Novartis AG

Top-line + profitability beat (Q3) → guidance upgrade - Net sales: +$4% constant currency to $14.5B. - Core operating income (COI): +10% to $6.0B; COI margin 41.6% (+2pp YoY). - Core EPS: +$8% to $2.46. - Key negative to note: reported operating income fell 61% due to higher R&D, including a $1.9B impairment (see below).

Full-year 2026 guidance: sales maintained, bottom line upgraded - Net sales FY26: maintained low single-digit growth outlook. - Core operating income FY26: upgraded to “low single digit growth” (from prior low single-digit decline). - Margin context: expects Q4 margin decline vs Q3 due to seasonality (year-end spend), higher royalties scaling, and lower “other income” from Xolair biosimilars. - FX sensitivity: if FX stays at late-Oct levels, expects about +1pp impact to full-year net sales and +1pp to COI (and ~no COI impact in 2027 if FX similar).

Pipeline / launches driving growth momentum (major “good” points) - Priority brands growth: “priority brands” +29%. - Kisqali: +37%; leadership stable (EBC shares stable); 38% US growth, Germany 80% EBC share; momentum supported by improved survival data (Natelli 6-year OS; HR 0.809). - Kesimpta: +22%; TRx outpacing market; growing earlier-line use (US 77% of NBRx first line/first switch). - Leqvio: +63%; strong monthly TRx growth; US ~22% share; outcome trial path (ORION 4 / VICTORION-2P readouts discussed as supportive catalysts). - Pluvicto: +20% CC; PSMA “HSPC” launch early—expect acceleration into next year (they highlight 5–10 weeks lead time for new patients and Q4 holiday/lapping effects). - Rhapsido (CSU/CIndU): strong launch; >6,000 prescribers, >15,000 patients treated in US; NBRx share ~26%, with access expansion expected to drive further growth; peak sales guidance upgraded to >$4B for CSU + CIndU.