Viatris 2025 Q2 Earnings Narrowed Losses Amid Revenue Decline

Viatris (VTRS) reported mixed results for Q2 2025, with revenue declining year-over-year but losses significantly narrowing. The company reaffirmed its 2025 guidance and highlighted pipeline progress and shareholder returns.

Viatris reported fiscal 2025 Q2 results on August 7, 2025, showing a revenue decline and improved profitability. The company narrowed its losses significantly and reaffirmed full-year guidance. Operational growth and shareholder returns were highlighted as positive developments.

Revenue
Viatris recorded total revenue of $3.57 billion in Q2 2025, representing a 5.7% decline from $3.79 billion in the same period of the prior year. Despite the overall revenue contraction, the company noted a 3% operational revenue growth on a divestiture-adjusted basis, primarily driven by performance in Europe and Greater China.

Earnings/Net Income
The company improved its bottom line, narrowing its net loss to $4.60 million in Q2 2025, a 98.6% reduction from a $326.40 million net loss in Q2 2024. Earnings per share also improved from a $0.27 loss to break-even at $0.00 per share, a notable positive turn.

Price Action
The Viatris stock price showed a positive trajectory in the short term, climbing 4.33% in the latest trading day and 7.44% over the past full trading week. Month-to-date, the stock edged up 1.40%, reflecting cautious optimism in the market.

Post Earnings Price Action Review
Historically, a strategy of purchasing Viatris shares following a revenue increase and holding for 30 days has underperformed over the past three years. This strategy yielded a negative return of -20.07%, far below the benchmark’s 49.40%, resulting in an excess return of -69.47%. The strategy’s compound annual growth rate was -7.27%, indicating consistent losses. Additionally, the strategy showed a maximum drawdown of 0.00%, indicating no further declines but also no profitability.

CEO Commentary
CEO Scott Andrew Smith highlighted progress in key areas, including a 3% operational revenue growth on a divestiture-adjusted basis. He emphasized positive developments in the pipeline, with five out of six Phase III readouts showing favorable results. Smith also noted $630 million returned to shareholders through dividends and buybacks, reinforcing the company’s commitment to capital allocation and shareholder value. Ongoing remediation efforts at key manufacturing facilities were also discussed, with plans for an FDA meeting at the Indore facility. Smith expressed confidence in Viatris’ ability to deliver on its 2025 guidance and set the stage for sustainable growth beyond 2025.

Guidance
Viatris reaffirmed its 2025 financial guidance and expects to deliver revenue and adjusted earnings per share in the top half of the guidance range. This is driven by operational momentum and favorable foreign exchange trends. Free cash flow is anticipated to improve in the second half of the year, while adjusted EBITDA and adjusted EPS are expected to rise due to cost management and better expense phasing. However, hedging costs may slightly temper adjusted EBITDA growth.

Additional News
On August 4, 2025, Viatris announced a quarterly dividend of $0.12 per share, payable on September 15, 2025, to shareholders of record as of August 22, 2025. The dividend is part of the company’s ongoing commitment to returning capital to shareholders, with $630 million already returned in Q2 through dividends and buybacks. Viatris, a global healthcare company bridging the divide between generics and branded medicines, supplies high-quality pharmaceuticals to approximately 1 billion patients annually. The company operates globally with headquarters in the U.S., as well as centers in Pittsburgh, Shanghai, and Hyderabad. Viatris also reiterated its focus on disciplined capital allocation, innovation, and addressing global healthcare needs.