Novartis presents a mixed fundamental picture. The company maintains robust gross margins (74.5% in 2026Q2) and strong cash conversion (OCF/NI of 1.80 in 2026Q2), but revenue growth has decelerated sharply to -2.8% in 2026Q2 from 15.3% in 2025Q2. Aggressive ca...
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue growth decelerated to -2.8% in 2026Q2 from 15.3% in 2025Q2, while gross margin remained resilient at 74.5% and operating margin compressed to 32.8% from 34.2% in 2025Q1.
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 9/23/2026, 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) |
|---|---|---|
Q3 2026Latest 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 |
Q4 2025 Oct 28, 2025 | $2.25-0.4% vs $2.26 | $14.4B+5.3% vs $13.6B |
Pfizer, Novartis, Janux Therapeutics and Candel Therapeutics offer varied prostate-cancer exposure, with established drugs and clinical or regulatory catalysts.
Legend Biotech on Tuesday appointed longtime Novartis executive Ingrid Zhang as its CEO, effective immediately, banking on an industry veteran to steer its expansion beyond blockbuster cancer therapy Carvykti.
Ingrid Zhang will take the helm of the cancer therapy company, filling a post vacant since its previous CEO abruptly resigned in July.
Novartis recently announced bad news for its Lp(a)-lowering drug, pelacarsen. Lilly is also developing a therapy for lowering Lp(a).
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 |
|---|---|---|---|---|---|---|---|
| $141.28 | $268.53B | 19.65 | 5.97% | 25.64% | 31% | 2.84% | |
| $27.93 | $159.19B | 20.54 | -1.65% | 6.81% | 4.87% | — | |
| $168.37 | $130.49B | 12.87 | 8.63% | 17.02% | 21.72% | — | |
| $39.40 | $174.96B | 11.15 | 6.43% | 35.35% | 59.09% | — | |
| $42.51 | $102.08B | 11.58 | 5.49% | 8.09% | 5.5% | — | |
| $50.72 | $101.62B | 13.66 | 4.11% | 14.52% | 24.99% | — |
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 $55.63B in revenue for fiscal year 2025. This represents a 141% increase from $23.04B in 1998.
Novartis AG (NVS) grew revenue by 6.0% over the past year. This is steady growth.
Yes, Novartis AG (NVS) is profitable, generating $12.76B in net income for fiscal year 2025 (25.6% net margin).
Yes, Novartis AG (NVS) pays a dividend with a yield of 2.84%. This makes it attractive for income-focused investors.
Novartis AG (NVS) has a return on equity (ROE) of 31.0%. This is excellent, indicating efficient use of shareholder capital.
Novartis AG (NVS) generated $15.82B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.
