Novartis Second Quarter and Half Year 2026 Condensed Interim Financial Report – Supplementary Data
INDEX Page
OPERATING PERFORMANCE REVIEW 3
CASH FLOW AND BALANCE SHEET 11
INNOVATION REVIEW 15
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS
Consolidated income statements 17
Consolidated statements of comprehensive income 19
Consolidated balance sheets 20
Consolidated statements of changes in equity 21
Consolidated statements of cash flows 23
Notes to condensed interim consolidated financial statements 25
SUPPLEMENTARY INFORMATION 43
CORE RESULTS – Reconciliation from IFRS® Accounting Standards results to non-IFRS measure core results 45
NON-IFRS MEASURE FREE CASH FLOW 48
ADDITIONAL INFORMATION
Net debt 50
Share information 50
Effects of currency fluctuations 51
DISCLAIMER 52
Operating performance review
Key figures
Second quarter and half year
(USD millions unless indicated otherwise)
Q2 2026
USD m
Q2 2025
USD m
% change
USD
% change
cc1
H1 2026
USD m
H1 2025
USD m
% change
USD
% change
cc1
Net sales to third parties
14 408
14 054
3
1
27 521
27 287
1
-2
Other revenues
543
782
-31
-31
954
1 169
-18
-19
Cost of goods sold
-3 710
-3 322
-12
-10
-7 169
-6 549
-9
-6
Gross profit
11 241
11 514
-2
-3
21 306
21 907
-3
-5
Selling, general and administration
-3 241
-3 442
6
7
-6 381
-6 500
2
4
Research and development
-2 847
-2 727
-4
-3
-5 587
-5 093
-10
-6
Other income
410
548
-25
-25
888
774
15
10
Other expense
-813
-1 029
21
22
-1 241
-1 561
20
23
Operating income
4 750
4 864
-2
-3
8 985
9 527
-6
-7
% of net sales
33.0
34.6
32.6
34.9
Loss from associated companies
-2
-3
33
48
-5
-6
17
26
Interest expense
-462
-289
-60
-64
-805
-559
-44
-46
Other financial income and expense
-17
-41
nm
nm
-67
-24
nm
nm
Income before taxes
4 269
4 531
-6
-6
8 108
8 938
-9
-10
Income taxes
-1 012
-507
-100
-98
-1 695
-1 305
-30
-29
Net income
3 257
4 024
-19
-19
6 413
7 633
-16
-17
Basic earnings per share (USD)
1.71
2.07
-17
-18
3.37
3.91
-14
-15
Net cash flows from operating activities
5 882
6 664
-12
9 558
10 309
-7
Non-IFRS measures 1
Free cash flow
5 561
6 333
-12
8 891
9 724
-9
Core operating income
5 940
5 925
0
0
10 837
11 500
-6
-7
% of net sales
41.2
42.2
39.4
42.1
Core net income
4 578
4 710
-3
-4
8 372
9 192
-9
-10
Core basic earnings per share (USD)
2.41
2.42
0
-1
4.39
4.69
-6
-8
1 Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 43. Unless otherwise noted, all growth rates in this release refer to same period in prior-year.
nm = not meaningful
Strategy
Our focus
Novartis is a “pure-play” innovative medicines company. We have a clear focus on four core therapeutic areas (cardiovascular-renal-metabolic, immunology, neuroscience and oncology), with multiple significant in-market and pipeline assets in each of these areas, that address high disease burden and have substantial growth potential. In addition to two established technology platforms (chemistry and biotherapeutics), three emerging platforms (gene & cell therapy, radioligand therapy and xRNA) are being prioritized for continued investment into new R&D capabilities and manufacturing scale. Geographically, we are focused on growing in our priority geographies – the US, China, Germany and Japan.
Our priorities
1. Accelerate growth: Renewed attention to deliver high-value medicines (NMEs) and focus on launch excellence, with a rich pipeline across our core therapeutic areas.
2. Deliver returns: Continuing to embed operational excellence and deliver improved financials. Novartis remains disciplined and shareholder-focused in our approach to capital allocation, with substantial cash generation and a strong capital structure supporting continued flexibility.
3. Strengthen foundations: Unleashing the power of our people, scaling data science and technology and continuing to build trust with society.
Financials
Second quarter
Net sales
Net sales were USD 14.4 billion (+3%, +1% cc), with volume growth contributing 18 percentage points, offset by 14 percentage points from generic competition. Pricing had a negative impact of 3 percentage points, and currency had a positive impact of 2 percentage points. By region, sales in the US were USD 6.0 billion (-5%) and sales in the rest of the world were USD 8.5 billion (+8%, +6% cc).
Sales growth was driven by continued strong performance from Kisqali (USD 1.7 billion, +44%, +43% cc), Kesimpta (USD 1.4 billion, +32%, +32% cc), Scemblix (USD 562 million, +89%, +89% cc), Pluvicto (USD 651 million, +43%, +43% cc) and Leqvio (USD 480 million, +61%, +59% cc), offset by generic competition, mainly Entresto (USD 1.2 billion, -50%, -51% cc).
In the US (USD 6.0 billion, -5%), strong growth from Kisqali, Kesimpta, Scemblix, Cosentyx and Pluvicto was more than offset by generic competition, mainly Entresto and Promacta. In Europe (USD 4.4 billion, +6%, +4% cc), sales grew driven by Kisqali, Kesimpta and Leqvio, partly offset by generic competition, mainly Promacta. Sales in emerging growth markets were USD 3.9 billion (+10%, +6% cc), including USD 1.2 billion of sales from China (+12%, +6% cc).
Operating income
Gross profit was USD 11.2 billion (-2%, -3% cc), mainly due to a prior-year royalty settlement income and unfavorable product mix.
SG&A expenses were USD 3.2 billion (+6%, +7% cc)1, driven by productivity.
R&D expenses were USD 2.8 billion (-4%, -3% cc), mainly due to investments in recently acquired assets.
Other income was USD 0.4 billion (-25%, -25% cc), decreasing mainly due to lower government grant income.
Other expense was USD 0.8 billion (+21%, +22% cc), decreasing mainly due to lower legal related costs.
1 For ease of understanding, Novartis uses a sign convention for its growth rates such that a reduction in operating expenses or losses compared with the prior year is shown as a positive growth.
Operating income was USD 4.8 billion (-2%, -3% cc), declining mainly due to lower gross profit, partly offset by lower SG&A expenses. Operating income margin was 33.0% of net sales, decreasing 1.6 percentage points (1.3 percentage points in cc).
Core adjustments were USD 1.2 billion, mainly due to amortization, compared with USD 1.1 billion in the prior-year quarter. Core adjustments increased mainly due to higher restructuring and higher impairments, partly offset by lower legal related costs.
