Research · Sep 3, 2026
[NVS] Novartis Thesis 2026: Margin Target Reached Two Years Ahead of Schedule
Novartis FY25 (Dec 31, 2025) at $54.81B net sales (+8% reported / +9% cc). Priority brands: Kisqali $4.8B (+57%), Kesimpta $4.4B (+36%), Pluvicto $2B+ (+42% Q4), Leqvio (+57% FY), Scemblix (+87% Q4), Cosentyx $6.7B (+8%). Core OpMargin 40.1% (2 years ahead of plan); core OpInc +14%. Net income $14.06B; Diluted EPS $7.19. OCF $19.24B; FCF ~$17.69B (+28% YoY). Capital return $17.12B (div $7.86B + buyback $9.26B). Total debt $37.0B. Avidity acquisition raises 2024-2029 sales CAGR 5%→6%. Itvisma (gene therapy) FDA approved; potential $3B+ peak. ADR program terminated; ordinary shares NYSE from Dec 8 2025. 2026 guide: 20 Phase 3 readouts expected. Morgan Stanley $143→$170 (March 26).