Novartis (NYSE:NVS) Releases Quarterly Earnings Results, Beats Expectations By $0.04 EPS

Novartis (NYSE:NVS) posted its quarterly earnings data on Wednesday. The company reported $2.03 EPS for the quarter, topping analysts’ consensus estimates of $1.99 by $0.04, FiscalAI reports. Novartis had a return on equity of 41.70% and a net margin of 25.65%.The business had revenue of $524.00 million for the quarter, compared to analyst estimates of $13.85 billion. During the same period in the previous year, the company posted $1.98 earnings per share. The firm’s revenue for the quarter was up 1.4% on a year-over-year basis.

Here are the key takeaways from Novartis’ conference call:

• Novartis beat its 2025 targets with sales +8%, core operating income +14%, achieved a 40.1% core margin two years ahead of plan, and generated record free cash flow of CHF 17.6 billion.
• Commercial momentum is concentrated in priority brands — Kisqali +57%, Kesimpta +36%, Scemblix and Pluvicto showing strong launch/scale (Pluvicto reached ~$2bn), and Leqvio became a blockbuster — these franchises underpin near‑ and mid‑term growth.
• Pipeline catalysts are plentiful in 2026 (seven pivotal readouts highlighted, including Pelacarsen mid‑year and remibrutinib submissions/readouts) and early traction for Rhapsido, but several outcomes and timing risks remain (e.g., zigakibart eGFR readout moved to H1 2027).
• 2026 guidance reflects near‑term pressures — company expects low single‑digit sales growth and a low single‑digit decline in core operating income due to 1–2 percentage point margin dilution from the Avidity deal, higher financing costs and front‑loaded U.S. generic losses in H1 with a recovery expected in H2.

Novartis Trading Up 0.6%

Shares of NVS opened at $153.80 on Friday. The business’s fifty day moving average is $140.19 and its 200-day moving average is $130.52. The firm has a market cap of $324.89 billion, a price-to-earnings ratio of 21.48, a PEG ratio of 2.00 and a beta of 0.50. Novartis has a 52-week low of $97.71 and a 52-week high of $154.95. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.68 and a current ratio of 0.88.

Novartis Announces Dividend

The company also recently disclosed an annual dividend, which will be paid on Monday, March 16th. Shareholders of record on Wednesday, March 11th will be given a dividend of $4.773 per share. This represents a yield of 312.0%. The ex-dividend date is Wednesday, March 11th. Novartis’s payout ratio is currently 36.31%.

Institutional Inflows and Outflows

Several hedge funds have recently added to or reduced their stakes in NVS. Measured Wealth Private Client Group LLC bought a new position in shares of Novartis during the 3rd quarter worth approximately $33,000. Pin Oak Investment Advisors Inc. raised its holdings in shares of Novartis by 25.2% during the third quarter. Pin Oak Investment Advisors Inc. now owns 462 shares of the company’s stock valued at $59,000 after purchasing an additional 93 shares during the period. Kelleher Financial Advisors bought a new position in shares of Novartis during the 3rd quarter worth about $75,000. Triumph Capital Management acquired a new stake in shares of Novartis in the 3rd quarter valued at about $79,000. Finally, Larson Financial Group LLC grew its stake in Novartis by 34.3% in the third quarter. Larson Financial Group LLC now owns 1,420 shares of the company’s stock valued at $182,000 after acquiring an additional 363 shares during the period. Institutional investors own 13.12% of the company’s stock.

Key Stories Impacting Novartis

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Q4 EPS beat and margin strength — Novartis reported Q4 EPS above consensus and management flagged record/expanded operating margins, which investors are rewarding. This underpins the recent upside in the share price. Read More.
• Positive Sentiment: New 12‑month high after results — Market coverage notes the stock trade to a new 12‑month high following the earnings release and supportive commentary. Momentum can attract further buying. Read More.
• Positive Sentiment: Dividend declared — Novartis announced an annual cash dividend (record/ex‑dividend dates communicated), which supports income investors and signals confidence in cash flow. (Company announcement 2/4/26)
• Positive Sentiment: Analyst support and price target lift — Several brokers reiterated Buy ratings or nudged targets higher, reflecting confidence in long‑term EPS upside from the pipeline and cost leverage. Read More.
• Neutral Sentiment: Earnings call and presentation posted — Full Q4 2025 earnings call transcripts and the investor presentation are available for detailed read‑throughs of guidance, pipeline timelines and management Q&A. Useful for assessing forward catalysts. Read More. • Read More.
• Negative Sentiment: Revenue miss and generic pressure — Net sales fell short of estimates; U.S. generics for Entresto and Promacta materially pressured revenue, a near‑term earnings mix/headwind risk. Monitor sales trends and uptake of new growth drugs. Read More.
• Negative Sentiment: Largest patent expiry on horizon — Management flagged significant patent expiries that will shift the growth mix; investors should watch timing of generic erosion and replacement launches. Read More.
• Negative Sentiment: ESG / sustainability risk disclosure — Novartis disclosed heightened environmental/social risks that could affect reputation or financing long term; monitor any follow‑up remediation plans. Read More.

Analyst Upgrades and Downgrades

A number of equities analysts have recently issued reports on the stock. Cfra Research upgraded shares of Novartis to a “hold” rating in a research note on Wednesday, October 29th. Wall Street Zen raised Novartis from a “hold” rating to a “buy” rating in a report on Saturday, January 17th. JPMorgan Chase & Co. upgraded shares of Novartis from a “neutral” rating to an “overweight” rating in a research report on Monday, December 8th. Bank of America upgraded Novartis from a “neutral” rating to a “buy” rating in a research report on Tuesday, November 25th. Finally, TD Cowen reissued a “hold” rating on shares of Novartis in a research report on Monday, November 10th. One equities research analyst has rated the stock with a Strong Buy rating, six have given a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and an average target price of $119.75.

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.