Novartis (NYSE:NVS) Releases Earnings Results, Beats Estimates By $0.21 EPS

Novartis (NYSE:NVS) issued its earnings results on Tuesday. The company reported $2.46 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.25 by $0.21, FiscalAI reports. The firm had revenue of $15.03 billion during the quarter, compared to the consensus estimate of $14.53 billion. During the same quarter in the prior year, the business earned $2.25 earnings per share. Novartis’s revenue for the quarter was up 4.4% on a year-over-year basis.

Here are the key takeaways from Novartis’ conference call:

• Novartis reported Q3 sales growth of 4% in constant currency, core operating income growth of 10%, and a 41.6% core operating margin. The company raised 2026 core operating income guidance to growth ranging from in line to low double digits, while maintaining low-single-digit sales growth guidance.
• Priority brands continued to drive performance, including Kisqali (+37%), Kesimpta (+22%), Leqvio (+63%), Scemblix (+67%), Pluvicto (+20%), and Rhapsido’s strong launch. Novartis also raised Rhapsido’s combined CSU and CIndU peak-sales outlook to more than $4 billion.
• The company highlighted favorable pipeline and launch developments, including positive remibrutinib multiple-sclerosis data, FDA approval for Rhapsido, expanded Pluvicto approvals, and ongoing filings for remibrutinib and pelabresib. Management estimates remibrutinib could generate more than $4 billion in MS sales, excluding potential non-relapsing SPMS upside.
• Reported operating income fell 61% and net income declined 71%, primarily because of a $1.9 billion partial impairment related to del-desiran after its phase 3 HARBOR trial missed its endpoint. Pelacarsen’s phase 3 ORION-4 study also failed to meet its primary endpoint, while further development of related cardiovascular assets remains under review.
• Management expects continued productivity benefits, particularly in SG&A, but warned that fourth-quarter margins will decline sequentially due to year-end spending, higher royalties, and lower other income as U.S. Xolair biosimilars expand. European Entresto genericization is another factor investors will need to monitor into 2027.

Novartis Stock Up 1.9%

Shares of NYSE:NVS opened at $156.81 on Wednesday. The business’s 50 day moving average is $148.28 and its 200 day moving average is $151.54. Novartis has a 12-month low of $121.57 and a 12-month high of $170.46.

Wall Street Analyst Weigh In

NVS has been the topic of several research reports. Deutsche Bank Aktiengesellschaft restated a “neutral” rating on shares of Novartis in a report on Thursday, September 17th. Royal Bank Of Canada assumed coverage on shares of Novartis in a research note on Tuesday, September 8th. They issued a “sector perform” rating on the stock. Bank of America reiterated a “buy” rating on shares of Novartis in a report on Tuesday, September 8th. UBS Group reissued a “neutral” rating on shares of Novartis in a research report on Wednesday. Finally, Berenberg Bank lowered their target price on shares of Novartis from $147.00 to $130.00 and set a “hold” rating on the stock in a report on Friday, September 11th. Six investment analysts have rated the stock with a Buy rating, eleven have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the company has a consensus rating of “Hold” and a consensus target price of $145.60.

Novartis News Summary

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Novartis reported third-quarter EPS of $2.46, above the $2.25 analyst consensus, while revenue reached approximately $15.03 billion versus expectations of $14.53 billion. Sales increased 4.4% year over year. Novartis quarterly earnings report
• Positive Sentiment: The company raised its 2026 core operating-income outlook, citing productivity gains and continued demand for newer medicines. Novartis maintained its sales-growth forecast as Kisqali, Kesimpta and Scemblix helped offset generic competition. Novartis Q3 earnings and outlook
• Positive Sentiment: Phase 3 data for remibrutinib in multiple sclerosis showed lower relapse rates, with no Hy’s Law liver-safety cases reported, supporting the potential of the company’s development pipeline. Remibrutinib multiple sclerosis trial results
• Neutral Sentiment: NVS has moved above its 200-day moving average, a technical signal that may reinforce bullish sentiment, although it does not change the company’s fundamentals. Novartis shares cross above 200-day moving average
• Negative Sentiment: Reported profit declined because of a roughly $1.9 billion impairment charge, higher expenses and setbacks in recent clinical trials. Investors are also monitoring Kisqali, Novartis’ largest revenue contributor, which fell short of expectations. Novartis earnings caveats

Novartis Company Profile

Novartis AG is a Switzerland-based pharmaceutical company focused on the discovery, development and commercialization of innovative medicines. The company’s research and commercial activities span areas including cardiovascular, renal and metabolic diseases, immunology, neuroscience, oncology and hematology. Its portfolio includes prescription medicines such as Entresto, Cosentyx, Kisqali, Kesimpta, Leqvio, Pluvicto and Scemblix.

Novartis serves patients and healthcare providers in markets around the world.