The Motley Fool·4d ago
Novartis: 3 Key Takeaways for Long-Term InvestorsNovartis raised full-year 2026 core operating income guidance after 4% sales growth. Rhapsido peak sales guidance increased to over $4 billion in combined indications.
Novartis sustained gross margins between 73.4% and 77.6% and a latest-quarter gross margin of 76.0%, suggesting durable pricing power in its specialty portfolio, though revenue growth has slowed from a 15.3% peak to 6.0% year over year.
Price trend, volume and key moving averages
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Revenue growth decelerated from 15.3% to 6.0% while gross margin held at 76.0% and operating margin compressed to 12.3% as R&D rose to $5.2B, suggesting reinvestment is absorbing near-term profitability.
Novartis reported an Earnings Per Share (EPS) of $2.03, surpassing consensus estimates, indicating strong profitability.
Several analysts have upgraded NVS, issuing 'buy' ratings, reflecting confidence in the company's future performance.
The CEO indicated that Novartis expects to have essentially no tariff exposure by mid-2026, which could positively impact operations.
Some analysts have issued 'hold' ratings, indicating uncertainty about short-term performance and limited price appreciation.
Analysts have lowered FY2027 earnings per share estimates, suggesting potential challenges in meeting growth expectations.
NVS has shown significant fluctuations in stock price, with a notable difference between its 52-week high and low.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 27, 2026 | $2.46+9.3% vs $2.25 | $14.5B-0.1% vs $14.5B |
Q3 2026 Jul 21, 2026 | $2.41+11.1% vs $2.17 | $14.4B+2.4% vs $14.1B |
Q2 2026 Apr 28, 2026 | $1.99-5.7% vs $2.11 | $13.1B-2.4% vs $13.4B |
Q1 2026 Feb 4, 2026 | $2.03+2.0% vs $1.99 | $13.3B-2.7% vs $13.7B |
Novartis raised full-year 2026 core operating income guidance after 4% sales growth. Rhapsido peak sales guidance increased to over $4 billion in combined indications.
The Q3 earnings cycle continues to roll along, with several healthcare companies delivering positive results and raising their outlooks as a result.
STOCKHOLM, Nov. 2, 2026 /PRNewswire/ -- BioArctic AB (publ) (Nasdaq Stockholm: BIOA B) today announced that Novartis Pharma AG has notified BioArctic that it has decided to terminate the Option, Collaboration and License Agreement entered into in August 2025 to explore a potential new treatment combining BioArctic's proprietary BrainTransporter™ technology with an undisclosed Novartis proprietary antibody. The termination is the result of a Novartis decision to discontinue the program, unrelated to BioArctic's BrainTransporter technology.
Novartis, Mitsubishi and Canadian Natural are examples of companies in developed markets outside the U.S. that pass screens for high dividend yields and low volatility for prices and earnings.
Benchmark NVS against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for Novartis AG (NVS)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $162.55 | $308.96B | 30.86 | 5.97% | 17.82% | 24.32% | 2.47% | |
| $29.39 | $167.51B | 41.91 | -1.65% | 6.34% | 4.58% | 5.85% | |
| $186.43 | $290.83B | 26.47 | 8.63% | 17.68% | 22.18% | 1.71% | |
| $40.31 | $179B | 10.58 | 6.43% | 33.94% | 54.09% | 4.3% | |
| $47.04 | $112.95B | 24.24 | 5.49% | 8.19% | 5.81% | 5.23% | |
| $50.33 | $100.84B | 17.69 | 4.11% | 12.96% | 23.31% | 3.23% |
Novartis AG (NVS) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
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Novartis AG (NVS) stock FAQ — growth, dividends, profitability & financials explained
Novartis AG (NVS) reported $56.31B in revenue over the trailing twelve months. Revenue was $54.81B in fiscal year 2025. That is 138% more than the $23.04B of fiscal year 1998.
Novartis AG (NVS) revenue fell by 0.1% over the trailing twelve months, compared with the twelve months before.
Yes. Novartis AG (NVS) earned $10.03B in net income over the trailing twelve months (a 17.8% net margin).
Yes. Novartis AG (NVS) pays a dividend that yields 2.47% at the current price, a moderate yield.
Novartis AG (NVS) had a return on equity (ROE) of 24.3% over the trailing twelve months. That is well above the market's typical 10-15%.
Novartis AG (NVS) generated $14.84B in free cash flow over the trailing twelve months.
