Viatris Inc. stock research
FY2025 Q4
Viatris (VTRS) Gross Margin — Quarter Ended Dec 31, 2025
Revenue was unchanged from the prior quarter but higher than the same quarter last year. Gross profit and gross margin both weakened compared to the prior quarter and the year-ago quarter, as cost of revenue increased relative to revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue was unchanged from the prior quarter but higher than the same quarter last year. Gross profit and gross margin both weakened compared to the prior quarter and the year-ago quarter, as cost of revenue increased relative to revenue.
- The decline in gross margin from the prior quarter was driven by a higher cost of revenue relative to revenue, while gross profit decreased. Compared to the year-ago quarter, gross margin also weakened as cost of revenue grew faster than revenue.
- Revenue was stable sequentially but higher year-over-year. Gross profit and gross margin were lower both sequentially and year-over-year, indicating a weakening in profitability from revenue.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
31.1%
Gross profit
$1.1B
Revenue
$3.7B
Cost of revenue
$2.6B
Quarter-over-quarter change
-5.5 pts
Year-over-year change
-3.5 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $3.7B | $1.1B | $2.6B | 31.1% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
-5.5 pts
Year-over-year change
Dec 31, 2024
-3.5 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross margin from the prior quarter was driven by a higher cost of revenue relative to revenue, while gross profit decreased. Compared to the year-ago quarter, gross margin also weakened as cost of revenue grew faster than revenue.
Revenue was stable sequentially but higher year-over-year. Gross profit and gross margin were lower both sequentially and year-over-year, indicating a weakening in profitability from revenue.
Monitor the trend in cost of revenue relative to revenue, as its increase has pressured gross margin in the current quarter.