Revenue growth has decelerated into negative territory at -0.7% in 2026Q1, while operating margins have compressed to 31.3% from a 2025Q1 peak of 34.2%.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 |
|---|
| Sales/Revenue | 56.05B | 54.81B | 51.72B | 46.66B | 43.46B | 43.97B | 49.9B | 48.68B | 46.1B | 43.4B | 49.44B | 50.39B | 53.63B | 52.72B | 51.97B | 59.38B | 51.56B | 45.1B | 42.58B | 38.95B | 35.1B | 29.75B | 27.28B | 24.93B | 20.88B | 18.76B | 22.18B | 20.39B | 23.04B |
| Revenue Growth % | 5.32% | 5.97% | 10.85% | 7.36% | -1.17% | -11.87% | 2.51% | 5.59% | 6.21% | -12.2% | -1.89% | -6.05% | 1.74% | 1.43% | -12.47% | 15.15% | 14.32% | 5.92% | 9.34% | 10.94% | 17.99% | 9.08% | 9.41% | 19.41% | 11.27% | -15.43% | 8.83% | -11.52% | - |
| Cost of Goods Sold | 13.86B | 13.69B | 12.83B | 12.47B | 11.58B | 11.73B | 15.12B | 14.43B | 14.51B | 13.63B | 17.52B | 17.4B | 17.34B | 16.58B | 15.87B | 18.98B | 14.49B | 12.18B | 11.44B | 11.03B | 9.41B | 7.44B | 6.7B | 6.46B | 4.99B | 4.74B | 6.35B | 5.22B | 7.31B |
| COGS % of Revenue | - | 24.98% | 24.8% | 26.73% | 26.65% | 26.69% | 30.3% | 29.63% | 31.48% | 31.41% | 35.44% | 34.54% | 32.34% | 31.45% | 30.53% | 31.97% | 28.1% | 27% | 26.86% | 28.33% | 26.81% | 25% | 24.56% | 25.9% | 23.92% | 25.29% | 28.6% | 25.61% | 31.71% |
| Gross Profit | 42.19B | 41.12B | 38.9B | 34.19B | 31.88B | 32.24B | 34.78B | 34.25B | 31.59B | 29.77B | 31.92B | 32.98B | 36.29B | 36.14B | 36.1B | 40.39B | 37.07B | 32.92B | 31.14B | 27.91B | 25.69B | 22.31B | 20.58B | 18.47B | 15.88B | 14.02B | 15.84B | 15.16B | 15.73B |
| Gross Margin % | 75.27% | 75.02% | 75.2% | 73.27% | 73.35% | 73.31% | 69.7% | 70.37% | 68.52% | 68.59% | 64.56% | 65.46% | 67.66% | 68.55% | 69.47% | 68.03% | 71.9% | 73% | 73.14% | 71.67% | 73.19% | 75% | 75.44% | 74.1% | 76.08% | 74.71% | 71.4% | 74.39% | 68.29% |
| Gross Profit Growth % | - | 5.72% | 13.77% | 7.24% | -1.12% | -7.3% | 1.53% | 8.43% | 6.11% | -6.72% | -3.23% | -9.11% | 0.42% | 0.09% | -10.61% | 8.95% | 12.6% | 5.71% | 11.57% | 8.64% | 15.15% | 8.44% | 11.39% | 16.31% | 13.3% | -11.5% | 4.44% | -3.62% | - |
| Operating Expenses | 25.07B | 24.05B | 24.35B | 24.42B | 23.93B | 22.18B | 24.63B | 25.17B | 23.19B | 21.07B | 23.65B | 24.01B | 25.2B | 25.15B | 24.6B | 29.61B | 25.55B | 22.94B | 22.18B | 21.13B | 18.05B | 15.81B | 14.46B | 12.84B | 10.79B | 9.69B | 10.96B | 10.55B | 10.7B |
| OpEx % of Revenue | - | 43.87% | 47.08% | 52.33% | 55.07% | 50.45% | 49.35% | 51.7% | 50.3% | 48.54% | 47.84% | 47.64% | 46.99% | 47.72% | 47.33% | 49.87% | 49.55% | 50.87% | 52.09% | 54.26% | 51.42% | 53.13% | 53.01% | 51.5% | 51.69% | 51.66% | 49.38% | 51.78% | 46.46% |
| Selling, General & Admin | 13.33B | 13.31B | 12.57B | 12.52B | 12.19B | 12.83B | 14.2B | 14.37B | 13.72B | 12.46B | 14.19B | 14.25B | 14.99B | 15.24B | 15.12B | 18.05B | 15.8B | 14.33B | 14.1B | 13.26B | 11.97B | 10.63B | 9.99B | 9.23B | 7.88B | 7.17B | 8.07B | 6.94B | 7.87B |
