Zacks Research Comments on Novartis' Q1 Earnings (NYSE:NVS)

Key Points

• Zacks Research slightly cut its Q1 2027 EPS forecast for Novartis to $2.42 (from $2.43) and projects FY2027 EPS of $9.79, signaling modest near‑term estimate adjustments rather than a major revision to the long‑term view.
• Novartis agreed to acquire Excellergy for up to $2 billion to add Exl‑111, a Phase‑1 anti‑IgE antibody, in a deal expected to close in H2 2026, strengthening its allergy pipeline.
• Analyst sentiment is mixed — Morgan Stanley raised its price target to $170 (overweight) and Bank of America reiterated a Buy, but MarketBeat shows an average rating of "Hold" with an average target price of $141.20; the company also recently paid an annual dividend of $4.773 per share.

Novartis AG (NYSE:NVS - Free Report) - Zacks Research lowered their Q1 2027 earnings per share (EPS) estimates for shares of Novartis in a research note issued on Tuesday, March 24th. Zacks Research analyst Team now expects that the company will post earnings per share of $2.42 for the quarter, down from their previous forecast of $2.43. The consensus estimate for Novartis' current full-year earnings is $8.45 per share. Zacks Research also issued estimates for Novartis' Q3 2027 earnings at $2.47 EPS and FY2027 earnings at $9.79 EPS.

Novartis (NYSE:NVS - Get Free Report) last released its earnings results on Wednesday, February 4th. The company reported $2.03 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $1.99 by $0.04. Novartis had a return on equity of 40.53% and a net margin of 25.65%.The business had revenue of $13.86 billion for the quarter, compared to the consensus estimate of $13.85 billion. During the same quarter in the previous year, the business earned $1.98 earnings per share. Novartis's quarterly revenue was up 1.4% on a year-over-year basis.

Other equities research analysts also recently issued research reports about the company. TD Cowen reissued a "hold" rating on shares of Novartis in a report on Tuesday, February 17th. DZ Bank lowered shares of Novartis from a "strong-buy" rating to a "hold" rating in a research report on Monday, February 9th. Barclays upgraded shares of Novartis from an "underweight" rating to an "equal weight" rating in a research note on Tuesday, January 6th. Wall Street Zen downgraded shares of Novartis from a "buy" rating to a "hold" rating in a research report on Saturday, February 7th. Finally, Argus upgraded shares of Novartis from a "hold" rating to a "buy" rating and set a $180.00 price objective on the stock in a research note on Wednesday, March 11th. Two investment analysts have rated the stock with a Strong Buy rating, six have given a Buy rating, seven have assigned a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat, Novartis currently has an average rating of "Hold" and an average target price of $141.20.

Novartis Stock Down 0.8%

NYSE:NVS opened at $149.60 on Friday. Novartis has a twelve month low of $97.71 and a twelve month high of $170.46. The firm has a market capitalization of $316.03 billion, a price-to-earnings ratio of 20.89, a price-to-earnings-growth ratio of 2.29 and a beta of 0.49. The company has a quick ratio of 0.89, a current ratio of 1.12 and a debt-to-equity ratio of 0.60. The stock's 50 day moving average price is $155.81 and its two-hundred day moving average price is $139.65.

Hedge Funds Weigh In On Novartis

Several institutional investors and hedge funds have recently modified their holdings of the stock. Arlington Trust Co LLC bought a new stake in shares of Novartis during the 4th quarter worth about $25,000. CrossGen Wealth LLC acquired a new stake in Novartis during the fourth quarter worth approximately $28,000. Valley Wealth Managers Inc. bought a new stake in shares of Novartis during the third quarter worth approximately $31,000. Bank of Jackson Hole Trust grew its position in shares of Novartis by 425.0% in the fourth quarter. Bank of Jackson Hole Trust now owns 231 shares of the company's stock valued at $32,000 after purchasing an additional 187 shares during the last quarter. Finally, Measured Wealth Private Client Group LLC bought a new position in shares of Novartis during the third quarter worth approximately $33,000. 13.12% of the stock is currently owned by institutional investors and hedge funds.

Novartis Announces Dividend

The business also recently disclosed an annual dividend, which was paid on Monday, March 16th. Shareholders of record on Wednesday, March 11th were given a dividend of $4.773 per share. This represents a yield of 306.0%. The ex-dividend date of this dividend was Wednesday, March 11th. Novartis's payout ratio is 43.02%.

More Novartis News

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Novartis agreed to acquire Excellergy for up to $2 billion to add Exl‑111, a next‑generation anti‑IgE antibody (Phase 1) designed to dissociate receptor‑bound IgE and potentially deliver faster, deeper suppression across food allergy and other IgE‑driven diseases — transaction expected to close in H2 2026 pending approvals. Novartis to buy U.S.-based biotech firm Excellergy for up to $2 billion
• Positive Sentiment: Morgan Stanley raised its price target to $170 and moved to an "overweight" rating, signaling buy‑side conviction that pipeline and valuation leave upside versus current levels. Benzinga coverage of Morgan Stanley PT raise
• Positive Sentiment: Bank of America reiterated a Buy rating, citing late‑stage pipeline assets and potential upside from pelacarsen despite patent pressures — supportive for sentiment around longer‑term growth. Novartis: Late-Stage Pipeline and Pelacarsen Upside Support Buy Rating
• Neutral Sentiment: Zacks issued mixed model changes: a small raise to Q3 EPS but cuts to Q1 and FY2026/FY2028 estimates by tiny amounts — this reflects modest near‑term forecast churn rather than a material change to the long‑term thesis. MarketBeat / Zacks estimate notes
• Negative Sentiment: Separately, coverage noted Sarepta’s stock movement tied to a competing $12B muscular dystrophy buyout story — a reminder that M&A competition and shifting deal dynamics in the biotech space can create strategic/price risk around Novartis’s external deals. Sarepta surges as it takes on Novartis' $12 billion muscular dystrophy buyout

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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