Novartis reported net sales of $13.1 billion in Q1 2026, representing a -1% year-on-year (YOY) decline in USD and -5% at constant currencies, as growth from key brands was offset by US generic erosion.
Core operating income declined -12% (USD) and -14% at constant currencies to $4.9 billion, with a core operating margin of 37.3%. Net income reached $3.2 billion (−13%), while earnings per share (EPS) were $1.65 (−10%), reflecting continued pressure from legacy portfolio decline.
Growth in the quarter was driven by priority brands, including Kisqali (+55% at constant currencies), Pluvicto (+70%), Scemblix (+79%), Leqvio (+69%), and Kesimpta (+26%), highlighting strong demand for innovative therapies.
Pipeline progress remained a key focus, with remibrutinib advancing across multiple indications. The Phase III REMIX-1 and REMIX-2 trials in chronic spontaneous urticaria and the RemIND Phase III trial in chronic inducible urticaria demonstrated continued development momentum. Additional ongoing programmes include REMODEL-1 and REMODEL-2 (Phase III) in multiple sclerosis and MANIFEST-2 (Phase III) evaluating pelabresib in myelofibrosis.
Novartis reaffirmed its FY 2026 guidance, expecting low single-digit net sales growth and a low single-digit decline in core operating income at constant currencies.
The company’s performance reflects its strategy of focusing on high-value innovative medicines, scaling priority brands, and advancing multi-indication pipeline assets, while reducing reliance on legacy products impacted by generics.
Looking ahead, upcoming Phase III readouts, regulatory decisions, and continued brand momentum are expected to support potential growth in the coming quarters, as pipeline assets progress toward commercialization and begin contributing to revenue.
