Novartis (NOVN.CH) reported disappointing first-quarter results for 2026, with net sales of $13.11 billion falling short of analyst expectations of $13.40 billion, marking a 1% year-over-year decline. Core operating profit also dropped 12% to $4.9 billion, primarily due to the loss of patent exclusivity for key drugs, including Entresto, Promacta, and Tasigna, which collectively resulted in a projected revenue loss of approximately $4 billion for the year.
The market’s reaction was swift, with Novartis shares declining nearly 4%, reflecting investor concerns over the company’s ongoing product portfolio transformation. Despite the weak start, management maintains a cautious optimism, projecting low single-digit growth for the full year and emphasizing potential recovery in the second half, driven by new drug sales. However, the looming threat of U.S. pricing policies adds uncertainty to future earnings.
For market professionals, the key takeaway is the technical breakdown in Novartis shares, with the stock now trading around CHF 111.18, below critical support levels. Investors should monitor the upcoming clinical trial data and the impact of pricing reforms, as these factors will be crucial in determining the stock’s trajectory in the coming months.
Source: xtb.com