Swiss pharma giant Novartis AG (NVS Quick QuoteNVS - Free Report) reported better-than-expected results for the second quarter of 2025 and upped annual guidance for core operating income.

Core earnings (excluding one-time charges) of $2.42 per share easily beat the Zacks Consensus Estimate of $2.38 and were up from $1.97 reported a year ago. The year-over-year improvement was driven by strong growth in sales. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)

Revenues of $14.05 billion climbed 12% from the year-ago reported figure and beat the Zacks Consensus Estimate of $14.04 billion.

On a constant currency basis, sales increased 11%, driven by continued strong performance from Kisqali, Entresto, Kesimpta, Scemblix, Leqvio and Pluvicto.

However, shares are down in pre-market trading, most likely due to the Cosentyx sales miss and the CFO retirement news.

Shares of Novartis have gained 24.5% year to date against the industry’s decline of 0.4%.

Image Source: Zacks Investment Research

Detailed Performance of Top NVS Drugs in Q2

All growth rates mentioned below are on a year-over-year basis and at constant exchange rates.

With the successful spin-off of the Sandoz business in 2023, Novartis now focuses on four core therapeutic areas — cardiovascular-renal-metabolic, immunology, neuroscience and oncology.

Cardiovascular drug Entresto’s sales rose 22% from the year-ago level to $2.36 billion. The growth was driven by the heart failure indication in the United States and Europe, and both heart failure and hypertension indications in China and Japan.

However, Novartis is in litigation with a generic manufacturer and the FDA to protect its Entresto IP and regulatory rights in the United States.

Entresto’s sales comfortably beat the Zacks Consensus Estimate of $2.34 billion and our model estimate of $2.23 billion.

Cosentyx’s sales (psoriasis, spondylitis and arthritis) increased 6% to $1.6 billion, which missed the Zacks Consensus Estimate of $1.7 billion and our model estimate of $1.8 billion. The year-over-year improvement was driven by recent launches, including the hidradenitis suppurativa indication (HS) and the intravenous formulation (IV) in the United States and Europe, and volume growth in core indications.

Kisqali (breast cancer) maintained its stellar performance, with sales surging 64% to $1.2 billion.  Sales grew strongly across all regions, driven by exemplary growth in the United States with strong momentum from the recently launched early breast cancer (eBC) indication as well as continued share gains in the metastatic breast cancer indication.  

Kisqali sales beat both the Zacks Consensus Estimate and our model estimate of $1.1 billion.

Kesimpta (multiple sclerosis) sales totaled $1.1 billion, which rose 33% on increased demand and strong access. The figure beat both the Zacks Consensus Estimate and our model estimate of $1 billion.

Strong performances by Tafinlar + Mekinist (up 7% to $573 million) and Jakavi (up 8% to $524 million) also boosted the top line.

However, Promacta sales were down 9% to $502 million due to discontinued promotion in most markets and recent generic entry in the United States in May 2025.

Xolair (asthma and allergies) sales grew 2% to $443 million. Sales grew slightly, driven by the chronic spontaneous urticaria indication.  Novartis has a collaboration agreement with Roche (RHHBY Quick QuoteRHHBY - Free Report) for Xolair. Novartis and Roche co-promote Xolair in the United States.

Ilaris sales amounted to $477 million, which increased 27% year over year, driven by growth in all regions led by the United States and Europe. Strong performance in the Periodic Fever Syndromes and Still’s disease indications also contributed to this growth.

Tasigna sales plunged 27% to $327 million due to lower demand and increasing competition, including the recent generic entry in the United States in May 2025.

Pluvicto (prostate cancer) raked in sales of $454 million, up 30% on encouraging demand uptake in the United States following the pre-taxane metastatic castration-resistant prostate cancer (mCRPC) approval, as well as expansion in the post-taxane mCRPC setting outside the country. Sales beat both the Zacks Consensus Estimate and our estimate of $410 million.

The FDA’s approval for earlier use of the drug before chemotherapy has approximately tripled the eligible patient population.

