Ad hoc announcement pursuant to Art. 53 LR
Full year
- Net sales grew +8% (cc1, +8% USD) with core operating income1 up +14% (cc, +12% USD)
- Sales growth driven by continued strong performance from priority brands including Kisqali (+57% cc), Kesimpta (+36% cc), Pluvicto (+42% cc), Scemblix (+85% cc) and Cosentyx (+8% cc)
- Core operating income margin1 was 40.1%, +210 basis points (cc)
- Operating income grew +25% (cc, +21% USD); net income up +19% (cc, +17% USD)
- Core EPS1 grew +17% (cc, +15% USD) to USD 8.98
- Free cash flow1 of USD 17.6 billion (+8% USD) driven by higher net cash flows from operating activities
Fourth quarter
- Net sales -1% (cc, +1% USD), impacted by US generic erosion and revenue deduction adjustments; core operating income +1% (cc, +1% USD)
- Priority brands continued their strong momentum including Kisqali (+44% cc), Kesimpta (+27% cc), Pluvicto (+70% cc), Scemblix (+87% cc) and Cosentyx (+11% cc)
- Q4 selected innovation milestones:
- Remibrutinib FDA submission for the most common subtype of CINDU
- Pelabresib positive Phase III MANIFEST-2 96-week data; filing planned in EU, US Phase III planned
- Itvisma FDA approval as the only gene replacement therapy for a broad SMA population
- Scemblix EC approval for newly diagnosed patients with Ph+ CML in chronic phase
- Pluvicto FDA submission for PSMA+ metastatic hormone-sensitive prostate cancer
Dividend, guidance
- Dividend of CHF 3.70 per share, an increase of 5.7%, proposed for 2025
- 2026 guidance2 – Net sales expected to grow low single-digit and core operating income expected to decline low single-digit
Basel, February 4, 2026 – Commenting on Q4 2025 results, Vas Narasimhan, CEO of Novartis, said:
“Novartis delivered strong performance in 2025, with high single-digit sales growth and core margin expansion despite significant US generic entries. Growth drivers Kisqali, Kesimpta, Pluvicto, Scemblix and Cosentyx continued their strong trajectory. We advanced several potential multi-blockbusters in our pipeline, with FDA approvals and positive Phase III readouts across Rhapsido, Pluvicto, Itvisma and ianalumab. We also strengthened our pipeline through strategic deals, including the proposed acquisition of Avidity, which we expect to close in the first half. In 2026, we expect to grow through the largest patent expiry in Novartis history, underscoring the strength of our business, and remain well on track to deliver our mid-term guidance.”
| Key figures | ||||||||
| Q4 2025 | Q4 2024 | % change | FY 2025 | FY 2024 | % change | |||
| USD m3 | USD m3 | USD | cc | USD m3 | USD m3 | USD | cc | |
| Net sales | 13 336 | 13 153 | 1 | -1 | 54 532 | 50 317 | 8 | 8 |
| Operating income | 3 616 | 3 530 | 2 | 4 | 17 644 | 14 544 | 21 | 25 |
| Net income | 2 404 | 2 820 | -15 | -14 | 13 967 | 11 939 | 17 | 19 |
| EPS (USD) | 1.26 | 1.42 | -11 | -11 | 7.21 | 5.92 | 22 | 24 |
| Free cash flow | 1 655 | 3 635 | -54 | 17 596 | 16 253 | 8 | ||
| Core operating income | 4 929 | 4 859 | 1 | 1 | 21 889 | 19 494 | 12 | 14 |
| Core net income | 3 889 | 3 933 | -1 | -2 | 17 411 | 15 755 | 11 | 12 |
| Core EPS (USD) | 2.03 | 1.98 | 3 | 2 | 8.98 | 7.81 | 15 | 17 |
1. Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 44 of the Condensed Financial Report. Unless otherwise noted, all growth rates in this Release refer to same period in prior year. 2. Please see detailed guidance assumptions on page 6. 3. USD millions unless indicated otherwise.
Strategy
Our focus
Novartis is a “pure-play” innovative medicines company. We have a clear focus on four core therapeutic areas (cardiovascular-renal-metabolic, immunology, neuroscience and oncology), with multiple significant in-market and pipeline assets in each of these areas, that address high disease burden and have substantial growth potential. In addition to two established technology platforms (chemistry and biotherapeutics), three emerging platforms (gene & cell therapy, radioligand therapy and xRNA) are being prioritized for continued investment into new R&D capabilities and manufacturing scale. Geographically, we are focused on growing in our priority geographies – the US, China, Germany and Japan.
Our priorities
- Accelerate growth: Renewed attention to deliver high-value medicines (NMEs) and focus on launch excellence, with a rich pipeline across our core therapeutic areas.
- Deliver returns: Continuing to embed operational excellence and deliver improved financials. Novartis remains disciplined and shareholder-focused in our approach to capital allocation, with substantial cash generation and a strong capital structure supporting continued flexibility.
