Viatris (VTRS) AI Stock Analysis

• Market Cap: $18.50B
• Dividend Yield: 3.99%
• Average Volume (3M): 8.89M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.87
• Revenue Growth: -6.40%
• EPS Growth: -320.23%
• Country: US
• Employees: 32,000
• Sector: Healthcare
• Sector Strength: 45
• Industry: Drug Manufacturers - Specialty & Generic
• EPS (TTM): 0.57
• Shares Outstanding: 1,151,769,900
• 10 Day Avg. Volume: 8,912,276
• 30 Day Avg. Volume: 8,887,450
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.99
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 7.52
• Enterprise Value/Market Cap: 1.74
• Enterprise Value/Revenue: 2.26
• Enterprise Value/Gross Profit: 6.43
• Enterprise Value/Ebitda: -28.51
• 1Y Price Target: $15.14
• Price Target Upside: -0.72% Downside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7
• EPS Forecast (FY): 2.5
• Revenue Forecast (FY): $14.37B

• Rating: 56 Neutral
• Price Target: $15.50 ▲(1.64% Upside)
• Action: Reiterated Date: 02/27/26
• Date: Action: Reiterated 02/27/26

The score is held back primarily by weak profitability (deep 2025 losses and negative P/E) despite solid and stable cash flow. Technicals are supportive due to a strong uptrend, but momentum is overbought, limiting the technical score. Guidance and corporate actions (cost-savings program and Biocon stake sale) are constructive, though near-term margin pressure, manufacturing disruption risk, and sizable one-time restructuring costs temper the outlook.

Positive Factors

Strong free cash flow

Consistent, multi-year positive operating and free cash flow provides durable financial flexibility. It supports debt servicing, dividend maintenance, share buybacks and targeted BD or portfolio moves even while earnings are weak, reducing insolvency risk and enabling strategic optionality.

Enterprise strategic review and savings

A defined multi-year cost program that targets substantial gross and net savings can structurally improve operating leverage. Phased savings and reinvestment plans, if executed, should raise margins and free cash flow over 2026–2029, enabling reinvestment and debt reduction.

Biocon stake sale unlocks biosimilars access

Monetizing the Biocon stake both strengthens liquidity and accelerates expiry of biosimilars non-competes, restoring access to a high-growth segment. Regaining biosimilars freedom expands long-term addressable market and BD options, improving portfolio optionality and growth avenues.

Negative Factors

Deep 2025 net losses

A sharp swing to significant accounting losses erodes equity and reduces earnings reliability. Persistent negative margins threaten long-term ROE and could force deeper cost cuts or asset sales; relying on cash flow while earnings remain negative weakens investor confidence in sustainable profitability.

Multi-year revenue decline

A multi-year contraction in topline scale signals secular pressure from LOEs, pricing and mix shifts. Reduced revenue scale limits fixed-cost absorption, constrains R&D and BD investment, and makes margin recovery and sustained growth harder without successful new product introductions or market share gains.

Manufacturing and regulatory execution risk

Operational reliance on a major India facility plus discretionary FDA reinspection timing creates supply and timing risk for sales recovery. Coupled with multiple regulatory milestones and back-end-weighted cost savings, these execution dependencies raise the chance that anticipated savings and launches are delayed.

