Novartis (NYSE:NVS) Posts Earnings Results, Beats Expectations By $0.21 EPS

Novartis (NYSE:NVS) released its quarterly earnings results on Tuesday. The company reported $2.41 earnings per share (EPS) for the quarter, beating the consensus estimate of $2.20 by $0.21, Briefing.com reports. The firm had revenue of $14.41 billion for the quarter, compared to the consensus estimate of $14.07 billion. Novartis had a return on equity of 38.82% and a net margin of 24.87%.The company’s revenue for the quarter was up 2.5% on a year-over-year basis. During the same quarter last year, the business posted $2.42 EPS.

Here are the key takeaways from Novartis’ conference call:

• Novartis said it returned to growth in Q2, with net sales up 1% in constant currencies to $14.4 billion and core operating income flat at $5.9 billion, while reaffirming full-year 2026 guidance.
• The company’s main growth drivers remained strong, led by KISQALI, Kesimpta, PLUVICTO, LEQVIO and Scemblix, each posting double-digit growth and supporting management’s confidence in second-half momentum after Entresto patent expiry.
• Management highlighted several encouraging pipeline updates, including updated KISQALI overall survival data, positive del-brax biomarker results in FSHD, and progress on multiple late-stage readouts expected in the second half of 2026.
• Novartis reiterated that pelacarsen, remibrutinib in MS, and other key readouts remain data-dependent, emphasizing primary endpoints and statistical significance while declining to give new efficacy guidance ahead of trial results.
• The company also said it continues to manage through generic erosion and one-time phasing effects in Q2, including inventory shifts and clinical-trial cost timing, which temporarily boosted reported sales and operating income.

Novartis Price Performance

Shares of NVS opened at $153.82 on Wednesday. The business has a 50-day simple moving average of $151.61 and a two-hundred day simple moving average of $151.88. The stock has a market cap of $293.51 billion, a PE ratio of 22.04, a PEG ratio of 2.58 and a beta of 0.45. Novartis has a 12-month low of $112.34 and a 12-month high of $170.46. The company has a quick ratio of 0.65, a current ratio of 0.85 and a debt-to-equity ratio of 0.96.

Analyst Upgrades and Downgrades

A number of analysts have recently commented on NVS shares. Morgan Stanley boosted their price objective on shares of Novartis from $143.00 to $170.00 and gave the stock an “overweight” rating in a research report on Thursday, March 26th. Weiss Ratings downgraded Novartis from a “buy (a-)” rating to a “buy (b)” rating in a report on Wednesday, April 29th. Seven equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the company. According to MarketBeat.com, the company has an average rating of “Hold” and a consensus target price of $141.20.

Hedge Funds Weigh In On Novartis

Hedge funds and other institutional investors have recently made changes to their positions in the stock. CrossGen Wealth LLC acquired a new stake in Novartis during the fourth quarter worth approximately $28,000. Bank of Jackson Hole Trust grew its holdings in shares of Novartis by 425.0% during the fourth quarter. Bank of Jackson Hole Trust now owns 231 shares of the company’s stock valued at $32,000 after buying an additional 187 shares during the last quarter. Measured Wealth Private Client Group LLC bought a new stake in Novartis during the 3rd quarter worth approximately $33,000. Pin Oak Investment Advisors Inc. grew its holdings in Novartis by 25.2% during the third quarter. Pin Oak Investment Advisors Inc. now owns 462 shares of the company’s stock worth $59,000 after buying an additional 93 shares in the last quarter. Finally, Litman Gregory Wealth Management LLC purchased a new stake in shares of Novartis in the fourth quarter valued at about $65,000. 13.12% of the stock is owned by institutional investors and hedge funds.

Key Headlines Impacting Novartis

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Novartis posted Q2 EPS of $2.41, beating estimates, and revenue of $14.41 billion also topped Wall Street forecasts. Q2 earnings release and conference call
• Positive Sentiment: Management said newer medicines and core growth brands offset pressure from generics, and the company reaffirmed its 2026 guidance. Zacks on Novartis Q2 results
• Positive Sentiment: Q2 core operating profit came in ahead of expectations, helped by strong sales in oncology and multiple sclerosis drugs and lower-than-expected costs. Reuters on Novartis Q2 profit
• Neutral Sentiment: CEO Vas Narasimhan said there is “no change of plans,” signaling leadership continuity as the company prepares for important trial data later this year. Reuters on CEO comments
• Neutral Sentiment: Several articles highlight that Novartis still faces a “defining pipeline test,” meaning investor attention may shift to upcoming trial results and product launches. Pipeline test article
• Negative Sentiment: Generic competition and a sharp decline in Entresto sales remain a headwind, showing that pressure on older products has not gone away. Invezz on Entresto sales drop

Novartis Company Profile

Novartis is a Swiss multinational pharmaceutical company headquartered in Basel that researches, develops, manufactures and commercializes prescription medicines and related health-care products. Formed through the 1996 merger of Ciba-Geigy and Sandoz, Novartis operates globally and focuses on bringing therapeutics from discovery through clinical development to commercial markets worldwide.

The company’s activities center on innovative pharmaceuticals across several therapeutic areas, including oncology, immunology, cardiovascular and metabolic diseases, neuroscience and ophthalmology, alongside capabilities in advanced therapies such as biologics, cell and gene therapies.