Novartis AG (NYSE:NVS) reported strong third-quarter 2025 results on Tuesday, with higher sales and earnings supported by robust demand for its key therapies and advances in late-stage research programs. The Swiss pharmaceutical giant also reaffirmed its full-year outlook.
Operating income climbed 27% at constant exchange rates to $4.5 billion, fueled by higher revenue and fewer impairments, partially offset by increased spending on R&D. Net income rose 25% to $3.9 billion, while earnings per share reached $2.04, marking a 31% jump year-on-year at constant currency.
Net sales increased 8% to $13.9 billion (7% at constant currency), reflecting continued strength in oncology, neurology and immunology treatments. Core operating income rose 7% at constant rates to $5.5 billion, maintaining a healthy 39.3% margin, while free cash flow grew 4% to $6.2 billion.
“Novartis delivered solid financial performance in Q3, more than offsetting the impact of increasing generic erosion in the US,” said chief executive Vas Narasimhan in a statement.
“Our key growth drivers performed well, including Kisqali, Kesimpta, Pluvicto and Scemblix. We remain well on track to achieve our guidance for 2025 and over the mid-term.”
For the first nine months of 2025, net sales reached $41.2 billion, up 11% in both reported and constant currency. Operating income surged 31% to $14 billion, while net income advanced 29% to $11.6 billion. Core operating income totaled $17 billion, up 18%, and free cash flow rose 26% to $15.9 billion.
Product momentum remained a key growth driver:
- Breast cancer drug Kisqali jumped 68% to $1.33 billion, with a 91% surge in U.S. sales.
- Multiple sclerosis therapy Kesimpta climbed 44% to $1.22 billion.
- Radioligand treatment Pluvicto rose 45% to $564 million.
- Leukemia drug Scemblix advanced 95% to $358 million.
- Cholesterol therapy Leqvio gained 54% to $308 million.
- Fabhalta, used for rare kidney and blood disorders, surged 236% to $149 million.
- Autoimmune treatment Cosentyx remained stable at $1.7 billion.
Novartis continued expanding its pipeline, striking a deal to acquire Tourmaline Bio, a developer of an anti-IL-6 antibody for cardiovascular disease. It also deepened research collaborations with Monte Rosa Therapeutics, Argo Biopharma and Arrowhead Pharmaceuticals to strengthen its immunology and RNA therapy portfolio.
On the capital side, the company completed a $15 billion share buyback and initiated a new $10 billion program, repurchasing 66.4 million shares for $7.5 billion during the period. Net debt rose to $20.4 billion as of September 30, 2025, from $16.1 billion at the end of 2024, due to dividends, buybacks and acquisitions.
The pharmaceutical group reiterated its 2025 guidance, expecting net sales to increase at a high single-digit rate and core operating income to grow in the low teens. It also noted that foreign exchange effects are anticipated to be neutral to slightly positive for sales and a 2 percentage point headwind on core operating income if current currency trends persist.