Viatris Business Overview & Revenue Model

Company Description

Viatris Inc. operates as a healthcare company worldwide. The company operates in four segments: Developed Markets, Greater China, JANZ, and Emerging Markets. It offers prescription brand drugs, generic drugs, complex generic drugs, biosimilars, and active pharmaceutical ingredients (APIs). The company offers drugs in various therapeutic areas, including noncommunicable and infectious diseases; biosimilars in the areas of oncology, immunology, endocrinology, ophthalmology, and dermatology; and APIs for antibacterial, central nervous system agents, antihistamines/antiasthmatics, cardiovascular, antivirals, antidiabetics, antifungals, and proton pump inhibitor areas, as well as support services, such as diagnostic clinics, educational seminars, and digital tools to help patients better manage their health. It provides its medicines in the form of oral solid doses, injectables, complex dosage forms, and APIs to retail and pharmacy establishments, wholesalers and distributors, payers, insurers and governments, and institutions. The company distributes its products through pharmaceutical wholesalers/distributors, pharmaceutical retailers, institutional pharmacies, mail-order and e-commerce pharmacies, and specialty pharmacies. It sells its products under the Lyrica, Lipitor, Creon, Influvac, Wixela Inhub, EpiPen auto-injector, Fraxiparine, and Yupelri; Norvasc and Viagra; AMITIZA, Lipacreon, and Effexor; and Celebrex and ARV names, as well as offers biosimilars franchises, including Fulphila, Ogivri, Hulio, and SEMGLEE. The company has collaboration and licensing agreements with Revance Therapeutics, Inc.; Momenta Pharmaceuticals, Inc.; Theravance Biopharma, Inc.; Biocon Ltd.; and Fujifilm Kyowa Kirin Biologics Co. Ltd. Viatris Inc. was founded in 1961 and is headquartered in Canonsburg, Pennsylvania.

How the Company Makes Money

Viatris generates revenue through multiple streams, primarily by selling a wide range of pharmaceutical products, including generics, branded medications, and over-the-counter treatments. The company benefits from its extensive global reach, allowing it to serve diverse markets and meet various healthcare needs. Key revenue streams include prescription drug sales, where Viatris leverages its established market presence and partnerships with healthcare providers and payers. Additionally, the company engages in strategic collaborations and alliances with other pharmaceutical firms to enhance its product offerings and reach. Viatris also derives income from its biosimilars portfolio, which is a growing segment in the pharmaceutical industry. Overall, the company's revenue model is reinforced by its commitment to providing affordable access to essential medicines and its ability to adapt to changing market dynamics.

Viatris Financial Statement Overview

Summary

Cash flow is a clear support (operating cash flow ~$2.3B–$3.0B and positive free cash flow ~$1.9B–$2.5B across 2021–2025), helping debt service flexibility. However, fundamentals are pressured by declining revenue since 2021 and a sharp swing to deep net losses in 2025 (net margin ~-25%), with profitability-driven equity erosion a key risk despite manageable leverage (~1.0 debt-to-equity in 2025).

Income Statement

Revenue has trended down from $17.9B (2021) to $14.3B (2025), despite a small rebound in 2025. Profitability is the key concern: net income swung from a strong profit in 2022 to losses in 2024 and a much larger loss in 2025, with net margin deteriorating to roughly -25% in 2025. Gross margin has held in the mid-30% to low-40% range, but the sharp move to negative operating results in 2025 signals meaningful cost/charge pressure and weak earnings quality.

Balance Sheet

Leverage is moderate for the sector, with debt roughly in line with equity in 2025 (debt-to-equity ~1.0) and improved versus 2020–2021 levels. However, the balance sheet has weakened over time: total assets and equity have declined since 2021, and negative returns on equity in 2024–2025 reflect the earnings slump. Overall, the company appears financed adequately, but profitability-driven equity erosion is a clear risk if losses persist.

Cash Flow

Cash generation is a relative strength. Operating cash flow has remained solid and fairly stable around ~$2.3B–$3.0B from 2021–2025, and free cash flow stayed near ~$1.9B–$2.5B over the same period. Free cash flow grew strongly in 2025 and free cash flow remained positive despite accounting losses, supporting debt service flexibility; the main watch-out is that earnings are negative while cash flow is carrying the story, which can be less durable if underlying business pressure continues.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	14.30B	14.74B	15.43B	16.26B	17.89B
Gross Profit	5.01B	5.62B	6.44B	6.50B	5.58B
EBITDA	-2.66B	2.82B	3.52B	6.43B	4.48B
Net Income	-3.51B	-634.20M	54.70M	2.08B	-1.27B
Balance Sheet
Total Assets	37.19B	41.50B	47.69B	50.02B	54.84B
Cash, Cash Equivalents and Short-Term Investments	1.32B	1.09B	1.18B	1.47B	935.00M
Total Debt	14.41B	14.31B	18.37B	19.53B	23.36B
Total Liabilities	22.48B	22.87B	27.22B	28.95B	34.35B
Stockholders Equity	14.71B	18.64B	20.47B	21.07B	20.49B
Cash Flow
Free Cash Flow	1.94B	1.98B	2.33B	2.51B	2.51B
Operating Cash Flow	2.32B	2.30B	2.80B	3.00B	3.02B
Investing Cash Flow	-427.70M	1.80B	-764.10M	1.47B	-117.80M
Financing Cash Flow	-1.29B	-4.33B	-2.30B	-3.88B	-3.01B

