Novartis delivered sales growth in Q2 and further advanced the pipeline; Full-year guidance reaffirmed
Ad hoc announcement pursuant to Art. 53 LR
Second quarter
- Net sales grew +1% (cc1, +3% USD), with core operating income1 flat (cc and USD)
- Sales growth driven by priority brands including Kisqali (+43% cc), Kesimpta (+32% cc), Scemblix (+89% cc), Pluvicto (+43% cc) and Leqvio (+59% cc)
- Core operating income margin1 was 41.2%, -70 basis points (cc)
- Q2 operating income declined -3% (cc, -2% USD); net income down -19% (cc and USD)
- Q2 core EPS1 declined -1% (cc, 0% USD) to USD 2.41
- Q2 free cash flow1 was USD 5.6 billion (-12% USD)
- H1 net sales down -2% (cc, +1% USD) with core operating income -7% (cc, -6% USD)
- Q2 selected innovation milestones:
- Rhapsido EC and JP approval in CSU, Phase III CIndU data presented at EAACI
- Itvisma EC approval as the only gene replacement therapy for a broad SMA patient population
- Kisqali 6-year eBC follow up data showed clinically meaningful overall survival; FDA granted pediatric exclusivity, adding a 6-month period of exclusivity to all existing patents listed in the Orange Book
- Del-zota BLA submitted to the FDA for accelerated approval in DMD
- Del-brax positive Phase I/II biomarker data in facioscapulohumeral muscular dystrophy (FSHD)
- Full-year 2026 guidance2 reaffirmed
- Net sales expected to grow low single-digit and core operating income expected to decline low single-digit
Basel, July 21, 2026 – Commenting on Q2 2026 results, Vas Narasimhan, CEO of Novartis, said:
“Novartis delivered a solid second quarter, returning to sales growth driven by continued momentum from Kisqali, Kesimpta, Scemblix and Pluvicto. We are encouraged by the early trajectory of our recent launches, Rhapsido in CSU and Itvisma. We also made meaningful pipeline progress, highlighted by updated Kisqali overall survival data in early breast cancer and the FDA accelerated approval submission for del-zota in DMD. We are on track for multiple important readouts ahead in the second half, and remain on track to deliver our full-year guidance and mid-term outlook.”
| Key figures | |||||||||
| Q2 2026 | Q2 2025 | % change | H1 2026 | H1 2025 | % change | ||||
| USD m3 | USD m3 | USD | cc | USD m3 | USD m3 | USD | cc | ||
| Net sales | 14 408 | 14 054 | 3 | 1 | 27 521 | 27 287 | 1 | -2 | |
| Operating income | 4 750 | 4 864 | -2 | -3 | 8 985 | 9 527 | -6 | -7 | |
| Net income | 3 257 | 4 024 | -19 | -19 | 6 413 | 7 633 | -16 | -17 | |
| EPS (USD) | 1.71 | 2.07 | -17 | -18 | 3.37 | 3.91 | -14 | -15 | |
| Free cash flow | 5 561 | 6 333 | -12 | 8 891 | 9 724 | -9 | |||
| Core operating income | 5 940 | 5 925 | 0 | 0 | 10 837 | 11 500 | -6 | -7 | |
| Core net income | 4 578 | 4 710 | -3 | -4 | 8 372 | 9 192 | -9 | -10 | |
| Core EPS (USD) | 2.41 | 2.42 | 0 | -1 | 4.39 | 4.69 | -6 | -8 | |
1. Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 43 of the Condensed Interim Financial Report. Unless otherwise noted, all growth rates in this Release refer to same period in prior year. 2. Please see detailed guidance assumptions on page 7. 3. USD millions unless indicated otherwise.