Core gross profit was USD 12.0 billion (0%, -1% cc), as higher revenues were offset by unfavorable product mix.
Core SG&A expenses were USD 3.2 billion (+6%, +7% cc), driven by productivity.
Core R&D expenses were USD 2.7 billion (-4%, -2% cc), due to investments in recently acquired assets.
Core other income was USD 0.1 billion (-48%, -48% cc), decreasing mainly due to lower government grant income. Core other expense was USD 0.2 billion (-27%, -30% cc).
Core operating income was USD 5.9 billion (0%, 0% cc), in line with the prior-year quarter. Core operating income margin was 41.2% of net sales, decreasing 1.0 percentage point (0.7 percentage points in cc).
Interest expense and other financial income and expense
Interest expense amounted to USD 462 million compared with USD 289 million in the prior-year quarter, mainly due to the increase in financial debt.
Other financial income and expense amounted to an expense of USD 17 million, broadly in line with the prior-year quarter.
Core interest expense amounted to USD 462 million compared with USD 289 million in the prior-year quarter, mainly due to the increase in financial debt.
Core other financial income and expense amounted to an income of USD 19 million, broadly in line with the prior-year quarter.
Income taxes
The tax rate in the second quarter was 23.7% compared to 11.2% in the prior-year period. The current-year tax rate was negatively impacted by the tax effects of an intercompany transaction and by changes in uncertain tax positions. The prior-year tax rate was favorably impacted by changes in uncertain tax positions and other items. Both the current- and prior-year tax rates were impacted by the adjustments to the estimated full-year tax rate, which was lower than previously estimated. Excluding these impacts, the tax rate would have been 17.3% in the current year and 15.5% in the prior-year period. The increase compared with the prior year was mainly the result of a change in profit mix.
The core tax rate (core taxes as a percentage of core income before tax) was 16.7% compared to 16.2% in the prior year. The increase from the prior year was mainly the result of a change in profit mix.
Net income, EPS, cash flows from operating activities and free cash flow
Net income was USD 3.3 billion (-19%, -19% cc), impacted by higher income taxes and higher interest expense. EPS was USD 1.71 (-17%, -18% cc), benefiting from the lower weighted average number of shares outstanding.
Core net income was USD 4.6 billion (-3%, -4% cc), mainly due to higher interest expense. Core EPS was USD 2.41 (0%, -1% cc), benefiting from the lower weighted average number of shares outstanding.
Net cash flows from operating activities amounted to USD 5.9 billion (-12%) mainly due to lower net income, adjusted for non-cash items and other adjustments, and by unfavorable net changes in other financial receipts.
Free cash flow amounted to USD 5.6 billion (-12%), due to lower net cash flows from operating activities.
First half
Net sales
Net sales were USD 27.5 billion (+1%, -2% cc), with volume growth contributing 15 percentage points, offset by 14 percentage points from generic competition. Pricing had a negative impact of 3 percentage points, and currency had a positive impact of 3 percentage points. By region, sales in the US were USD 10.9 billion (-9%) and sales in the rest of the world were USD 16.6 billion (+8%, +4% cc).
Sales were broadly stable, as strong growth from Kisqali (USD 3.2 billion, +51%, +48% cc), Kesimpta (USD 2.6 billion, +31%, +29% cc), Pluvicto (USD 1.3 billion, +57%, +55% cc), Scemblix (USD 995 million, +86%, +85% cc) and Leqvio (USD 932 million, +68%, +64% cc) was offset by generic competition, mainly Entresto (USD 2.5 billion, -46%, -48% cc), Promacta (USD 363 million, -65%, -66% cc) and Tasigna (USD 297 million, -58%, -59% cc).
In the US (USD 10.9 billion, -9%), strong growth from Kisqali, Kesimpta, Pluvicto, Scemblix and Leqvio was more than offset by generic competition, mainly Entresto and Promacta. In Europe (USD 8.6 billion, +7%, +1% cc), sales grew driven by Kisqali, Kesimpta and Leqvio partly offset by generic competition, mainly Promacta and Xolair. Sales in emerging growth markets were USD 7.7 billion (+9%, +4% cc), including USD 2.5 billion of sales from China (+13%, +7% cc).
Operating income
Gross profit was USD 21.3 billion (-3%, -5% cc), mainly due to lower net sales and unfavorable product mix.
SG&A expenses were USD 6.4 billion (+2%, +4% cc), driven by productivity.
R&D expenses were USD 5.6 billion (-10%, -6% cc), mainly due to investments in recently acquired assets.
Other income was USD 0.9 billion (+15%, +10% cc), driven by higher asset divestment gains partly offset by lower government grant income.
Other expense was USD 1.2 billion (+20%, +23% cc), decreasing mainly due to lower legal related costs.
Operating income was USD 9.0 billion (-6%, -7% cc), declining mainly due to lower gross profit, partly offset by lower legal related costs and lower SG&A expenses. Operating income margin was 32.6% of net sales, decreasing 2.3 percentage points (1.8 percentage points in cc).
Core adjustments were USD 1.9 billion, mainly due to amortization, compared with USD 2.0 billion in the prior year.
Core gross profit was USD 22.7 billion (-1%, -3% cc), declining due to lower net sales and unfavorable product mix.
Core SG&A expenses were USD 6.4 billion (+2%, +5% cc), driven by productivity.
Core R&D expenses were USD 5.4 billion (-10%, -7% cc), mainly due to investments in recently acquired assets.
Core other income was USD 0.2 billion (-22%, -31% cc), mainly due to lower government grant income. Core other expense was USD 0.4 billion (+5%, +11% cc).
Core operating income was USD 10.8 billion (-6%, -7% cc), declining mainly due to lower gross profit. Core operating income margin was 39.4% of net sales, decreasing 2.7 percentage points (2.3 percentage points in cc).
Interest expense and other financial income and expense
Interest expense amounted to USD 805 million compared with USD 559 million in the prior year, mainly due to the increase in financial debt.
Other financial income and expense amounted to an expense of USD 67 million, broadly in line with the prior year.
Core interest expense amounted to USD 805 million compared with USD 559 million in the prior year, mainly due to the increase in financial debt.
Core other financial income and expense amounted to an income of USD 23 million, broadly in line with the prior year.
Income taxes
The tax rate in the first half was 20.9% compared to 14.6% in the prior year. The current-year tax rate was negatively impacted by the tax effects of an intercompany transaction and by changes in uncertain tax positions. The prior-year tax rate was favorably impacted by changes in uncertain tax positions. This was partly offset by the effect of remeasuring deferred tax balances following a tax rate change in Switzerland, prior-year items and other items. Excluding these impacts, the tax rate would have been 17.3% in the current year and 15.5% in the prior-year period. The increase compared with the prior year was mainly the result of a change in profit mix.
