Viatris Q3 2026: EPS Beat Streak Hits Five, Nashik Plant Clouds Revenue

Viatris posted adjusted earnings per share of $0.71 for the third quarter of 2026, beating the $0.638 consensus estimate and extending the company's streak of beating Wall Street's earnings expectations to five consecutive quarters. Viatris has topped estimates in each of the past four quarters as well, building a track record that management is now leaning on as it raises its full-year outlook.

The revenue picture was more complicated. Sales of $3.75 billion came in just below the $3.79 billion consensus, a miss of about 1%, and were essentially flat year over year. The shortfall traced directly to supply disruptions tied to the FDA's Official Action Indicated classification of the company's Nashik, India manufacturing facility, which Viatris voluntarily halted for remediation in October. That shutdown cost the company roughly $100 million in quarterly revenue, a drag management expects to repeat in the fourth quarter, with production not expected to resume until Q1 2027.

Geography and product mix offered some offset. Greater China net sales surged 14% on a reported basis, and the Brands segment, which includes Lipitor, Norvasc and EpiPen, grew 1% while Generics slipped 3%. Adjusted gross margin expanded to 58.0%, helping adjusted EBITDA rise 4% despite the revenue headwind.

On the pipeline front, the quarter brought several approvals: the FDA cleared RYZUMVI for presbyopia in adults, Japan approved WAKIX for excessive daytime sleepiness and narcolepsy, and the Gwyn Lo contraceptive patch launched in the U.S. in October after receiving FDA clearance in July. CEO Scott A. Smith called these moves "important steps to position Viatris for sustained revenue and earnings growth," pointing also to a pending agreement to acquire Pacira BioSciences for $36.50 per share, or roughly $1.65 billion in equity value, with a close expected by the end of November 2026.

Despite the Nashik drag, management raised the midpoints of every full-year 2026 guidance metric, including total revenues, adjusted EPS, adjusted EBITDA, and free cash flow excluding transaction and restructuring costs. The guidance excludes any contribution from the Pacira acquisition, so a successful close adds further upside. Approximately $300 million had been repurchased under the existing buyback program through September 30, 2026, with roughly $700 million remaining authorized.