Novartis slightly misses Q3 net sales estimates, but tops core EPS view

Overview

• Switzerland's innovative medicines firm Q3 net sales grew 4% but slightly missed analyst expectations

• Core EPS rose 9%, beating analysts' expectations

• Quarterly sales growth driven by strong performance of priority brands Kisqali, Kesimpta, Scemblix

Outlook

• Novartis expects 2026 net sales to grow low single-digit

• Company ups 2026 core operating income forecast to in-line to growing low single-digit from a low-single-digit decline

• Foreign exchange expected to add 1 percentage point to 2026 net sales and core operating income

Result Drivers

• PRIORITY BRANDS - Co said Q3 sales growth was driven by strong performance of Kisqali, Kesimpta, Scemblix, Leqvio and Cosentyx

• VOLUME GROWTH OFFSET BY GENERICS - Co said Q3 net sales benefited from volume growth, partly offset by generic competition and negative pricing impact

• PRODUCTIVITY EFFORTS - Co said productivity initiatives contributed to improved core operating income and margin

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 10 "strong buy" or "buy", 15 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the pharmaceuticals peer group is "buy."

• Wall Street's median 12-month price target for Novartis AG is CHF125.90, about 1.2% below its October 26 closing price of CHF127.48

• The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 17 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)