The core tax rate (core taxes as a percentage of core income before tax) was 16.7% compared to 16.2% in the prior year. The increase from the prior year was mainly the result of a change in profit mix.
Net income, EPS, cash flows from operating activities and free cash flow
Net income was USD 6.4 billion (-16%, -17% cc), mainly due to lower operating income, higher income taxes and higher interest expense. EPS was USD 3.37 (-14%, -15% cc), benefiting from the lower weighted average number of shares outstanding.
Core net income was USD 8.4 billion (-9%, -10% cc), mainly due to lower core operating income and higher interest expense. Core EPS was USD 4.39 (-6%, -8% cc), benefiting from the lower weighted average number of shares outstanding.
Net cash flows from operating activities amounted to USD 9.6 billion (-7%), mainly due to lower net income, adjusted for non-cash items and other adjustments, and unfavorable net changes in other financial receipts, partly offset by favorable changes in working capital.
Free cash flow amounted to USD 8.9 billion (-9%), due to lower net cash flows from operating activities.
Product commentary (relating to Q2 performance)
Cardiovascular, RENAL and METABOLIC
Q2 2026
Q2 2025
% change
% change
H1 2026
H1 2025
% change
% change
USD m
USD m
USD
cc
USD m
USD m
USD
cc
Cardiovascular, renal and metabolic
Entresto
1 181
2 357
-50
-51
2 486
4 618
-46
-48
Leqvio
480
298
61
59
932
555
68
64
Vanrafia
27
nm
nm
43
nm
nm
Total cardiovascular, renal and metabolic
1 688
2 655
-36
-37
3 461
5 173
-33
-35
nm = not meaningful
Entresto (USD 1 181 million, –50%, –51% cc) sales declined due to generic competition in the US. Entresto continued to grow ex-US, where the product is approved for heart failure globally as well as hypertension in China and Japan.
Leqvio (USD 480 million, +61%, +59% cc) sales grew mainly driven by the US, Europe and continued uptake in China following inclusion in the National Reimbursement Drug List (NRDL) in January. Leqvio is registered in 109 countries worldwide and commercially available in 89 countries. Novartis obtained global rights to develop, manufacture and commercialize Leqvio under a license and collaboration agreement with Alnylam Pharmaceuticals. Novartis is in US ANDA litigation with a generic manufacturer.
Vanrafia (USD 27 million) sales reflect continued launch execution following 2025 approvals in the US and China, as the first and only selective endothelin A (ETA) receptor antagonist for proteinuria reduction in primary IgA nephropathy (IgAN).
Immunology
Q2 2026
Q2 2025
% change
% change
H1 2026
H1 2025
% change
% change
USD m
USD m
USD
cc
USD m
USD m
USD
cc
Immunology
Cosentyx
1 824
1 629
12
10
3 390
3 163
7
5
Ilaris
550
477
15
15
1 025
896
14
13
Xolair 1
342
443
-23
-25
730
899
-19
-22
Rhapsido
64
nm
nm
101
nm
nm
Total immunology
2 780
2 549
9
8
5 246
4 958
6
3
1 Net sales to third parties reflect Xolair sales for all indications.
nm = not meaningful
Cosentyx (USD 1 824 million, +12%, +10% cc) sales grew driven by US performance including growth in HS and IV. Ex-US, sales grew in Europe and most emerging markets, partly offset by a decline in China.
Ilaris (USD 550 million, +15%, +15% cc) sales grew across all regions, with continued momentum in the Periodic Fever Syndromes and Still’s disease indications.
Xolair (USD 342 million, –23%, –25% cc) sales declined mainly due to continued biosimilar pressure. Novartis co-promotes Xolair with Genentech in the US and shares a portion of revenue as operating income but does not record any US sales.
Rhapsido (USD 64 million) continued to show strong early uptake in the US, supported by increasing payer coverage and a free drug program facilitating patient access. Ex-US, sales were driven by early launch uptake in China, with recent launches in Germany, Austria and the UAE following Q2 approvals in CSU.
Neuroscience
Q2 2026
Q2 2025
% change
% change
H1 2026
H1 2025
% change
% change
USD m
USD m
USD
cc
USD m
USD m
USD
cc
Neuroscience
Kesimpta
1 424
1 077
32
32
2 588
1 976
31
29
Zolgensma Group
365
297
23
20
667
624
7
3
Aimovig
88
83
6
3
183
159
15
8
Total neuroscience
1 877
1 457
29
28
3 438
2 759
25
22
Kesimpta (USD 1 424 million, +32%, +32% cc) sales grew across all regions, driven by increased demand and strong access, as a high efficacy B-cell therapy with at-home self-administration for a broad population of RMS patients. Kesimpta is now approved in 94 countries with more than 216,000 patients treated since launch.
Zolgensma Group (USD 365 million, +23%, +20% cc) sales grew driven by continued launch momentum from Itvisma in the US and UAE. Itvisma is now also approved in Japan, Qatar and the EU. Zolgensma sales were stable, with over 5,500 patients treated globally since launch.
Aimovig (USD 88 million, +6%, +3% cc) sales grew driven by increased demand for migraine prevention. Novartis commercializes Aimovig ex-US and ex-Japan, while Amgen retains all rights in the US and Japan.
ONCOLOGY
Q2 2026
Q2 2025
% change
% change
H1 2026
H1 2025
% change
% change
USD m
USD m
USD
cc
USD m
USD m
USD
cc
Oncology
Kisqali
1 695
1 177
44
43
3 211
2 133
51
48
Pluvicto
651
454
43
43
1 293
825
57
55
Jakavi
576
524
10
8
1 133
1 016
12
6
Tafinlar + Mekinist 1
581
573
1
0
1 074
1 125
-5
-7
Scemblix
562
298
89
89
995
536
86
85
Lutathera
225
207
9
8
436
400
9
8
Fabhalta 2
225
120
88
88
394
201
96
94
Total oncology
4 515
3 353
35
34
8 536
6 236
37
34
1 Majority of sales for Mekinist and Tafinlar are combination, but both can be used as monotherapy.
2 Net sales to third parties reflect Fabhalta sales for all indications.
Kisqali (USD 1 695 million, +44%, +43% cc) sales grew strongly across all regions, with continued market share growth in the early breast cancer indication as well as leadership in metastatic breast cancer. Kisqali performance reflects its consistent overall survival benefit across all Phase III mBC trials, its NCCN Category 1 preferred status, its ESMO-MCBS highest-rated CDK4/6i in mBC and highest possible rating in eBC, and its ESMO guidelines preferred status in 1L mBC.
