Novartis AG (NVS) (Q3 2026) Earnings Call Highlights: Raised Guidance and Priority

Novartis (NVS) reported Q3 2026 earnings with core EPS beating estimates by 7.89% while revenue missed slightly. The company raised its profit outlook for the year. Key growth drivers include Kisqali, Kesimpta, and Leqvio, offsetting losses from generic drugs. The stock rose 1.27% to $155.76. Management expects H2 sales and core operating income to improve. Questions remain about Q4 margins and 2027 guidance.

Novartis (NYSE:NVS) shares rose 1.36% to $155.91 after raising its full-year core operating income forecast. Q3 core operating income grew 11% to $6.036B, but free cash flow declined 18% to $5.111B. The company recorded $2.2B in charges for unsuccessful drug programs. Investors question if improved profitability will lead to better cash flow.

Novartis' ribociclib (Kisqali) showed a 19.1% relative reduction in death risk in a 6-year study of high-risk breast cancer patients, with a 2.1% absolute OS benefit. The phase 3 NATALEE trial included 5,101 patients, showing continued benefit post-treatment. No new safety concerns were reported.

Novartis (NVS) reported Q3 2026 earnings, highlighting growth in key drugs: Kisqali (37%), Kesimpta (22%), Pluvicto (20%), Leqvio (63%), and Semblix (67%). Kisqali led in EBC market share, while Kesimpta gained MS market share. Pluvicto saw early uptake in PSMA edition launch. Leqvio outperformed in the lipid-lowering market. Semblix neared market leadership in first-line treatments. Cosentyx grew 9% in constant currencies. Rhapsido showed strong launch momentum with additional approvals.

Novartis reported a $2.2bn charge from failed drug trials but raised its full-year profit guidance. Q3 operating income fell 61% due to R&D costs and impairment charges. The company expects low single-digit core operating income and net sales growth. Shares have partially recovered after a 11% drop in September.

Novartis (NYSE:NVS) raised its 2026 core operating income outlook after Q3 sales growth and margin improvements. Q3 net sales rose 4% to $14.5B, core operating income up 10% to $6B. Impairment of $1.9B for del-desiran led to a 61% drop in reported operating income. Key drugs like Kisqali, Kesimpta, Scemblix, and Leqvio drove growth.