Product Supply Disruptions from Nashik Fire
The company expects product supply disruptions from the Nashik facility fire to impact total revenues by $100 million to $150 million in the second half of 2026.
Source: 10-Q Item 2 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
Viatris' second quarter fiscal 2026 revenue grew modestly, driven largely by new product launches, but operating income was nearly wiped out by a $177.8 million charge for the planned sale of Tyrvaya product rights. The Greater China segment continued to perform well, while gross margins improved slightly. However, the sharp increase in selling, general and administrative expenses, including the impairment, led to a net loss for the quarter. The company also faces potential supply constraints in the second half due to ongoing manufacturing disruptions.
Revenue
$3.76B
+4.88% YoY
EPS (Diluted)
-$0.10
No YoY data
Gross Margin
38.8%
+1.6 pts YoY
Operating Income
$6.3M
-97.30% YoY
Source: SEC XBRL
Viatris (VTRS) reported Q2 FY2026 revenue of $3.76B, up 4.9% year over year. Operating margin was 0.2%, down 6.3 points from 6.5% a year earlier. VTRS's fiscal Q2 FY2026 corresponds to calendar Q2 2026.
Last 4 quarters: 4 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Mar 2026 | 0.59 | 0.51 | Beat +15.2% |
| Dec 2025 | 0.57 | 0.54 | Beat +4.8% |
| Sep 2025 | 0.67 | 0.63 | Beat +5.8% |
| Jun 2025 | 0.62 | 0.57 | Beat +9.4% |
4 reported segments · SEC XBRL
Segment revenue totals $3.76B, which is the $3.76B of consolidated revenue on the income statement.
Profit above is reported as operating income, the measure VTRS itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-Q Item 2 of this filing
The company expects product supply disruptions from the Nashik facility fire to impact total revenues by $100 million to $150 million in the second half of 2026.
Source: 10-Q Item 2 MD&A
The enterprise-wide strategic review restructuring is expected to incur pre-tax charges of $700 million to $850 million and deliver $600 million to $700 million in savings once fully implemented. During Q2, $27.3 million in charges were recognized.
Source: 10-Q Item 2 MD&A
A $177.8 million charge related to the planned sale of the product rights for Tyrvaya drove the 22.2% increase in SG&A expense.
Source: 10-Q Item 2 MD&A
The sale of the company's CCPS in Biocon Biologics closed in Q1, and a $56.3 million fair value gain on the retained Biocon equity shares was recognized in Q2. The shares were subsequently sold in July at a pre-tax loss of $27.4 million.
Source: 10-Q Item 2 MD&A
Greater China net sales grew 21% (16% constant currency), driven by increased marketing and selling efforts across multiple channels, including e-commerce and retail.
Source: 10-Q Item 2 MD&A
Compiled by AI from this SEC filing · 1 high, 4 medium, 0 low
Operating income dropped 97.3% to $6.3 million as SG&A rose 22.2% to $1.13 billion, largely due to a $177.8 million impairment on product rights, raising concerns about expense management and asset value.
Source: 10-Q Income Statement (XBRL)
SG&A expense increased 22.2% YoY, driven by one-time charges, which may indicate potential for further asset write-downs or rising cost structures.
Source: 10-Q Income Statement (XBRL)
Long-term debt of $11.6 billion and total liabilities of $20.8 billion could limit financial flexibility and increase interest burden, especially if earnings decline.
Source: 10-Q Balance Sheet (XBRL)
The $56.3 million fair value gain on Biocon shares in Q2 demonstrates significant earnings sensitivity to equity market fluctuations, which could reverse.
Source: 10-Q Income Statement (XBRL)
The current ratio of 1.58 suggests limited buffer of current assets over current liabilities, which could pressure liquidity if cash flows weaken.
Source: 10-Q Balance Sheet (XBRL)
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 3.76 $B | 3.58 $B | +4.88% |
Cost of Revenue $B | 2.30 $B | 2.25 $B | +2.27% |
Gross Profit $B | 1.46 $B | 1.33 $B | +9.27% |
Operating Income $M | 6.30 $M | 233.00 $M | -97.30% |
EPS (Basic) $ | -0.10 $ | 0.00 $ | — |
EPS (Diluted) $ | -0.10 $ | 0.00 $ | — |
R&D Expense $M | 248.30 $M | 218.80 $M | +13.48% |
SG&A Expense $B | 1.13 $B | 0.93 $B | +22.16% |
Answers draw on this SEC filing and the data on this page
Expected release date, analyst estimates & what to watch
Viatris (VTRS) reported Q1 FY2026 revenue of $3.52B (+8.1% YoY), driven by top-line growth, but gross margin compressed to 32.9% as cost of revenue rose faster than sales, while operating loss narrowed dramatically to -$79.7M versus -$2.88B a year ago, and EPS turned positive at $0.15 versus -$2.55.
Viatris (VTRS) reported a sharp deterioration in FY2025 operating results, with revenue declining 3.0% to $14.3B and a massive swing to a $2.66B operating loss, driven by significant non-cash charges, even as operating cash flow remained resilient at $2.32B.
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