- Strengthen foundations: Unleashing the power of our people, scaling data science and technology and continuing to build trust with society.
Financials
Fourth quarter
Net sales were USD 13.3 billion (+1%, -1% cc), with volume contributing 18 percentage points to growth. Generic competition had a negative impact of 15 percentage points, including a negative impact of 3 percentage points from revenue deduction adjustments in the US, mainly related to Entresto and Promacta. Pricing had a negative impact of 4 percentage points. Currency had a positive impact of 2 percentage points.
Operating income was USD 3.6 billion (+2%, +4% cc), benefiting from higher government grant income and lower SG&A expenses, partly offset by higher R&D expenses.
Net income was USD 2.4 billion (-15%, -14% cc), impacted by higher income taxes. EPS was USD 1.26 (-11%, -11% cc), benefiting from the lower weighted average number of shares outstanding.
Core operating income was USD 4.9 billion (+1%, +1% cc), benefiting from higher government grant income and lower SG&A expenses, partly offset by higher R&D expenses. Core operating income margin was 37.0% of net sales, increasing 0.1 percentage points (0.7 percentage points in cc).
Core net income was USD 3.9 billion (-1%, -2% cc), mainly due to lower other financial income. Core EPS was USD 2.03 (+3%, +2% cc), benefiting from the lower weighted average number of shares outstanding.
Free cash flow amounted to USD 1.7 billion (-54%), driven by lower net cash flows from operating activities.
Full year
Net sales were USD 54.5 billion (+8%, +8% cc), with volume contributing 15 percentage points to growth. Generic competition had a negative impact of 6 percentage points, pricing had a negative impact of 1 percentage point and currency had no impact.
Operating income was USD 17.6 billion (+21%, +25% cc), mainly driven by higher net sales and lower impairments, partly offset by higher investments behind priority brands and launches.
Net income was USD 14.0 billion (+17%, +19% cc), mainly driven by higher operating income. EPS was USD 7.21 (+22%, +24% cc), benefiting from the lower weighted average number of shares outstanding.
Core operating income was USD 21.9 billion (+12%, +14% cc), mainly driven by higher net sales, partly offset by higher investments behind priority brands and launches. Core operating income margin was 40.1% of net sales, increasing 1.4 percentage points (2.1 percentage points cc).
Core net income was USD 17.4 billion (+11%, +12% cc), mainly due to higher core operating income. Core EPS was USD 8.98 (+15%, +17% cc), benefiting from the lower weighted average number of shares outstanding.
Free cash flow amounted to USD 17.6 billion (+8%), driven by higher net cash flows from operating activities.
Q4 priority brands
Underpinning our financial results in the quarter is a continued focus on key growth drivers (ranked in order of contribution to Q4 growth) including:
| Kisqali | (USD 1 321 million, +44% cc) sales grew strongly across all regions, with strong momentum from the early breast cancer indication as well as continued share gains in metastatic breast cancer. Strong volume growth in the US was partially offset by revenue deduction adjustments; underlying growth globally was +54% cc. |
| Kesimpta | (USD 1 228 million, +27% cc) sales grew across all regions driven by increased demand and strong access. |
| Pluvicto | (USD 605 million, +70% cc) sales reflect continued strong demand in the pre-taxane metastatic castration-resistant prostate cancer (mCRPC) setting in the US, as well as access expansion ex-US in the post-taxane mCRPC setting. |
| Cosentyx | (USD 1 807 million, +11% cc) sales grew across all regions, driven by volume, with continued demand for recent launches (including HS and IV in the US) and steady performance in core indications (PsO, PsA, AS and nr-AxSpA). |
| Scemblix | (USD 391 million, +87% cc) sales grew across all regions, demonstrating the continued high unmet need in CML,with strong momentum from the early-line indication in the US and Japan. |
| Leqvio | (USD 335 million, +46% cc) continued steady growth across all regions, with a focus on increasing account and patient adoption and continuing medical education. |
| Fabhalta | (USD 155 million, +167% cc) sales grew, reflecting continued launch execution in PNH as well as renal indications IgAN and C3G. |
| ZolgensmaGroup | (USD 307 million, +12% cc) sales grew, reflecting strong demand for the IV formulation in the incident SMA population. |
| Lutathera | (USD 203 million, +5% cc) sales grew mainly in the US, Europe and Japan due to increased demand and earlier-line adoption. |
Net sales of the top 20 brands in the fourth quarter and full year
| Q4 2025 | % change | FY 2025 | % change | |||
| USD m | USD | cc | USD m | USD | cc | |
| Entresto – excl. revenue deduction adjust.* |
1 253
|
-43 -32 |
-45 -34 |
7 748 | -1 | -2
|
| Cosentyx | 1 807 | 13 | 11 | 6 668 | 9 | 8 |
| Kisqali – excl. revenue deduction adjust.* |
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