Viatris Q4 EPS Tops, Brands Drive Revenue Growth, Stock Up

Core Insights - Viatris Inc. (VTRS) reported fourth-quarter 2025 adjusted earnings per share (EPS) of 57 cents, exceeding the Zacks Consensus Estimate of 52 cents, and up from 54 cents in the same quarter last year [1][7] - Total revenues reached $3.7 billion, reflecting a 5% year-over-year increase and surpassing the Zacks Consensus Estimate of $3.5 billion [1][7] Revenue Breakdown - Sales from Developed Markets were $2.25 billion, remaining flat on a divestiture-adjusted operational basis, and beating the Zacks Consensus Estimate of $2.10 billion [5] - Emerging Markets generated $564.7 million in sales, an 8% increase on a divestiture-adjusted operational basis, exceeding the Zacks Consensus Estimate of $552 million [6] - Sales from Japan, Australia, and New Zealand (JANZ) totaled $306 million, down 8% on a divestiture-adjusted operational basis, but still beating the Zacks Consensus Estimate of $299 million [6] - Greater China sales amounted to $572.9 million, up 8% on a divestiture-adjusted operational basis, surpassing the Zacks Consensus Estimate of $554 million [6] Product Category Performance - Revenues from Brands increased by 8% to $2.3 billion, with a 4% rise on a divestiture-adjusted operational basis, driven by strong performance in Greater China and Emerging Markets [8] - Lipitor sales reached $377.3 million, up from $355.9 million year-over-year, while Norvasc sales increased to $175.2 million from $166.2 million [8] - Generics revenues were $1.34 billion, flat year-over-year, with a 3% decline on an operational basis due to competition and regulatory impacts [9][10] Financial Highlights - Adjusted gross margin improved to 56.8% from 56.3% in the previous year [10] - The company returned over $1 billion to shareholders through dividends and share repurchases in 2025 [11] 2025 and 2026 Guidance - For 2025, revenues were reported at $14.3 billion, down 3% from 2024, but above the Zacks Consensus Estimate of $14.1 billion [12] - Adjusted EPS for 2025 was $2.35, a decline from $2.65 in 2024, yet above the Zacks Consensus Estimate of $2.32 [12] - For 2026, total revenues are projected to be between $14.4 billion and $14.9 billion, with adjusted EPS expected in the range of $2.33 to $2.47 [13] Regulatory Updates - The FDA approved Viatris' octreotide acetate for injectable suspension, a generic equivalent of Sandostatin LAR Depot [14] - The FDA accepted for review a new drug application for an investigational low-dose estrogen weekly contraceptive patch, with a target action date of July 30, 2026 [15]