v3.26.1
Revenue Recognition and Accounts Receivable
 6 Months Ended
Jun. 30, 2026
Revenue from Contract with Customer [Abstract]  
Revenue Recognition and Accounts Receivable Revenue Recognition and Accounts Receivable
The Company recognizes revenues in accordance with ASC 606, Revenue from Contracts with Customers. Under ASC 606, the Company recognizes net revenue for product sales when control of the promised goods or services is transferred to our customers in an amount that reflects the consideration we expect to be entitled to in exchange for those goods or services. Revenues are recorded net of provisions for variable consideration, including discounts, rebates, governmental rebate programs, price adjustments, returns, chargebacks, promotional programs and other sales allowances. Accruals for these provisions are presented in the condensed consolidated financial statements as reductions in determining net sales and as a contra asset in accounts receivable, net (if settled via credit) and other current liabilities (if paid in cash).
Our net sales may be impacted by wholesaler and distributor inventory levels of our products, which can fluctuate throughout the year due to the seasonality of certain products, pricing, the timing of product demand, purchasing decisions and other factors. Such fluctuations may impact the comparability of our net sales between periods.
Consideration received from licenses of intellectual property is recorded as other revenues. Royalty or profit share amounts, which are based on sales of licensed products or technology, are recorded when the customer’s subsequent sales or usages occur. Such consideration is included in other revenues in the condensed consolidated statements of operations.
The following table presents the Company’s net sales by product category for each of our reportable segments for the three and six months ended June 30, 2026 and 2025, respectively:
(In millions)
Three Months Ended June 30, 2026
Product CategoryDeveloped MarketsGreater ChinaJANZEmerging MarketsTotal
Brands$1,122.3 $710.8 $144.1 $441.2 $2,418.4 
Generics1,071.4 3.0 152.0 101.1 1,327.5 
Total Viatris$2,193.7 $713.8 $296.1 $542.3 $3,745.9 
(In millions)
Six Months Ended June 30, 2026
Product CategoryDeveloped MarketsGreater ChinaJANZEmerging MarketsTotal
Brands$2,191.3 $1,388.0 $283.2 $888.4 $4,750.9 
Generics2,023.2 5.9 286.3 189.3 2,504.7 
Total Viatris$4,214.5 $1,393.9 $569.5 $1,077.7 $7,255.6 
(In millions)Three Months Ended June 30, 2025
Product CategoryDeveloped MarketsGreater ChinaJANZEmerging MarketsTotal
Brands$1,121.4 $586.5 $160.5 $416.1 $2,284.5 
Generics997.9 2.4 145.2 139.0 1,284.5 
Total Viatris$2,119.3 $588.9 $305.7 $555.1 $3,569.0 
(In millions)Six Months Ended June 30, 2025
Product CategoryDeveloped MarketsGreater ChinaJANZEmerging MarketsTotal
Brands$2,141.2 $1,139.3 $302.3 $818.6 $4,401.4 
Generics1,869.8 5.1 279.5 256.4 2,410.8 
Total Viatris$4,011.0 $1,144.4 $581.8 $1,075.0 $6,812.2 
___________
(a)Amounts include the impact of foreign currency fluctuations.
The following table presents net sales on a consolidated basis for select key products for the three and six months ended June 30, 2026 and 2025, respectively:
Three Months Ended June 30,Six Months Ended June 30,
(In millions)2026202520262025
Select Key Global Products
Lipitor ®
$452.2 $387.9 $914.2 $775.9 
Norvasc ®200.2 182.7 410.2 355.0 
EpiPen® Auto-Injectors129.2 136.8 230.3 233.5 
Lyrica ®120.6 128.1 241.2 240.7 
Viagra ®112.9 100.3 207.9 198.8 
Creon ®97.4 91.4 194.8 173.8 
Celebrex ®
76.4 70.0 143.5 133.4 
Zoloft ®
71.4 61.1 144.0 121.3 
Effexor ®
66.7 63.1 128.7 122.4 
Xalabrands38.8 40.7 78.0 77.8 
Select Key Segment Products
Yupelri ®70.7 66.6 $133.2 $124.9 
Dymista ®39.8 48.4 77.1 91.2 
Amitiza ®39.4 41.6 73.4 74.9 
Xanax ®38.1 33.9 72.9 66.2 
____________
(a)The Company does not disclose net sales for any products considered competitively sensitive.
(b)Products disclosed may change in future periods, including as a result of seasonality, competition or new product launches.
(c)Amounts include the impact of foreign currency fluctuations compared to the prior year period.
(d)Refer to intellectual property matters included in Note 17 Litigation for additional information regarding Amitiza®.
Variable Consideration and Accounts Receivable
The following table presents a reconciliation of gross sales to net sales by each significant category of variable consideration during the three and six months ended June 30, 2026 and 2025, respectively:
Three Months EndedSix Months Ended
June 30,June 30,
(In millions)
2026
202520262025
Gross sales$6,079.2 $5,974.8 $12,003.2 $11,545.0 
Gross to net adjustments:
Chargebacks(1,162.3)(1,260.6)(2,339.9)(2,418.6)
Rebates, promotional programs and other sales allowances(970.8)(918.4)(2,019.4)(1,889.0)
Returns(43.4)(47.8)(86.9)(102.1)
Governmental rebate programs(156.8)(179.0)(301.4)(323.1)
Total gross to net adjustments$(2,333.3)$(2,405.8)$(4,747.6)$(4,732.8)
Net sales$3,745.9 $3,569.0 $7,255.6 $6,812.2 
___________
(a)Amounts include the impact of foreign currency fluctuations.
No significant revisions were made to the methodology used in determining these provisions or the nature of the provisions during the three and six months ended June 30, 2026. Such allowances were comprised of the following at June 30, 2026 and December 31, 2025, respectively:
(In millions)June 30,
2026		December 31,
2025
Accounts receivable, net$1,206.7 $1,257.4 
Other current liabilities899.7 1,011.2 
Total$2,106.4 $2,268.6 
Accounts receivable, net was comprised of the following at June 30, 2026 and December 31, 2025, respectively:
(In millions)June 30,
2026		December 31,
2025
Trade receivables, net$2,581.1 $2,577.6 
Other receivables545.1 453.7 
Accounts receivable, net$3,126.2 $3,031.3 
Accounts Receivable Factoring Arrangements
We have entered into accounts receivable factoring agreements with financial institutions to sell certain of our non-U.S. accounts receivable. These transactions are accounted for as sales and result in a reduction in accounts receivable because the agreements transfer effective control over and risk related to the receivables to the buyers. Our factoring agreements do not allow for recourse in the event of uncollectibility, and we do not retain any interest in the underlying accounts receivable once sold. We derecognized $250.6 million and $301.9 million of accounts receivable as of June 30, 2026 and December 31, 2025, respectively, under these factoring arrangements. Additionally, we have a similar arrangement for certain European countries. As of June 30, 2026, we assigned and derecognized approximately $84.0 million of Trade Receivables, Net, which were included in Other Receivables. As of December 31, 2025, no amounts were assigned and derecognized.