| SG&A % of Revenue | - | 24.28% | 24.3% | 26.83% | 28.06% | 29.17% | 28.45% | 29.52% | 29.76% | 28.72% | 28.71% | 28.28% | 27.95% | 28.91% | 29.09% | 30.4% | 30.64% | 31.77% | 33.1% | 34.04% | 34.11% | 35.74% | 36.62% | 37.04% | 37.76% | 38.19% | 36.37% | 34.05% | 34.14% |
| Research & Development | 11.25B | 10.74B | 10.02B | 11.37B | 9.17B | 8.64B | 8.98B | 9.4B | 8.49B | 8.39B | 9.04B | 8.94B | 9.09B | 9.07B | 8.59B | 9.58B | 9.07B | 7.47B | 7.22B | 6.43B | 5.32B | 4.8B | 4.15B | 3.73B | 2.84B | 2.53B | 2.88B | 2.67B | 2.84B |
| R&D % of Revenue | - | 19.6% | 19.38% | 24.37% | 21.1% | 19.65% | 18% | 19.32% | 18.41% | 19.33% | 18.28% | 17.73% | 16.94% | 17.21% | 16.52% | 16.14% | 17.59% | 16.56% | 16.95% | 16.51% | 15.16% | 16.12% | 15.22% | 14.96% | 13.62% | 13.47% | 13% | 13.08% | 12.32% |
| Other Operating Expenses | 1000K | 0 | 1.76B | 531M | 2.57B | 715M | 1.45B | 1.4B | 980M | 215M | 417M | 824M | 1.12B | 842M | 893M | 1.98B | 680M | 1.14B | 867M | 1.45B | 757M | 377M | 319M | -126M | 65M | 0 | 1M | 948M | 0 |
| Operating Income | 17.12B | 17.07B | 14.54B | 9.77B | 7.95B | 10.06B | 10.15B | 9.09B | 8.4B | 8.7B | 8.27B | 8.98B | 11.09B | 10.98B | 11.51B | 10.78B | 11.53B | 9.98B | 8.96B | 6.78B | 7.64B | 6.51B | 6.12B | 5.63B | 5.09B | 4.33B | 4.88B | 4.61B | 5.03B |
| Operating Margin % | 30.54% | 31.15% | 28.12% | 20.94% | 18.28% | 22.87% | 20.35% | 18.67% | 18.23% | 20.05% | 16.72% | 17.82% | 20.68% | 20.83% | 22.14% | 18.16% | 22.35% | 22.13% | 21.05% | 17.41% | 21.77% | 21.87% | 22.43% | 22.6% | 24.39% | 23.05% | 22.01% | 22.61% | 21.83% |
| Operating Income Growth % | - | 17.4% | 48.88% | 22.94% | -20.98% | -0.95% | 11.73% | 8.13% | -3.44% | 5.25% | -7.9% | -19.05% | 0.97% | -4.55% | 6.74% | -6.47% | 15.47% | 11.36% | 32.19% | -11.27% | 17.44% | 6.38% | 8.55% | 10.66% | 17.73% | -11.45% | 5.94% | -8.33% | - |
| EBITDA | 22.52B | 22.43B | 20.61B | 18.05B | 14.65B | 15.65B | 16.62B | 14.91B | 13.61B | 13.44B | 14.31B | 14.45B | 15.77B | 15.39B | 15.95B | 16.57B | 14.95B | 12.28B | 11.63B | 9.64B | 9.56B | 8.13B | 7.42B | 6.92B | 6.39B | 5.36B | 5.63B | 5.56B | 6.04B |
| EBITDA Margin % | 40.18% | 40.92% | 39.85% | 38.68% | 33.71% | 35.6% | 33.3% | 30.63% | 29.53% | 30.96% | 28.95% | 28.67% | 29.4% | 29.19% | 30.69% | 27.9% | 28.99% | 27.23% | 27.32% | 24.75% | 27.25% | 27.32% | 27.19% | 27.75% | 30.59% | 28.58% | 25.36% | 27.27% | 26.21% |
| EBITDA Growth % | 3.57% | 8.8% | 14.22% | 23.17% | -6.4% | -5.8% | 11.43% | 9.53% | 1.31% | -6.1% | -0.95% | -8.39% | 2.49% | -3.52% | -3.74% | 10.86% | 21.67% | 5.58% | 20.7% | 0.77% | 17.68% | 9.6% | 7.2% | 8.31% | 19.12% | -4.68% | 1.21% | -7.95% | - |
| D&A (Non-Cash Add-back) | 5.4B | 5.35B | 6.07B | 8.28B | 6.71B | 5.6B | 6.46B | 5.83B | 5.21B | 4.74B | 6.04B | 5.47B | 4.68B | 4.41B | 4.44B | 5.79B | 3.42B | 2.3B | 2.67B | 2.86B | 1.92B | 1.62B | 1.3B | 1.28B | 1.29B | 1.04B | 741M | 948M | 1.01B |
| EBIT | 17B | 17.63B | 14.65B | 9.98B | 7.98B | 25.32B | 10.75B | 9.79B | 15.03B | 9.85B | 8.52B | 8.79B | 12.98B | 11.49B | 11.96B | 11.31B | 12.39B | 10.47B | 9.79B | 7.72B | 8.26B | 7.16B | 6.67B | 5.98B | 5.89B | 4.91B | 4.88B | 4.61B | 5.03B |