Pluvicto (USD 651 million, +43%, +43% cc) sales showed continued strong demand driven by the pre-taxane metastatic castration-resistant prostate cancer (mCRPC) setting in the US, while ex-US access continued to expand, with the post-taxane mCRPC setting now approved in 52 countries and the pre-taxane setting approved in 14 countries.
Jakavi (USD 576 million, +10%, +8% cc) sales grew across indications. Incyte retains all rights to ruxolitinib (Jakafi®) in the US.
Tafinlar + Mekinist (USD 581 million, +1%, 0% cc) sales were broadly stable, as a decline in the US due to competitive pressure was offset by ex-US sales growth. Novartis is in US ANDA litigation with a generic manufacturer.
Scemblix (USD 562 million, +89%, +89% cc) sales grew across all regions, with continued momentum in the newly diagnosed patients-line indication, where 66 markets have secured approval.
Lutathera (USD 225 million, +9%, +8% cc) sales grew driven by demand in the US and Europe, including continued 2L leadership and solidified share in the 1L setting in the US. Novartis is in patent litigation with manufacturers having FDA applications referencing Lutathera. In June 2026, the U.S. District Court for the District of Delaware issued a negative decision regarding the validity of Novartis patents covering Lutathera, which expire in 2039 (with pediatric exclusivity). Novartis has appealed the decision. No manufacturers have final approval in the US. Any commercial launch of a product referencing Lutathera prior to the final outcome of the appeal may be at risk of later litigation.
Fabhalta (USD 225 million, +88%, +88% cc) sales grew, reflecting continued expansion in PNH and renal indications.
Established BRANDS
Q2 2026
Q2 2025
% change
% change
H1 2026
H1 2025
% change
% change
USD m
USD m
USD
cc
USD m
USD m
USD
cc
Established brands
Sandostatin Group
302
303
0
-1
589
620
-5
-7
Exforge Group
191
191
0
-3
394
370
6
2
Promacta/Revolade
179
502
-64
-65
363
1 048
-65
-66
Diovan Group
160
154
4
2
310
304
2
-2
Tasigna
142
327
-57
-58
297
704
-58
-59
Lucentis
126
173
-27
-30
230
362
-36
-40
Myfortic
105
102
3
0
216
201
7
4
Piqray/Vijoice
123
111
11
10
204
211
-3
-4
Kymriah
88
99
-11
-10
169
199
-15
-16
Contract manufacturing
472
276
71
68
824
619
33
27
Other
1 660
1 802
-8
-9
3 244
3 523
-8
-11
Total established brands
3 548
4 040
-12
-14
6 840
8 161
-16
-19
Sandostatin Group (USD 302 million, 0%, -1% cc) sales were broadly stable.
Exforge Group (USD 191 million, 0%, -3% cc) sales were broadly stable.
Promacta/Revolade (USD 179 million, –64%, –65% cc) sales continued to decline globally due to generic competition.
Diovan Group (USD 160 million, +4%, +2% cc) sales grew driven by emerging markets.
Tasigna (USD 142 million, –57%, –58% cc) sales continued to decline globally due to generic competition.
Lucentis (USD 126 million, –27%, –30% cc) sales declined mainly due to increased competition. Novartis only commercializes Lucentis in markets ex-US.
Myfortic (USD 105 million, +3%, 0% cc) sales grew in China.
Piqray/Vijoice (USD 123 million, +11%, +10% cc) sales grew driven by consistent increase in demand for Vijoice in the US. Vijoice received positive EMA CHMP opinion in May.
Kymriah (USD 88 million, –11%, –10% cc) sales declined across most markets due to continued competitive pressure.
Cash Flow and Balance Sheet
Cash flow
Second quarter
Net cash flows from operating activities amounted to USD 5.9 billion, compared with USD 6.7 billion in the prior-year quarter. This decrease was mainly due to lower net income, adjusted for non-cash items and other adjustments, and by unfavorable changes in other financial receipts.
Net cash outflows used in investing activities amounted to USD 3.1 billion, compared with USD 2.2 billion in the prior-year quarter.
In the current-year quarter, net cash outflows used in investing activities were mainly driven by USD 2.7 billion for acquisitions applying the optional concentration test (net of cash acquired of USD 5 million), including Excellergy, Inc. (USD 0.9 billion) and Pikavation Therapeutics, Inc. (USD 1.8 billion). In addition, cash outflows for purchases of intangible assets amounted to USD 0.4 billion and for property, plant and equipment to USD 0.3 billion.
In the prior-year quarter, net cash outflows used in investing activities were mainly driven by USD 1.5 billion for acquisitions applying the optional concentration test, net of USD 0.1 billion of cash acquired (Anthos Therapeutics, Inc. for USD 0.8 billion and Regulus Therapeutics Inc. for USD 0.7 billion). Cash outflows for purchases of property, plant and equipment amounted to USD 0.3 billion, and for intangible assets to USD 0.2 billion.
Net cash outflows used in financing activities amounted to USD 2.0 billion, compared with USD 5.2 billion in the prior-year quarter.
In the current-year quarter, net cash outflows used in financing activities were mainly driven by the USD 2.9 billion payment of Swiss withholding tax (in April 2026 when it was due) on the annual dividend payment made in the first quarter 2026, and by USD 1.2 billion for net treasury share transactions. These cash outflows were partly offset by cash inflows of USD 2.0 billion from the issuance of euro denominated bonds (notional amount EUR 1.7 billion) and by net cash inflows of USD 0.2 billion resulting from changes in current financial debts.
In the prior-year quarter, net cash outflows used in financing activities were mainly driven by USD 2.7 billion for net treasury share transactions, the USD 2.5 billion payment of Swiss withholding tax (in April 2025 when it was due) on the annual dividend payment made in the first quarter 2025, and USD 0.6 billion for the repayment at maturity of a Swiss franc denominated bond (notional amount CHF 0.5 billion). These cash outflows were partly offset by the net increase in current financial debts of USD 0.9 billion.
Free cash flow amounted to USD 5.6 billion (-12%), due to lower net cash flows from operating activities.
First half
Net cash flows from operating activities amounted to USD 9.6 billion, compared with USD 10.3 billion in the prior-year period. This decrease was mainly due to lower net income, adjusted for non-cash items and other adjustments, and unfavorable changes in other financial receipts, partly offset by favorable changes in working capital.
Net cash outflows used in investing activities amounted to USD 14.8 billion, compared with USD 1.9 billion in the prior-year period.
