Novartis Q2 financial results

PARAGRAPH 1 --- What happened: Novartis reported Q2 2026 results on July 26, with net sales up 3% YoY to $14.4 billion, driven by strong demand for cancer and multiple sclerosis treatments. Despite a 14% drop in sales of its top heart drug, Entresto, the company returned to sales growth. Core operating income was flat YoY at $5.94 billion, exceeding analyst expectations. However, net profit dropped due to higher costs.

PARAGRAPH 2 --- Market impact: The pharmaceutical sector saw a bullish reaction, with Novartis shares rising following the results. The strong performance of newer drugs like Zolgensma and Kesimpta signals a successful transition in the company's portfolio. This could encourage investors to re-evaluate their positions in other pharmaceutical companies with similar transitions.

PARAGRAPH 3 --- What to watch next: Novartis' full-year guidance remains unchanged, with core operating income expected to decline low single-digit and net sales to grow low single-digit. Upcoming catalysts include Q3 2026 earnings (Oct 26), potential FDA approval decisions for pipeline drugs like Mayzent and Leqvio (Q4 2026), and the company's annual results (Feb 2027).