Novartis Delivers Earnings Beat While FDA Nod and Biotech Buy Bolster Pipeline
Published on 07/22/2026 at 17:42 | Redaktion boerse-global.de
The Swiss pharma giant wrapped up a packed July with a second-quarter earnings report that cleared analyst forecasts, a fresh US regulatory approval, and a $1.5 billion biotech acquisition — a trifecta that has left the stock trading near its best levels of the year.
Novartis posted net sales of $14.4 billion for the three months ended June 30, up 3 percent in dollar terms and 1 percent on a currency-adjusted basis. Core earnings per share came in at $2.41, landing 12 percent above the consensus estimate, according to the company’s July 21 release. Management reaffirmed its full-year 2026 guidance alongside the results.
The top-line beat was powered by a handful of blockbuster drugs. Scemblix led the pack with an 89 percent surge in sales, followed by Kisqali’s 43 percent jump and Kesimpta’s 32 percent gain. Jefferies analyst Michael Leuchten noted that quarterly revenue exceeded consensus by 5 percent, driven largely by Kesimpta and Scemblix. Bernstein Research described the quarter as a “solid beat of market expectations,” while UBS pointed out that strong sales of Cosentyx and Kesimpta helped offset weaker revenue from the heart drug Entresto.
Analyst reaction stays measured despite strong numbers
The earnings surprise did not trigger a wave of target upgrades. Jefferies held its “Hold” rating and 110-franc price target, while UBS maintained “Neutral” with a 116-franc target. JPMorgan reiterated its “Overweight” stance, and Bernstein kept its “Neutral” call. The range of views suggests that while Novartis’s operational strength is acknowledged, analysts are waiting for more evidence before adjusting their outlooks.
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The stock closed at €135.04 on the day of the release, up 2.90 percent. That leaves it 6.42 percent below the 52-week high of €144.30 set on February 27, 2026. Since the start of the year, shares have gained 14.27 percent, and over the past twelve months the advance stands at 35.94 percent. Technically, the stock is trading above both its 50-day moving average of €131.75 and its 200-day average of €124.87, signaling a sustained medium-term uptrend.
Regulatory win and pipeline expansion
Just days before the earnings release, the FDA granted full approval on July 17 to Fabhalta (iptacopan) for slowing kidney function decline in adults with primary IgA nephropathy. The decision, based on Phase III data from the APPLAUSE-IgAN study, broadens the drug’s approved indications and strengthens Novartis’s nephrology franchise.
Earlier in July, the company announced the acquisition of UK-based biotech Myricx Bio for $1.5 billion. The deal adds a platform for antibody-drug conjugates (ADCs) to Novartis’s oncology pipeline, continuing a strategy of targeted external additions to complement internal R&D.
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On the capital return front, Novartis bought back 18.2 million of its own shares during the first half of 2026, spending $2.8 billion through the second trading line of the SIX Swiss Exchange.
What’s next on the calendar
Investors will get the next update on October 27, when Novartis reports third-quarter and nine-month results. The key question heading into that report is whether the growth pattern seen in Q2 — strong contributions from Kesimpta, Cosentyx, and Scemblix alongside continued weakness in Entresto — will persist. The company will also host its “Meet Novartis Management 2026” investor conference in London on November 18-19, where executives are expected to elaborate on pipeline strategy and medium-term growth drivers.
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