Viatris raises outlook as emerging markets drive Q3 beat

[Quarterly results]
CharlieAJA/iStock via Getty Images

Viatris (VTRS [https://seekingalpha.com/symbol/VTRS]) shares recorded modest gains in the premarket on Thursday after the Xanax maker exceeded Street forecasts with its Q3 2025 financials thanks mainly to growth in emerging markets, and the company raised its full-year outlook in line with the consensus. [https://seekingalpha.com/news/4517134-viatris-non-gaap-eps-of-0_67-beats-by-0_05-revenue-of-3_76b-beats-by-160m]

The Pennsylvania-based drugmaker reported $3.8B in revenue for the quarter, beating the Street forecasts by $160M but mostly unchanged from the prior year period amid the FDA’s restrictions on the company’s manufacturing facility in Indore, India, due to quality concerns.

Net sales from its Generics unit fell ~5% YoY to $1.3B compared to a ~10% YoY drop in the preceding quarter as the negative impact from restrictions on the Indore plant was offset by other markets, including North America, where there was growth for certain complex products.

Viatris (VTRS [https://seekingalpha.com/symbol/VTRS]), which formed in 2020 following the combination of Pfizer's (PFE [https://seekingalpha.com/symbol/PFE]) spinoff Upjohn and generics drugmaker Mylan, added $2.4B of net sales from its Brands segment, driven by outperformance in China and Emerging Markets.

Geographically, Viatris (VTRS [https://seekingalpha.com/symbol/VTRS]) recorded sales declines across major regions except Emerging Markets, where its net sales rose ~7% YoY to $570.4M.

Meanwhile, the company’s adjusted gross margin slipped 250 bps from the prior year period to 56%, while its adjusted earnings per share fell ~11% YoY to $0.67, beating the consensus by $0.05.

The company raised its outlook for full-year revenue and adjusted EPS to $13.9B - $14.3B and $2.25 - $2.35, compared to $13.5B - $14.0B and $2.16 - $2.30 projected in August and $13.9B and $2.29 in the consensus, respectively. [https://seekingalpha.com/pr/20296247-viatris-reports-third-quarter-2025-results-and-updates-2025-financial-guidance#hasComeFromMpArticle=false]

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