Strategy
Our focus
Novartis is a “pure-play” innovative medicines company. We have a clear focus on four core therapeutic areas (cardiovascular-renal-metabolic, immunology, neuroscience and oncology), with multiple significant in-market and pipeline assets in each of these areas, that address high disease burden and have substantial growth potential. In addition to two established technology platforms (chemistry and biotherapeutics), three emerging platforms (gene & cell therapy, radioligand therapy and xRNA) are being prioritized for continued investment into new R&D capabilities and manufacturing scale. Geographically, we are focused on growing in our priority geographies – the US, China, Germany and Japan.
Our priorities
- Accelerate growth: Renewed attention to deliver high-value medicines (NMEs) and focus on launch excellence, with a rich pipeline across our core therapeutic areas.
- Deliver returns: Continuing to embed operational excellence and deliver improved financials. Novartis remains disciplined and shareholder-focused in our approach to capital allocation, with substantial cash generation and a strong capital structure supporting continued flexibility.
- Strengthen foundations: Unleashing the power of our people, scaling data science and technology and continuing to build trust with society.
Financials
Second quarter
Net sales were USD 14.4 billion (+3%, +1% cc), with volume growth contributing 18 percentage points, offset by 14 percentage points from generic competition. Pricing had a negative impact of 3 percentage points, and currency had a positive impact of 2 percentage points.
Operating income was USD 4.8 billion (-2%, -3% cc), declining mainly due to lower gross profit, partly offset by lower SG&A expenses.
Net income was USD 3.3 billion (-19%, -19% cc), impacted by higher income taxes and higher interest expense. EPS was USD 1.71 (-17%, -18% cc), benefiting from the lower weighted average number of shares outstanding.
Core operating income was USD 5.9 billion (0%, 0% cc), in line with the prior-year quarter. Core operating income margin was 41.2% of net sales, decreasing 1.0 percentage point (0.7 percentage points in cc).
Core net income was USD 4.6 billion (-3%, -4% cc), mainly due to higher interest expense. Core EPS was USD 2.41 (0%, -1% cc), benefiting from the lower weighted average number of shares outstanding.
Free cash flow amounted to USD 5.6 billion (-12%), due to lower net cash flows from operating activities.
First half
Net sales were USD 27.5 billion (+1%, -2% cc), with volume growth contributing 15 percentage points, offset by 14 percentage points from generic competition. Pricing had a negative impact of 3 percentage points, and currency had a positive impact of 3 percentage points.
Operating income was USD 9.0 billion (-6%, -7% cc), declining mainly due to lower gross profit, partly offset by lower legal related costs and lower SG&A expenses.
Net income was USD 6.4 billion (-16%, -17% cc), mainly due to lower operating income, higher income taxes and higher interest expense. EPS was USD 3.37 (-14%, -15% cc), benefiting from the lower weighted average number of shares outstanding.
Core operating income was USD 10.8 billion (-6%, -7% cc), declining mainly due to lower gross profit. Core operating income margin was 39.4% of net sales, decreasing 2.7 percentage points (2.3 percentage points in cc).
Core net income was USD 8.4 billion (-9%, -10% cc), mainly due to lower core operating income and higher interest expense. Core EPS was USD 4.39 (-6%, -8% cc), benefiting from the lower weighted average number of shares outstanding.
Free cash flow amounted to USD 8.9 billion (-9%), due to lower net cash flows from operating activities.
Q2 priority brands
Underpinning our financial results in the quarter is a continued focus on key growth drivers (ranked in order of contribution to Q2 growth) including:
| Kisqali | (USD 1 695 million, +43% cc) sales grew strongly across all regions, with continued market share growth in the early breast cancer indication as well as leadership in metastatic breast cancer. |
| Kesimpta | (USD 1 424 million, +32% cc) sales grew across all regions, driven by increased demand and strong access. |
| Scemblix | (USD 562 million, +89% cc) sales grew across all regions, with continued strong momentum from the newly diagnosed patients-line indication in the US, Japan and Germany. |
| Pluvicto | (USD 651 million, +43% cc) sales showed continued strong demand in the pre-taxane metastatic castration-resistant prostate cancer (mCRPC) setting in the US, and access expansion ex-US. |
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