Novartis AG (NYSE: NVS) reported third-quarter 2026 results, with net sales of USD 14.52 billion, up 4% year on year (also +4% in constant currencies, “cc”), and core operating income of USD 6.04 billion, up 10% cc, lifting the core operating income margin to 41.6%. The company raised its full-year guidance for core operating income from “decline low single digit” to “in line to grow low single digit,” while maintaining net sales guidance at “grow low single digit.”
Q3 2026 Financial Highlights
| Item | Detail |
|---|---|
| Net Sales | USD 14.52 billion, +4% YoY (+4% cc) |
| Core Operating Income | USD 6.04 billion, +10% cc |
| Core Operating Margin | 41.6% |
| Generic Erosion Impact | –9 percentage points on growth |
| FY26 Net Sales Guidance | Unchanged: grow low single digit |
| FY26 Core Operating Income Guidance | Raised: from decline low single digit to in line to grow low single digit |
Priority Brand Performance – Growth Engines vs. Generic Erosion
Strong growth across a range of priority brands offset the 9-percentage-point drag from generic competition:
| Brand (Molecule) | Q3 2026 Net Sales | YoY Growth |
|---|---|---|
| Cosentyx (secukinumab) | USD 1.857 billion | +9% |
| Kisqali (ribociclib) | USD 1.821 billion | +37% |
| Kesimpta (ofatumumab) | USD 1.484 billion | +22% |
| Pluvicto (lutetium Lu 177 vipivotide tetraxetan) | USD 674 million | +20% |
| Scemblix (asciminib) | USD 593 million | +67% |
| Leqvio (inclisiran) | USD 506 million | +63% |
| Zolgensma Group (incl. Itvisma) | USD 404 million | +35% |
| Fabhalta (iptacopan) | USD 237 million | +60% |
| Rhapsido (remibrutinib) | USD 101 million | Early launch phase |
| Entresto (sacubitril/valsartan) | USD 1.165 billion | –38% |
- Growth Leaders: Scemblix (+67%) and Leqvio (+63%) posted the fastest growth rates, while Kisqali delivered the largest absolute contribution among accelerating brands at USD 1.821 billion.
- Entresto Headwind: The former blockbuster franchise declined 38% as loss of exclusivity combined with generic competition eroded sales.
Business Development – Q3 Deals & Licensing Activity
- Myricx Bio Acquisition: Completed, adding a next-generation antibody-drug conjugate (ADC) class targeting B7-H3 and HER2.
- Sironax Option Exercise: Novartis exercised its exclusive option to acquire full global rights to Sironax’s blood-brain barrier-crossing Brain Delivery Module (BDM) platform.
- BoomRay Licensing: An exclusive global licensing agreement for a preclinical radioligand therapy (RLT) asset.
- Abogen Biosciences (October): A strategic licensing and option agreement granting Novartis an exclusive worldwide license to ABO2203, a novel mRNA-encoded CD19xCD3 T-cell engager.
Market Impact & Outlook
- Guidance Upgrade: Raising full-year core operating income guidance to “in line to grow low single digit” signals management confidence that priority-brand momentum and margin expansion can absorb continued Entresto erosion.
- Margin Trajectory: The 41.6% core operating margin, with core operating income growing 10% cc against 4% sales growth, reflects disciplined cost execution alongside portfolio mix shift toward high-growth brands.
- Pipeline Diversification: The quarter’s dealmaking spans ADCs, CNS delivery, radioligand therapy, and mRNA T-cell engagers — broadening Novartis’s next-wave pipeline beyond its current commercial pillars.
- Generic Exposure: With generics subtracting 9 percentage points from growth, the durability of the raised outlook hinges on Kisqali, Kesimpta, Scemblix, and Pluvicto sustaining double-digit expansion.
Forward‑Looking Statements
This brief contains forward‑looking statements regarding Novartis’s financial guidance, product sales trajectories, and the development and commercialization of acquired and licensed assets. Actual results may differ materially due to risks including generic competition intensity, clinical and regulatory outcomes for pipeline candidates, integration of acquisitions, and foreign-exchange movements.-Fineline Info & Tech
