By Fineline Cube 
Novartis AG (NYSE: NVS) reported Q1 2026 financial results showing USD 13.1 billion in net sales, representing a 5% decline in constant currency terms, as robust growth from key oncology and specialty brands was offset by anticipated U.S. generic competition. The company reaffirmed its full-year 2026 guidance despite the challenging quarter.
Financial Performance Summary
| Metric | Q1 2026 | YOY Change (CC) |
|---|---|---|
| Net Sales | USD 13.1B | -5% |
| Core Operating Income | USD 4.9B | -14% |
| Core Operating Margin | 37.3% | -4.8 percentage points |
| Core EPS | USD 1.99 | -15% |
| Net Profits | USD 3.2B | -13% |
Growth Drivers & Headwinds Analysis
- Volume Growth: +13 percentage points
- Generic Competition Impact: -14 percentage points
- Pricing Pressure: -4 percentage points
- Currency Benefit: +4 percentage points
Priority Brand Performance
High-Growth Oncology & Specialty Portfolio
| Product | Q1 2026 Sales | YOY Growth | Key Growth Drivers |
|---|---|---|---|
| Kisqali (ribociclib) | USD 1.5B | +55% | Early and metastatic breast cancer uptake |
| Pluvicto (lutetium Lu177 vipivotide tetraxetan) | USD 642M | +70% | Pre-taxane mCRPC demand |
| Kesimpta (ofatumumab) | USD 1.2B | +26% | Strong global access and demand |
| Leqvio (inclisiran) | USD 452M | +69% | Accelerated China uptake following NRDL inclusion |
| Scemblix (asciminib) | USD 433M | +79% | Earlier-line use expansion |
| Fabhalta (iptacopan) | Not disclosed | +103% | More than doubled sales |
| Rhapsido (remibrutinib) | Early launch | N/A | Initial commercial uptake |
Established Brands Performance
| Product | Q1 2026 Sales | YOY Growth | Market Dynamics |
|---|---|---|---|
| Cosentyx (secukinumab) | Stable | -2% | U.S. declines offset by ex-U.S. growth |
| Zolgensma (onasemnogene abeparvovec) | Declined | -12% | Lower spinal muscular atrophy (SMA) incidence |
Generic Competition Impact
| Product | Q1 2026 Sales | YOY Decline | Competitive Pressure |
|---|---|---|---|
| Entresto (valsartan/sacubitril) | USD 1.3B | -46% | Significant U.S. generic erosion |
| Promacta/Revolade (eltrombopag) | USD 184M | -68% | Substantial generic competition |
Pipeline & Regulatory Milestones
Immunology & Renal Advancements
- Rhapsido (remibrutinib): Positive CHMP opinion in chronic spontaneous urticaria; positive Phase III data in chronic inducible urticaria; Phase II efficacy in food allergy
- Ianalumab (VAY736): U.S. FDA Breakthrough Therapy designation and priority review for Sjögren’s disease
- Cosentyx: U.S. FDA approval in pediatric hidradenitis suppurativa; advanced filings in polymyalgia rheumatica
- Fabhalta: 49.3% reduction in kidney function decline in Phase III IgAN data; U.S. FDA priority review granted
Strategic Regulatory Decision
- Pluvicto EU Application Withdrawn: Pre-chemotherapy mCRPC indication withdrawn following CHMP feedback; no impact on existing approvals or ongoing trials in other regions
Business Development Activity
Neuroscience & Immunology Pipeline Strengthening
- Avidity Biosciences Acquisition Completed: Added three late-stage neuromuscular assets; reinforces xRNA strategy
- SNV4818 Agreement: PI3Kα inhibitor acquisition from Synnovation Therapeutics
- Excellergy Planned Acquisition: Includes anti-IgE antibody (Exl-111); expands allergic disease pipeline
Forward Outlook & Strategic Implications
Novartis reaffirmed FY 2026 guidance with expectations for:
- Net sales growth in low single digits
- Core operating income decline in low single digits
The Q1 results demonstrate the company’s ability to navigate significant generic headwinds while maintaining strong momentum in high-value therapeutic areas. The robust performance of recently launched products like Pluvicto, Scemblix, and Rhapsido validates Novartis’ strategic focus on oncology innovation and specialty medicine leadership.
Forward-Looking Statements
This brief contains forward-looking statements regarding financial performance, product sales, regulatory approvals, and strategic initiatives. Actual results may differ due to risks including competitive pressures, regulatory outcomes, and market dynamics.-Fineline Info & Tech