Oct 27, 2026 earnings call — Upgraded core operating income guidance
Company upgraded full-year core operating income guidance to be in line to growing low single digit.
Revenue $14.5B (est $14.5B) · EPS $2.46 (est $2.25)
Key quotes
"Priority brands continue to perform well. In the quarter, they were up 29%."
"we show that we achieved disease control with outstanding consistent safety."
"In the quarter, Novartis delivered sales growth and core margin expansion. And that supported an upgrade to our full year 2026 bottom line guidance."
Analyst Q&A 23
2027 growth drivers
Q (Sachin Jain · BofA): Analyst asked what will drive 2027 growth, key launches, and if implied Q4 sales growth is a good proxy for 2027.
A: Management said they expect continued dynamic growth from key growth driver brands and several launches, and that detailed guidance will be provided in January.
"But we do expect continued dynamic growth from our key growth drivers, brands like Kisqali, Kesimpta, Leqvio, Pluvicto in mHSPC, of course, remibrutinib in CSU and CIndU, showing acceleration." — Vasant Narasimhan
remibrutinib switch trial goal
Q (James Gordon · Barclays): Analyst asked what a successful OCREVUS-to-Remi switch trial should show and why that would matter.
A: Management said the trial aims to show remibrutinib can maintain disease control after anti-CD20 treatment, including MRI measures and disability progression, enabling oral maintenance instead of injectables.
"The idea would be to show patients once they are on control with the anti CD 20 that we can maintain control with MRI as well as other measures." — Vasant Narasimhan
SG&A cost durability
Q (Rothschild and Co Redburn): Analyst asked how durable Q3 SG&A cost reductions are and how to think of that line going forward.
A: Management said productivity and SG&A discipline are core and the cost reductions are durable, driven by third-party spend cuts like agency and consulting and technology/AI use.
"We have also. Historically, we have said we are spending upwards of $11 billion every year on third party spend." — Mukul Mehta
Leqvio outcome timing and impact
Q (Florent Cespedes · ODDO BHF): Analyst asked why ORION-4 reads earlier, the product profile, and if positive results would accelerate sales next year.
A: Management explained ORION-4 and VICTORION-2P are event-driven outcome studies with different geographies; they expect positive outcomes to support Leqvio growth and have guided it to be a $4 billion plus medicine.
"Nonetheless, we would expect both of these studies given the cholesterol lowering for Lepio. So LDL lowering is so clear. To ultimately read out positive." — Vasant Narasimhan
40% margin timeline and Pluvicto rules
Q (Graham Glyn Parry · Citi): Analyst asked whether 40% margins could be reached before 2029 and about impact of draft DGAT 70 rules on Pluvicto.
A: Management reiterated commitment to reach 40% margin by 2029 driven by top-line momentum and SG&A productivity, noted near-term other revenue erosion risks, and said the draft radiation rules show no impact on Pluvicto now.
"We remain confident on our commitment to get to 40% margin by 2029." — Mukul Mehta
post-HARBOR plans and impairment
Q (Kerry Ann Holford · Berenberg): Analyst asked if another Phase 3 is planned post-HARBOR, endpoint changes, timeline, and why impairment was small.
A: Management said they are analyzing the data, running an open-label extension, expect another Phase 3 will likely be needed, and the write-down reflects added study costs and scenario assumptions but assumes similar probability of success.
"I mean, we still assume we will need to do another phase 3 study to ultimately bring the medicine to patients." — Vasant Narasimhan
ianalumab approval delay
Q (Steve Scala · TD Cowen): Analyst asked why inalumab approval was delayed from an expected Q3 approval and the outlook.
A: Management said they are in ongoing label discussions with the FDA, providing analyses requested, and they expect an action by the end of the year.
"We do expect an action by the end of the year." — Vasant Narasimhan
Pluvicto uptake pattern
Q (James Quigley · Goldman Sachs): Analyst asked if US Pluvicto sales are plateauing, how PSMA additions will affect timing and Europe after withdrawal, and impact of competitor data on ianalumab market.
A: Management said uptake is strongest in mCRPC and changing physician behavior takes time; growth is steady with strong ex-US momentum in Japan and China, and they cannot judge competitor ianalumab data until full datasets are seen.
"I think there are a couple of things We see most of the demand, as I noted, in the MCRPC setting." — Vasant Narasimhan
which Phase 2 assets to watch
Q: Analyst asked which 3–4 Phase 2 assets will matter next decade and if peak sales and timelines will be provided at the event.
A: Management declined to list details on the call, but said abalosumab, pelabresib, Actinium PSMA work, and assets from Vividity are priorities and they will highlight 1–3 assets per therapeutic area at the event.
"But, you know, I think we have a number of programs. first, advancing in Phase 3 or expanding programs that we have not talked a lot about." — Vasant Narasimhan
Lp(a) and passebek decisions
Q (Morgan Stanley): Analyst asked what data Novartis needs to decide on LP(a) and how competitor results affect pasebek and ianalumab GVHD plans.
A: Management said they do not need to wait for competitor readouts for Lp(a) and are assessing patient segments and trial design, and for passebek they are carefully assessing development paths and patient groups given competitor readouts.
"I think on Lp(a), we do not need to wait for necessarily competitor readouts." — Vasant Narasimhan
remibrutinib peak rationale
Q (Matthew Weston · UBS): Analyst asked why remibrutinib peaks were split in timing and why $4 billion for CSU and CIndU was stated now.
A: Management said $4 billion is for CSU and CIndU and $4 billion for current MS readout, and they avoid including indications without positive Phase 3 readouts so HS and others will be added after their readouts.
