Novartis Maintains 2026 Outlook Despite a First-Quarter Revenue Dip
Basel, Tuesday, 28 April 2026.
Despite a 1% revenue drop to $13.1 billion from generic competition, booming sales in priority medications allowed Novartis to confidently reaffirm its 2026 financial targets.
Navigating Generic Headwinds
On Tuesday, April 28, 2026, Novartis (NYSE: NVS) [3] reported first-quarter net sales of $13.113 billion, representing a raw revenue drop of $0.12 billion compared to the $13.233 billion generated in the first quarter of 2025 [1]. This 1% decline in reported U.S. dollars fell short of various Wall Street expectations, which had projected revenues ranging from $13.54 billion [3] up to $14.5 billion [7], confirming a miss on consensus estimates [8]. Profitability metrics also experienced downward pressure; the company posted an operating income of $4.235 billion, representing a 9% year-over-year decrease, while earnings per share (EPS) contracted by 10% to $1.65 [1]. Analysts had largely anticipated a stronger bottom line, with consensus EPS estimates floating around $2.11 [5] to $2.13 [3].
Priority Brands Fuel Resiliency
Despite these headwinds, Novartis successfully offset significant losses through the explosive growth of its priority drug portfolio [1]. Sales of the breast cancer medication Kisqali surged by 55% in constant currency to reach $1.516 billion for the quarter [1]. Meanwhile, the radioligand therapy Pluvicto generated $642 million, marking a 70% increase in constant currency [1]. Other notable performers included the cholesterol-lowering drug Leqvio, which leaped 69% to $452 million [1], and the targeted cancer therapy Scemblix, which skyrocketed 79% to $433 million [1]. This robust performance within the top 20 brands—which collectively brought in $10.763 billion [1]—enabled the Swiss pharmaceutical giant to confidently reaffirm its full-year 2026 guidance, projecting low single-digit growth for net sales [1].
Strategic Acquisitions and Pipeline Milestones
Beyond commercial sales, Novartis aggressively advanced its clinical pipeline and inorganic growth strategy during the first quarter. The company completed its acquisition of Avidity Biosciences, a move that introduces three late-stage neuromuscular medicines to its portfolio [1]. While this acquisition, alongside higher financing costs, is expected to cause a 1 to 2 percentage point margin dilution to the 2026 core operating income [5], it aligns with the company’s long-term strategic focus on innovative therapies. Furthermore, Novartis announced an agreement to acquire the Phase I/II pan-mutant selective PI3Kα inhibitor SNV4818 from Synnovation Therapeutics, targeting advanced solid tumors and breast cancer, with the transaction expected to close in the first half of 2026 [1].