Novartis lifts earnings guidance as key drug sales drive Q3 growth

27th Oct 2026 14:43

(Sharecast News) - Novartis raised its full-year earnings guidance on Tuesday after reporting higher third-quarter core operating profit, driven by strong sales of its key medicines and improved margins.

The Swiss pharmaceutical group said net sales rose 4% to $14.5bn in the three months to 30 September, while core operating income increased 11% to $6bn, helped by a 2.3pp increase in the core operating margin to 41.6%. Core earnings per share climbed 9% to $2.46.

Growth was led by breast cancer treatment Kisqali, with sales up 37% at constant currencies to $1.82bn, while multiple sclerosis drug Kesimpta grew 22% to $1.48bn. Sales of Scemblix and Leqvio rose 67% and 63%, respectively.

However, reported net profit slumped 70% to $1.2bn, largely reflecting a $1.9bn impairment charge relating to experimental medicine del-desiran following disappointing clinical results.

"Novartis delivered solid sales growth in Q3, as priority brands and launches more than offset generic erosion, demonstrating the replacement power of the business," said chief executive Vas Narasimhan.

"Combined with productivity efforts, this drove strong bottomline performance and allowed us to upgrade our full-year guidance."

Novartis now expects full-year core operating income to be broadly flat or grow by a low-single-digit percentage at constant currencies, compared with its previous forecast of a low-single-digit decline. It maintained guidance for low-single-digit sales growth.

"With continued momentum across the business and pipeline, we remain well on track to deliver our mid- and long-term outlook."

Novartis shares were 0.7% higher at CHF128.42 by 1248 BST.