Novartis Raises 2026 Core Operating Income Outlook Amid Drug-Trial Setback

On October 27, 2026, Novartis AG upgraded its full-year 2026 core operating income outlook from a low-single-digit decline to flat-to-low-single-digit growth. The change followed Q3 results showing a 4 % rise in net sales to $14.522 billion and an 11 % increase in core operating income to $6.036 billion. Reported operating income fell $1.843 billion (-61 %) and net income dropped 70 % to $1.196 billion after a $1.9 billion partial impairment on the del-desiran asset when the Phase III HARBOR study missed its primary endpoint in myotonic dystrophy type 1.

Novartis Raises 2026 Core Operating Income Outlook After Q3 Core EPS Rises 9%

The del-desiran program came from Novartis’ $12 billion acquisition of Avidity in 2025, which added three antibody-oligonucleotide conjugates. A separate September setback involved the heart-drug pelacarsen, written off with a $300 million charge. Both losses occurred as generic competition eroded legacy sales, increasing reliance on priority brands such as Kisqali, Kesimpta and Scemblix.

The Irish Times

Chief Executive Vas Narasimhan said the del-desiran result was “part of drug development” and rejected calls to change the acquisition strategy. He credited productivity gains and strong sales of cancer and multiple-sclerosis drugs for the guidance upgrade and noted upcoming discussions with the FDA on the del-brax program.

Times of South Africa

• “We don’t need to change our M&A strategy,” — Vas Narasimhan

Times of South Africa

• “Combined with productivity efforts, this drove strong bottom-line performance and allowed us to upgrade our full-year guidance,” — Vas Narasimhan

Novartis Raises 2026 Core Operating Income Outlook After Q3 Core EPS Rises 9%

• “Novartis delivered solid sales growth in Q3, as priority brands and launches more than offset generic erosion, demonstrating the replacement power of the business,” — Vas Narasimhan

Novartis Raises FY Core Operating Income Guidance as Q3 Sales Rise 4%

The upgrade shows confidence that core profitability can grow despite one-off impairment charges. Analysts note the split between core and reported results highlights the volatility of late-stage development. The company’s cash-flow capacity to fund $2 billion-scale acquisitions suggests continued reliance on M&A for pipeline replenishment.

Novartis Q3FY26 Results: Core op income up 10%, guidance raised

• Operating-income decline is reported as 61 % by some outlets and 59 % by others.

Novartis Raises FY Core Operating Income Guidance as Q3 Sales Rise 4%

• The timing of the del-desiran impairment is described as a “partial impairment booked on Tuesday” (Oct 27) in some reports, while other sources link it to “September-month setbacks.”

Novartis raises core profit outlook despite $1.9 billion impairment

• February 3, 2027: Fourth-quarter and full-year 2026 results.

Novartis Raises FY Core Operating Income Guidance as Q3 Sales Rise 4%

• March 5, 2027: Annual General Meeting.

Novartis Raises FY Core Operating Income Guidance as Q3 Sales Rise 4%

• November 18-19, 2026: Meet Novartis Management 2026 event in London.

Novartis Raises FY Core Operating Income Guidance as Q3 Sales Rise 4%

These dates will let investors assess whether the upgraded core outlook translates into sustained profitability and cash generation.

Novartis Stocks Gain With Higher Guidance but Weaker Cash Generation