Novartis posts Q3 sales growth, raises FY core operating income outlook despite $1.9 bn impairment
Novartis reported third‑quarter 2026 net sales of $14.522 billion, up 4% year‑over‑year, and core operating income of $6.036 billion, up 11% in USD (10% in constant currency). The company recorded a $1.9 billion partial impairment on the del‑desiran asset, which drove reported operating income down 59% and net income down 70%. Core margin expanded to 41.6%, and core EPS rose to $2.46. On this basis, Novartis lifted its full‑year 2026 core operating income guidance to low single‑digit growth, while keeping its low single‑digit net‑sales outlook unchanged.
Why it matters
The upgraded FY core operating income outlook signals a shift from an expected decline to modest growth, improving the profit outlook for shareholders (the company says). However, the $1.9 billion impairment means reported earnings are substantially lower for the quarter, affecting short‑term profitability metrics.
Key facts
- 1Q3 net sales were $14.522 billion, up 4% in both USD and constant‑currency terms. securities.io
- 2Core operating income rose 11% in USD (10% in constant currency) to $6.036 billion. securities.io
- 3Core operating income margin was 41.6% of net sales, a 2.3‑percentage‑point increase (2.0 pp in constant currency). securities.io
- 4A partial impairment of $1.9 billion on the del‑desiran asset was recorded. securities.io
- 5Core EPS increased 8% in constant currency (9% in USD) to $2.46. finanznachrichten.de
- 6Free cash flow was $5.111 billion, down 18% in USD. securities.io
Summary written by AlphAI AI Desk from 20 of 32 sources. Not investment advice. Figures are as stated by the linked sources.