Novartis (NYSE:NVS) Posts Quarterly Earnings Results, Beats Expectations 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, beating the consensus estimate of $2.25 by $0.21, FiscalAI reports. The business had revenue of $15.03 billion during the quarter, compared to analysts’ expectations of $14.53 billion. Novartis had a net margin of 23.29% and a return on equity of 38.56%. The company’s revenue for the quarter was up 4.4% on a year-over-year basis. During the same quarter in the prior year, the business 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 Stock Performance

Shares of NYSE NVS traded up $3.90 during mid-day trading on Thursday, hitting $159.98. The company had a trading volume of 1,056,244 shares, compared to its average volume of 1,999,671. Novartis has a 12 month low of $121.98 and a 12 month high of $170.46. The stock has a market cap of $305.26 billion, a price-to-earnings ratio of 24.18, a PEG ratio of 2.74 and a beta of 0.41. 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’s 50 day simple moving average is $148.31 and its two-hundred day simple moving average is $151.61.

Analyst Upgrades and Downgrades

A number of research firms have recently weighed in on NVS. Morgan Stanley reaffirmed an “overweight” rating and set a $163.00 price target on shares of Novartis in a research note on Wednesday. The Goldman Sachs Group reissued a “sell” rating on shares of Novartis in a research report on Monday, September 21st. Berenberg Bank decreased their price target 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. Sanford C. Bernstein restated a “neutral” rating on shares of Novartis in a research note on Wednesday, July 22nd. Finally, JPMorgan Chase & Co. reissued a “buy” rating on shares of Novartis in a research report on Sunday, August 9th. Six analysts have rated the stock with a Buy rating, ten have assigned a Hold rating and two have issued a Sell rating to the company’s stock. Based on data from MarketBeat.com, Novartis has an average rating of “Hold” and a consensus price target of $152.25.

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.