Novartis Q1 net sales down 5% as priority brands grow up to 79%
Novartis reported Q1 net sales declined 5% cc (-1% USD) and core operating income fell 14% cc, driven by US generic erosion on Entresto. Priority brands saw robust growth—Scemblix up 79% cc, Pluvicto up 70% cc—and free cash flow reached USD 3.3 billion.
1. Q1 Financial Results
Novartis reported a 5% cc decline in Q1 net sales (–1% USD) and a 14% cc drop in core operating income, with operating income down 11% cc and net income down 13% cc. Core EPS fell 15% cc to USD 1.99 as generic competition for Entresto weighed on revenues.
2. Priority Brands Growth
Key growth drivers included Scemblix up 79% cc, Pluvicto up 70% cc, Kisqali up 55% cc, Leqvio up 69% cc and Kesimpta up 26% cc. These performances offset some declines but were insufficient to fully counteract the US generic erosion impact.
3. Innovation Milestones and Guidance
Novartis generated USD 3.3 billion in free cash flow and completed the acquisition of Avidity, adding three late-stage neuromuscular candidates. The company achieved positive clinical and regulatory milestones and reaffirmed FY 2026 guidance for low single-digit net sales growth and low single-digit core operating income decline.