Earnings calls of companies listed in Switzerland ·
Swiss earnings call, October 2026: Novartis raises 2026 core operating income guidance
Novartis said it raised its 2026 core operating income guidance to in line with the prior year or low-single-digit growth, from a low-single-digit decline, on its third-quarter 2026 call.
An update from FactIQ, written from company statements in earnings calls of companies listed in Switzerland. What is FactIQ?
Key figures
- Novartis, core operating income guidance, fiscal year 2026
- in line with the prior year or growing at a low-single-digit ratestated by an executive; raised from a low-single-digit decline
- Novartis, constant-currency sales growth guidance, fiscal years 2025 to 2030
- 5% to 6%stated by an executive; reaffirmed
- Novartis, combined peak sales guidance for Rapsido in chronic spontaneous and chronic inducible urticaria
- USD 4 billionstated by an executive; now guided to exceed this level
- Novartis, core tax rate guidance, fiscal year 2026
- 16.5%stated by an executive; around this level, maintained
Novartis raised its profit guidance but kept its sales guidance for 2026
Novartis held its call for the third quarter of fiscal year 2026 on 27 October 2026. An executive said the company upgraded its full-year guidance for core operating income after quarterly sales growth and core margin expansion. Core operating income is the company's operating profit adjusted for items it excludes.
- Novartis said it maintained its fiscal year 2026 net sales guidance for low-single-digit growth.
- Novartis said it maintained its fiscal year 2026 guidance for a USD 1.7 billion core net financial result expense, its financing cost on the same adjusted basis.
- Novartis said it expects a core tax rate of around 16.5% for fiscal year 2026.
- An executive said that in the first half of fiscal year 2026, net sales declined 2% and core operating income declined 7%. Both were impacted by US Entresto generic erosion, meaning sales lost to generic copies of the drug Entresto in the US.
Novartis kept its outlook for sales growth to 2030
- Novartis said it reaffirmed guidance for constant-currency sales growth of 5% to 6% for fiscal years 2025 to 2030. Constant currency means growth measured without the effect of exchange-rate changes.
- The company also reaffirmed a mid-single-digit constant-currency long-term growth outlook.
- Novartis said peak sales for Rapsido in chronic spontaneous urticaria (CSU) and chronic inducible urticaria (CindU), two forms of a skin condition, are now guided to exceed USD 4 billion combined.
- Novartis said all milestones for the remainder of 2026 and 2027 are on track.
Analysts asked about 2027, and Novartis will give guidance in February 2027
Novartis said it will provide full-year guidance for fiscal year 2027 with its fourth-quarter results in February 2027. Analysts asked whether third-quarter cuts in selling, general and administrative (SG&A) expenses were structural savings, and whether roughly $14 billion is a sensible SG&A run rate for fiscal year 2027. Management gave a partial answer. Analysts also asked about the main growth drivers for 2027, and management again answered in part. Management deflected a question on whether fiscal year 2027 should be assumed to be the low point for gross margin.
Source: Earnings calls of companies listed in Switzerland.