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

Novartis (NYSE:NVS) issued its quarterly earnings data on Tuesday. The company reported $2.46 earnings per share for the quarter, topping analysts’ consensus estimates of $2.25 by $0.21, FiscalAI reports. The business had revenue of $15.03 billion for the quarter, compared to analyst estimates of $14.53 billion. Novartis had a return on equity of 38.56% and a net margin of 23.29%. Novartis’s quarterly revenue was up 4.4% compared to the same quarter last year. During the same quarter in the previous year, the company posted $2.25 EPS.

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 Trading Up 1.1%

Shares of Novartis stock traded up $1.66 during midday trading on Tuesday, reaching $155.47. The company had a trading volume of 927,476 shares, compared to its average volume of 1,990,688. The stock has a fifty day moving average price of $148.13 and a 200 day moving average price of $151.40. The company has a debt-to-equity ratio of 0.89, a current ratio of 0.86 and a quick ratio of 0.67. The firm has a market cap of $296.66 billion, a PE ratio of 23.51, a P/E/G ratio of 2.74 and a beta of 0.41. Novartis has a fifty-two week low of $121.57 and a fifty-two week high of $170.46.

Novartis News Roundup

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Novartis reported third-quarter adjusted EPS of $2.46, above the $2.25 consensus, while revenue rose 4.4% year over year to $15.03 billion, exceeding expectations of $14.53 billion. Novartis quarterly earnings data
• Positive Sentiment: The company raised its 2026 core operating-income outlook, citing solid sales growth, productivity gains and contributions from newer medicines that are helping offset generic competition. It maintained its full-year net-sales growth forecast. Novartis lifts profit outlook
• Positive Sentiment: Phase 3 trials of remibrutinib in multiple sclerosis showed lower relapse rates and no reported Hy’s Law cases, supporting the potential safety and commercial value of Novartis’s pipeline. Remibrutinib MS trial results
• Neutral Sentiment: Novartis shares moved above their 200-day moving average, a potentially supportive technical signal, although trading volume was below the stock’s average. Novartis shares cross above 200-day moving average
• Negative Sentiment: Reported third-quarter profit declined because of a roughly $1.9 billion impairment charge, higher expenses and setbacks involving clinical programs. These items weighed on headline earnings despite the adjusted earnings beat. Novartis Q3 profit and outlook
• Negative Sentiment: Kisqali, Novartis’s biggest revenue driver, fell short of expectations. The product miss raises concern about growth momentum and likely limited the stock’s upside following the results. Novartis raises income forecast with Kisqali caveat

Analyst Upgrades and Downgrades

A number of brokerages have recently commented on NVS. Royal Bank Of Canada initiated coverage on Novartis in a research note on Tuesday, September 8th. They set a “sector perform” rating on the stock. Bank of America reaffirmed a “buy” rating on shares of Novartis in a research note on Tuesday, September 8th. Sanford C. Bernstein reiterated a “neutral” rating on shares of Novartis in a report on Wednesday, July 22nd. Jefferies Financial Group reissued a “neutral” rating on shares of Novartis in a report on Thursday, July 23rd. Finally, UBS Group restated a “neutral” rating on shares of Novartis in a research report on Thursday, September 17th. Six 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’s stock. According to MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus target price of $145.60.

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.