Novartis Raises Outlook Despite 70% Q3 Profit Drop

Novartis raised its 2026 core operating income guidance to flat or low-single-digit growth from a prior forecast of a low-single-digit decline and kept its low-single-digit sales growth outlook. Third-quarter net sales rose 4 percent to $14.522 billion. Core operating income reached $6.036 billion; constant-currency growth was reported as 10 percent or 11 percent. Core net income was $4.655 billion, core EPS $2.46, and core operating margin 41.6 percent, up 2.3 points. Kisqali sales rose 37 percent at constant currencies. Reported net income fell 70 percent to $1.196 billion and EPS fell 69 percent to $0.63. Reported operating income fell to $1.843 billion, a decline put at 59 percent or 61 percent, mainly from a $1.9 billion partial impairment of del-desiran and higher expenses. Del-desiran failed its primary endpoint in a late-stage myotonic dystrophy type 1 trial. CEO Vas Narasimhan said priority brands and launches more than offset generic erosion and that productivity efforts allowed the guidance upgrade, adding the company remains well on track for its mid- and long-term outlook.