Novartis Raises Operating Income Outlook After Strong Q2 Performance, Initiates $10 Billion Stock Buyback (CORRECTED)

Editor’s Note: The title of the story has been corrected to reflect that the outlook was raised, instead of the erroneous “outlook cut” mentioned in the original title.

Swiss pharmaceutical giant Novartis AG (NYSE:NVS) reported second-quarter 2025 earnings on Thursday and raised its full-year earnings forecast.

Quarterly sales reached $14.05 billion, almost in line with the analysts’ consensus estimate of $14.06 billion.

Net sales grew 12% year over year (+11% on constant currency or cc) with core operating income up 20% to $5.93 billion (+21% on constant currency).

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Sales growth driven by performance from breast cancer treatment, Kisqali ($1.18 billion, +64% cc), Entresto ($2.36 billion, +22% cc), multiple sclerosis drug, Kesimpta ($1.08 billion, +33% cc), Scemblix ($298 million, +79% cc), Leqvio ($298 million, +61% cc), and Pluvicto ($454 million, +30% cc).

Novartis reported adjusted earnings of $2.42 per share, beating the consensus of $2.38.

The company also announced a substantial share buyback program. Novartis said it is initiating a share buyback of up $10 billion to be completed by year-end 2027.

“Our robust balance sheet and confidence in our mid- and long-term growth enable us to initiate an up-to $10 billion share buyback as part of our commitment to balanced capital allocation,” stated CEO Vas Narasimhan in a statement on Thursday.

Earlier in July, Novartis released topline results from the Phase 3 GCAptAIN study evaluating Cosentyx (secukinumab) for newly diagnosed or relapsing giant cell arteritis (GCA).

The study evaluated Cosentyx with a 26-week steroid taper and compared it to a placebo plus a 52-week steroid taper. Cosentyx did not demonstrate a statistically significant improvement in sustained remission at Week 52 compared to placebo.

Outlook

For fiscal year 2025, Novartis reaffirms that net sales will grow in the high single digits. 2025 core operating income is expected to grow in the low teens, compared to the low double digits forecasted earlier.

“We continue to assume Entresto US generic entry in mid-2025 for forecasting purposes, though the timing of generic entry is subject to ongoing IP and regulatory litigation,” Novartis said in the release.

Management Update

In a separate announcement, Novartis provided a key leadership update: Chief Financial Officer Harry Kirsch will retire in March 2026, concluding an impressive 22-year tenure at the company, including 12 years in the CFO role since 2013.

He will be succeeded by Mukul Mehta, who currently serves as the company’s head of business planning and analysis, digital finance, and tax.

Price Action: NVS stock is trading lower by 1.71% to $116.35 during the premarket session at last check Thursday.

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