Vir Biotechnology Q4 2025 Earnings Preview: Revenue Growth Expected Amid Continued Losses

Vir Biotechnology Inc is set to release its Q4 2025 earnings on Feb 23, 2026, after the market closes. Analysts anticipate an earnings per share (EPS) of -$0.41 to -$0.50 and project revenue to reach $19.91 million to $23.18 million, marking a 61% increase year-over-year.

Historically, Vir has surpassed EPS expectations 25% of the time and revenue estimates 38% of the time over the past two years. Recent trends show two upward revisions and one downward for EPS estimates, while revenue expectations have seen two upward adjustments with no downward changes.

In the previous quarter ending September 30, 2025, Vir Biotechnology Inc's actual revenue was $0.24 million, which missed analysts' revenue expectations of $1.98 million by -87.90%. Actual earnings were -$1.17 per share, which missed analysts' earnings expectations of -$0.84 per share by -39.29%. After releasing the results, Vir Biotechnology Inc was down by -5.19% in one day.

Over the past 90 days, revenue estimates for Vir Biotechnology Inc have increased from $6.28 million to $19.22 million for the full year 2025. For 2026, revenue estimates have declined from $9.31 million to $8.34 million. Earnings estimates for 2025 have improved from -$3.52 per share to -$3.38 per share. Similarly, for 2026, earnings estimates have increased from -$2.84 per share to -$2.76 per share. The full year 2025's revenue is expected to be $19.22 million, and the earnings are expected to be -$3.38 per share.

Financial Health and Valuation

With a market capitalization of $1.05 billion, Vir Biotechnology operates within the healthcare sector, specifically in the biotechnology industry. The company is listed on the NASDAQ exchange and has a total of 139.13 million shares outstanding.

The company's gross margin remains robust at 95.13%, indicating efficient cost management in production. However, profitability metrics are troubling, with a net margin of -3559.29% and an operating margin of -3937.05%, reflecting significant operational challenges. The EBITDA margin is also negative at -3853.93%.

On the balance sheet, Vir Biotechnology shows strength with a current ratio of 7.25 and a quick ratio of 7.25, indicating strong liquidity. The debt-to-equity ratio is low at 0.13, suggesting prudent financial management regarding leverage.

Warning signs include an Altman Z-Score of 0.21, placing the company in the distress zone, which implies a potential risk of bankruptcy within the next two years. The company has experienced a revenue growth decline of 61.4% over the past three years. Insider activity shows a trend of selling, with seven insider sell transactions in the past three months, totaling 912,589 shares.

Vir Biotechnology's valuation metrics indicate potential overvaluation. The P/S ratio stands at 74.12, close to its three-year high, suggesting that the stock may be priced above its intrinsic value. The P/B ratio is 1.32, nearing its two-year high. The RSI of 60.46 indicates that the stock is approaching overbought territory, while moving averages show a positive trend with the 20-day SMA at 7.52, above the 50-day and 200-day SMAs.

Analyst Outlook

Based on the one-year price targets offered by 8 analysts, the average target price for Vir Biotechnology Inc is $16.13, with a high estimate of $26 and a low estimate of $12. The average target implies an upside of 106.47% from the current price of $7.81.

Based on the consensus recommendation from 10 brokerage firms, Vir Biotechnology Inc's average brokerage recommendation is currently 1.8, indicating an "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.

Institutional ownership is strong at 77.05%, reflecting confidence from large investors, although insider ownership is relatively low at 4.06%. The company's high beta of 2.19 indicates greater volatility compared to the market, with overall volatility at 48.66%.

Company Background

Vir Biotechnology Inc is an immunology company focused on combining cutting-edge technologies to treat and prevent serious infectious diseases and other serious conditions, including viral-associated diseases. Through internal development, collaborations, and acquisitions, it has four technology platforms, focused on antibodies, T cells, innate immunity, and small interfering ribonucleic acid, or siRNA. The company's pipeline consists of product candidates targeting hepatitis B, HBV, influenza A, human immunodeficiency virus, HIV, and tuberculosis, or TB. Its revenue sources are collaboration revenue, contract revenue, grant revenue, and license revenue.