Novartis Lifts 2026 Core Operating Income Guidance as Q3 Sales Rise 4%

Novartis raised its full-year 2026 core operating income guidance to in-line to low-single-digit growth, up from a previously projected low-single-digit decline, after delivering 4% net sales growth in the third quarter. The Motley Fool reported the guidance change from the company's October 27, 2026 earnings call.

Novartis Lifts Guidance on Priority Brand Sales

Novartis is a Swiss-headquartered pharmaceutical company that researches, develops and commercializes prescription medicines across oncology, immunology, cardiovascular and renal, and neuroscience, serving patients in more than 50 countries.

Chief Financial Officer Mukul Mehta said on the call: "We now expect for the full year 2026, core operating income to be in line to growing low single digit. For reference, this is an upgrade from the previous guidance of core operating income of low single digit decline for the full year."

Robert Kowalski, President of Development, said the company is "upgrading our peak sales guidance for Rhapsido in CSU and CIndU combined to over $4 billion." Rhapsido is being developed for skin conditions including chronic spontaneous urticaria, where hives appear without clear triggers.

Mehta said SG&A expenses were 7% lower in the third quarter than a year earlier while sales grew 4%. Novartis targets a 40% core operating margin by 2029.

Chief Executive Officer Vasant Narasimhan said: "We delivered strong growth in the quarter driven by our priority brands and launches." Narasimhan also said the company has grown its dividend in Swiss francs every year for almost 30 years.

Novartis Funding and Deal Records

According to akta.pro company records, Novartis has three funding rounds on record, including a $2 billion post-IPO debt round in May 2026 and a $2.5 billion post-IPO debt round in June 2024. The same records list total funding of $4.5 billion and a valuation estimate of $25 billion or more.

Novartis's Recent Quarter in Context

Deutsche Bank downgraded Novartis to Sell from Hold in a Q3 2026 review, cutting its price target to CHF115 from CHF120, TradingView reported. The analyst cited a $2.2 billion charge for experimental drugs and a patent cliff for Kisqali in 2031.

DZ Bank initiated coverage on Novartis with a hold rating, MarketBeat reported. Novartis reported Q3 EPS of $2.46, beating estimates of $2.25, on revenue of $15.03 billion, up 4.4% year over year.

Novartis's pelacarsen trial failed to reduce heart attack and stroke risk despite lowering Lp(a) by 80%, Devdiscourse reported. The trial results will be presented at the AHA meeting.

What Comes Next for Novartis

Novartis said it targets a 40% core operating margin by 2029. The pelacarsen trial results will be presented at the AHA meeting.