Novartis (Novartis), a leading pharmaceutical company, reported strong results for the second quarter of 2025, with double-digit sales growth and core margin expansion. The financial reports, released on July 17, 2025, highlight the company’s positive momentum, which is supported by strong performance from key brands and significant progress in the innovative product pipeline. Novartis also raised its core earnings guidance for the 2025 fiscal year, reflecting management’s confidence in the future growth trajectory.

Financial Overview: Double-Digit Growth and Improved Margins

Novartis presented impressive sales figures in the second quarter of 2025, with an 11% increase in constant currencies compared to the same quarter in 2024. Total sales surged from $12.5 billion in Q2 2024 to $14.1 billion in Q2 2025. At the same time, core operating income jumped by 21% in constant currencies, from $5.0 billion in Q2 2024 to $5.9 billion in Q2 2025. This led to an expansion of core operating margins to 42.2%, a 340 basis point increase from the previous year.

Looking at the first half of 2025, the positive trend continues. Total sales reached $27.287 billion, an increase of 13% in constant currencies compared to the first half of 2024 ($24.341 billion). Core operating income for the first half of 2025 stood at $11.500 billion, a 24% increase in constant currencies from $9.490 billion in the same period last year. Core margins for the first half of 2025 expanded to 42.1%, an increase of 3.7 percentage points. Another key figure is free cash flow, which grew significantly by 46% in the first half of 2025, reaching $9.7 billion compared to $6.7 billion in the first half of 2024. This strong cash flow enables the company to invest in its core businesses and return capital to shareholders.

Priority Brands Drive Strong Growth

Novartis’s priority brands continued to be a significant growth driver in the second quarter of 2025, which demonstrates the company’s portfolio replacement power. Among the standout brands are: Kisqali (ribociclib), with 64% growth in constant currencies, reaching sales of $1,177 million. The growth was driven by a 100% increase in the US in the second quarter, and the achievement of leadership in new-to-brand prescriptions (NBRx) in metastatic breast cancer (mBC) and strong momentum in early breast cancer (eBC). Entresto (sacubitril/valsartan) showed a 22% increase in constant currencies, with sales of $2,357 million. The consistent performance of Entresto contributed significantly to the overall results. Kesimpta (ofatumumab) grew by 33% in constant currencies, amounting to $1,077 million in sales. This growth is fueled by continued strong demand and improved access to treatment. Scemblix (asciminib) surged by 79% in constant currencies, reaching $298 million. The drug is on track to become a “blockbuster” in 2025, with strong momentum in early treatment lines and global leadership in advanced chronic myeloid leukemia (CML). Pluvicto grew by 30% in constant currencies, with sales of $454 million. The drug shows promising progress since its pre-taxane indication approval in the US. Leqvio rose by 61% in constant currencies, with sales of $298 million. The drug is on track to achieve “blockbuster” status in 2025.

Strategic Investments and Capital Returns to Shareholders

Novartis continues its capital allocation policy, combining investments in core businesses with returns to shareholders. The company continues to invest in research and development (R&D) and capital expenditures (CapEx). In addition, Novartis made value-creating bolt-on acquisitions, such as the acquisition of Regulus Therapeutics.

Simultaneously, Novartis consistently returns capital to its shareholders. An annual dividend of $7.8 billion was paid in the first half of 2025. Furthermore, a share buyback program of $15 billion was completed in July 2025, and Novartis initiated a new share buyback program of up to $10 billion, which is expected to be completed by the end of 2027.

Updated Guidance for Fiscal Year 2025

Based on the strong performance in the second quarter, Novartis raised its core operating income guidance for fiscal year 2025. The company now expects core operating income to grow at a low-teens percentage in constant currencies, up from its previous low double-digit growth forecast. The net sales forecast remains at a high single-digit rate of growth. The key assumption in this guidance includes the potential entry of a generic version of Entresto in the US in mid-2025, although the timing remains subject to ongoing legal and regulatory proceedings.

Summary from Novartis CEO, Vas Narasimhan, M.D.

“Novartis delivered a strong Q2, with double-digit sales growth and core margin expansion,” said Vas Narasimhan, M.D., CEO of Novartis. “Our key launches are accelerating with consistent strong execution. We continued to advance our pipeline, reaching milestones for both late-stage and emerging assets. We upgraded our FY 2025 bottom-line guidance and remain confident in our mid- to long-term growth outlook.”