Core Insights - Novartis reported high single-digit sales growth for 2025, achieving a 40.1% core margin two years ahead of schedule, with full-year sales rising 8% and core operating income increasing 14% to CHF 21.9 billion [3][4][6] Financial Performance - In Q4, sales declined by 1%, while core operating income rose by 1%. Excluding R&D-related adjustments, underlying Q4 sales growth would have been approximately 3% [2][6] - For the full year, core EPS increased by 17% to $8.98, and free cash flow grew by 8% to CHF 17.6 billion, marking an all-time high for the company [3][6] Product and Pipeline Momentum - Priority brands such as Kisqali, Kesimpta, Pluvicto, Leqvio, Scemblix, and Cosentyx showed strong growth, with Kisqali sales rising 57% to CHF 4.8 billion and Kesimpta sales increasing 36% to $4.4 billion [5][7][15] - Pluvicto achieved $2 billion in global sales with a 42% constant-currency growth, while Leqvio reached blockbuster status with 57% full-year growth [7][15] Pipeline Updates - Novartis highlighted several pipeline developments, including a submission for remibrutinib and updates on the renal portfolio, with a revised timeline for the zigakibart phase III protocol expected in the first half of 2027 [8][9] - Data from the Phase III MANIFEST program for pelabresib provided a path forward for registration, with plans for a new Phase III study targeting patients with high baseline symptom burden [10] 2026 Outlook - The company anticipates low single-digit sales growth for 2026, with a core margin decline of one to two percentage points due to the Avidity deal, describing the year as "a year of two halves" [12][14] - The first half of 2026 is expected to see low single-digit sales decline and low double-digit core operating income decline, while the second half is projected to grow mid-single-digit in sales and mid- to high single-digit in core operating income [14] Capital Allocation - In 2025, Novartis invested over $10 billion in R&D, completed a CHF 15 billion buyback program, and proposed a dividend of CHF 3.70 per share, marking the 29th consecutive dividend increase [16]

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 ...

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]

Core Insights - Novartis is acquiring Avidity Biosciences for approximately $12 billion, marking its largest deal in a decade, to enhance its drug pipeline and offset competition from generics [2] - The company reported a 7% increase in third-quarter net sales to $13.9 billion, with operating income rising 27% to $5.46 billion, slightly exceeding analyst expectations [3] - Novartis has maintained its sales growth guidance at a "high single digit" percentage and adjusted operating income growth at a "low teens" percentage despite market pressures [5] Financial Performance - The third-quarter net sales reached $13.9 billion, reflecting a 7% increase [3] - Operating income for the quarter increased by 27% to $5.46 billion, surpassing analyst expectations [3] - Key drugs such as Kisqali, Pluvicto, Scemblix, and Kesimpta contributed to high double-digit revenue growth [4] Strategic Moves - Novartis has been actively acquiring companies, with over 35 acquisitions in the past year to strengthen its market position [2] - The acquisition of Avidity is expected to provide access to promising experimental drugs, with two of Avidity's leading drugs projected to generate billions in sales by 2030 [1] - The company is focused on continuous acquisition to find the next "great asset" in the pharmaceutical sector [2] Market Challenges - Novartis faces challenges from generics competition, which has negatively impacted revenue by 7 percentage points due to loss of exclusivity for key drugs [6] - Revenue deductions in the U.S. due to pricing adjustments contributed an additional negative impact of 2 percentage points [6] - The company is closely monitoring global tariff updates and U.S. drug pricing policies that could affect its operations [6][7] Future Outlook - Analysts expect Novartis to potentially enter similar "most favoured nation" agreements as Pfizer and AstraZeneca, which could impact earnings from 2026 onwards [8] - Novartis has committed to eliminating price differentials between U.S. and other industrialized nations for its drugs [8] - The company is not expected to be affected by a 100% tariff on branded pharmaceuticals due to its significant investment in U.S. infrastructure [9]