In the current-year period, net cash outflows for investing activities were mainly driven by USD 11.7 billion cash outflows for acquisition of businesses, mainly the acquisition of Avidity Biosciences, Inc. (cash purchase price of USD 12.0 billion, partly offset by cash acquired of USD 371 million), as well as USD 2.7 billion for acquisitions applying the optional concentration test (net of cash acquired of USD 5 million), including Excellergy, Inc. (USD 0.9 billion) and Pikavation Therapeutics, Inc. (USD 1.8 billion). In addition, cash outflows for purchases of intangible assets amounted to USD 0.9 billion and for property, plant and equipment to USD 0.7 billion. These cash outflows were partly offset by net proceeds of USD 0.8 billion from time deposits and the sale of marketable securities, mainly marketable security funds acquired through the Avidity Biosciences, Inc. acquisition.
In the prior-year period, net cash outflows used in investing activities were mainly driven by USD 1.5 billion for purchases of intangible assets and by USD 1.5 billion for acquisitions applying the optional concentration test, net of USD 0.1 billion of cash acquired (Anthos Therapeutics, Inc. for USD 0.8 billion and Regulus Therapeutics Inc. for USD 0.7 billion). Cash outflows for purchases of property, plant and equipment amounted to USD 0.6 billion. These cash outflows were partly offset by the net proceeds of USD 1.8 billion from marketable securities and time deposits, mainly due to the maturity of time deposits.
Net cash inflows from financing activities amounted to USD 1.6 billion, compared with USD 13.8 billion net cash outflows in the prior-year period.
In the current-year period, net cash inflows from financing activities were mainly driven by cash inflows from the issuance of bonds totaling USD 12.9 billion, including USD 10.9 billion from US dollar denominated bonds (notional amount USD 11.0 billion) and USD 2.0 billion from euro denominated bonds (notional amount EUR 1.7 billion). The proceeds from the US dollar denominated bonds were used to repay a bridge loan of USD 11.0 billion entered into in February 2026 to fund the Avidity Biosciences, Inc. acquisition. In addition, changes in current financial debts resulted in net cash inflows of USD 1.0 billion. These inflows were partly offset by the annual dividend payment of USD 9.1 billion and net payments for treasury share transactions of USD 3.1 billion.
In the prior-year period, net cash outflows used in financing activities were mainly driven by USD 7.8 billion for the annual dividend payment and USD 5.4 billion in net payments for treasury share transactions. Cash outflows also included USD 1.6 billion for the repayment of two bonds at maturity, comprising a US dollar denominated bond with a notional amount of USD 1.0 billion and a Swiss franc denominated bond with a notional amount of CHF 0.5 billion, equivalent to USD 0.6 billion. These cash outflows were partly offset by the net increase in current financial debts of USD 1.4 billion.
Free cash flow amounted to USD 8.9 billion (-9%), due to lower net cash flows from operating activities.
Balance sheet
Assets
Total non-current assets of USD 94.7 billion increased by USD 14.2 billion compared with December 31, 2025.
Intangible assets other than goodwill increased by USD 12.7 billion, mainly due to the Avidity Biosciences, Inc., Pikavation Therapeutics, Inc. and Excellergy, Inc. acquisitions, as well as other additions, partly offset by amortization and impairments, and currency translation adjustments.
Goodwill increased by USD 1.2 billion, mainly due to the acquisition of Avidity Biosciences, Inc., partly offset by currency translation adjustments.
Other non-current assets increased by USD 0.7 billion, mainly due to an increase in prepaid post-employment benefit plans. This was driven by an increase in the fair value of plan assets, partly offset by a decrease in the discount rate applied in calculating actuarial defined benefit obligations.
Property, plant and equipment, right-of-use assets, deferred tax assets, investments in associated companies, and financial assets were broadly in line with December 31, 2025.
Total current assets of USD 27.4 billion decreased by USD 3.1 billion compared with December 31, 2025.
Cash and cash equivalents decreased by USD 3.8 billion compared with December 31, 2025 as net cash inflows from operating activities of USD 9.6 billion, net proceeds from financial debts of USD 13.8 billion and net proceeds of USD 0.8 billion from time deposits and the sale of marketable security funds, were more than offset by cash outflows related to the acquisitions of Avidity Biosciences, Inc., Pikavation Therapeutics, Inc. and Excellergy, Inc. totaling USD 14.4 billion, the annual net dividend payment of USD 9.1 billion, net purchases of treasury shares of USD 3.1 billion, as well as other net cash outflows from investing and financing activities and currency effects of USD 1.4 billion.
Trade receivables increased by USD 0.7 billion mainly due to the increase in net sales.
Inventories, other current assets, marketable securities, time deposits and derivative financial instruments, and income tax receivables were broadly in line with December 31, 2025.
Liabilities
Total non-current liabilities of USD 48.3 billion increased by USD 11.2 billion compared with December 31, 2025.
Non-current financial debts increased by USD 9.6 billion compared with December 31, 2025, mainly due to the issuance of US dollar denominated bonds with a notional amount of USD 11.0 billion and euro denominated bonds with a notional amount of EUR 1.7 billion, partly offset by the reclassification from non-current to current financial debts of bonds maturing in 2027, comprising two US dollar denominated bonds with notional amounts of USD 1.3 billion and USD 1.0 billion, and a Swiss franc denominated bond with a notional amount of CHF 0.7 billion, and by currency translation adjustments.
Deferred tax liabilities increased by USD 1.9 billion mainly due to the acquisition of Avidity Biosciences, Inc.
Provisions and other non-current liabilities, and non-current lease liabilities were broadly in line with December 31, 2025.
Total current liabilities of USD 31.7 billion increased by USD 4.5 billion compared with December 31, 2025.
Current financial debts and derivative financial instruments increased by USD 4.0 billion compared with December 31, 2025, mainly due to the reclassification from non-current to current financial debts of bonds maturing in 2027, comprising two US dollar denominated bonds with notional amounts of USD 1.3 billion and USD 1.0 billion, and a Swiss franc denominated bond with a notional amount of CHF 0.7 billion, and the issuance of commercial paper notes.
Provisions and other current liabilities and current income tax liabilities increased by USD 0.3 billion whereas trade payables and current lease liabilities were broadly in line with December 31, 2025.
Equity
The Company’s equity decreased by USD 4.6 billion to USD 41.9 billion compared with December 31, 2025. Net income of USD 6.4 billion, a favorable impact from equity-based compensation of USD 0.6 billion, and actuarial gains on defined benefit plans of USD 0.6 billion were more than offset by the annual gross dividend to Novartis AG shareholders of USD 9.1 billion, the net purchase of treasury shares of USD 3.1 billion and the impact from currency translation differences of USD 0.5 billion.
