Novartis AG's Net Income Falls 16.5% in Q2 2025

Novartis AG reported its financial results for Q2 2025, with revenues reaching $13.88 billion, a decrease of 0.3% compared to Q2 2024. Net income for the quarter stood at $2.32 billion, marking a significant decline of 16.5% from the prior year's period. The company's revenue missed the analyst estimate of $13.93 billion, while the net income translated to an EPS of $1.11, missing the analyst estimate of $2.38.

Revenue Performance Across Segments

Net sales were impacted by negative foreign exchange movements of 4 percentage points. Innovative Medicines sales were $11.4 billion, a decrease of 1% in constant currencies, primarily due to the loss of exclusivity for Xolair in the US.

Sandoz Performance

Sandoz net sales were $2.4 billion, an increase of 2% in constant currencies. This growth was driven by continued strong performance of biosimilars, which saw sales of $0.6 billion.

Management Outlook

Novartis reiterates its full-year 2025 guidance. Net sales are expected to grow low single digit in constant currencies, and core operating income is projected to grow mid single digit in constant currencies.