01—Abstract
Summary
Summary of the 10-Q filed August 6, 2026. Cited figures are marked; the original filing is the authoritative source.
Viatris Inc. reported second-quarter 2026 total revenues of $3.76 billiona, up from $3.58 billion a year earlier, with net sales of $3.75 billion.
Net loss for the quarter was $118.8 millionb, or $(0.10) per diluted share, compared with a net loss of $4.6 million in the prior-year quarter. Results were weighed down by a $177.8 million charge to write down the Tyrvaya® product rights to fair value less cost to sell, which was recorded in SG&A and reflects a planned sale for upfront cash of $30 million plus up to $70 million in contingent sales milestones. Litigation settlements and other contingencies, net were a $73.2 million charge in the quarter, driven largely by a $21.3 million contingent consideration adjustment and $51.9 million in litigation settlements.
For the six months, the company reported net earnings of $57.6 millionc, compared with a net loss of $3.05 billion in the prior year, which included a $2.94 billion goodwill impairment. Adjusted EBITDA was $1,188.3 million for the quarter and $2,237.8 million for the six months, compared with $1,078.8 million and $2,002.3 million in the prior-year periods. Cash flow from operations was $770.1 million for the six months.
Cash and cash equivalents declined to $886.5 milliond at June 30, 2026, from $1,322.4 million at December 31, 2025, after repaying $1.675 billion of 3.950% Senior Notes at maturity in the second quarter. Total debt, including the current portion, fell to $13.35 billion from $14.41 billion, reflecting the repayment and the June 2026 issuance of €650 million of 4.250% Euro Senior Notes due 2033. Operating and supply risks remain significant.
The company disclosed that a February 2026 fire at its Nashik, India oral solid dose facility suspended manufacturing temporarily, and that intermittent disruptions from remediation activities are expected to affect product supply in the second half of the year, with an estimated impact of $100 million to $150 million on total revenues. The 2026 restructuring program is expected to generate pre-tax charges of $700 million to $850 million, with $600 million to $700 million of estimated savings once fully implemented. Pfizer has also sent a letter disputing the company's position on an opioid-related payment obligation.
02—Key points
Key Highlights
- Total revenues rose to $3,756.8 million in Q2 2026 from $3,582.1 million, and net sales rose to $3,745.9 million from $3,569.0 million.
- Q2 2026 net loss was $118.8 million ($0.10 per diluted share), versus a $4.6 million net loss a year earlier; the six-month period swung to net earnings of $57.6 million from a $3,046.6 million loss that included a $2,936.8 million goodwill impairment.
- A $177.8 million charge to write down Tyrvaya® product rights held for sale weighed on SG&A, with an agreement signed on August 3, 2026 for $30 million upfront plus up to $70 million in contingent milestones.
- Adjusted EBITDA was $1,188.3 million in Q2 2026 versus $1,078.8 million, and $2,237.8 million for the six months versus $2,002.3 million.
- Nashik facility fire and ongoing remediation at the site are expected to affect second-half 2026 supply, with an estimated $100 million to $150 million impact on total revenues.
- The 2026 restructuring program targets a workforce reduction of up to approximately 10%, with expected pre-tax charges of $700 million to $850 million and projected savings of $600 million to $700 million.
- Viatris repaid $1.675 billion of 3.950% Senior Notes at maturity and issued €650 million of 4.250% Euro Senior Notes due 2033, while cash declined to $886.5 million; the company also repurchased $150.0 million of stock and paid $279.4 million in dividends in the first half.
03—One dollar
Follow one dollar
For each $1.00 of revenue in Q2 FY2026, Viatris lost $0.03.
- Revenue$3.75B100.0%
- Cost of revenue−$2.29B61.1%
- Gross profit$1.46B38.9%
- Operating costs−$1.45B38.7%
- Operating income$6.3M0.2%
- Interest, other & tax−$125.1M3.3%
- Net income−$118.8M3.2%
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2026filed August 6, 2026Financial Statements
Q2 FY2026 against Q2 FY2025
| Line item | Q2 FY2026Q2 FY2025 | Change |
|---|---|---|
| Revenue | $3.75B$3.57B | +5.0% |
| Cost of Revenue | $2.30B$2.25B | +2.3% |
| Gross Profit | $1.46B$1.33B | +9.3% |
| R&D Expenses | $248.30M$218.80M | +13.5% |
| SG&A Expenses | $1.13B$928.70M | +22.2% |
| Operating Expenses | $1.45B$1.10B | +31.8% |
| Operating Income | $6.30M$233.00M | −97.3% |
| Interest Expense | $120.70M$116.60M | +3.5% |
| Net Income | -$118.80M-$4.60M | −2482.6% |
| EPS (Basic) | $-0.10— | — |
| EPS (Diluted) | $-0.10— | — |
| Shares Outstanding (Basic) | 1.16B1.17B | −0.8% |
| Shares Outstanding (Diluted) | 1.16B1.17B | −0.8% |
05—Questions
Frequently Asked Questions
How did Viatris perform financially in the second quarter of 2026?
Total revenues were $3,756.8 million, up from $3,582.1 million, and gross profit was $1,456.5 million, up from $1,332.9 million. The company reported a net loss of $118.8 million, or $(0.10) per diluted share, compared with a net loss of $4.6 million a year earlier. The Tyrvaya® write-down of $177.8 million and higher litigation charges of $73.2 million contributed to the loss.
What drove the change from a large loss to earnings for the first six months?
The prior-year six-month period included a $2,936.8 million goodwill impairment and a $3,046.6 million net loss. In 2026, the six-month net earnings were $57.6 million, or $0.05 per diluted share, and the company recorded a $368.9 million income tax benefit, compared with $267.5 million in the prior year.
What is the status of the Nashik manufacturing facility?
A fire in February 2026 temporarily suspended manufacturing at the oral solid dose facility in Nashik, India. Production has resumed, but the FDA inspected the site in May 2026 and issued Form 483 observations, and remediation has led to intermittent disruptions. The company expects these items to affect product supply in the second half of 2026, with a $100 million to $150 million impact on total revenues.
How did Viatris manage its debt and liquidity in the first half of 2026?
The company repaid $1.675 billion of 3.950% Senior Notes at maturity in the second quarter and issued €650 million of 4.250% Euro Senior Notes due 2033 in June 2026. Cash and cash equivalents fell to $886.5 million from $1,322.4 million at year-end 2025. As of June 30, 2026, there were no borrowings outstanding under the Commercial Paper Program, the 2024 Revolving Facility, or the Receivables Facility, and the company stated it expects to remain in covenant compliance for the next twelve months.
What are the main legal and contingent risks disclosed?
The company has accrued approximately $453 million for legal contingencies at June 30, 2026, including about $50.0 million for the Attorneys General litigation, $281.3 million for opioid-related matters, and $60.0 million for securities-related matters. Contingent consideration liabilities rose to $463.6 million, mainly due to a $105.7 million fair value loss tied to the Idorsia Transaction. In June 2026, Pfizer sent a letter inquiring about a payment under an opioid-related agreement, which the company disputes.
06—Continue