Net debt and debt/equity ratio
The Company’s liquidity amounted to USD 7.7 billion as at June 30, 2026, compared with USD 11.6 billion as at December 31, 2025. Total non-current and current financial debts, including derivatives, amounted to USD 47.1 billion as at June 30, 2026, compared with USD 33.5 billion as at December 31, 2025.
The debt/equity ratio increased to 1.12:1 as at June 30, 2026, compared with 0.72:1 as at December 31, 2025.
The net debt increased to USD 39.4 billion as at June 30, 2026, compared with USD 21.9 billion as at December 31, 2025.
Innovation Review
Novartis continues to focus its R&D portfolio prioritizing high value medicines with transformative potential for patients. We now focus on ~100 projects in clinical development.
Selected innovative medicines approvals in Q2
Product
Active ingredient/
Descriptor
Indication
Region
Cosentyx
secukinumab
Ankylosing spondylitis, juvenile
US
Fabhalta
iptacopan
IgA nephropathy
US
Itvisma
(OAV101)
intrathecal onasemnogene
abeparvovec
Spinal muscular atrophy (IT formulation)
EU
Rhapsido
remibrutinib
Chronic spontaneous urticaria
EU, JP
Selected innovative medicines projects awaiting regulatory decisions
Completed submissions
Product
Indication
US
EU
Japan
News update
Cosentyx
Polymyalgia rheumatica
Q1 2026
Q1 2026
Q1 2026
– PhIII data publication in NEJM
– Data presentation at EULAR
Hidradenitis suppurativa,
pediatrics aged 12+
Approved
Q1 2026
Fabhalta
IgA nephropathy
Approved
Q1 2026
– US traditional approval
– PhIII data presented at ERA
KPE179
(del-zota)
Duchenne muscular dystrophy
Q2 2026
– US submission for accelerated approval
Leqvio
Hypercholesterolaemia, pediatrics
Approved
Q3 2025
Pluvicto
Metastatic hormone-sensitive
prostate cancer¹
Q4 2025
Q4 2025
– PSMAddition data presented at AUAA and
ASCO
Rhapsido
(remibrutinib)
Chronic inducible urticaria
Q4 2025
– PhIII RemIND data presented at EAACI
VAY736
(ianalumab)
Sjögren’s disease
Q1 2026
Q1 2026
Q1 2026
– PhIII NEPTUNUS-1 and -2 data presented
at EULAR
Vijoice
PIK3CA-related overgrowth
spectrum (PROS)
Approved
Q2 2025
– CHMP positive opinion
1 Also known as prostate-specific membrane antigen (PSMA)-positive metastatic androgen pathway modulation-naive/sensitive (mAPMN/S) prostate cancer.
Selected innovative medicines pipeline projects
Compound/
product
Potential indication/
Disease area
First planned
submissions
Current
Phase
News update
225Ac-PSMA-617
post Lu metastatic castration-resistant
prostate cancer
2028
3
– PhI data presented at ASCO
Metastatic castration-resistant prostate
cancer¹ 1L
≥2029
3
– PhI data presented at ASCO
Aimovig
Migraine, pediatrics
2028
3
DAK539
(pelabresib)
Myelofibrosis
2026
3
– PhIII MANIFEST-3 study achieved FPFV
– PhII MANIFEST-2 data presented at EHA
DII235
CVRR-Lp(a)
≥2029
2
DWH213
(del-brax)
Facioscapulohumeral muscular dystrophy
2028
3
– PhI/II biomarker cohort met primary and
secondary endpoints
EWF980
(del-desiran)
Myotonic dystrophy type 1
2027
3
FUB523
(zigakibart)
IgA nephropathy
2027
3
– 124-week PhI/II data presented at ERA
GHZ339
Atopic dermatitis
≥2029
2
1 Also known as prostate-specific membrane antigen (PSMA)-positive metastatic androgen pathway modulation-resistant (mAPMR) prostate cancer.
Compound/
product
Potential indication/
Disease area
First planned
submissions
Current
Phase
News update
GIA632
Atopic dermatitis
≥2029
2
Vitiligo
≥2029
2
JSB462
Prostate cancer
≥2029
2
KAE609
Malaria, uncomplicated
≥2029
2
(cipargamin)
Malaria, severe
≥2029
2
KLU156
(ganaplacide
+ lumefantrine)
Kesimpta
Multiple sclerosis
new dosing regimen
2027
3
KPE179
(del-zota)
Duchenne muscular dystrophy
2026
2
– US submission for accelerated approval
Leqvio
Secondary prevention of cardiovascular
events in patients with elevated LDL-C
2027
3
Primary prevention CVRR
≥2029
3
LNP023
Myasthenia gravis
2027
3
(iptacopan)
IC-MPGN
≥2029
3
Atypical haemolytic uraemic syndrome
≥2029
3
LOU064
(remibrutinib)
Chronic spontaneous urticaria, pediatrics
2027
3
Food allergy
≥2029
2
Hidradenitis suppurativa
2027
3
Multiple sclerosis, relapsing
2027
3
Multiple sclerosis, secondary progressive
≥2029
3
Myasthenia gravis
2028
3
LTP001
Pulmonary arterial hypertension
≥2029
2
Lutathera
Gastroenteropancreatic neuroendocrine tumor
2028
3
LXE408
Visceral leishmaniasis
≥2029
2
MAA868
(abelacimab)
Atrial fibrillation
2028
3
NIO752
Progressive supranuclear palsy
≥2029
3
– PhIII achieved FPFV
PAC001
(pacibekitug)
Atherosclerotic cardiovascular disease
≥2029
2
Pluvicto
Oligometastatic prostate cancer
≥2029
3
QCZ484
Hypertension
≥2029
2
TQJ230
(pelacarsen)
Secondary prevention of cardiovascular
events in patients with elevated levels
of lipoprotein(a)
VAY736
(ianalumab)
Lupus nephritis
2028
3
Systemic lupus erythematosus
2027
3
– Accelerated submission to 2027 from 2028
– PhII data presented at EULAR
Systemic sclerosis
2028
2
1L immune thrombocytopenia
2027
3
2L immune thrombocytopenia
2027
3
Warm autoimmune hemolytic anemia
2027
3
– PhIII VAYHIA study did not meet primary
endpoint
VHB937
(lifonebart)
Alzheimer’s disease
≥2029
2
Amyotrophic lateral sclerosis
≥2029
2
– FDA fast track designation granted
Vijoice
Lymphatic malformations
≥2029
3
HTT227
(votoplam)
Huntington’s disease
≥2029
3
YTB323
Active refractory lupus nephritis
2028
2
– PhI/II data presented at EULAR and EHA
Active refractory systemic lupus erythematosus
2028
2
– PhI/II data presented at EULAR and EHA
1L high-risk large B-cell lymphoma
≥2029
2
Systemic sclerosis
≥2029
2
– PhII data presented at EULAR
Myositis
≥2029
2
– PhII data presented at EULAR
– RMAT designation granted by FDA
ANCA associated vasculitis
≥2029
2
Condensed Interim Consolidated Financial Statements
Consolidated income statements
Second quarter (unaudited)
(USD millions unless indicated otherwise)
Note
Q2 2026
Q2 2025
Net sales to third parties
9
14 408
14 054
Other revenues
9
543
782
Cost of goods sold
-3 710
-3 322
Gross profit
11 241
11 514
Selling, general and administration
-3 241
-3 442
Research and development
-2 847
-2 727
Other income
410
548
Other expense
-813
-1 029
Operating income
4 750
4 864
Loss from associated companies
-2
-3
Interest expense
-462
-289
Other financial income and expense
-17
-41
Income before taxes
4 269
4 531
Income taxes
-1 012
-507
Net income
3 257
4 024
Attributable to:
Shareholders of Novartis AG
3 264
4 041
Non-controlling interests
-7
-17
Weighted average number of shares outstanding – Basic (million)
1 905
1 948
Basic earnings per share (USD) 1
1.71
2.07
Weighted average number of shares outstanding – Diluted (million)
1 914
1 960
Diluted earnings per share (USD) 1
1.71
2.06
1 Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG.