Core Viewpoint - Analysts project Novartis (NVS) will report quarterly earnings of $2.26 per share, reflecting a 9.7% year-over-year increase, with revenues expected to reach $13.9 billion, an 8.4% increase from the same quarter last year [1]. Earnings Estimates - The consensus EPS estimate has remained unchanged over the last 30 days, indicating a collective reevaluation by analysts [1][2]. - Changes in earnings estimates are crucial for predicting investor reactions, as empirical research shows a strong correlation between earnings estimate revisions and short-term stock performance [2]. Revenue Projections - Analysts expect 'Revenues- Oncology- Tafinlar + Mekinist- Total' to be $555.75 million, a 4.1% increase year-over-year [4]. - 'Revenues- Net sales to third parties' are projected to reach $14.07 billion, indicating a 9.8% year-over-year change [4]. - 'Revenues- Oncology- Kisqali- Total' is estimated at $1.29 billion, reflecting a significant 64.2% year-over-year increase [4]. Specific Revenue Metrics - 'Revenues- Immunology- Cosentyx- Total' is expected to reach $1.72 billion, a 1.9% increase from the prior year [5]. - 'Revenues- Oncology- Tasigna- US' is projected at $119.43 million, showing a decline of 47.2% year-over-year [5]. - 'Revenues- Oncology- Promacta/Revolade- US' is estimated at $180.08 million, indicating a 41.2% decrease from the year-ago quarter [5]. Additional Revenue Insights - 'Revenues- Immunology- Cosentyx- US' is expected to be $990.42 million, a slight decrease of 0.3% year-over-year [6]. - 'Revenues- Cardiovascular- Entresto- US' is projected at $927.94 million, reflecting a 1.8% increase from the previous year [6]. - 'Revenues- Oncology- Tasigna- ROW' is estimated at $149.03 million, indicating a 22.8% decline year-over-year [7]. - 'Revenues- Oncology- Tafinlar + Mekinist- ROW' is expected to reach $320.55 million, a 4.4% increase year-over-year [7]. - 'Revenues- Oncology- Promacta/Revolade- ROW' is projected at $267.72 million, reflecting a 1.8% increase [7]. - 'Revenues- Immunology- Cosentyx- ROW' is expected to be $734.58 million, indicating a 4.9% increase from the prior year [8]. Stock Performance - Novartis shares have increased by 6.9% over the past month, outperforming the Zacks S&P 500 composite, which saw a 0.2% increase [8].

Core Insights - Novartis reported $14.05 billion in revenue for Q2 2025, a year-over-year increase of 9.2%, with an EPS of $2.42 compared to $1.97 a year ago, exceeding both revenue and EPS consensus estimates [1][3] Revenue Performance - Oncology revenue from Tasigna in the US was $162 million, significantly below the average estimate of $221.75 million, reflecting a year-over-year decline of 29.6% [4] - Net sales of Scemblix in the Rest of the World reached $107 million, surpassing the average estimate of $95.88 million [4] - Oncology revenue from Promacta/Revolade in the US was $227 million, below the average estimate of $285.63 million, marking a year-over-year decline of 19.8% [4] - Immunology revenue from Cosentyx in the US was $921 million, slightly below the average estimate of $993.18 million, but showing a year-over-year increase of 6.1% [4] - Total revenue from Tafinlar + Mekinist in Oncology was $573 million, slightly above the average estimate of $570.15 million, with a year-over-year increase of 9.6% [4] - Kisqali in Oncology generated $1.18 billion, exceeding the average estimate of $1.09 billion, with a substantial year-over-year increase of 64.2% [4] - Total revenue from Cosentyx in Immunology was $1.63 billion, below the average estimate of $1.73 billion, but reflecting a year-over-year increase of 6.8% [4] - Cardiovascular revenue from Entresto totaled $2.36 billion, slightly above the average estimate of $2.34 billion, with a year-over-year increase of 24.2% [4] - Established Brands revenue from Galvus Group was $123 million, below the average estimate of $131 million, reflecting a year-over-year decline of 18% [4] - Established Brands revenue from Exforge Group was $191 million, exceeding the average estimate of $172.31 million, with a year-over-year increase of 7.3% [4] - Kymriah in Established Brands generated $99 million, closely matching the average estimate of $99.32 million, with a year-over-year decline of 12.4% [4] Stock Performance - Novartis shares returned +2.1% over the past month, underperforming the Zacks S&P 500 composite's +4.2% change, with a Zacks Rank 2 (Buy) indicating potential for near-term outperformance [3]

Core Viewpoint - Analysts project that Novartis will report quarterly earnings of $2.38 per share, reflecting a 20.8% year-over-year increase, with revenues expected to reach $14.04 billion, a 9% increase from the same quarter last year [1]. Revenue Estimates - Revenues from Solid Tumors for Tafinlar + Mekinist are estimated at $570.15 million, indicating a 9% increase year-over-year [4]. - Other revenues are projected to be $407.49 million, suggesting a 13.2% year-over-year increase [4]. - Revenues from Solid Tumors for Kisqali are expected to reach $1.09 billion, reflecting a significant 52.6% increase from the prior-year quarter [4]. - Hematology revenues from Promacta/Revolade are estimated at $545.35 million, showing a slight increase of 0.3% year-over-year [5]. - Hematology revenues from Tasigna in the US are projected at $221.75 million, indicating a decrease of 3.6% from the prior-year quarter [5]. - Revenues from Immunology for Cosentyx in the US are expected to be $993.18 million, reflecting a 14.4% year-over-year increase [6]. - Cardiovascular revenues from Entresto in the US are projected to reach $1.19 billion, indicating a 26% increase from the prior-year quarter [6]. - Revenues from Solid Tumors for Tafinlar + Mekinist in the ROW are estimated at $348.88 million, suggesting an 8.7% year-over-year increase [7]. - Immunology revenues for Cosentyx in the ROW are expected to be $740.74 million, reflecting a 12.6% year-over-year increase [8]. Stock Performance - Over the past month, Novartis shares have returned +1.3%, compared to a +4% change in the Zacks S&P 500 composite [8]. - Novartis currently holds a Zacks Rank 2 (Buy), indicating potential outperformance in the near future [8].