Viatris Stock to Report Q4 Earnings: What's in the Cards?

Viatris VTRS, a global healthcare company, is scheduled to report fourth-quarter and full-year 2025 results on Feb. 26, before the bell.

The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $3.52 billion, while the same for earnings is pinned at $0.52 per share.

VTRS Q4 Earnings: Factors to Consider

The company reports under four segments on the basis of geography — Developed Markets; Emerging Markets; Japan, Australia and New Zealand (“JANZ”); and Greater China.

Total revenues have likely declined across all segments due to normal product seasonality in the fourth quarter.

In Developed Markets, the business in North America was likely under pressure due to an import alert for the manufacturing facility in Indore, India. Solid growth in EpiPen, Creon, and the company’s thrombosis portfolio has likely enabled the company to partially absorb the anticipated competition for Dymista. Incremental revenues from new products, such as iron sucrose, have also boosted the quarterly top line.

Following an inspection of Viatris' oral finished dose manufacturing facility in Indore, India, in June 2024, the company received a warning letter and import alert from the FDA in December 2024. The import alert affected 11 actively distributed products, including lenalidomide and everolimus.

The Zacks Consensus Estimate for revenues from Developed Markets is pinned at $2.1 billion.

Sales from Emerging Markets have likely experienced growth, driven by branded business in Turkey, Mexico and certain Asian markets. The generic business has likely seen growth due to stabilization of supply for certain lower-margin ARB products.

The Zacks Consensus Estimate for revenues from this geography is pegged at $552 million.

Sales in JANZ are likely to have been adversely impacted by government price regulations and a change in reimbursement policy impacting off-patent brands in Japan and competition in Australia.

The Zacks Consensus Estimate for revenues from the JANZ markets is pinned at $299 million.

Sales in Greater China might have seen an increase due to the company’s diversified model.

The Zacks Consensus Estimate for revenues from this geography is pegged at $554 million.

Viatris also reports revenues under two divisions (in terms of product category) — brands and generics.

The brand business comprises the majority of the company’s portfolio. Brand performance is likely to have benefited from strong performance in Greater China and Emerging Markets, in addition to growth in certain key brands in Developed Markets.

However, the generics business has likely been negatively impacted by inspection at the Indore facility and competition for Wixela, partially offset by continued growth in Yupelri and Breyna in North America, strong performance across key European markets, and slight volume growth in JANZ.

On the profitability front, gross margin is likely to have been stable. SG&A expenses might have increased due to investments in pipeline and upcoming launches to drive future growth.

VTRS’ Share Price Performance

Viatris’ shares have surged 39.7% in the past year compared with the industry’s gain of 5.7%.

VTRS’ Mixed Earnings Surprise History

The company’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, delivering an average surprise of 3.46%. In the last reported quarter, VTRS beat on earnings by 6.35%.

What Our Model Predicts for Viatris

Our proven model does not conclusively predict an earnings beat for VTRS this time around.  The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here, as you will see below.

Earnings ESP: VTRS has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they're reported with our Earnings ESP Filter.

Zacks Rank: The company currently carries a Zacks Rank #3.

Stocks to Consider

Here are some drug/biotech stocks that have the right combination of elements to beat on earnings this time around:

Castle Biosciences CSTL has an Earnings ESP of +68.89% and a Zacks Rank #1 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

CSTL is scheduled to report fourth-quarter earnings on Feb. 26, 2026. The stock has gained 15.2% in the past year.  CSTL beat estimates in three of the trailing four quarters and missed in the remaining one, delivering an average surprise of 66.11%.

Amneal Pharmaceuticals AMRX has an Earnings ESP of +1.89% and a Zacks Rank #2 at present. AMRX is scheduled to report fourth-quarter earnings on Feb. 27, 2026. AMRX shares have surged 74.7% over the past year.

Terns Pharmaceuticals TERN has an Earnings ESP of +5.41% and a Zacks Rank #2 at present.

TERN beat on earnings in each of the trailing four quarters, delivering an average surprise of 11.87%. 

 

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This article originally published on Zacks Investment Research (zacks.com).

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