| Net Interest Income | -1.22B | -812.14M | -468.74M | -246.88M | -456.89M | -834M | -830M | -657.67M | -680.55M | -692M | -686M | -658.49M | -668M | -630M | -605M | -630.38M | -507.88M | -284.89M | 57M | 186M | 101M | 111M | 126.28M | 48M | 157M | 75M | 0 | 0 | 0 |
| Interest Income | 0 | 374.91M | 567.68M | 629.24M | 377.74M | 71M | 91M | 245.25M | 292.67M | 110M | 43M | 32.98M | 33M | 34M | 50M | 61.36M | 102.17M | 155.4M | 306M | 423M | 367M | 405M | 385.81M | 323M | 416M | 293M | 0 | 0 | 0 |
| Interest Expense | 1.22B | 1.19B | 1.04B | 876.12M | 834.62M | 905M | 921M | 902.93M | 973.22M | 802M | 729M | 691.47M | 701M | 664M | 655M | 691.74M | 610.05M | 440.29M | 249M | 237M | 266M | 294M | 259.53M | 243M | 259M | 218M | 0 | 0 | 0 |
| Other Income/Expense | -1.34B | -638.25M | -904M | -646M | -769M | 14.47B | -274M | -146M | 5.69B | 400M | -451M | -843M | 1.18B | -176M | -271M | -225M | 176M | -60M | 535M | 706M | 352M | 360M | 293M | 99M | 606M | 367M | 711M | 722M | 725.29M |
| Pretax Income | 15.78B | 16.44B | 13.64B | 9.12B | 7.18B | 24.53B | 9.88B | 8.94B | 14.1B | 9.1B | 7.82B | 8.13B | 12.27B | 10.81B | 11.24B | 10.55B | 11.7B | 9.92B | 9.5B | 7.49B | 7.99B | 6.87B | 6.41B | 5.73B | 5.7B | 4.69B | 5.59B | 5.33B | 5.75B |
| Pretax Margin % | 28.16% | 29.99% | 26.37% | 19.55% | 16.51% | 55.78% | 19.8% | 18.37% | 30.58% | 20.97% | 15.81% | 16.14% | 22.88% | 20.5% | 21.62% | 17.78% | 22.7% | 22% | 22.31% | 19.22% | 22.77% | 23.08% | 23.5% | 23% | 27.29% | 25.01% | 25.22% | 26.16% | 24.98% |
| Income Tax | 2.27B | 2.4B | 1.7B | 551M | 1.13B | 1.63B | 1.81B | 1.79B | 1.29B | 1.6B | 1.12B | 1.11B | 1.54B | 1.5B | 1.71B | 1.48B | 1.73B | 1.47B | 1.34B | 947M | 1.17B | 986M | 1.04B | 947M | 959M | 844M | 1.13B | 1.15B | 1.37B |
| Effective Tax Rate % | 14.38% | 14.59% | 12.47% | 6.04% | 15.72% | 6.62% | 18.29% | 20.06% | 9.19% | 17.61% | 14.31% | 13.6% | 12.59% | 13.86% | 15.18% | 14.05% | 14.81% | 14.8% | 14.06% | 12.65% | 14.62% | 14.36% | 16.3% | 16.52% | 16.83% | 17.99% | 20.16% | 21.59% | 23.77% |
| Net Income | 13.53B | 14.06B | 11.94B | 14.85B | 6.96B | 24.02B | 8.07B | 11.73B | 12.61B | 7.7B | 6.71B | 17.78B | 10.21B | 9.18B | 9.27B | 8.94B | 9.79B | 8.4B | 8.2B | 11.95B | 7.17B | 6.13B | 5.37B | 4.74B | 4.72B | 3.84B | 4.47B | 4.18B | 4.37B |
| Net Margin % | 24.14% | 25.64% | 23.09% | 31.83% | 16% | 54.63% | 16.18% | 24.1% | 27.36% | 17.75% | 13.58% | 35.29% | 19.04% | 17.4% | 17.84% | 15.06% | 19% | 18.62% | 19.24% | 30.67% | 20.44% | 20.6% | 19.67% | 19.03% | 22.63% | 20.45% | 20.14% | 20.51% | 18.96% |
| Net Income Growth % | 5.25% | 17.71% | -19.59% | 113.52% | -71.05% | 197.58% | -31.2% | -6.97% | 63.72% | 14.76% | -62.26% | 74.17% | 11.28% | -1.02% | 3.69% | -8.72% | 16.6% | 2.5% | -31.4% | 66.49% | 17.05% | 14.26% | 13.11% | 0.38% | 23.18% | -14.13% | 6.84% | -4.28% | - |
| Net Income (Continuing) | 13.51B | 14.04B | 11.94B | 8.57B | 6.05B | 22.91B | 8.07B | 7.15B | 12.8B | 7.5B | 6.7B | 7.03B | 10.73B | 9.31B | 9.53B | 9.07B | 9.97B | 8.45B | 8.16B | 6.54B | 6.83B | 5.88B | 5.37B | 4.79B | 4.74B | 3.85B | 4.47B | 4.18B | 4.39B |
