Novartis Q2 2026 Earnings Call Transcript

Novartis (NYSE: NVS ) reported second-quarter financial results on Tuesday.

The transcript from the company's second-quarter earnings call has been provided below.

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View the webcast at Watch the full earnings call below: Summary Novartis reported a 1% growth in net sales for Q2 2026, reaching $14.4 billion, with core operating income flat at $5.9 billion.

The company reaffirmed its full-year guidance for 2026, expecting low single-digit growth in net sales and a decline in core operating income.

Notable growth drivers include Kisqali, Kesimpta, and Scemblix, with Kisqali showing a 43% increase in constant currencies.

Pluvicto and Leqvio also demonstrated strong growth, with expectations for further expansion following regulatory updates.

Strategic initiatives include advancing its pipeline with upcoming pivotal readouts and potential multi-blockbuster assets like ianalumab.

Operational highlights include reaffirming a $10 billion peak sales goal for Kisqali and expanding global reach for key products.

Management emphasized disciplined capital allocation, with ongoing share buybacks and investments in R&D.

No change in M&A strategy, focusing on bolt-on acquisitions and selective larger deals fitting strategic criteria.

Full Transcript Sharon, Operator All participants will be in a listen-only mode, and the conference is being recorded.

After the presentation, there will be an opportunity to ask questions by pressing star 1 and 1.

At any time during the conference, please limit yourself to one question and return to the queue for any follow-up.

A recording of the conference call, including the Q&A session, will be available on our website shortly after the call ends.

With that, I would like to hand over to Mr.

Nigel Trotman, Head, Business Planning and Analysis and Digital Finance.

Please go ahead, sir.

Nigel Trotman, Head, Business Planning and Analysis and Digital Finance Thank you, Sharon.

Good morning and good afternoon, and welcome, everyone, to our Q2 2026 conference call.

The information presented today contains forward-looking statements that involve known and unknown risks, uncertainties, and other factors.

These may cause actual results to be materially different from any future results, performance, or achievements expressed or implied by such statements.

For a description of some of these factors, please refer to the company's Form 20-F and its most recent quarterly results on Form 6-K that, respectively, were filed with and furnished to the U.S.

Securities and Exchange Commission.

Before we get started, and as a reminder, please kindly limit yourselves to one question at a time, and we'll cycle through the queue as needed.

And with that, I'll hand over to Vas.

Vas Narasimhan, Chief Executive Officer Thank you, Nigel, and thanks everyone for joining today's conference call.

Moving to Slide 4, as you saw in the results we released earlier today, Novartis delivered strong performance across our priority brands and launches while advancing the pipeline, allowing us to return to growth.

In the second quarter, the business grew 1% in constant currencies and USD, and we had flat core operating income at $5.9 billion.

Mukul will go through the numbers in more detail later on in the call, but we're reaffirming our full year guidance for 2026.

We also had some important pipeline highlights which I'll talk about more during the course of the conference call, including updated Kisqali OS data, the Delbrax biomarker data in FSHD, as well as some other regulatory milestones we were able to deliver over the course of the quarter.

Then moving to Slide 5, our growth drivers continued a strong trajectory in quarter two.

They were up 36% in constant currencies.

Some of the highlights include strong performance from Kisqali, Kesimpta, Scemblix, solid performance from Pluvicto, and strong performance as well from Leqvio.

So overall, taken together, these growth drivers are performing strongly.