VTRS · 10-Q · 2026Q3 · Full report
Gross Margin Drivers
Viatris Inc · 2026-11-05 · Importance 31 · Surprise 32 · No source text
Third-quarter 2026 gross profit increased $66.5 million to $1,438.0 million, and gross margin rose to 38% from 36% a year earlier. The company attributed the improvement primarily to lower sales of lower-margin products in Europe and Emerging Markets due to supply disruptions and higher sales of higher-margin products in Greater China and North America. Third-quarter adjusted gross margin increased to approximately 58% from 56%. For the first nine months, gross profit rose $186.1 million to $4,051.7 million and gross margin increased to 37% from 36%; adjusted gross margin was approximately 57% versus 56%.
Key facts
- Third-quarter 2026 cost of sales decreased $76.9 million to $2.31 billion; gross profit was $1.44 billion and gross margin was 38%, compared with $1.37 billion and 36% in the prior-year quarter. source
- Viatris’s adjusted gross margin was approximately 58% in the third quarter of 2026, compared with approximately 56% in the third quarter of 2025. source
- Third-quarter 2026 gross profit and margin changes were primarily driven by reduced sales of lower-margin products in Europe and Emerging Markets amid supply disruptions and increased sales of higher-margin products in Greater China and North America. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | positive | realized | +2.1% | Third-quarter 2026 cost of sales decreased $76.9 million to $2.31 billion; gross profit was $1.44 billion and gross margin was 38%,… |
| margin | positive | realized | +2.0% | Third-quarter 2026 cost of sales decreased $76.9 million to $2.31 billion; gross profit was $1.44 billion and gross margin was 38%,… |