Research
Research Alert: Novartis Q1 2026 Results Miss On U.s. Generic Headwinds
CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:Novartis' Q1 2026 results came in below consensus, with net sales declining 1% (-5% in constant currencies [cc]) and core EPS of USD1.99 missing the consensus of USD2.08. Core operating income fell 14% cc, with margin contracting 4.1%-pts to 37.3% as generic pressures intensified, particularly for Entresto, which declined 46% cc. Growth products Kisqali (+55% cc) and Pluvicto (+70% cc) provided some offset to the generic headwinds. Novartis reiterated its 2026 guidance for low-single-digit sales growth cc and a low-single-digit core operating income decline cc, expecting a challenging 1H before a 2H improvement. Multiple Phase 3 readouts expected in 2H 2026, including remibrutinib in multiple sclerosis, could strengthen the mid- to long-term growth outlook. In our view, while the company has solid growth momentum in newer assets and a broad pipeline, Entresto represents the single largest near-term patent risk among European peers, limiting the potential for rapid replacement despite growth in other products.
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