Novartis (NYSE:NVS) Issues Quarterly Earnings Results

Novartis (NYSE:NVS) posted its quarterly earnings data on Tuesday. The company reported $2.41 EPS for the quarter, beating the consensus estimate of $2.17 by $0.24, Briefing.com reports. Novartis had a net margin of 24.87% and a return on equity of 38.82%. During the same period last year, the business posted $2.42 earnings per share. The business’s revenue for the quarter was up 2.5% on a year-over-year basis.

Here are the key takeaways from Novartis’ conference call:

• Novartis said it returned to growth in Q2, with net sales up 1% in constant currencies to $14.4 billion and core operating income flat at $5.9 billion, while reaffirming full-year 2026 guidance.
• The company’s main growth drivers remained strong, led by KISQALI, Kesimpta, PLUVICTO, LEQVIO and Scemblix, each posting double-digit growth and supporting management’s confidence in second-half momentum after Entresto patent expiry.
• Management highlighted several encouraging pipeline updates, including updated KISQALI overall survival data, positive del-brax biomarker results in FSHD, and progress on multiple late-stage readouts expected in the second half of 2026.
• Novartis reiterated that pelacarsen, remibrutinib in MS, and other key readouts remain data-dependent, emphasizing primary endpoints and statistical significance while declining to give new efficacy guidance ahead of trial results.
• The company also said it continues to manage through generic erosion and one-time phasing effects in Q2, including inventory shifts and clinical-trial cost timing, which temporarily boosted reported sales and operating income.

Novartis Stock Performance

NVS stock traded up $6.49 during mid-day trading on Tuesday, hitting $156.05. The company had a trading volume of 647,347 shares, compared to its average volume of 1,995,444. The firm has a market cap of $297.77 billion, a PE ratio of 22.28, a price-to-earnings-growth ratio of 2.65 and a beta of 0.45. The company has a debt-to-equity ratio of 0.96, a quick ratio of 0.65 and a current ratio of 0.85. Novartis has a 12 month low of $112.34 and a 12 month high of $170.46. The stock’s fifty day moving average price is $151.50 and its two-hundred day moving average price is $151.77.

Analyst Ratings Changes

Several research firms have recently issued reports on NVS. Morgan Stanley upped their target price on Novartis from $143.00 to $170.00 and gave the company an “overweight” rating in a report on Thursday, March 26th. Weiss Ratings cut Novartis from a “buy (a-)” rating to a “buy (b)” rating in a research report on Wednesday, April 29th. Seven research analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the company’s stock. Based on data from MarketBeat.com, Novartis presently has a consensus rating of “Hold” and a consensus price target of $141.20.

Key Novartis News

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Novartis reported quarterly results that beat expectations on core operating profit, helped by lower-than-expected costs and strong sales in cancer and multiple sclerosis treatments. Novartis Q2 profit up as generic competition mounts
• Positive Sentiment: The company returned to sales growth in the quarter as newer medicines offset pressure from generics and patent losses, suggesting its portfolio mix is improving. Novartis Returns to Growth on Sales Momentum From Key Drugs
• Positive Sentiment: CEO Vas Narasimhan said there is “no change of plans,” easing speculation about leadership turnover as the drugmaker enters a period of important trial readouts. Novartis CEO Vas Narasimhan says ‘no change of plans’
• Neutral Sentiment: Analysts and investors are focusing on several upcoming late-stage trial results in the second half of the year, which could determine whether Novartis can justify its premium valuation. Novartis faces drug pipeline test with valuation premium in focus
• Negative Sentiment: Entresto sales fell sharply, highlighting continued generic competition and pressure on one of Novartis’ biggest products. Novartis Q2 surpasses estimates despite 50% Entresto sales drop

Institutional Investors Weigh In On Novartis

Several large investors have recently modified their holdings of NVS. Virtu Financial LLC purchased a new position in shares of Novartis in the fourth quarter worth about $472,000. Compound Planning Inc. boosted its holdings in Novartis by 15.8% in the 4th quarter. Compound Planning Inc. now owns 27,034 shares of the company’s stock valued at $3,727,000 after purchasing an additional 3,695 shares during the period. Axxcess Wealth Management LLC grew its position in shares of Novartis by 20.5% during the 4th quarter. Axxcess Wealth Management LLC now owns 9,557 shares of the company’s stock valued at $1,317,000 after purchasing an additional 1,626 shares in the last quarter. Corient Private Wealth LLC increased its holdings in shares of Novartis by 5.3% in the fourth quarter. Corient Private Wealth LLC now owns 482,703 shares of the company’s stock worth $66,575,000 after purchasing an additional 24,163 shares during the period. Finally, CrossGen Wealth LLC bought a new position in shares of Novartis in the fourth quarter worth $28,000. Hedge funds and other institutional investors own 13.12% of the company’s stock.

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.