Novartis (NVS) Q3 2025 Core EPS Climbs 9% on Strong Sales, Reaffirms FY25 Outlook

Novartis AG (NVS.US) reported solid financial performance for Q3 2025, with core EPS increasing by 9% to USD 2.25, exceeding the analyst estimate of USD 2.26. Net sales grew 8% (7% constant currency) year-over-year to USD 13.9 billion, slightly above the analyst estimate of USD 13.85 billion. This growth was primarily driven by strong execution across its priority brands, despite increasing generic competition.

Strong Performance of Key Brands

The company's key growth drivers, including Kisqali, Kesimpta, Pluvicto, and Scemblix, delivered robust sales increases. Kisqali sales surged 68% in constant currency, driven by strong momentum from the recently launched early breast cancer indication and continued share gains in metastatic breast cancer.

Kesimpta saw sales grow 44% in constant currency across all regions due to increased demand and strong access, while Pluvicto reported a 45% constant currency sales increase, benefiting from sustained demand in the US following pre-taxane metastatic castration-resistant prostate cancer approval. Scemblix sales nearly doubled with a 95% constant currency increase, highlighting the unmet need in Chronic Myeloid Leukemia (CML) and strong momentum from its early-line indication in the US and Japan.

Innovation Milestones and Pipeline Progress

Novartis achieved significant innovation milestones during the quarter, including FDA approval for Rhapsido (remibrutinib) as the first oral, targeted BTK inhibitor for Chronic Spontaneous Urticaria (CSU). Additionally, ianalumab showed positive replicate Phase III readouts in Sjogren’s disease, with plans for global health authority submissions.

Other notable advancements include positive Phase III data for Pluvicto in PSMAddition and a positive CHMP opinion for Scemblix across all lines of CML treatment. Cosentyx also delivered a positive Phase III readout in Polymyalgia Rheumatica, reinforcing its potential for an expanded indication.

Management Reaffirms Full-Year Guidance

CEO Vas Narasimhan highlighted the solid financial performance, which successfully offset the impact of increasing generic erosion in the US. He underscored the continued strong performance of key growth drivers and the importance of recent FDA approvals and positive Phase III readouts for future growth.

Novartis reaffirmed its full-year 2025 guidance, expecting high single-digit sales growth and low-teens growth in core operating income. The company remains on track to achieve its mid-term objectives, bolstered by its robust pipeline and strategic acquisitions in core therapeutic areas.