Sandoz trims 2026 sales growth view but raises margin target

what happened

According to Reuters, Swiss generic drugmaker Sandoz now expects 2026 sales to rise 5-6% at constant exchange rates, below its earlier mid-to-high single-digit forecast. The company pointed to temporary shortages of biosimilar supply that weighed on the third quarter.

At the same time, it raised its core EBITDA margin guidance to 23-23.5% for 2026, up from 21.7% recorded in 2025. Third-quarter net sales reached $2.94 billion, short of the $3.01 billion consensus compiled by Vara Research. The biosimilars unit brought in $998 million, up 17% at constant rates but below the $1.02 billion analysts had penciled in.

Management said Germany proved tougher than expected, while North America led the quarter. Sandoz does not expect a meaningful contribution from its generic semaglutide launch this year, although it has approvals in Brazil and Canada. In March the company also asked the European Commission to act on Chinese amoxicillin API imports, which it says distort the market.

why it matters

For generics makers, sales growth and margins often move apart. A lower revenue outlook paired with a higher margin target suggests cost control is offsetting softer demand. Investors will watch whether biosimilar sales recover and whether the EU responds to the complaint over Chinese ingredients.

market impact

Sandoz shares: weaker sales outlook offset by higher margin target, mixed pressure

• ↔Sandoz shares mixed — lower sales guidance weighs, while the higher margin target supports the stock

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