Novartis is scheduled to report results for the second quarter on Tuesday. Here is what you need to know.
SALES FORECAST: The Swiss drugmaker is expected to report second-quarter net sales of $13.96 billion, according to consensus estimates compiled by Visible Alpha. For the same period last year, the company reported quarterly net sales of $14.05 billion.
CORE PROFIT FORECAST: Analysts expect Novartis to make a core operating profit of $5.31 billion for the quarter, according to the same consensus. The company made $5.925 billion for last year's second quarter.
Shares in Novartis rose 4.7% during the second quarter, and gained 14% since the beginning of the year through Friday's close.
WHAT TO WATCH
--OUTLOOK: Novartis expects core operating profit to fall by a figure in the low single digit percentage range this year, as it grapples with generic competition for heart-failure drug Entresto, platelet-booster Promacta and leukemia treatment Tasigna, all of which lost U.S. patent protection last year. The company should experience a recovery in the second half and next year as the effects of generic competition start to show up in year-earlier numbers, but it is too early for a guidance upgrade, Citi analysts wrote in a note to clients. Investors might focus on expectations for an acceleration in the second half as a proxy for growth into next year, analysts at Bank of America said in a note.
--DRUG PIPELINE: The company is due to provide updates on several pivotal clinical trials in the second half--Rhapsido in multiple sclerosis and chronic skin condition hidradenitis suppurativa, pelacarsen for cardiovascular risk reduction, and del-desiran for neuromuscular condition myotonic dystrophy type 1. "We expect a lot of investor attention on management confidence into the events and the relative timings of potential readouts," analysts at UBS said. Analysts at Bank of America said they see the multiple sclerosis and myotonic dystrophy type 1 studies as "must-haves" for Novartis given upcoming patent expirations and its recent acquisition of Avidity Biosciences, which originally developed del-desiran.
Write to Adria Calatayud at adria.calatayud@wsj.com
(END) Dow Jones Newswires
July 20, 2026 08:53 ET (12:53 GMT)
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