Swiss pharmaceutical Novartis AG (NYSE:NVS) reported fourth-quarter 2025 results on Wednesday.
The company's net sales rose 1% year over year to $13.34 billion, missing Wall Street's consensus estimate of $13.78 billion. On a constant-currency (cc) basis, sales were down 1%.
Generic competition had a negative impact of 15 percentage points, including a negative impact of 3 percentage points from revenue deduction adjustments in the U.S., mainly related to Entresto and Promacta.
Pricing had a negative impact of 4 percentage points. Currency had a positive impact of 2 percentage points.
Core operating income climbed 1% to $4.93 billion (+1% cc), benefiting from higher government grant income and lower SG&A expenses, partly offset by higher R&D expenses. Core operating income margin was 37.0%, increasing 0.1 percentage points (0.7 percentage points in cc).
Growth was fueled by strong demand for several blockbuster therapies. Kisqali, the company's breast cancer treatment, surged 44% (cc) to $1.32 billion, while Kesimpta, for multiple sclerosis, rose 27% (cc) to $1.23 billion.
Cosentyx revenue was up 11% to $1.81 billion.
Scemblix climbed 87% (cc) to $391 million, and Pluvicto, used in prostate cancer treatment, advanced 70% (cc) to $605 million.
“In 2026, we expect to grow through the largest patent expiry in Novartis’ history, underscoring the strength of our business, and remain well on track to deliver our mid-term guidance," commented Vas Narasimhan, CEO of Novartis.
Novartis reported adjusted earnings of $2.03 per share, surpassing the consensus of $1.99.
Fiscal 2026 Outlook
Novartis expects net sales to grow in the low single digits for fiscal 2026, while core operating income is projected to decrease in the low single digits.
Mukul Mehta, set to become CFO in March, told Reuters that adjusted operating income “really starts to grow in the second half of the year, which bodes very well for the 2026 second half and 2027 and beyond.”
NVS Price Action: Novartis shares were up 1.79% at $152.54 at the time of publication on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.
Photo: Shutterstock
