Novartis Q2 Sales +1% (cc); Reaffirms FY26 Guidance
Novartis reported solid second-quarter 2026 results, with net sales growing +1% in constant currencies to $14.4 billion, primarily driven by strong performance from key brands like Kisqali, Kesimpta, Scemblix, Pluvicto, and Leqvio. Core operating income remained flat (cc) at $5.9 billion. However, net income declined -19% (cc) to $3.3 billion, and EPS fell -18% (cc) to $1.71, impacted by higher income taxes and interest expenses. The company reaffirmed its full-year 2026 guidance and highlighted significant pipeline advancements, including new approvals for Rhapsido and Itvisma, and strategic acquisitions.
Key Highlights
- Q2 net sales grew +1% (cc) to $14.4 billion, driven by volume growth.
- Q2 core operating income was flat (cc) at $5.9 billion, with a margin of 41.2%.
- Q2 net income declined -19% (cc) to $3.3 billion; EPS fell -18% (cc) to $1.71.
- Key brands Kisqali (+43% cc), Kesimpta (+32% cc), Scemblix (+89% cc), Pluvicto (+43% cc), and Leqvio (+59% cc) drove sales growth.
- Full-year 2026 guidance for low single-digit net sales growth and low single-digit core operating income decline was reaffirmed.
- Acquired Myricx Bio, Pikavation Therapeutics, and Excellergy to strengthen the oncology and immunology pipelines.
- Rhapsido received EC and Japan approval for CSU, and Itvisma received EC approval for SMA.
- Net debt increased to $39.4 billion at June 30, 2026, from $21.9 billion at December 31, 2025.
Price Impact
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