Swiss pharma giant Novartis AG NVS reported second-quarter core earnings per share (excluding one-time charges) of $2.41, which comfortably beat the Zacks Consensus Estimate of $2.20. The figure was, however, down from $2.42 reported a year ago due to lower core net income.
Revenues of $14.4 billion also beat the Zacks Consensus Estimate of $13.9 billion. The top line was up 3% from the year-ago reported figure.
On a constant-currency basis, sales rose 1%, driven by strong demand for key growth brands, including Kisqali, Kesimpta, Scemblix, Pluvicto and Leqvio. These products largely offset the sharp decline in Entresto sales, which nearly halved following generic competition in the United States.
Core operating income remained unchanged year over year at $5.9 billion.
Core net income was down 3% to $4.6 billion due to lower operating income.
The stock is trading up in response to second-quarter results.
Shares of Novartis have gained 8.5% year to date compared with the industry’s growth of 11.1%.
Image Source: Zacks Investment Research
Detailed Performance of Top NVS Drugs in Q2
All growth rates mentioned below are on a year-over-year basis and at constant exchange rates.
Novartis currently focuses on four core therapeutic areas — cardiovascular-renal-metabolic, immunology, neuroscience and oncology.
Cosentyx’s sales (psoriasis, spondylitis and arthritis) increased 10% to $1.8 billion. Sales in the United States increased, driven by growth in hidradenitis suppurativa indication and intravenous formulation. In international markets, growth in Europe and most emerging markets was partly offset by a decline in China.
Cosentyx’s sales beat both the Zacks Consensus Estimate and our model estimate of $1.7 billion.
Kisqali (breast cancer) maintained its stellar performance, with sales surging 43% to $1.7 billion. Sales increased across all regions, driven by continued momentum in the early breast cancer indication as well as leadership in metastatic breast cancer.
Kisqali sales missed the Zacks Consensus Estimate of $1.72 billion but beat our model estimate of $1.6 billion.
Kesimpta (multiple sclerosis) sales surged 32% to $1.4 billion. Sales grew across all regions, driven by increased demand and strong access. The figure beat the Zacks Consensus Estimate of $1.3 billion and our model estimate of $1.2 billion.
Cardiovascular drug Entresto’s sales plunged 51% year over year to $1.18 billion due to generic competition in the United States. The drug is approved for heart failure globally as well as for hypertension in China and Japan. Nonetheless, ex-U.S. sales continued to grow. Entresto’s sales missed the Zacks Consensus Estimate of $1.3 billion and our model estimate of $1.2 billion.
Pluvicto (prostate cancer) raked in sales of $651 million, surging 43%, driven by strong demand in the pre-taxane metastatic castration-resistant prostate cancer (mCRPC) setting in the United States. Outside the United States, access continued to broaden, with approvals for post-taxane mCRPC in 52 countries and for the pre-taxane setting in 14 countries.
Sales missed the Zacks Consensus Estimate of $681 million and our estimate of $674 million.
Jakavi (oncology) sales were up 8% to $576 million.
Sales of Tafinlar + Mekinist (oncology) were flat at $581 million due to a decline in sales in the United States due to competitive pressure.
Ilaris sales amounted to $550 million, up 15%, as sales grew across most regions, with continued momentum in the periodic fever syndromes and Still’s disease indications.
Scemblix sales skyrocketed 89% to $562 million, driven by broad-based growth across all regions, with continued momentum in newly diagnosed patients with chronic myeloid leukemia. Sales beat the Zacks Consensus Estimate of $481 million and our model estimate of $477 million.
Cholesterol drug Leqvio sales surged 59% to $480 million, driven by strong growth in the United States and Europe, along with continued uptake in China following its inclusion in the National Reimbursement Drug List in January. The figure missed the Zacks Consensus Estimate of $490 million and our estimate of $521 million.
Novartis holds global rights to develop, make, and market Leqvio through a deal with Alnylam Pharmaceuticals, and is currently involved in a patent litigation in the United States with a generic manufacturer.
Xolair (asthma and allergies) sales declined 25% to $342 million, mainly due to the launch of a biosimilar in 2025.
Novartis has a collaboration agreement with Roche RHHBY for Xolair. Novartis and Roche co-promote Xolair in the United States.
Gene therapy Zolgensma (spinal muscular atrophy or SMA) sales of $365 million were up 20%, by continued launch momentum from the intrathecal formulation (Itvisma) in the United States and UAE.
