Core

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<h3 id="key-highlights">Key Highlights</h3>
<ul>
 <li>Second quarter revenue reached $14.41 billion, marking a 3% increase in US dollar terms driven by volume expansion</li>
 <li>Core operating profit surged to $5.94 billion, significantly exceeding Wall Street’s consensus forecast of $5.31 billion</li>
 <li>Blockbuster drug Kisqali delivered impressive 44% growth to $1.7 billion while Scemblix sales nearly doubled to $562 million</li>
 <li>Entresto revenue plunged 50% to $1.18 billion as generic alternatives flooded the American market</li>
 <li>Company maintains 2026 financial outlook as shares climbed approximately 2% during morning trading</li>
</ul>
Swiss pharmaceutical giant Novartis delivered second quarter revenue of $14.41 billion on Tuesday, representing a 3% year-over-year increase in US currency, as its emerging product lineup compensated for a substantial drop in cardiac medication Entresto.
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 <blockquote class="twitter-tweet">
 NOVARTIS <a href="https://x.com/search?q=%24NVS&amp;src=ctag&amp;ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">$NVS</a> Q2’26 EARNINGS HIGHLIGHTS
 <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f539.png" alt="🔹" style="height: 1em; max-height: 1em;"> Revenue: $14.41B (Est. $14.2B) <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f7e2.png" alt="🟢" style="height: 1em; max-height: 1em;">; +3% YoY <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f539.png" alt="🔹" style="height: 1em; max-height: 1em;"> Core EPS: $2.41 (Est. $2.2) <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f7e2.png" alt="🟢" style="height: 1em; max-height: 1em;">; flat YoY <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f539.png" alt="🔹" style="height: 1em; max-height: 1em;"> Core Oper. Margin: 41.2%; -100 bps YoY <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f539.png" alt="🔹" style="height: 1em; max-height: 1em;"> FCF: $5.56B; -12% YoY
 Reaffirms FY26 Guide: <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f539.png" alt="🔹" style="height: 1em; max-height: 1em;"> Sales Growth: Low single-digit (Est. +0.41%) <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f7e2.png" alt="🟢" style="height: 1em; max-height: 1em;"> <img src="https://s.w.org/images/core/emoji/17.0.2/72x72/1f539.png" alt="🔹" style="height: 1em; max-height: 1em;"> Core… <a href="https://t.co/po3GsgFGWQ" rel="noopener noreferrer nofollow">pic.twitter.com/po3GsgFGWQ</a>
 — Wall St Engine (@wallstengine) <a href="https://x.com/wallstengine/status/2079484008002715731?ref_src=twsrc%5Etfw" rel="noopener noreferrer nofollow">July 21, 2026</a>
 </blockquote>
</div>
Shares climbed roughly 2% during early market hours after the earnings release, pushing the company’s valuation to approximately $310 billion following a 14% year-to-date appreciation.
<a href="https://knockoutstocks.com/stock/NVS" rel="noopener noreferrer nofollow"> <img src="https://knockoutstocks.com/api/stocks/NVS/embed" alt="NVS Stock Card"> Novartis AG, NVS </a>
The Basel-based drugmaker’s core operating profit—the primary non-IFRS metric tracked by Wall Street—reached $5.94 billion. This figure substantially surpassed the $5.31 billion consensus projection compiled by Visible Alpha.
According to <a href="https://coincentral.com/sk-hynix-skhy-stock-barclays-says-it-could-more-than-double-from-here/" rel="noopener noreferrer nofollow">Barclays</a> research team, the profit outperformance stemmed primarily from disciplined expense management. Core selling, general and administrative costs declined 6% to $3.24 billion during the three-month period.
Bottom-line net income decreased 19% to $3.26 billion, pressured by elevated tax obligations and interest payments. Per-share earnings contracted 17% to $1.71.
The company’s breast cancer treatment Kisqali expanded 44% to $1.7 billion. Meanwhile, Scemblix experienced 89% growth to reach $562 million. Additional strong performers included Kesimpta with 32% growth to $1.42 billion, Pluvicto advancing 43% to $651 million, and Leqvio increasing 59% to $480 million.
These positive developments were partially counterbalanced by Entresto’s steep 50% decline to $1.18 billion as generic competition gained significant traction across United States markets. Street consensus had anticipated $1.23 billion. Tasigna similarly contracted 58% to $142 million.
<h3 id="full-year-outlook-maintained">Full-Year Outlook Maintained</h3>
<a href="https://coincentral.com/novartis-nvs-stock-slips-as-q1-earnings-miss-and-ceo-flags-pricing-policy-risk/" rel="noopener noreferrer nofollow">Novartis</a> confirmed its complete 2026 financial projections without modification. Management anticipates revenue expansion in the low single-digit percentage range and core operating income contraction by a low single-digit percentage when measured at constant currency rates.
Chief Executive Vas Narasimhan characterized the quarterly performance as demonstrating “solid” sales growth momentum and affirmed the organization remains “on track to deliver our full-year guidance and mid-term outlook.”
Operating free cash flow contracted 12% to $5.56 billion. Total net debt expanded to $39.4 billion as of June 30, climbing from $21.9 billion at 2025 year-end. The increase reflected $15.3 billion deployed toward acquisitions and intangible assets, $9.1 billion distributed as dividends, and $3.1 billion allocated to share repurchases.
<h3 id="development-pipeline-under-scrutiny">Development Pipeline Under Scrutiny</h3>
Market participants are closely monitoring three investigational compounds—pelacarsen, remibrutinib, and del-desiran. Industry analysts project this trio could collectively deliver up to $10 billion in maximum annual revenue.
This developmental portfolio carries strategic importance as Cosentyx and Kisqali, currently among Novartis’ primary revenue generators, face patent cliff risks after 2030.
Cosentyx recorded 12% quarterly growth to $1.82 billion, partially supported by an approximately $100 million non-recurring benefit within United States markets.
During July, Novartis announced a definitive agreement to acquire Myricx Bio, a biotechnology company specializing in antibody-drug conjugate platforms, with transaction completion anticipated during the latter half of 2026.
The post <a href="https://blockonomi.com/novartis-novn-stock-jumps-2-as-q2-core-profit-crushes-analyst-estimates/" rel="noopener noreferrer nofollow">Novartis (NOVN) Stock Jumps 2% as Q2 Core Profit Crushes Analyst Estimates</a> appeared first on <a href="https://blockonomi.com" rel="noopener noreferrer nofollow">Blockonomi</a>.

Novartis (NOVN) Stock Jumps 2% as Q2 Core Profit Crushes Analyst Estimates

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