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 AG (NVS) annual income statement — 28-year revenue, gross profit & net income history
| 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 | 55.63B | 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 % | 0.81% | 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 | 14.22B | 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 | 41.41B | 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 % | 74.44% | 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 | 24.42B | 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 | 13.13B | 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 | 11.28B | 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 | 0 | 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 | 16.99B | 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 | 22.34B | 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 % | 40.15% | 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 % | -1.55% | 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) | 5.34B | 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 | 16.92B | 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 | -1.39B | -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 | 1.39B | 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 | -1.47B | -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 | 15.52B | 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 % | 27.9% | 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 | 2.78B | 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 % | 17.88% | 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 | 12.76B | 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 % | 22.93% | 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 % | -6.55% | 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) | 12.75B | 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 | 404M | 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) | 6.67 | 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 % | -3.35% | 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 | 1.91B | 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% | - |
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.
Key Metrics
Top Statement Risk
Revenue growth deceleration
Growth Momentum Fades
Novartis revenue growth has decelerated sharply from 15.3% in 2025Q2 to -2.8% in 2026Q2, according to reported quarterly figures, signaling a potential loss of commercial momentum.
The double-digit growth seen in mid-2025 has reversed into negative territory, with the latest quarter showing a 2.8% year-over-year decline. This suggests that the drivers of prior growth, possibly including new product launches or pricing, are waning. Investors should monitor whether this is a temporary setback or the start of a sustained slowdown, especially given the competitive landscape in the pharmaceutical industry.
Gross Margin Resilience
Gross margin has remained remarkably stable around 74-77% over the past ten quarters, with 2026Q2 at 74.5%, according to financial statements, indicating strong pricing power and cost control.
Despite revenue fluctuations, gross margin has not deviated significantly, suggesting that Novartis maintains pricing power and efficient production. The slight dip to 74.5% in 2026Q2 from 77.6% in 2025Q2 may reflect product mix shifts or increased input costs, but the overall stability is a positive sign. Compared to peers like Pfizer (70.3%) and Merck (72.0%), Novartis's gross margin is competitive, though below AstraZeneca's 81.9%.
Operating Leverage Stalls
Operating margin compressed from 34.2% in 2025Q1 to 32.8% in 2026Q2, as reported in income statements, indicating that operating income is not scaling with revenue as efficiently as before.
While gross margin has been stable, operating margin has shown more volatility, with a notable drop to 26.4% in 2025Q4. This suggests that SG&A and R&D expenses are not being leveraged effectively during periods of revenue decline. The recent quarters show a recovery but not to the peak levels of early 2025, implying that cost discipline may be slipping or that investments are being made for future growth.
Earnings Volatility Raises Questions
Net income and EPS have swung significantly, with EPS growth ranging from -65.7% in 2024Q4 to +84.7% in 2024Q3, based on reported figures, suggesting non-operating items may be distorting underlying profitability.
The extreme volatility in EPS growth, particularly the -65.7% in 2024Q4, indicates that one-time items, tax effects, or impairments are impacting reported earnings. While operating income has been relatively stable, net income has been erratic, which may concern investors seeking predictable earnings. The absence of stock-based compensation data in some quarters also complicates the assessment of earnings quality.
R&D Investment Intensity
R&D spending has remained consistently around $2.4-2.9 billion per quarter, representing roughly 20% of revenue, as per income statement data, underscoring Novartis's commitment to innovation.
R&D expenses have grown in absolute terms from $2.4B in 2024Q1 to $2.8B in 2026Q2, but as a percentage of revenue, they have stayed in the 18-20% range. This level of investment is typical for a large pharma and is necessary to sustain a pipeline. However, the recent revenue decline may pressure margins if R&D spending continues to rise without corresponding revenue growth.
Growth Sustainability Doubts
The sharp deceleration in revenue growth from 15.3% to -2.8% within four quarters, as reported in financial statements, raises concerns about the durability of Novartis's top-line expansion.
Short-sellers might argue that the company's growth was driven by temporary factors such as patent cliffs or one-time demand spikes, and the recent negative growth indicates a lack of sustainable drivers. Additionally, the operating margin compression in 2025Q4 suggests that cost controls are not sufficient to offset revenue declines. If this trend continues, Novartis could face margin erosion and reduced cash flow, making it less attractive relative to peers like Eli Lilly with 44.7% growth.