Viatris Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 15.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For VTRS, the sentiment is Positive. The current price of 15.25 is above the 20-day moving average (MA) of 15.04, above the 50-day MA of 13.51, and above the 200-day MA of 10.58, indicating a bullish trend. The MACD of 0.82 indicates Positive momentum. The RSI at 78.44 is Negative, neither overbought nor oversold. The STOCH value of 56.66 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for VTRS.

Viatris Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
RDY	70 Outperform	$11.93B	18.96	―	0.64%	10.63%	6.35%
ANIP	68 Neutral	$1.72B	46.79	7.83%	―	48.87%	―
AMRX	64 Neutral	$4.61B	1,026.76	―	―	9.50%	―
TEVA	63 Neutral	$39.96B	27.62	21.37%	―	-0.25%	―
VTRS	56 Neutral	$18.50B	-5.19	-21.09%	3.99%	-6.40%	-320.23%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
PRGO	50 Neutral	$2.01B	-38.25	-0.65%	8.48%	-2.55%	66.00%

Viatris Corporate Events

Viatris Launches Major Restructuring After Strong 2025 Results

On February 26, 2026, Viatris reported robust fourth-quarter 2025 revenues of $3.7 billion and full-year revenues of $14.3 billion, meeting or exceeding its 2025 financial guidance and returning more than $1 billion to shareholders, supported by strong cash generation and a balanced capital allocation approach. On the same date, the company completed its enterprise-wide strategic review, launching a restructuring plan that includes a global workforce reduction of up to about 10%, expected pre-tax charges of $700 million to $850 million and anticipated net cost savings of $600 million to $700 million over three years, positioning Viatris for operational efficiency gains and sustained revenue and earnings growth beginning in 2026.

The most recent analyst rating on (VTRS) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Viatris stock, see the VTRS Stock Forecast page.

Viatris Announces Chief Legal Officer Transition and Successor

On February 3, 2026, Viatris Inc. reported that Chief Legal Officer Brian Roman will step down from his role effective February 9, 2026, and remain with the company until April 1, 2026, to facilitate a transition, during which he will receive separation benefits in line with those granted to comparable executives. The company also announced that veteran pharmaceutical industry lawyer Matthew Maletta, formerly Executive Vice President, Chief Legal Officer and Secretary of Endo, Inc. from 2015 to 2025, will assume the Chief Legal Officer position on February 9, 2026, marking a planned leadership handover in Viatris’ legal function that underscores continuity and sector-specific experience at the top of its legal organization.

The most recent analyst rating on (VTRS) stock is a Hold with a $13.50 price target. To see the full list of analyst forecasts on Viatris stock, see the VTRS Stock Forecast page.

Viatris Sells Biocon Biologics Stake for $815 Million

On December 6, 2025, Viatris Inc. announced an agreement to sell its equity stake in Biocon Biologics Limited to Biocon Limited for $815 million, comprising $400 million in cash and $415 million in equity shares. This transaction, expected to close in Q1 2026, will accelerate the expiration of biosimilars non-compete restrictions, allowing Viatris to regain access to the global biosimilars market, enhancing its portfolio of generics and innovative brands.

The most recent analyst rating on (VTRS) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Viatris stock, see the VTRS Stock Forecast page.

Viatris Holds Annual Shareholder Meeting on December 5

On December 5, 2025, Viatris Inc. held its annual meeting of shareholders to elect directors, approve executive compensation, and ratify its accounting firm. The meeting resulted in the election of thirteen directors, approval of the 2024 executive compensation, and ratification of Deloitte & Touche LLP as the accounting firm for 2025.

The most recent analyst rating on (VTRS) stock is a Hold with a $12.00 price target. To see the full list of analyst forecasts on Viatris stock, see the VTRS Stock Forecast page.