Viatris Inc. has reported an impressive second quarter for 2026, surpassing financial expectations and leading to an upward revision of its full-year guidance. This strong performance is largely attributed to significant operational growth in Greater China and a robust showing in complex generics within North America. The company's strategic financial management, including successful divestitures and equity monetization, has further bolstered its position, despite facing some production setbacks.
During the second quarter of 2026, Viatris achieved total revenues of $3.8 billion, marking a 3.5% operational increase year-over-year. Adjusted EBITDA reached $1.2 billion, an 8% operational jump, and adjusted EPS climbed to $0.69, a 9% operational increase. These figures underscore the company's strong operational momentum and enhanced leverage. Greater China was a standout performer, with revenue of $714 million, exhibiting a 16% operational growth driven by high demand for cardiovascular products and a 36% surge in e-commerce sales. Developed markets also contributed positively, with a 2% operational increase to $2.19 billion, fueled by complex generics and transdermal products in North America. However, emerging markets saw a 2% operational decline to $542 million, mainly due to supply constraints impacting the antiretroviral generics portfolio. The JANZ segment (Japan, Australia, New Zealand) remained largely stable at $296 million, with new product success offsetting regulatory pressures in Japan.
Viatris is also making significant strides in its new product pipeline, with $101 million in new product revenue for the quarter and $172 million for the first half of the year, maintaining a full-year target of $450 million to $550 million. The company's 2026 revenue guidance has been raised to a midpoint of $14.75 billion, with adjusted EBITDA guidance at $4.3 billion to $4.5 billion, and adjusted EPS guidance set at $2.45 to $2.59. Free cash flow is projected to be between $2.05 billion and $2.35 billion, with the majority expected in the latter half of the year. Key regulatory successes include FDA approval for Gwyn Lo, a weekly transdermal hormonal contraceptive patch, and progress with fast-acting meloxicam. Furthermore, Viatris strategically divested global rights to Tyrvaya for $30 million upfront and monetized its equity stake in Biocon Limited for $380 million, contributing to a total of $780 million in monetization proceeds. The company's gross leverage ratio stands at a healthy 2.9x, and it has actively engaged in share repurchases totaling $270 million, alongside debt management efforts.
Despite a GAAP net loss of $119 million, mainly due to a non-cash charge related to the Tyrvaya sale, Viatris secured 70 new generic product approvals in the first half of 2026, with over 100 anticipated for the full year. The company is also addressing increased demand for estradiol patches, fulfilling approximately 70% of current orders. Supply disruptions at the Nashik facility, caused by a fire and an FDA inspection, are expected to reduce second-half revenues by $100 million to $150 million, though these are considered temporary. The Phase III selatogrel study is enrolling 1,200 patients per month, with data expected in early 2027, and cenerimod Phase III studies are also on track for readouts in the first half of 2027. These developments, coupled with ongoing strategic reviews yielding operational savings, position Viatris for sustained growth and value creation for shareholders.
Looking ahead, Viatris leadership expressed confidence in its strategic direction, emphasizing multiple upcoming product launches, crucial Phase III milestones, and the financial flexibility to pursue strategic business development. The company is actively building a stronger enterprise by enhancing the quality of its earnings, streamlining operations, refining its product portfolio, and strategically investing in opportunities that promise long-term growth. The positive momentum from the first half of the year is expected to continue, reinforcing Viatris's commitment to delivering sustainable value to its shareholders.
