Medication company Viatris (NASDAQ: VTRS) reported revenue ahead of Wall Street’s expectations in Q4 CY2025, with sales up 5% year on year to $3.7 billion. The company’s full-year revenue guidance of $14.7 billion at the midpoint came in 2.3% above analysts’ estimates. Its non-GAAP profit of $0.57 per share was 7.4% above analysts’ consensus estimates.

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Company Overview

Created through the 2020 merger of Mylan and Pfizer's Upjohn division, Viatris (NASDAQ: VTRS) is a healthcare company that develops, manufactures, and distributes branded and generic medicines across more than 165 countries worldwide.

Revenue Growth

Reviewing a company’s long-term sales performance reveals insights into its quality. Even a bad business can shine for one or two quarters, but a top-tier one grows for years. Unfortunately, Viatris’s 3.7% annualized revenue growth over the last five years was tepid. This was below our standard for the healthcare sector and is a rough starting point for our analysis.

Long-term growth is the most important, but within healthcare, a half-decade historical view may miss new innovations or demand cycles. Viatris’s performance shows it grew in the past but relinquished its gains over the last two years, as its revenue fell by 3.7% annually.

This quarter, Viatris reported modest year-on-year revenue growth of 5% but beat Wall Street’s estimates by 5.3%.

Looking ahead, sell-side analysts expect revenue to remain flat over the next 12 months. While this projection implies its newer products and services will catalyze better top-line performance, it is still below the sector average.

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Operating Margin

Viatris was roughly breakeven when averaging the last five years of quarterly operating profits, lousy for a healthcare business.

Looking at the trend in its profitability, Viatris’s operating margin decreased by 18.4 percentage points over the last five years. This performance was caused by more recent speed bumps as the company’s margin fell by 23.6 percentage points on a two-year basis. We’re disappointed in these results because it shows its expenses were rising and it couldn’t pass those costs onto its customers.

Viatris’s operating margin was negative 5.2% this quarter. The company's consistent lack of profits raise a flag.

Earnings Per Share

We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.

Sadly for Viatris, its EPS declined by 9.8% annually over the last five years while its revenue grew by 3.7%. However, its operating margin actually improved during this time, telling us that non-fundamental factors such as interest expenses and taxes affected its ultimate earnings.

We can take a deeper look into Viatris’s earnings to better understand the drivers of its performance. As we mentioned earlier, Viatris’s operating margin was flat this quarter but declined by 18.4 percentage points over the last five years. Its share count also grew by 34.9%, meaning the company not only became less efficient with its operating expenses but also diluted its shareholders.

In Q4, Viatris reported adjusted EPS of $0.57, up from $0.54 in the same quarter last year. This print beat analysts’ estimates by 7.4%. Over the next 12 months, Wall Street expects Viatris’s full-year EPS of $2.36 to grow 5.4%.

Key Takeaways from Viatris’s Q4 Results

We were impressed by how significantly Viatris blew past analysts’ revenue expectations this quarter. We were also glad its full-year revenue guidance exceeded Wall Street’s estimates. On the other hand, its full-year EPS guidance missed. Overall, this print was mixed. The stock remained flat at $15.93 immediately following the results.

Is Viatris an attractive investment opportunity right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here (it’s free).