Novartis lifts Q2 profit, reaffirms 2026 outlook

Novartis (NVS) delivered a stronger-than-expected profit performance in the second quarter of 2026, with core operating income adjusted for special items rising to $5.94 billion. This result topped an average analyst expectation of about $5.31 billion, indicating better operational performance than the market had anticipated.

The company described the quarter as a return to sales growth, marking a shift from prior periods of pressure on the top line. The improvement came despite ongoing challenges in parts of its portfolio, underlining the contribution of selected growth drivers.

Management attributed the renewed sales momentum to continued strength in several priority medicines, including the cancer therapy Kisqali, the multiple sclerosis treatment Kesimpta, the leukemia drug Scemblix and the radioligand therapy Pluvicto. These products were highlighted as central to the company’s growth strategy.

Scemblix was a particular standout, with second-quarter sales rising 89% in constant currency to $562 million. This sharp increase underscores how newer oncology assets are scaling and becoming more meaningful contributors to group performance.

Kisqali also delivered strong double-digit growth, reinforcing its role as a key pillar of the oncology franchise. Together with Kesimpta and Pluvicto, these brands helped offset pressures seen in more mature parts of the portfolio, supporting the overall return to top-line expansion.

Alongside the earnings beat and improved revenue trajectory, Novartis (NVS) reaffirmed its full-year 2026 financial guidance. The company continues to expect low single-digit growth in net sales for the year.

On profitability, Novartis still forecasts a low single-digit decline in core operating income for 2026, even after the strong second-quarter showing. This outlook reflects both the benefits of growing newer brands and the drag from legacy product erosion.

Management emphasized that pipeline progress and recent launches remain central to the strategy, with growth brands increasingly offsetting the impact of older products facing competitive and lifecycle headwinds. The quarter’s results suggest that this transition is gaining traction, even as overall earnings are guided to decline modestly for the full year.