Management also cited the impact of U.S. generic entries, including Entresto, Promacta, and Tasigna, which entered the U.S. market mid-2025. Narasimhan said Q4 sales were also affected by gross-to-net dynamics and Entresto’s loss of exclusivity.In the fourth quarter, sales declined 1% while core operating income rose 1%. Kirsch said results were “a little bit noisy” due to U.S. R&D-related adjustments that had a positive impact in Q4 2024 and a negative impact in Q4 2025, “mostly on generic brands.” Excludi ...

Swiss pharmaceutical Novartis AG (NYSE:NVS) reported fourth-quarter 2025 results on Wednesday.The company's net sales rose 1% year over year to $13.34 billion, missing Wall Street's consensus estimate of $13.78 billion. On a constant-currency (cc) basis, sales were down 1%.Generic competition had a negative impact of 15 percentage points, including a negative impact of 3 percentage points from revenue deduction adjustments in the U.S., mainly related to Entresto and Promacta.Pricing had a negative impact of ...

Core Insights - Novartis AG reported fourth-quarter core earnings per share of $2.03, exceeding the Zacks Consensus Estimate of $1.99 and up from $1.98 a year ago [1][7] - Core net income decreased by 1% to $3.9 billion, while revenues of $13.3 billion fell short of the Zacks Consensus Estimate of $13.7 billion, despite a 1% year-over-year increase [2][7] - The company faced revenue pressure from generic competition for key drugs Entresto and Promacta, leading to a 1% decline in sales on a constant currency basis [2][26] Financial Performance - Core operating income improved by 1% to $4.9 billion, supported by higher government grant income and lower SG&A expenses, although offset by increased R&D expenses [19] - For 2025, Novartis reported sales growth of 8% to $54.53 billion, surpassing the Zacks Consensus Estimate, with core EPS increasing by 17% to $8.98 [20] - Guidance for 2026 indicates low single-digit growth in net sales on a constant currency basis, with core operating income expected to decline in low single digits [21] Drug Performance - Cosentyx sales rose 11% to $1.8 billion, driven by strong demand across all regions [5] - Kisqali sales surged 44% to $1.32 billion, although it missed estimates, with underlying global growth at 54% [6][8] - Entresto sales plummeted 45% to $1.2 billion due to generic competition, while Promacta sales fell 63% to $226 million [8][13] - Pluvicto sales increased by 70% to $605 million, driven by strong demand following recent approvals [11] - Kesimpta sales grew 27% to $1.2 billion, while Jakavi sales increased by 8% to $555 million [10][12] Strategic Updates - Novartis announced plans to acquire Avidity Biosciences for $12 billion to enhance its late-stage neuroscience pipeline [22][23] - The acquisition aims to strengthen the company's position in addressing genetic neuromuscular diseases [28] - A collaboration agreement with the U.S. government was established to reduce drug prices while supporting ongoing investments in manufacturing and R&D [25] Market Position - Novartis shares have gained 42.1% over the past year, outperforming the industry growth of 19% [2] - The company is navigating significant patent expirations, with a focus on key growth drivers such as Kisqali, Kesimpta, Pluvicto, and Scemblix [26][27]

Novartis (NYSE:NVS) Q4 2025 Earnings call February 04, 2026 08:00 AM ET Company ParticipantsGraham Parry - Managing DirectorHarry Kirsch - CFOJames Gordon - DirectorJames Quigley - Executive DirectorMatthew Weston - Managing Director of Pharmaceutical ResearchMichael Leuchten - Managing DirectorMukul Mehta - CFO DesignatePeter Vardult - Managing Director of Pharmaceuticals Equity ResearchRichard Vosser - Managing DirectorSachin Jain - VPSeamus Fernandez - Senior Managing DirectorSimon Baker - Partner and He ...

Core Viewpoint - Novartis reported its Q4 2025 earnings, showing a revenue of $13.34 billion, a 1.4% year-over-year increase, but $740 million below expectations. The company anticipates a profit decline this year due to generic competition impacting its blockbuster drugs like Entresto [1][2]. Group 1: Financial Performance - Q4 revenue was $13.34 billion, reflecting a 1.4% year-over-year growth, but fell short of expectations by $740 million [1]. - Non-GAAP earnings per share were $2.03, exceeding expectations by $0.03 [1]. - The company expects core operating profit to decline by a low single-digit percentage when adjusted for constant currency [1]. Group 2: Strategic Initiatives - CEO Vas Narasimhan is focusing on innovative drug strategies, which will be tested this year due to competition from generics affecting Entresto and other established drugs [1]. - Novartis is launching a new pill for autoimmune skin diseases and will soon announce key data for experimental therapies targeting heart disease and multiple sclerosis [1]. - To drive growth, Novartis agreed to acquire Tourmaline Bio for a promising therapy to reduce systemic inflammation and made a significant acquisition of Avidity Biosciences for up to $12 billion [2]. Group 3: Market Position and Future Plans - Novartis has addressed some uncertainties regarding its U.S. business by reaching an agreement with the Trump administration to avoid new industry tariffs in exchange for price reductions [2]. - The company has committed to building seven new manufacturing facilities in the U.S. as part of a $23 billion investment to expand its manufacturing capabilities, primarily focusing on radioligand therapy [2].