| Discontinued Operations | 0 | 0 | 0 | 6.28B | 906M | 1.11B | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 415M | 419M | 80M | 83M | 81M | 167M | 68M | 77M | 78M | 59M | 59M | 76M | 78M | 129M | 126M | 96M | 6.57B | 75M | 149M | 173M | 183M | 174M | 138M | 90M | 66M | 63M | 47M | 139M | 140.99M |
| EPS (Diluted) | 7.06 | 7.19 | 5.87 | 7.10 | 3.17 | 10.63 | 3.52 | 3.08 | 5.38 | 3.25 | 2.80 | 7.29 | 4.13 | 3.70 | 3.89 | 3.70 | 4.26 | 3.69 | 3.59 | 5.13 | 3.04 | 2.62 | 2.27 | 1.97 | 1.84 | 1.49 | 1.70 | 0.62 | 0.33 |
| EPS Growth % | 9.23% | 22.49% | -17.32% | 123.97% | -70.18% | 201.99% | 14.29% | -42.75% | 65.54% | 16.07% | -61.59% | 76.51% | 11.62% | -4.88% | 5.14% | -13.15% | 15.45% | 2.79% | -30.02% | 68.75% | 16.03% | 15.42% | 15.23% | 7.07% | 23.49% | -12.35% | 174.19% | 87.88% | - |
| EPS (Basic) | - | 7.25 | 5.92 | 7.15 | 3.19 | 10.71 | 3.54 | 3.12 | 5.44 | 3.28 | 2.82 | 7.40 | 4.21 | 3.76 | 3.93 | 3.75 | 4.28 | 3.70 | 3.62 | 5.15 | 3.06 | 2.63 | 2.28 | 1.99 | 1.88 | 1.49 | 1.70 | 0.62 | 0.33 |
| Diluted Shares Outstanding | 1.92B | 1.96B | 2.04B | 2.09B | 2.2B | 2.26B | 2.3B | 2.32B | 2.34B | 2.37B | 2.4B | 2.44B | 2.47B | 2.48B | 2.44B | 2.41B | 2.3B | 2.28B | 2.28B | 2.33B | 2.36B | 2.34B | 2.37B | 2.41B | 2.57B | 2.58B | 2.63B | 2.62B | 2.74B |
| Basic Shares Outstanding | 1.91B | 1.94B | 2.02B | 2.08B | 2.18B | 2.24B | 2.28B | 2.29B | 2.32B | 2.35B | 2.38B | 2.4B | 2.43B | 2.44B | 2.42B | 2.38B | 2.29B | 2.27B | 2.27B | 2.32B | 2.35B | 2.33B | 2.36B | 2.38B | 2.52B | 2.57B | 2.63B | 2.62B | 2.74B |
| Dividend Payout Ratio | - | 55.91% | 63.85% | 48.86% | 107.92% | 30.67% | 86.56% | 56.64% | 55.24% | 84.32% | 96.47% | 37.36% | 66.7% | 66.48% | 65.05% | 60.04% | 45.8% | 46.92% | 40.82% | 21.75% | 28.56% | 34.37% | 35.34% | 34.98% | 28.93% | 33.06% | 28.63% | 29.06% | - |
U.S. drug pricing legislation
As indicated by the most recent quarterly data, Novartis's revenue growth has decelerated into negative territory at -0.7% in 2026Q1, marking a sharp reversal from the double-digit expansion observed throughout 2025, which suggests that the company's transition to a pure-play innovative medicine model is encountering significant top-line friction.
The shift from 15.3% growth in 2025Q2 to contraction in the most recent quarter implies that the portfolio may be struggling to offset the loss of exclusivity or competitive pressure on legacy assets. Investors should monitor whether this trend reflects a temporary lull in product launches or a more structural inability to sustain momentum without the Sandoz unit's contribution.
Based on reported financial statements, Novartis has maintained a robust gross margin profile, consistently hovering around 74-75% over the last ten quarters, which demonstrates the company's ability to preserve pricing power despite the broader revenue deceleration observed in the most recent fiscal period.
