Novartis, CH0012005267

Novartis stock faces mixed signals as guidance improves

Published on 10/31/2026 at 10:36 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Novartis stock faces mixed signals after stronger core earnings and a higher outlook. Pipeline progress contrasts with major trial-related charges.

Novartis combines growth and pipeline updates

Third-quarter sales increased as priority brands offset generic competition.
Management raised its 2026 core operating income outlook while leaving the sales view unchanged.
Phase III remibrutinib results strengthened the multiple sclerosis pipeline, although late-stage setbacks weighed on reported earnings.

Novartis, CH0012005267, Illustration mit AI erstellt.

Novartis delivered stronger underlying earnings in the third quarter and raised its full-year 2026 core operating income outlook on Tuesday, October 27. At the same time, a major impairment tied to del-desiran and other trial setbacks sharply reduced reported profit.

Novartis stock traded at 144.14 euros on Lang & Schwarz at 10:33 Berlin time on Saturday, October 31, 2026. Investors can follow the real-time quote of Novartis stock.

Core earnings improve as charges rise

In its October 27 release, Novartis said third-quarter net sales rose 4 percent to USD 14.522 billion. Core operating income increased 11 percent to USD 6.036 billion, and the core margin expanded to 41.6 percent.

The reported figures moved in the opposite direction. Operating income fell 59 percent to USD 1.843 billion, while net income dropped 70 percent to USD 1.196 billion. Novartis attributed much of the decline to higher research and development costs, including a USD 1.9 billion partial impairment of the del-desiran asset.

Guidance improves despite pipeline risks

Novartis now expects full-year core operating income to be broadly in line with the prior year or to grow by a low single-digit percentage at constant exchange rates. The previous view called for a low single-digit decline. The company kept its forecast for low single-digit sales growth.

The update reflects momentum from priority brands including Kisqali, Kesimpta, Scemblix and Leqvio. Generic competition and negative pricing effects continued to weigh on the sales mix, keeping the outlook dependent on launches and demand for newer medicines.

Multiple sclerosis data add a catalyst

A separate pipeline event came through the multiple sclerosis meeting MSToronto2026. Novartis had announced the presentation of Phase III REMODEL-1 and REMODEL-2 data on October 7, and its quarterly release said the studies produced positive results for remibrutinib in relapsing multiple sclerosis.

The company said remibrutinib met its primary endpoint against teriflunomide and showed favorable results on key secondary measures. The medicine is also being developed in other indications, but the company discontinued its generalized myasthenia gravis study after a futility analysis.