Novartis (NYSE:NVS) Posts Earnings Results, Beats Estimates By $0.04 EPS

Novartis (NYSE:NVS) announced its quarterly earnings results on Wednesday. The company reported $2.03 EPS for the quarter, beating the consensus estimate of $1.99 by $0.04, FiscalAI reports. The business had revenue of $13.34 billion for the quarter, compared to analyst estimates of $13.85 billion. Novartis had a return on equity of 41.21% and a net margin of 26.49%.Novartis’s quarterly revenue was up 1.4% on a year-over-year basis. During the same quarter in the previous year, the firm earned $1.98 EPS.

Here are the key takeaways from Novartis’ conference call:

• Novartis beat its 2025 targets with sales +8%, core operating income +14%, achieved a 40.1% core margin two years ahead of plan, and generated record free cash flow of CHF 17.6 billion.
• Commercial momentum is concentrated in priority brands — Kisqali +57%, Kesimpta +36%, Scemblix and Pluvicto showing strong launch/scale (Pluvicto reached ~$2bn), and Leqvio became a blockbuster — these franchises underpin near‑ and mid‑term growth.
• Pipeline catalysts are plentiful in 2026 (seven pivotal readouts highlighted, including Pelacarsen mid‑year and remibrutinib submissions/readouts) and early traction for Rhapsido, but several outcomes and timing risks remain (e.g., zigakibart eGFR readout moved to H1 2027).
• 2026 guidance reflects near‑term pressures — company expects low single‑digit sales growth and a low single‑digit decline in core operating income due to 1–2 percentage point margin dilution from the Avidity deal, higher financing costs and front‑loaded U.S. generic losses in H1 with a recovery expected in H2.

Novartis Price Performance

Shares of NVS stock traded up $3.25 during trading on Wednesday, hitting $153.11. The company had a trading volume of 1,288,179 shares, compared to its average volume of 1,799,942. The firm has a market capitalization of $323.43 billion, a P/E ratio of 20.93, a price-to-earnings-growth ratio of 1.97 and a beta of 0.50. The stock’s 50-day moving average price is $139.27 and its 200 day moving average price is $130.20. Novartis has a one year low of $97.71 and a one year high of $154.71. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.68 and a current ratio of 0.88.

Institutional Inflows and Outflows

Several institutional investors have recently bought and sold shares of the business. Bank of America Corp DE boosted its holdings in shares of Novartis by 1.7% during the 3rd quarter. Bank of America Corp DE now owns 4,605,878 shares of the company’s stock valued at $590,658,000 after acquiring an additional 78,390 shares in the last quarter. Northern Trust Corp grew its holdings in Novartis by 7.7% during the 3rd quarter. Northern Trust Corp now owns 2,371,389 shares of the company’s stock worth $304,107,000 after acquiring an additional 168,573 shares during the last quarter. Raymond James Financial Inc. raised its stake in shares of Novartis by 77.7% during the third quarter. Raymond James Financial Inc. now owns 1,648,174 shares of the company’s stock valued at $211,362,000 after acquiring an additional 720,860 shares during the last quarter. UBS Group AG grew its stake in shares of Novartis by 15.1% in the third quarter. UBS Group AG now owns 1,602,133 shares of the company’s stock worth $205,458,000 after purchasing an additional 210,207 shares during the last quarter. Finally, State Street Corp lifted its stake in shares of Novartis by 0.8% in the second quarter. State Street Corp now owns 1,597,830 shares of the company’s stock worth $195,552,000 after acquiring an additional 12,345 shares during the period. Institutional investors and hedge funds own 13.12% of the company’s stock.

Novartis News Summary

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Q4 EPS beat and margins expanded — Novartis reported $2.03 EPS vs. $1.99 expected and showed improved margins and cash flow, which supports near‑term profitability signals for investors. Novartis Beats on Q4 Earnings, Entresto Generics Pressure Sales
• Positive Sentiment: Strong full‑year results, pipeline milestones and dividend increase — Management highlighted high single‑digit sales growth for 2025, a 40% core margin, multiple regulatory/clinical milestones and a proposed dividend raise to CHF 3.70, supporting medium‑term growth and shareholder returns. Novartis delivered high single-digit sales growth, achieved 40% core margin and further advanced the pipeline in 2025
• Positive Sentiment: Analysts reaffirm Buy ratings — Several sell‑side analysts (Citi, Bank of America) kept Buy calls and see resilient core earnings, conservative guidance and pipeline progress as reasons for upside, which can support investor confidence. Novartis: Resilient Core Earnings, Conservative Guidance and Robust Pipeline Support Buy Rating and EPS Upside to 2030
• Neutral Sentiment: Revenue missed estimates — Q4 revenue of $13.34B came in below the ~ $13.85B consensus and was only modestly higher year‑over‑year, reflecting a mixed top‑line performance that tempers the EPS beat. Novartis earnings report and call materials
• Negative Sentiment: 2026 operating‑profit guidance trimmed — Management expects core operating income to decline in the low single‑digit range in 2026 due mainly to U.S. generic competition (Entresto), a clear near‑term headwind for margins and growth. Novartis expects low single-digit decline in 2026 operating profit
• Negative Sentiment: Generics reshaping growth mix — U.S. generic entrants for Entresto and Promacta are reducing legacy product sales and forcing a faster shift toward growth from newer priority brands, increasing near‑term volatility in revenue. Novartis Beats on Q4 Earnings, Entresto Generics Pressure Sales

Wall Street Analysts Forecast Growth

A number of brokerages have weighed in on NVS. JPMorgan Chase & Co. raised shares of Novartis from a “neutral” rating to an “overweight” rating in a research note on Monday, December 8th. Deutsche Bank Aktiengesellschaft restated a “buy” rating on shares of Novartis in a report on Friday, January 16th. Morgan Stanley restated an “overweight” rating on shares of Novartis in a report on Wednesday, December 3rd. Bank of America raised shares of Novartis from a “neutral” rating to a “buy” rating in a research report on Tuesday, November 25th. Finally, Cfra set a $126.00 price target on Novartis and gave the stock a “hold” rating in a research report on Wednesday, October 29th. One research analyst has rated the stock with a Strong Buy rating, six have issued a Buy rating, seven have issued a Hold rating and two have assigned a Sell rating to the stock. Based on data from MarketBeat.com, the stock currently has an average rating of “Hold” and a consensus price target of $119.75.

Novartis Company Profile

Novartis is a Swiss multinational pharmaceutical company headquartered in Basel that researches, develops, manufactures and commercializes prescription medicines and related health-care products. Formed through the 1996 merger of Ciba-Geigy and Sandoz, Novartis operates globally and focuses on bringing therapeutics from discovery through clinical development to commercial markets worldwide.

The company’s activities center on innovative pharmaceuticals across several therapeutic areas, including oncology, immunology, cardiovascular and metabolic diseases, neuroscience and ophthalmology, alongside capabilities in advanced therapies such as biologics, cell and gene therapies.