Novartis (NYSE:NVS) Posts Earnings Results, Beats Estimates By $0.24 EPS

Key Points

• Novartis beat earnings expectations, reporting Q2 EPS of $2.41 versus the $2.17 consensus estimate. Revenue rose 2.5% year over year, while net margin remained strong at 24.87%.
• The company said it returned to growth in Q2, with net sales up 1% in constant currencies to $14.4 billion, and it reaffirmed full-year 2026 guidance.
• Growth was driven by key drugs such as KISQALI, Kesimpta, PLUVICTO, LEQVIO, and Scemblix, which all posted double-digit gains and helped offset pressure from generic competition, especially around Entresto.

Novartis (NYSE:NVS - Get Free Report) released its quarterly earnings results on Tuesday. The company reported $2.41 earnings per share for the quarter, beating the consensus estimate of $2.17 by $0.24, Briefing.com reports. Novartis had a return on equity of 38.82% and a net margin of 24.87%.The firm's quarterly revenue was up 2.5% on a year-over-year basis. During the same quarter last year, the firm earned $2.42 EPS.

Here are the key takeaways from Novartis' conference call:

• Novartis said it returned to growth in Q2, with net sales up 1% in constant currencies to $14.4 billion and core operating income flat at $5.9 billion, while reaffirming full-year 2026 guidance.
• The company’s main growth drivers remained strong, led by KISQALI, Kesimpta, PLUVICTO, LEQVIO and Scemblix, each posting double-digit growth and supporting management’s confidence in second-half momentum after Entresto patent expiry.
• Management highlighted several encouraging pipeline updates, including updated KISQALI overall survival data, positive del-brax biomarker results in FSHD, and progress on multiple late-stage readouts expected in the second half of 2026.
• Novartis reiterated that pelacarsen, remibrutinib in MS, and other key readouts remain data-dependent, emphasizing primary endpoints and statistical significance while declining to give new efficacy guidance ahead of trial results.
• The company also said it continues to manage through generic erosion and one-time phasing effects in Q2, including inventory shifts and clinical-trial cost timing, which temporarily boosted reported sales and operating income.

Novartis Stock Performance

Shares of NVS stock traded up $6.49 during mid-day trading on Tuesday, reaching $156.05. 647,347 shares of the company's stock traded hands, compared to its average volume of 1,995,444. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.65 and a current ratio of 0.85. The firm has a 50 day moving average price of $151.50 and a two-hundred day moving average price of $151.77. The firm has a market capitalization of $297.77 billion, a PE ratio of 22.28, a price-to-earnings-growth ratio of 2.65 and a beta of 0.45. Novartis has a 12 month low of $112.34 and a 12 month high of $170.46.

Hedge Funds Weigh In On Novartis

Several institutional investors have recently bought and sold shares of the stock. Glenview Trust co grew its holdings in Novartis by 2.3% during the 2nd quarter. Glenview Trust co now owns 3,800 shares of the company's stock worth $460,000 after acquiring an additional 84 shares during the period. CreativeOne Wealth LLC grew its stake in Novartis by 3.6% in the third quarter. CreativeOne Wealth LLC now owns 2,545 shares of the company's stock valued at $326,000 after acquiring an additional 88 shares during the period. Pin Oak Investment Advisors Inc. grew its stake in Novartis by 25.2% in the third quarter. Pin Oak Investment Advisors Inc. now owns 462 shares of the company's stock valued at $59,000 after acquiring an additional 93 shares during the period. Rehmann Capital Advisory Group increased its stake in Novartis by 1.7% during the 3rd quarter. Rehmann Capital Advisory Group now owns 5,617 shares of the company's stock valued at $720,000 after purchasing an additional 96 shares in the last quarter. Finally, Smartleaf Asset Management LLC raised its holdings in shares of Novartis by 0.9% in the 2nd quarter. Smartleaf Asset Management LLC now owns 11,637 shares of the company's stock worth $1,397,000 after acquiring an additional 99 shares during the last quarter. 13.12% of the stock is owned by hedge funds and other institutional investors.

Trending Headlines about Novartis

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Novartis reported quarterly results that beat expectations on core operating profit, helped by lower-than-expected costs and strong sales in cancer and multiple sclerosis treatments. Novartis Q2 profit up as generic competition mounts
• Positive Sentiment: The company returned to sales growth in the quarter as newer medicines offset pressure from generics and patent losses, suggesting its portfolio mix is improving. Novartis Returns to Growth on Sales Momentum From Key Drugs
• Positive Sentiment: CEO Vas Narasimhan said there is “no change of plans,” easing speculation about leadership turnover as the drugmaker enters a period of important trial readouts. Novartis CEO Vas Narasimhan says 'no change of plans'
• Neutral Sentiment: Analysts and investors are focusing on several upcoming late-stage trial results in the second half of the year, which could determine whether Novartis can justify its premium valuation. Novartis faces drug pipeline test with valuation premium in focus
• Negative Sentiment: Entresto sales fell sharply, highlighting continued generic competition and pressure on one of Novartis’ biggest products. Novartis Q2 surpasses estimates despite 50% Entresto sales drop

Analyst Upgrades and Downgrades

A number of research firms have issued reports on NVS. Morgan Stanley increased their price objective on Novartis from $143.00 to $170.00 and gave the stock an "overweight" rating in a report on Thursday, March 26th. Weiss Ratings downgraded shares of Novartis from a "buy (a-)" rating to a "buy (b)" rating in a research report on Wednesday, April 29th. Seven equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and two have issued a Sell rating to the company's stock. Based on data from MarketBeat, the stock presently has a consensus rating of "Hold" and an average target price of $141.20.

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.

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