Group 1: Company Overview and Financial Outlook - Novartis AG is considered one of the most profitable healthcare stocks, with a Buy rating initiated by Citi and a price target of CHF 133, indicating strong momentum and a sales growth guidance of 5%-6% annually through 2030 [1] - The company is headquartered in Basel, Switzerland, and was incorporated in 1996, offering products such as Entresto, Cosentyx, and Kisqali [4] Group 2: Trade and Tariff Protection - Novartis expects to be protected from U.S. tariffs by mid-2026, with plans to produce in the U.S. for the U.S. market, supported by existing inventory [2] - The company's agreement with the U.S. government is anticipated to exclude it from tariffs, amidst broader tariff plans affecting several European countries [3]

In its upcoming report, Novartis (NVS) is predicted by Wall Street analysts to post quarterly earnings of $1.99 per share, reflecting an increase of 0.5% compared to the same period last year. Revenues are forecasted to be $13.72 billion, representing a year-over-year increase of 4.3%.Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Before a company reveal ...

Company Overview - Novartis (NVS) is a pharmaceutical giant with a market capitalization of $310.8 billion, focusing on oncology, immunology, neuroscience, and more [1][9] - Notable products include Entresto, Cosentyx, Kesimpta, and Kisqali [1] Stock Performance - NVS shares have increased nearly 50% over the past 52 weeks and reached an all-time high of $148.38 on January 26 [5][6] - The stock has a 100% "Buy" technical opinion from Barchart and has gained 6.61% over the past month [5][6] - Since a new "Buy" signal was issued on December 2, shares are up 11.23% [2] Technical Indicators - NVS has a Weighted Alpha of +45.01 and a Relative Strength Index (RSI) of 73.14 [6] - The stock's 50-day moving average is $136.10, with a technical support level around $145.57 [6][7] Analyst Sentiment - Analysts expect earnings to increase by 13.32% in 2025 and another 2.94% in 2026 [9] - The stock has a trailing price-earnings ratio of 16.24x, with price targets ranging from $112 to $162.50 [9] - Short interest is very low at just 0.28% of the float [9]

Summary of Novartis Conference Call Company Overview - **Company**: Novartis - **Event**: 44th J.P. Morgan Healthcare Conference - **CEO**: Vasant Narasimhan Key Points Financial Performance - Novartis achieved a **7%** increase in sales and a **15%** increase in core operating income over recent years [2] - The core operating margin is projected to reach **38.7%** by 2024, with a target of **40%** [2][3] - Free cash flow generation was **$16 billion** last year and is on track for the same in 2025 [3] - Return on invested capital has improved to **17%**, positioning Novartis in the top quartile among peers [3] Strategic Focus - The company has transitioned to a pure-play medicines company, focusing on high-end technologies in four core therapeutic areas [2][4] - Capital allocation priorities include organic business investment, value-creating bolt-ons, and ongoing share buybacks, with a **$15 billion** share buyback program initiated [5] - Novartis aims to consistently grow dividends in Swiss francs [5] Pipeline and Growth Opportunities - Novartis has **14 in-market blockbusters** and **nine brands** with multi-billion-dollar peak sales potential [6] - The company is entering a catalyst-rich period with **15 submission-enabling readouts** expected in the next two years [6][14] - Significant market opportunities identified in RNA therapeutics (**$36 billion**), radioligand therapies (**$28 billion**), and cell and gene therapies (up to **$50 billion**) [7] Long-term Guidance - Novartis projects **high single-digit growth** for 2024-2025, **5%-6% growth** through 2030, and **mid-single-digit growth** beyond 2030 [8] - The company aims to grow revenues to **$60 billion** to **$80 billion** by the middle of the next decade [9] Commercial Execution - Strong commercial execution noted in the U.S. and international markets, with significant market shares achieved for products like Cosentyx and Kisqali [11][12] - Novartis is ranked **number two in China**, **number one in Germany**, and **number four in Japan** [12] Product Launches and Approvals - Kisqali is projected to exceed **$10 billion** in peak sales, while Scemblix is expected to reach over **$4 billion** [13] - The launch of Roxido is a top priority, with expectations for it to become a multi-billion-dollar medicine [13] - Remibrutinib is highlighted as a key asset with potential in multiple indications, including food allergies and hidradenitis [21] Oncology and R&D Strategy - Novartis is focusing on expanding its oncology pipeline, with a strong emphasis on radioligand therapies and small molecules [27][46] - The company has appointed a new oncology R&D chief to strengthen its leadership in this area [50] ESG and Global Health Initiatives - Novartis emphasizes its commitment to ESG and global health, with notable achievements in malaria treatment [30] Market Challenges and Considerations - The company anticipates **1%-2% margin dilution** from the acquisition of Avidity and the impact of recent healthcare reforms [10][66] - Guidance includes considerations for potential pricing impacts from the Inflation Reduction Act [66] Conclusion - Novartis is positioned for continued growth with a robust pipeline, strong financial performance, and a commitment to shareholder value through strategic investments and acquisitions [31]

Group 1: Novartis - Novartis is a strong long-term investment candidate due to its innovative pipeline and diversified product offerings, with 10 products generating over $1 billion in sales each as of September 30 [4][5] - The company has shown resilience against patent cliffs, with a revenue increase of 8% year-over-year to $13.9 billion and earnings per share of $2.25, which is 9% higher than the previous year [6][7] - Novartis has a solid dividend history, increasing payouts for 28 consecutive years, currently offering a forward yield of 3%, significantly higher than the S&P 500 average of 1.2% [10] Group 2: Shopify - Shopify has experienced a 50% stock increase this year, driven by strong financial results and a vision to build a sustainable 100-year company [11] - The platform is a leader in the e-commerce market, providing customizable templates and a range of services that facilitate efficient business operations for merchants [12] - Shopify's market share grew from 10% at the end of 2023 to 12% by the end of 2024, benefiting from high switching costs for merchants [14] - The company has improved its profitability, achieving net income in three out of the last four quarters, positioning itself well for continued dominance in the e-commerce sector [15]