the quarter as an “exceptional start” to 2026 and said the company is seeing real operating leverage from its enterprise-wide strategic review. He emphasized strength in China, solid North America execution, and a growing set of catalysts, including Gwyn Lo, fast-acting meloxicam, Nefecon, pitolisant, selatogrel, and cenerimod. He also stressed disciplined capital allocation, noting about $550 million returned to shareholders to date and flexibility for accretive business development.

Paul Campbell highlighted that the quarter’s beat came from strong commercial execution and improved mix, with adjusted gross margin at 57.5% and free cash flow of $329 million, or $449 million excluding transaction/restructuring costs and taxes. He said the company has deployed about $1.4 billion of capital through early August, including roughly $550 million to shareholders, $270 million of share repurchases, and repayment of about $900 million of debt that matured in June; gross leverage ended at about 2.9x, below the midpoint of the 2.8x to 3.2x target range. He also said the company expects about $1.6 billion in deployable capital for the rest of the year, including about $380 million from the Biocon equity sale, and that Nashik-related supply disruptions should be larger in Q3 than Q4.

Analysts pressed on China, guidance leverage, selatogrel trial design, meloxicam labeling, M&A, tariffs, and cenerimod. Management said China e-commerce is about 10% to 15% of the business, growth is broad-based across channels, and the new hospital policy could soften but not derail momentum. On selatogrel, management said the study is powered around a 20% risk reduction, but a 10% to 15% benefit could still be commercially meaningful; on meloxicam, FDA labeling talks around “opioid sparing” are expected to intensify around October/November with approval targeted toward year-end. On M&A, the team said the market remains active and it is looking for disciplined, in-market accretive deals.