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]

Analysts on Wall Street project that Novartis (NVS) will announce quarterly earnings of $2.26 per share in its forthcoming report, representing an increase of 9.7% year over year. Revenues are projected to reach $13.9 billion, increasing 8.4% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This reflects how the analysts covering the stock have collectively reevaluated their initial estimates during this timeframe.Before a company annou ...

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].