Novartis AG ADR

Novartis closed out 2025 with a fourth-quarter earnings beat that masked a tale of two portfolios, as next-generation growth drivers more than offset deepening erosion in its legacy lineup. The Swiss drugmaker posted Q4 core EPS of $2.03, edging past the $2.00 consensus by 1.50%, while revenue of $13.34 billion topped estimates by 4.15%, even as reported sales dipped 1.6% year-over-year. The central story was the accelerating generics drag on Entresto, which plunged 43% to $1.25 billion following U.S. generic entry in Q3, while Promacta and Tasigna fell 61% and 56% respectively. Offsetting those pressures, Kisqali surged 46% to $1.32 billion and Pluvicto delivered 72% growth to $605 million on the strength of its pre-taxane mCRPC approval. Looking ahead, Novartis has initiated a new $10 billion buyback program and proposed a dividend of CHF 3.70 per share, with the pending $12 billion acquisition of Avidity Biosciences, expected to close in H1 2026, set to deepen its RNA therapeutics capabilities. Analysts remain broadly constructive on the name, with several major banks maintaining buy-equivalent ratings following the print.