Novartis Beats on Q1 Earnings and Sales, Raises Guidance, Stock Up

Core Insights - Novartis AG reported strong Q1 2025 results, with core earnings of $2.28 per share, surpassing the Zacks Consensus Estimate of $2.12 and up from $1.80 a year ago, driven by robust sales growth [1][18] - Revenues reached $13.23 billion, a 12% increase year-over-year, and a 15% increase on a constant currency basis, exceeding the Zacks Consensus Estimate of $12.9 billion [1][18] Financial Performance - Core earnings increased significantly, reflecting strong sales growth across key products [1][18] - Revenue growth was primarily attributed to strong performances from drugs like Entresto, Kesimpta, Kisqali, Cosentyx, Leqvio, and Scemblix [1][18] Drug Performance - Entresto sales rose 22% to $2.26 billion, exceeding estimates [5] - Kisqali sales surged 56% to $956 million, driven by growth in the U.S. market [7] - Kesimpta sales increased 43% to $899 million, also beating estimates [8] - Cosentyx sales grew 18% to $1.53 billion, though it missed estimates [6] - Leqvio sales soared 72% to $257 million, surpassing expectations [11] - Scemblix sales surged 76% to $238 million, driven by growth in chronic myeloid leukemia [12] Guidance and Strategic Moves - Novartis raised its annual guidance, expecting net sales to grow in high single digits and core operating income in low double digits [14][18] - The company is focusing on strategic acquisitions to enhance its pipeline, including the acquisition of Anthos Therapeutics [20] - A planned $23 billion investment over five years in U.S. infrastructure aims to manufacture key drugs domestically [22] Regulatory Updates - The FDA expanded Pluvicto's label, potentially tripling the eligible patient population [15] - Fabhalta received approvals in multiple markets, marking it as the first treatment for C3 glomerulopathy [16]