Novartis ADR · Q1 2026 earnings

Briefing

Novartis Q1 2026: $13.1B net sales, core EPS $1.99 as priority brands offset US generic erosion

Novartis reported Q1 2026 net sales of $13.1 billion, down 1% in USD and 5% at constant currency, as strong growth from priority brands including Kisqali, Pluvicto, Kesimpta, and Scemblix was more than offset by US generic erosion. Operating income was $4.2 billion (-9% USD) and net income $3.2 billion (-13%). Core operating income was $4.9 billion with a 37.3% margin, while core EPS declined 13% to $1.99. Free cash flow was $3.3 billion, broadly in line with the prior-year quarter. The company completed the Avidity acquisition and reaffirmed full-year 2026 guidance for low single-digit net sales growth and low single-digit core operating income decline at constant currency.

• Net sales were $13.1B (-1% USD, -5% cc); volume contributed +13pp but generic competition subtracted 14pp.
• Core EPS was $1.99 (-13% USD); core operating income $4.9B at 37.3% margin; reported EPS $1.65.
• Priority brands drove growth: Kisqali $1.5B (+55% cc), Pluvicto $642M (+70% cc), Kesimpta $1.2B (+26% cc), Scemblix $433M (+79% cc).
• Free cash flow $3.3B; net debt rose to $38.1B after Avidity acquisition and dividend payments.
• FY 2026 guidance reaffirmed: low single-digit net sales growth and low single-digit core operating income decline at cc.

Headline financials

Revenue & EPS history

Novartis reaffirmed FY 2026 guidance for low single-digit net sales growth and low single-digit core operating income decline at constant currency, barring unforeseen events.