Sandoz stock outlook narrows as margin target rises

Sandoz narrowed its 2026 sales outlook after reporting third-quarter results on Wednesday, October 28, 2026. The Swiss generic-drug maker now expects net sales to grow 5% to 6% at constant exchange rates, compared with its previous mid-to-high single-digit range. Reuters reported that the change reflected short-term biosimilar supply constraints and more difficult market conditions in Germany.

The company raised its 2026 core EBITDA margin forecast to 23.0% to 23.5%. The previous outlook called for an expansion of about 100 basis points from the 21.7% margin recorded in 2025. The improved profitability view gives investors a counterweight to the weaker near-term sales visibility.

Biosimilars drive quarterly growth

Third-quarter net sales rose 5% at constant currencies to USD 2.942 billion, according to Sandoz's announcement cited by Reuters. Biosimilar sales increased 17% at constant currencies to USD 998 million, although the business fell short of the USD 1.02 billion analyst consensus compiled by Vara Research. Generics sales were stable at constant currencies at USD 1.944 billion.

Biosimilars accounted for 34% of quarterly sales, up from 31% a year earlier. North America led regional growth, while stronger demand in Europe and international markets exposed temporary supply constraints. Management said the constraints were driven by volume demand and did not represent a structural supply problem.

For the first nine months, Sandoz reported net sales of USD 8.703 billion, up 5% at constant currencies. Biosimilar sales rose 19% to USD 2.873 billion, while generics declined 1% to USD 5.830 billion. Excluding an anti-infective business-to-business headwind, nine-month sales growth was 6% at constant currencies.

Course and investor focus

Sandoz stock traded at 89.52 euros on Lang & Schwarz at 11:19 CET on Friday, November 6, 2026, 0.02% above the Xetra close of Thursday, November 5. The real-time quote of Sandoz stock reflects the latest trading indication, while the guidance change remains the central fundamental issue.

The revised outlook leaves Sandoz's existing targets through 2028 and its recently introduced 2030 ambition unchanged, according to the company. Investors will therefore weigh short-term supply execution and German market conditions against the stronger product mix and margin trajectory.

The SMI provides the relevant Swiss market context for Sandoz stock: current SMI market coverage.

Sandoz plans to publish its full-year 2026 results on February 17, 2027. More news and analyses on Sandoz stock.

Source: Reuters.