Novartis (NOVN.SW) on Tuesday maintained its outlook for full-year 2026 after wrapping up the first half with lower net income despite a return to sales growth in the second quarter.
The innovative medicines company reaffirmed expectations for low-single-digit growth in net sales for the entire year, as well as for low-single-digit decline in core operating income.
"Novartis delivered a solid second quarter, returning to sales growth driven by continued momentum from Kisqali, Kesimpta, Scemblix and Pluvicto. We are encouraged by the early trajectory of our recent launches, Rhapsido in CSU and Itvisma. We also made meaningful pipeline progress, highlighted by updated Kisqali overall survival data in early breast cancer and the FDA accelerated approval submission for del-zota in DMD," commented Chief Executive Officer Vas Narasimhan.
In the six months ended June 30, Novartis generated net income attributable to shareholders of $6.42 billion, compared with $7.65 billion in the prior-year period. The company attributed the decline primarily to lower operating income, higher income taxes, and higher interest expense.
Net sales to third parties for the comparable period rose to $27.52 billion from $27.29 billion. Currency provided a 3 percentage-point positive impact, while pricing had a negative impact of 3 percentage points.
Novartis expects to receive multiple important readouts during the second half. Narasimhan added that the group remains on track for its medium-term outlook.
Shares of the company rose more than 2% in early morning trading.