"$4 billion for CSU and CIndU, $4 billion for the current MS readout, so not including non-relapsing SPMS, that indeed equals $8 billion-plus." — Vasant Narasimhan
Rhapsido paused studies update
Q (Peter Verdult · BNP Paribas): Analyst asked if autoimmune studies for Rhapsido that paused over summer are restarting and regulator timing.
A: Management said they are still working through the safety assessment, preparing a full package for regulators, expect it will take a few more months, and hope to restart studies next year.
"I think that will take us a few more months is probably the best guess I have at this point, and then we hope to get those studies started up again." — Vasant Narasimhan
ianalumab label discussions
Q (Jefferies): Analyst asked if FDA talks on ianalumab are about endpoint definitions or patient population.
A: Management said the endpoint is robust; discussions are about how best to describe which patients derive the greatest benefit within the label and they are providing necessary data to FDA.
"This is about how best to describe the benefits, which patients derive the greatest benefit." — Vasant Narasimhan
remibrutinib in HS outlook
Q (JPMorgan): Analyst asked latest thinking on remibrutinib in hidradenitis suppurativa given recent competitor data and dose differences.
A: Management said placebo variability is a wild card in immunology trials, they hope to show HiSCR75 efficacy comparable to biologics for a safe oral drug, and two sequential readouts will inform outcome.
"There is a lot of this will come down to how placebo group behaves." — Vasant Narasimhan
2027 sales and SG&A structure
Q (Rajesh Kumar · HSBC): Analyst asked if gross margin should be assumed as trough for 2027, and whether Q3 SG&A reductions are structural from AI or one-time.
A: Management said they will provide 2027 guidance at year end, reiterated midterm 5%–6% growth view, and that SG&A productivity is the path to margins with Q3 a positive data point but not to be extrapolated as full year run rate yet.
"If we needed a data point to say how we get to that 40% margin by 2029 through SG&A, then I think here is a good data point that we have that we are absolutely on the right path." — Mukul Mehta
share buyback pace and capital mix
Q (ZKB): Analyst asked whether buyback pace will continue after recent increases and how buybacks compare with M&A.
A: Management said share buybacks remain a core capital priority, they modulate pace based on market and aim to reach the $10 billion program by end of 2027, and they balance dividend, M&A, and buybacks without trade-off.
"We remain committed to doing. Getting to that $10 billion share buyback program by end of 27." — Mukul Mehta
kidney disease strategy
Q (Seamus Fernandez · Guggenheim): Analyst asked how Novartis will position its kidney portfolio given anti-APRIL competitors and where growth will come from.
A: Management said anti-APRILs changed the landscape, they still expect iptacopan and Fabhalta to reach guidance, will position medicines geographically and by indication, and IgAN readout next year is an important milestone.
"I do think we have had to think carefully now on how to position these medicines in the context of the anti-APRILs." — Vasant Narasimhan
Kisqali adjuvant contribution
Q (Steve Scala · TD Cowen): Analyst asked what portion of Kisqali growth is from adjuvant setting and risk from Roche competitor.
A: Management said they have solid growth across lines, strong metastatic and early breast cancer shares, long clinical experience and OS data support Kisqali, and ex-US performance is also strong, supporting peak sales guidance.
"We have a very long history here in the market. And we do believe that physicians trust endocrine therapy that they have had a established for many years." — Vasant Narasimhan
Entresto EU generic timing
Q (Graham Glyn Parry · Citi): Analyst asked timing of generic launches for Entresto across European countries and differences.
A: Management said SPC expires next month and they do not expect Q4 impacts, but launch timing will be country-by-country with ongoing legal defenses and they are committed to defending patents in each market.
"We are absolutely committed to defending our patents in every 1 of these markets, and we believe we have a case to be made." — Vasant Narasimhan
Kesimpta US competition
Q (Morgan Stanley): Analyst asked if Kesimpta faces shifting competition in the US from IVs or subcu launches and any impact on share.
A: Management said the market is split by physician channel, Kesimpta has strong self-administration share and high ex-US shares, they are on track for a Q2 2-month dosing readout and do not expect current competitors to disrupt peak outlook.
"We are watching closely the potential launch of a subcu from 1 of the competitors, but I think also there, it would be very important to look at safety profile." — Vasant Narasimhan
FSHD FDA timing
Q (Sachin Jain · BofA): Analyst asked for an update on the FSHD plan and timing of FDA meetings and interactions.
A: Management said they expect FDA engagement on givinostat before year end focused on 2-year follow-up in intermediate disease patients and are making the case for accelerated approval based on their data package.
"With FSHD, we are expecting the FDA meeting again before the end of the year." — Vasant Narasimhan
Xolair biosimilar erosion
Q (JPMorgan): Analyst asked clarification on Xolair erosion, profit share agreement impact, and expectations for 2027.
A: Management said biosimilars are in market and further activity will reduce Xolair sales and related other revenue, which will pressure margins over the next couple of years, though actual impact depends on biosimilar uptake.
"I think as we go into the next couple of years, as there will be more biosimilar activity, Xolair sales will go down, and hence, the profit contribution that we have that comes to us in terms of other revenue will go down" — Mukul Mehta
when M&A would change buyback plans
Q (Rajesh Kumar · HSBC): Analyst asked what kind of acquisition would make them rethink buybacks and favor M&A.
A: Management said with current free cash flow and five-year plan they do not see buybacks versus M&A as a trade-off, can do attractive deals while maintaining buybacks, and would only pace based on financing and debt considerations.
"Since we are not contemplating deals that are so large that we would have to compromise our share buybacks." — Vasant Narasimhan