Lutathera (cancer) sales totaled $255 million, up 8%. Growth was supported by its continued leadership in the second-line setting and a solidified market share in first-line treatment in the United States. Novartis is also defending its intellectual property in ongoing U.S. patent litigation with generic manufacturers. Although a U.S. district court ruled against the validity of key patents in June 2026, Novartis has appealed the decision. The patents extend through 2039, including pediatric exclusivity, and no generic version has received final FDA approval.
Fabhalta sales jumped 88% to $225 million, driven by continued expansion in paroxysmal nocturnal hemoglobinuria and renal indications.
Promacta (oncology) sales plummeted 65% to $179 million due to generic competition.
Tasigna (leukemia) sales plummeted 58% to $142 million due to generic competition.
Rhapsido (chronic spontaneous urticaria or CSU) continued to show strong early uptake in the United States, with sales of $64 million, supported by increasing coverage and a free drug program facilitating patient access.
Novartis Reiterates 2026 Guidance
Net sales are expected to grow in low single digits on a constant currency basis. Core operating income is anticipated to decline in the low single digits.
Recent Acquisition Deals by NVS
Novartis continued to expand its pipeline through strategic acquisitions. In July, the company agreed to acquire Myricx Bio, adding two promising antibody-drug conjugate (ADC) candidates targeting B7-H3 and HER2, along with a next-generation ADC payload platform for solid tumors.
The deal is expected to be closed in the second half of 2026, subject to customary closing conditions.
Novartis also completed the acquisitions of Pikavation Therapeutics, gaining breast cancer candidate SNV4818, and Excellergy, including EXL-111, further strengthening its immunology pipeline and expertise in IgE-mediated allergic diseases.
Novartis had earlier acquired Avidity Biosciences, strengthening its late-stage neuroscience pipeline and advancing its xRNA strategy.
Pipeline and Other Updates From NVS
A biologics license application (BLA) was submitted to the FDA for accelerated approval of del-zota in people living with Duchenne muscular dystrophy (DMD) who have a genetic variant that may be amenable to exon 44 skipping (DMD44). Del-zota had previously received Breakthrough Therapy designation from the FDA.
The European Commission approved Itvisma for treating children aged two years and older, adolescents, and adults with 5q SMA caused by bi-allelic mutations in the SMN1 gene. The approval makes Itvisma the first and only gene replacement therapy available for this broad patient population.
Our Take on NVS’ Q2 Performance
Novartis delivered a strong second-quarter performance, demonstrating that its portfolio of newer growth products is increasingly capable of offsetting the impact of generic competition, including the loss of U.S. exclusivity for blockbuster heart failure drug Entresto.
Novartis AG Price, Consensus and EPS Surprise
Novartis AG price-consensus-eps-surprise-chart | Novartis AG Quote
With 2026 marking the largest patent cliff in the company's history, execution remains the key investment theme.
Novartis is also strengthening its long-term growth outlook through targeted business development. The planned acquisition of Myricx Bio adds two promising antibody-drug conjugate (ADC) programs targeting B7-H3 and HER2, together with a next-generation ADC payload platform that could expand its presence in solid tumors.
The company has also completed the acquisitions of Pikavation Therapeutics, adding breast cancer candidate SNV4818, and Excellergy, bringing EXL-111 to bolster its immunology pipeline. Novartis had earlier acquired Avidity Biosciences, significantly enhancing its late-stage neuroscience portfolio and advancing its xRNA strategy.
NVS’ Zacks Rank & Stocks to Consider
Novartis currently carries a Zacks Rank #3 (Hold). A couple of better-ranked stocks in the drug/biotech sector are Liquidia Corporation LQDA and Novavax NVAX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Over the past 60 days, estimates for Liquidia’s 2026 earnings per share (EPS) have increased from $2.97 to $3.02. Over the same period, EPS estimates for 2027 have also increased from $4.81 to $4.92. LQDA shares have skyrocketed more than 123.5% year to date.
Liquidia’s earnings beat estimates in three of the trailing four quarters and missed in the remaining one, the average surprise being 54.40%.
Over the past 60 days, estimates for Novavax’s 2026 loss per share have narrowed from 20 cents to 19 cents. Over the same period, loss per share estimates for 2027 have narrowed from 31 cents to 25 cents. NVAX’s shares have gained nearly 22.7% year to date.
Novavax’s earnings beat estimates in each of the trailing four quarters, the average surprise being 305.24%.
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