Novartis AG ADR

Novartis delivered a mixed first quarter for 2026, posting earnings per share of $1.99 on revenue of $13.11 billion as robust growth from newer therapies failed to fully offset steep declines across legacy franchises hit by generic competition. Net sales slipped 1% in USD and 5% in constant currencies year-over-year, with the quarter's defining tension laid bare in the stark contrast between old and new: Entresto tumbled 42% to $1.30 billion following US generic entry, while Kisqali surged 59% to $1.52 billion and Pluvicto climbed 73% to $642 million on strong demand in pre-taxane mCRPC. Core operating margin contracted 4.8 percentage points to 37.3%, reflecting both the revenue headwinds and elevated R&D costs tied to the $12 billion Avidity Biosciences acquisition that closed in February, a deal that pushed net debt sharply higher to $38.09 billion. Free cash flow held broadly stable at $3.33 billion, offering some reassurance that the business retains meaningful underlying financial resilience despite the earnings pressure.