This stability in gross margins suggests that the company's high-value, low-volume precision medicine strategy is successfully insulating the core business from inflationary cost pressures. However, the sustainability of these margins warrants further investigation as the company scales complex manufacturing platforms like radioligand therapies, which may introduce new cost variables.
According to the income statement data, operating margins have fluctuated significantly, dropping to 31.3% in 2026Q1 from a peak of 34.2% in 2025Q1, which suggests that the company is struggling to maintain operational efficiency as revenue growth stalls and fixed costs remain elevated.
The inability to scale operating income in tandem with gross profit indicates that SG&A and R&D expenses are consuming a larger portion of the revenue base. This trend may imply that the company is currently in a high-investment phase, potentially masking underlying profitability improvements through aggressive spending on pipeline development.
As reported in recent filings, net income has shown extreme variability, ranging from a massive $8.5B in 2023Q4 to $2.4B in 2025Q4, which suggests that headline EPS figures are heavily influenced by non-operating items and the ongoing organizational restructuring following the Sandoz spin-off.
The wide gap between net income and operating income in certain periods warrants caution, as it likely reflects one-time gains or charges that do not represent the core earnings power of the business. Analysts should focus on core operating performance rather than bottom-line figures, which appear susceptible to significant accounting noise.
Based on the provided figures, the recent contraction in revenue and the compression of operating margins suggest that the market's valuation may be overly optimistic regarding the company's ability to navigate the upcoming U.S. Medicare price negotiations for its flagship Entresto franchise.
Short-term investors may focus on the potential for margin erosion if pricing power is curtailed by regulatory intervention, which could fundamentally alter the company's long-term cash flow profile. The current reliance on a narrow set of high-value assets makes the company particularly vulnerable to clinical or regulatory setbacks that are not yet fully reflected in the current earnings trajectory.
Quick answers to the most common questions about buying NVS stock.
For fiscal year 2025, Novartis AG (NVS) reported total revenue of $54.81B. This represents a 137.9% increase compared to $23.04B in 1998.
Novartis AG (NVS) is profitable, generating $14.06B in net income for the fiscal year ending 2025 with a net profit margin of 25.6%.
Novartis AG (NVS) reported an operating income of $17.07B, resulting in an operating profit margin of 31.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Novartis AG (NVS) generated $41.12B in gross profit for the year, representing a gross profit margin of 75.0%. This demonstrates the company's core pricing power and production efficiency.