Novartis lifts profit outlook after Q3 beat

Novartis raised its full‑year core operating income guidance after reporting stronger profitability in the third quarter of 2026. The company now expects full‑year core operating income to grow by a low single‑digit percentage at constant currencies, compared with a previously expected low single‑digit decline.

The updated guidance follows a quarter in which net sales rose 4% to $14.52 billion, broadly in line with expectations of about $14.5 billion. Core operating income increased 11% in the period to $6.04 billion, exceeding market expectations. Core earnings per share were $2.46.

The third‑quarter performance was supported by both sales growth and core margin expansion. Over the first nine months of the year, net sales were broadly in line with the prior year in constant currencies and up 2% in U.S. dollar terms, while core operating income was slightly lower in constant currencies and in dollars.

Free cash flow in the quarter was $5.1 billion, representing an 18% decline in U.S. dollar terms. Despite the lower free cash flow, the company pointed to productivity measures and the contribution of priority brands and recent launches as factors underpinning its improved profit outlook.

Growth was led by several key medicines across oncology and neurology.

Within oncology, the company cited strong contributions from drugs such as Scemblix and cholesterol treatment Leqvio, which increased sales by 67% and 63%, respectively. Pluvicto delivered $674 million in sales, up 20%, supported by demand and expanded approvals, including in the United States and China.

Novartis also reported progress in its development pipeline alongside commercial growth. Positive Phase III REMODEL‑1 and REMODEL‑2 results were achieved for remibrutinib in relapsing multiple sclerosis, adding to late‑stage assets supporting future growth prospects.

The company emphasized the role of new medicines and innovation milestones in its performance, with priority brands and new launches contributing to both revenue expansion and improved profitability. These developments helped offset broader sector headwinds such as pricing and reimbursement pressures and supported the decision to lift full‑year profit guidance.