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
Consolidated income statements
First half (unaudited)
(USD millions unless indicated otherwise)
Note
H1 2026
H1 2025
Net sales to third parties
9
27 521
27 287
Other revenues
9
954
1 169
Cost of goods sold
-7 169
-6 549
Gross profit
21 306
21 907
Selling, general and administration
-6 381
-6 500
Research and development
-5 587
-5 093
Other income
888
774
Other expense
-1 241
-1 561
Operating income
8 985
9 527
Loss from associated companies
-5
-6
Interest expense
-805
-559
Other financial income and expense
-67
-24
Income before taxes
8 108
8 938
Income taxes
-1 695
-1 305
Net income
6 413
7 633
Attributable to:
Shareholders of Novartis AG
6 420
7 647
Non-controlling interests
-7
-14
Weighted average number of shares outstanding – Basic (million)
1 906
1 958
Basic earnings per share (USD) 1
3.37
3.91
Weighted average number of shares outstanding – Diluted (million)
1 915
1 970
Diluted earnings per share (USD) 1
3.35
3.88
1 Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG.
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
Consolidated statements of comprehensive income
Second quarter (unaudited)
(USD millions)
Q2 2026
Q2 2025
Net income
3 257
4 024
Other comprehensive income
Items that are or may be recycled into the consolidated income statement
Cash flow hedge, net of taxes
1
Net investment hedge, net of taxes
59
-173
Currency translation effects, net of taxes
-331
2 114
Total of items that are or may be recycled
-271
1 941
Items that will never be recycled into the consolidated income statement
Actuarial gains from defined benefit plans, net of taxes
819
44
Fair value adjustments on equity securities, net of taxes
38
3
Total of items that will never be recycled
857
47
Total other comprehensive income
586
1 988
Total comprehensive income
3 843
6 012
Total comprehensive income for the period attributable to:
Shareholders of Novartis AG
3 854
6 028
Non-controlling interests
-11
-16
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
First half (unaudited)
(USD millions)
H1 2026
H1 2025
Net income
6 413
7 633
Other comprehensive income
Items that are or may be recycled into the consolidated income statement
Cash flow hedge, net of taxes
23
1
Net investment hedge, net of taxes
127
-233
Currency translation effects, net of taxes
-460
2 834
Total of items that are or may be recycled
-310
2 602
Items that will never be recycled into the consolidated income statement
Actuarial gains from defined benefit plans, net of taxes
567
480
Fair value adjustments on equity securities, net of taxes
167
-53
Total of items that will never be recycled
734
427
Total other comprehensive income
424
3 029
Total comprehensive income
6 837
10 662
Total comprehensive income for the period attributable to:
Shareholders of Novartis AG
6 852
10 674
Non-controlling interests
-15
-12
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
Consolidated balance sheets
(USD millions)
Jun 30,
2026
(unaudited)
Dec 31,
2025
(audited)
Assets
Non-current assets
Property, plant and equipment
10 685
10 782
Right-of-use assets
1 582
1 570
Goodwill
26 767
25 567
Intangible assets other than goodwill
42 074
29 411
Investments in associated companies
69
98
Deferred tax assets
5 277
5 438
Financial assets
2 302
2 348
Other non-current assets
5 926
5 275
Total non-current assets
94 682
80 489
Current assets
Inventories
6 220
6 269
Trade receivables
9 636
8 937
Income tax receivables
218
205
Marketable securities, time deposits and derivative financial instruments
74
155
Cash and cash equivalents
7 616
11 435
Other current assets
3 587
3 459
Total current assets
27 351
30 460
Total assets
122 033
110 949
Equity and liabilities
Equity
Share capital
736
766
Treasury shares
-49
-50
Reserves
40 855
45 414
Equity attributable to Novartis AG shareholders
41 542
46 130
Non-controlling interests
404
419
Total equity
41 946
46 549
Liabilities
Non-current liabilities
Financial debts
37 489
27 935
Lease liabilities
1 663
1 657
Deferred tax liabilities
5 292
3 397
Provisions and other non-current liabilities
3 895
4 133
Total non-current liabilities
48 339
37 122
Current liabilities
Trade payables
4 258
4 456
Financial debts and derivative financial instruments
9 588
5 602
Lease liabilities
274
263
Current income tax liabilities
2 312
1 969
Provisions and other current liabilities
15 316
14 988
Total current liabilities
31 748
27 278
Total liabilities
80 087
64 400
Total equity and liabilities
122 033
110 949
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
Consolidated statements of changes in equity
Second quarter (unaudited)
Reserves
(USD millions)
Equity
attributable to
Novartis AG
shareholders
Non-
controlling
interests
Total equity at April 1, 2026
736
-47
37 252
571
38 512
415
38 927
Net income
3 264
3 264
-7
3 257
Other comprehensive income
590
590
-4
586
Total comprehensive income
3 264
590
3 854
-11
3 843
Purchase of treasury shares
-2
-1 172
-1 174
-1 174
Equity-based compensation plans
0
319
319
319
Taxes on treasury share transactions
-2
-2
-2
Value adjustments related to financial assets sold and divestments
-45
45
Other movements
4.3
33
33
33
Total of other equity movements
-2
-867
45
-824
-824
Total equity at June 30, 2026
736
-49
39 649
1 206
41 542
404
41 946
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
Reserves
(USD millions)
Equity
attributable to
Novartis AG
shareholders
Non-
controlling
interests
Total equity at April 1, 2025
766
-19
39 839
-2 217
38 369
83
38 452
Net income
4 041
4 041
-17
4 024
Other comprehensive income
1 987
1 987
1
1 988
Total comprehensive income
4 041
1 987
6 028
-16
6 012
Purchase of treasury shares
-15
-2 702
-2 717
-2 717
Equity-based compensation plans
1
283
284
284
Taxes on treasury share transactions
-2
-2
-2
Changes in non-controlling interests