Cholesterol drug Leqvio sales soared 61% to $298 million on steady growth in demand, with a focus on increasing accounts and patient adoption. The figure beat the Zacks Consensus Estimate of $284 million and our estimate of $282.2 million.

Gene-therapy Zolgensma (spinal muscular atrophy) sales of $297 million were down 17% due to a lower incidence of spinal muscular atrophy compared to the prior year, even though demand remained robust.

Scemblix sales surged 79% to $238 million, driven by continued growth in chronic myeloid leukemia indication and strong momentum from the recently launched early-line indication in the United States.

Luthathera (cancer) sales totaled $207 million, up 17%. Sales grew mainly in the United States, Europe and Japan due to increased demand and earlier line adoption, particularly in the United States and Japan.

Sales of Lucentis plunged 39% to $173 million due to generic competition.

Fabhalta generated sales of $120 million, driven by continued launch execution across all markets in PNH and the recent launch in primary IgA nephropathy (IgAN) in the United States.

Raised 2025 Guidance for Operating Income

Net sales are expected to grow in high single digits (unchanged). Core operating income is now anticipated to grow in the low teens (previous guidance: low double digits).

Key Updates From NVS

The FDA granted accelerated approval to Vanrafia for the reduction of proteinuria in adults with primary IgAN at risk of rapid disease progression.

Regulatory submissions for OAV101 IT in patients with SMA were completed in the United States and the EU.
Novartis initiated a share buyback plan of $10 billion, expected to be completed by 2027.

NVS CFO Retires

Novartis announced that Harry Kirsch, who has served as its chief financial officer (CFO) since 2013 will retire from the company.

NVS has appointed Mukul Mehta as the new CFO. Harry will continue his role as CFO until March 15, 2026.

Our Take on NVS Q2 Performance

Novartis’ performance was strong, with both earnings and sales beating estimates. Management also raised its guidance for 2025 operating income.

Novartis AG Price, Consensus and EPS Surprise

Novartis AG price-consensus-eps-surprise-chart | Novartis AG Quote

The company’s performance has been strong in the past few quarters, driven by the solid performance of its key brands.

The pipeline progress is also encouraging. The label expansion of Pluvicto and Fabhalta should further fuel sales of these drugs.  Approval of new drugs and label expansion of existing drugs should enable the company to offset the adverse impacts of generic competition for Tasigna and Promacta.

However, the litigation for a generic drug of Entresto is a headwind.

While organic growth continues to drive business, NVS is focused on strategic acquisitions to strengthen its pipeline. In June 2025, Novartis acquired Regulus Therapeutics Inc., a clinical-stage biopharmaceutical company, for an upfront payment of $0.8 billion. The latter may receive an additional $0.9 billion upon attaining a future regulatory milestone.

The probable imposition of tariffs in the United States is a headwind as well. NVS had earlier announced a $23 billion investment over five years in U.S.-based infrastructure as it intends to manufacture all key drugs in the country. NVS' decision to expand its current manufacturing, research and technology presence across the country follows President Trump's announcement of tariffs on pharmaceutical imports.

NVS’ Zacks Rank and Stocks to Consider

Novartis currently carries a Zacks Rank #2 (Buy). A couple of other top-ranked large-cap pharmaceutical stocks are Bayer (BAYRY Quick QuoteBAYRY - Free Report) and Johnson & Johnson (JNJ Quick QuoteJNJ - Free Report) , both carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

BAYRY’s 2025 EPS estimate has increased from $1.19 to $1.30 for 2025 over the past 90 days, while that for 2026 has gone up from $1.28 to $1.35 over the same timeframe. Year to date, shares of Bayer have surged 65.2%.

BAYRY’s earnings beat estimates in one of the trailing four quarters, matched twice and missed on the remaining occasion, the average negative surprise being 13.91%.

J&J’s EPS estimate for 2025 has risen from $10.60 to $10.66 over the past 60 days, while that for 2026 has increased from $10.98 to $11.13 over the same timeframe.