Viatris Inc. stock research
FY2025 Q3
Viatris (VTRS) Gross Margin — Quarter Ended Sep 30, 2025
Revenue was unchanged from the prior year, but gross profit decreased due to a higher cost of revenue, causing gross margin to decline. Compared to the preceding quarter, revenue increased while cost of revenue rose at a faster rate, leading to a slightly lower gross margin.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2025 Q3
Revenue was unchanged from the prior year, but gross profit decreased due to a higher cost of revenue, causing gross margin to decline. Compared to the preceding quarter, revenue increased while cost of revenue rose at a faster rate, leading to a slightly lower gross margin.
- The most observable margin driver is the relationship between revenue and cost of revenue; revenue growth in the current quarter was outpaced by cost growth compared to the prior quarter, resulting in a weaker gross margin.
- Gross margin weakened sequentially from the prior quarter and declined from the same quarter last year, as cost of revenue increased relative to revenue in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
36.6%
Gross profit
$1.4B
Revenue
$3.7B
Cost of revenue
$2.4B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
-2.4 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $3.5B | $1.2B | $2.3B | 34.6% |
| Mar 31, 2025 | $3.2B | $1.2B | $2.1B | 35.8% |
| Jun 30, 2025 | $3.6B | $1.3B | $2.2B | 37.3% |
| Sep 30, 2025 | $3.7B | $1.4B | $2.4B | 36.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.7 pts
Year-over-year change
Sep 30, 2024
-2.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable margin driver is the relationship between revenue and cost of revenue; revenue growth in the current quarter was outpaced by cost growth compared to the prior quarter, resulting in a weaker gross margin.
Gross margin weakened sequentially from the prior quarter and declined from the same quarter last year, as cost of revenue increased relative to revenue in both comparisons.
Monitor the trend of cost of revenue relative to revenue, as it has increased at a faster pace than revenue sequentially and year-over-year.