Viatris Inc. stock research
FY2026 Q1
Viatris (VTRS) Gross Margin — Quarter Ended Mar 31, 2026
Revenue decreased from the preceding quarter while gross profit increased, as cost of revenue declined more sharply. Compared with the same quarter one year earlier, gross margin weakened because cost of revenue grew proportionally faster than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue decreased from the preceding quarter while gross profit increased, as cost of revenue declined more sharply. Compared with the same quarter one year earlier, gross margin weakened because cost of revenue grew proportionally faster than revenue.
- The improvement in gross margin from the preceding quarter was driven by a reduction in cost of revenue that outpaced the decline in revenue, resulting in a higher gross profit on lower revenue.
- Gross margin was higher than the preceding quarter but lower than the same quarter one year earlier. Revenue was lower than the preceding quarter and higher than the year-ago quarter.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
33.0%
Gross profit
$1.2B
Revenue
$3.5B
Cost of revenue
$2.4B
Quarter-over-quarter change
+1.9 pts
Year-over-year change
-2.8 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 |
|---|---|---|---|---|
| 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% |
| Mar 31, 2026 | $3.5B | $1.2B | $2.4B | 33.0% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+1.9 pts
Year-over-year change
Mar 31, 2025
-2.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin from the preceding quarter was driven by a reduction in cost of revenue that outpaced the decline in revenue, resulting in a higher gross profit on lower revenue.
Gross margin was higher than the preceding quarter but lower than the same quarter one year earlier. Revenue was lower than the preceding quarter and higher than the year-ago quarter.
Monitor the trajectory of cost of revenue relative to revenue in coming quarters, as gross margin sensitivity to cost changes has been observable.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Viatris Inc. (VTRS) | 33.0% |