Novartis

NVS Q1 2025 Earnings

Reported Apr 29, 2025 at 6:01 AM ET · SEC Source

Q1 25 EPS

$2.28

BEAT +4.95%

Est. $2.17

Q1 25 Revenue

$13.23B

BEAT +1.40%

Est. $13.05B

vs S&P Since Q1 25

+6.9%

BEATING MARKET

NVS +39.2% vs S&P +32.3%

Market Reaction

Did NVS Beat Earnings? Q1 2025 Results

Novartis opened 2025 with a notably strong first quarter, posting core earnings per share of $2.28 against a consensus estimate of $2.17, a beat of 4.95%, while revenue of $13.23 billion topped expectations by 1.40% and rose 9.2% year over year. The … Read more Novartis opened 2025 with a notably strong first quarter, posting core earnings per share of $2.28 against a consensus estimate of $2.17, a beat of 4.95%, while revenue of $13.23 billion topped expectations by 1.40% and rose 9.2% year over year. The Swiss drugmaker's results were powered by broad-based volume growth across its key brands, with five franchise products collectively driving the quarter's momentum. Kisqali stood out as the sharpest accelerant, with the breast cancer therapy generating $956 million in sales, up 52% year over year, including an 87% surge in the US market following its early breast cancer indication launch. Operating income climbed 38% to $4.66 billion, expanding the operating margin to 35.2% from 28.5% a year earlier, a reflection of operating leverage across cost and spending lines. Free cash flow improved 66% to $3.39 billion, underscoring the company's strong cash conversion even as net debt rose to $22.30 billion amid significant capital returns to shareholders.

Key Takeaways

  • Volume growth contributing 15 percentage points to net sales growth
  • Strong US performance with 24% sales growth to USD 5.7 billion
  • Kisqali momentum from HR+/HER2- early breast cancer launch and metastatic breast cancer share gains, +87% US growth
  • Entresto sustained demand-led growth in heart failure and hypertension
  • Kesimpta strong demand growth with over 135,000 patients treated across 90 countries
  • Scemblix 75% growth driven by high unmet need in CML and early-line US adoption
  • Operating margin expansion of 6.7 percentage points to 35.2% through operational leverage
  • Lower weighted average shares outstanding benefiting EPS growth
  • China sales grew 17% (19% cc) to USD 1.2 billion
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NVS YoY Financials

Q1 2025 vs Q1 2024, source: SEC Filings

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NVS Revenue by Segment

With YoY comparisons, source: SEC Filings

Q4 24 Q1 26
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NVS Revenue by Geography

With YoY comparisons, source: SEC Filings

Q4 24 Q1 26