Novartis Lifts 2026 Profit Outlook Despite Trial-Related Write-Down
Novartis raised its 2026 core profit outlook as third-quarter operating profit beat estimates, though a $1.9 billion write-down cut net income sharply.
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what happened
According to Dow Jones Newswires, the Swiss drugmaker now expects core operating profit for 2026 to grow by a low single-digit percentage at constant currency. Previously it had forecast a decline. Chief Executive Vas Narasimhan said the company's priority brands and new launches had more than offset falling generic sales, calling it "solid sales growth" that shows the business can replace lost revenue.
Third-quarter net profit fell to $1.20 billion from $3.93 billion a year earlier, weighed down by a $1.9 billion write-down on neuromuscular candidate del-desiran after it failed a late-stage trial. Excluding one-off items, core operating profit rose 10% at constant currency to $6.04 billion, above the $5.61 billion analysts expected in the Visible Alpha consensus. Sales climbed 4% to $14.52 billion.
Full-year sales are still seen rising at a modest low-single-digit pace, adjusted for currency moves.
why it matters
The mix of a profit beat and a large one-off charge leaves investors weighing near-term earnings against pipeline setbacks. For the pharmaceutical sector and Swiss equities, the update suggests established products can offset generic pressure, while failed late-stage trials remain a key risk to valuation. The market reaction may hinge on how the company frames the rest of its pipeline.
market impact
Novartis and Swiss pharma stocks: the core profit beat and higher guidance support sentiment, while the write-down weighs on net income.
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instruments
sources
- Novartis Raises Guidance After Trial Setbacks Hit Profit — Dow Jones Newswires, 27 October 2026 at 06:24 UTC
- Novartis Raises Guidance After Trial Setbacks Hit Profit — Dow Jones Newswires, 27 October 2026 at 06:39 UTC
- Novartis raises core profit guidance, books $1.9 billion hit from drug trial setback — Reuters, 27 October 2026 at 06:52 UTC
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