Novartis (NYSE:NVS) Announces Earnings Results, Beats Expectations By $0.24 EPS

Novartis (NYSE:NVS) issued its quarterly earnings results on Tuesday. The company reported $2.41 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $2.17 by $0.24, Briefing.com reports. Novartis had a return on equity of 38.82% and a net margin of 24.87%.During the same period in the prior year, the firm earned $2.42 earnings per share. The business’s quarterly revenue was up 2.5% compared to the same quarter last year.

Here are the key takeaways from Novartis’ conference call:

• Novartis said it returned to growth in Q2, with net sales up 1% in constant currencies to $14.4 billion and core operating income flat at $5.9 billion, while reaffirming full-year 2026 guidance.
• The company’s main growth drivers remained strong, led by KISQALI, Kesimpta, PLUVICTO, LEQVIO and Scemblix, each posting double-digit growth and supporting management’s confidence in second-half momentum after Entresto patent expiry.
• Management highlighted several encouraging pipeline updates, including updated KISQALI overall survival data, positive del-brax biomarker results in FSHD, and progress on multiple late-stage readouts expected in the second half of 2026.
• Novartis reiterated that pelacarsen, remibrutinib in MS, and other key readouts remain data-dependent, emphasizing primary endpoints and statistical significance while declining to give new efficacy guidance ahead of trial results.
• The company also said it continues to manage through generic erosion and one-time phasing effects in Q2, including inventory shifts and clinical-trial cost timing, which temporarily boosted reported sales and operating income.

Novartis Stock Performance

NYSE:NVS traded up $6.83 during midday trading on Tuesday, hitting $156.39. The company’s stock had a trading volume of 749,086 shares, compared to its average volume of 1,995,444. Novartis has a fifty-two week low of $112.34 and a fifty-two week high of $170.46. The company has a debt-to-equity ratio of 0.96, a current ratio of 0.85 and a quick ratio of 0.65. The firm has a market cap of $298.42 billion, a P/E ratio of 22.40, a P/E/G ratio of 2.65 and a beta of 0.45. The firm’s 50 day moving average is $151.50 and its 200-day moving average is $151.77.

Analyst Upgrades and Downgrades

A number of analysts have recently issued reports on NVS shares. Weiss Ratings lowered shares of Novartis from a “buy (a-)” rating to a “buy (b)” rating in a research note on Wednesday, April 29th. Morgan Stanley upped their target price on shares of Novartis from $143.00 to $170.00 and gave the stock an “overweight” rating in a research note on Thursday, March 26th. Seven investment analysts have rated the stock with a Buy rating, seven have given a Hold rating and two have assigned a Sell rating to the stock. According to MarketBeat.com, the company presently has a consensus rating of “Hold” and a consensus price target of $141.20.

Novartis News Roundup

Here are the key news stories impacting Novartis this week:

• Positive Sentiment: Novartis beat earnings expectations, reporting $2.41 in EPS versus the $2.17 consensus, with revenue up 2.5% year over year. Novartis Q2 earnings release and transcript
• Positive Sentiment: Management said newer drugs helped return the company to sales growth, and the firm reaffirmed its 2026 outlook, which supports confidence in the near-term growth story. Reuters article on Novartis Q2 profit
• Positive Sentiment: Strong sales from cancer and multiple sclerosis treatments helped lift core operating profit above estimates, signaling that key growth products are still offsetting weaker legacy drugs. Reuters article on Novartis Q2 profit
• Neutral Sentiment: Investors are also watching upcoming clinical trial readouts in the second half of the year, which could influence whether Novartis can justify its premium valuation going forward. Reuters article on pipeline test

Institutional Inflows and Outflows

Institutional investors have recently bought and sold shares of the stock. Brighton Jones LLC increased its position in Novartis by 76.5% during the 4th quarter. Brighton Jones LLC now owns 6,153 shares of the company’s stock worth $599,000 after purchasing an additional 2,666 shares in the last quarter. Sivia Capital Partners LLC raised its position in shares of Novartis by 48.0% in the second quarter. Sivia Capital Partners LLC now owns 7,959 shares of the company’s stock valued at $963,000 after buying an additional 2,581 shares during the last quarter. Schnieders Capital Management LLC. acquired a new stake in Novartis in the 2nd quarter worth about $202,000. Crawford Investment Counsel Inc. purchased a new position in shares of Novartis during the 4th quarter worth about $202,000. Finally, McMillan Office Inc. purchased a new stake in Novartis in the fourth quarter valued at approximately $147,000. 13.12% of the stock is currently owned by hedge funds and other institutional investors.

Novartis Company Profile

Novartis is a Swiss multinational pharmaceutical company headquartered in Basel that researches, develops, manufactures and commercializes prescription medicines and related health-care products. Formed through the 1996 merger of Ciba-Geigy and Sandoz, Novartis operates globally and focuses on bringing therapeutics from discovery through clinical development to commercial markets worldwide.

The company’s activities center on innovative pharmaceuticals across several therapeutic areas, including oncology, immunology, cardiovascular and metabolic diseases, neuroscience and ophthalmology, alongside capabilities in advanced therapies such as biologics, cell and gene therapies.