NovoCure (NASDAQ:NVCR) Issues Earnings Results, Beats Estimates By $0.14 EPS

Key Points

• NovoCure beat quarterly expectations: EPS was a loss of $0.09 versus the estimated loss of $0.23, while revenue reached $193.4 million, up 15.7% year over year and above the $182.3 million consensus.
• Growth and profitability improved: Active patients increased 19%, and the company raised 2026 revenue guidance to $736 million–$743 million. Adjusted EBITDA improved to $16 million from a $3 million loss a year earlier.
• Product performance was mixed: Optune Gio and Optune Lua gained momentum, but Optune Pax faced U.S. reimbursement and treatment-related challenges. Analysts maintain a consensus “Hold” rating with a $21.20 target price.

NovoCure (NASDAQ:NVCR - Get Free Report) announced its quarterly earnings data on Thursday. The medical equipment provider reported ($0.09) earnings per share (EPS) for the quarter, beating analysts' consensus estimates of ($0.23) by $0.14, FiscalAI reports. NovoCure had a negative return on equity of 44.00% and a negative net margin of 21.25%. The business had revenue of $193.40 million during the quarter, compared to analysts' expectations of $182.28 million. During the same quarter in the previous year, the business earned ($0.33) earnings per share. The firm's quarterly revenue was up 15.7% compared to the same quarter last year.

Here are the key takeaways from NovoCure's conference call:

• Q3 net revenue rose 16% year over year to $193 million, driven by 19% growth in active patients, stronger Optune Gio performance, and contributions from Optune Lua and Optune Pax. The company raised its 2026 revenue guidance to $736 million–$743 million.
• Optune Gio active patients reached a record 4,729, up 11% year over year, while Optune Lua’s Japan launch gained momentum with 110 Japanese patients and $4 million in quarterly revenue. Management expects Japan to become NovoCure’s second-largest market behind the U.S.
• The Optune Pax launch faced significant U.S. headwinds after the introduction of daraxonrasib, with practices reportedly overwhelmed by reimbursement appeals and treatment-related skin irritation; Pax ended the quarter with 276 active patients and $3.7 million in revenue. NovoCure expects to rebuild momentum through improved commercial execution, NCCN guideline inclusion, and planned combination studies with KRAS inhibitors.
• Profitability metrics improved substantially, with adjusted EBITDA of $16 million versus negative $3 million a year earlier and updated full-year adjusted EBITDA guidance of $24 million–$34 million. Management cautioned that quarterly results may fluctuate, but said its next objective is cash-flow breakeven.
• The FDA is reviewing the Optune Mya application for brain metastases from non-small cell lung cancer, with a decision expected by year-end and a potential early-2027 launch. KEYNOTE-D58 enrollment remains on track for completion by year-end, supporting potential future GBM growth.

NovoCure Stock Performance

NVCR traded down $0.54 during trading on Thursday, hitting $13.63. The company's stock had a trading volume of 3,167,656 shares, compared to its average volume of 1,669,844. The business's 50 day simple moving average is $15.98 and its 200-day simple moving average is $14.80. The firm has a market cap of $1.59 billion, a PE ratio of -10.43 and a beta of 0.99. NovoCure has a one year low of $9.82 and a one year high of $21.45. The company has a quick ratio of 2.70, a current ratio of 2.89 and a debt-to-equity ratio of 0.58.

Analyst Upgrades and Downgrades

NVCR has been the topic of a number of analyst reports. Wedbush upped their price target on shares of NovoCure from $18.00 to $20.00 and gave the stock a "neutral" rating in a research note on Friday, July 24th. HC Wainwright set a $32.00 target price on shares of NovoCure in a report on Friday, July 24th. Weiss Ratings reiterated a "sell (d-)" rating on shares of NovoCure in a research note on Thursday, August 27th. Zacks Research upgraded shares of NovoCure from a "strong sell" rating to a "hold" rating in a report on Friday, July 24th. Finally, Wall Street Zen cut NovoCure from a "buy" rating to a "hold" rating in a research report on Saturday, October 10th. Two investment analysts have rated the stock with a Buy rating, four have given a Hold rating and one has given a Sell rating to the company's stock. According to data from MarketBeat.com, NovoCure presently has a consensus rating of "Hold" and a consensus target price of $21.20.

About NovoCure

NovoCure Ltd. NASDAQ: NVCR is an oncology company that develops and commercializes therapies based on Tumor Treating Fields (TTFields), low-intensity electric fields designed to disrupt the division of cancer cells. Its treatments are delivered through portable, wearable devices used alongside other cancer therapies.

The company's principal products include Optune Gio for certain adults with glioblastoma and Optune Lua for adults with unresectable, locally advanced or metastatic pleural mesothelioma and certain forms of metastatic non-small cell lung cancer.

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