Switzerland's Novartis misses Q1 sales, profit estimates on US generic competition; backs FY view

Novartis AG

28/04/2026 06:08

Overview

Switzerland-based innovative medicines firm's Q1 net sales declined 5% cc, missing analyst expectations

Core EPS for Q1 fell 15% cc and missed analyst expectations

Company completed Avidity Biosciences acquisition and reaffirmed full-year 2026 guidance

Outlook

Novartis expects 2026 net sales to grow low single-digit percentage

Company sees 2026 core operating income declining low single-digit percentage

Novartis says multiple clinical trial readouts in H2 could affect mid- to long-term growth outlook

Result Drivers

US GENERIC EROSION - Company said US generic competition more than offset growth from key brands, driving overall net sales decline

PRIORITY BRAND GROWTH - Kisqali, Pluvicto, Kesimpta, Scemblix and Leqvio delivered strong sales growth, helping partially offset declines

HIGHER R&D INVESTMENT - Increased R&D spending contributed to the decline in core operating income

Company press release: ID:nGNE5PNvnm

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Net Sales
Miss
$13.11 bln
$13.65 bln (6 Analysts)
Q1 Core EPS
Miss
$1.99
$2.13 (6 Analysts)
Q1 EPS
$1.65
Q1 Core Net Income
$3.79 bln
Q1 Net Income
$3.16 bln
Q1 Core Operating Income
$4.90 bln


Analyst Coverage

The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 11 "strong buy" or "buy", 13 "hold" and 4 "sell" or "strong sell"

The average consensus recommendation for the pharmaceuticals peer group is "buy."

Wall Street's median 12-month price target for Novartis AG is CHF126.80, about 11.2% above its April 27 closing price of CHF114.08

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 15 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)