Novartis AG (NVS) Announced Q1 2026 Earnings on April 28, 2026, Reporting "sales down 5% and core op inc down 14%"

Novartis AG reported first quarter 2026 financial results with "sales down 5% and core op inc down 14%". Management noted that the "Core margin in Q1 declined 4.1%" due to higher research and development investments and the impact of generics on the gross margin.

Despite the overall decline in the first quarter, executives emphasized that "growth drivers were up 34% in constant currency". The company also reported that first quarter free cash flow was broadly in line with the previous year's first quarter, and they paid a $9.1 billion dividend in March and April.

Management highlighted a strong start to the first quarter across priority brands and launches.

Executives stated that "Kisqali grew 55%" driven by momentum in early and metastatic breast cancer.

The company noted Kesimpta had a 26 percent growth, outpacing the market, while Pluvicto United States sales grew 76 percent in the first quarter.

Additionally, "Scemblix was up 79%" and Leqvio saw 31 percent growth in the United States alongside 106 percent constant currency growth outside of the United States.

During the first quarter, Novartis AG completed its acquisition of Avidity, adding three late-stage medicines for neuromuscular disease to its pipeline.

The company also announced two early-stage deals intended to support its oncology and immunology disease franchises. In terms of capital allocation, management noted they continue to progress with an up to $10 billion share buyback program, with around $6.1 billion remaining to be completed by the end of 2027.

For forward guidance, the company reaffirmed its full year 2026 expectations.

For the full year 2026, Novartis AG anticipates low single-digit sales growth and a low single-digit decline in core operating income.

The core net financial expense for the full year 2026 is projected to be around $1.7 billion and the core tax rate will be about 16.5 percent.

Management expects second quarter sales to decline low single digits and core operating income to decline high single digit to low double digit, before seeing a second half sales growth of mid-single digit and core operating income growth of mid- to high single digits.