2
2
Value adjustments related to financial assets sold and divestments
45
-45
Other movements
4.3
23
23
23
Total of other equity movements
-14
-2 353
-45
-2 412
2
-2 410
Total equity at June 30, 2025
766
-33
41 527
-275
41 985
69
42 054
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
Consolidated statements of changes in equity
First half (unaudited)
Reserves
(USD millions)
Equity
attributable to
Novartis AG
shareholders
Non-
controlling
interests
Total equity at January 1, 2026
766
-50
44 720
694
46 130
419
46 549
Net income
6 420
6 420
– 7
6 413
Other comprehensive income
432
432
– 8
424
Total comprehensive income
6 420
432
6 852
-15
6 837
Dividends
4.1
-9 068
-9 068
-9 068
Purchase of treasury shares
-7
-3 056
-3 063
-3 063
Reduction of share capital
-30
30
Equity-based compensation plans
4
612
616
616
Taxes on treasury share transactions
-23
-23
-23
Value adjustments related to financial assets sold and divestments
-80
80
Other movements
4.3
-26
124
98
98
Total of other equity movements
-30
1
-11 491
80
-11 440
-11 440
Total equity at June 30, 2026
736
-49
39 649
1 206
41 542
404
41 946
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
Reserves
(USD millions)
Equity
attributable to
Novartis AG
shareholders
Non-
controlling
interests
Total equity at January 1, 2025
793
-53
46 561
-3 255
44 046
80
44 126
Net income
7 647
7 647
-14
7 633
Other comprehensive income
3 027
3 027
2
3 029
Total comprehensive income
7 647
3 027
10 674
-12
10 662
Dividends
4.1
-7 818
-7 818
-7 818
Purchase of treasury shares
-29
-5 480
-5 509
-5 509
Reduction of share capital
-27
42
-15
Equity-based compensation plans
7
550
557
557
Taxes on treasury share transactions
-33
-33
-33
Changes in non-controlling interests
1
1
1
2
Value adjustments related to financial assets sold and divestments
47
-47
Other movements
4.3
67
67
67
Total of other equity movements
-27
20
-12 681
-47
-12 735
1
-12 734
Total equity at June 30, 2025
766
-33
41 527
-275
41 985
69
42 054
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
Consolidated statements of cash flows
Second quarter (unaudited)
(USD millions)
Note
Q2 2026
Q2 2025
Net income
3 257
4 024
Adjustments to reconcile net income to net cash flows from operating activities
Reversal of non-cash items and other adjustments
6.1
3 377
2 954
Dividends received from associated companies and others
1
1
Interest received
44
39
Interest paid
-339
-248
Change in other financial receipts
398
Change in other financial payments
-41
8
Income taxes paid
-398
-675
Net cash flows from operating activities before working capital and provision changes
5 901
6 501
Payments out of provisions and other net cash movements in non-current liabilities
-251
-279
Changes in working capital and other operating cash flow items
6.2
232
442
Net cash flows from operating activities
5 882
6 664
Purchases of property, plant and equipment
-321
-331
Proceeds from sale of property, plant and equipment
26
1
Purchases of intangible assets
-437
-227
Purchases of financial assets
-16
-22
Proceeds from sale of financial assets
49
20
Acquisitions of businesses
6.3
-23
-127
Acquisitions applying the optional concentration test
6.4
-2 720
-1 537
Divestments of businesses, net
6.5
62
-11
Investments in time deposits and marketable securities
-30
-36
Proceeds from time deposits and from sale of marketable securities
87
30
Other investing cash flows, net
218
-3
Net cash flows used in investing activities
-3 105
-2 243
Dividends paid to shareholders of Novartis AG
4.1
-2 871
-2 485
Purchases of treasury shares
-1 199
-2 714
Proceeds from exercised options and other treasury share transactions, net
14
20
Proceeds from non-current financial debts
1 982
Repayments of the current portion of non-current financial debts
-20
-603
Change in current financial debts
208
850
Payments of lease liabilities
-67
-66
Other financing cash flows, net
-67
-215
Net cash flows used in financing activities
-2 020
-5 213
Net change in cash and cash equivalents before effect of exchange rate changes
757
-792
Effect of exchange rate changes on cash and cash equivalents
-18
382
Net change in cash and cash equivalents
739
-410
Cash and cash equivalents at April 1
6 877
7 066
Cash and cash equivalents at June 30
7 616
6 656
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
Consolidated statements of cash flows
First half (unaudited)
(USD millions)
Note
H1 2026
H1 2025
Net income
6 413
7 633
Adjustments to reconcile net income to net cash flows from operating activities
Reversal of non-cash items and other adjustments
6.1
5 868
5 666
Dividends received from associated companies and others
1
1
Interest received
127
161
Interest paid
-540
-480
Other financial receipts
398
Other financial payments
-53
-13
Income taxes paid
-1 185
-1 215
Net cash flows from operating activities before working capital and provision changes
10 631
12 151
Payments out of provisions and other net cash movements in non-current liabilities
-518
-516
Changes in working capital and other operating cash flow items
6.2
-555
-1 326
Net cash flows from operating activities
9 558
10 309
Purchases of property, plant and equipment
-667
-585
Proceeds from sale of property, plant and equipment
31
11
Purchases of intangible assets
-898
-1 467
Purchases of financial assets
-40
-40
Proceeds from sale of financial assets
86
45
Acquisitions of businesses
6.3
-11 704
-127
Acquisitions applying the optional concentration test
6.4
-2 720
-1 537
Divestments of businesses, net
6.5
60
-15
Investments in time deposits and marketable securities
-60
-73
Proceeds from time deposits and from sale of marketable securities
856
1 881
Other investing cash flows, net
215
-6
Net cash flows used in investing activities
-14 841
-1 913
Dividends paid to shareholders of Novartis AG
4.1
-9 068
-7 818
Purchases of treasury shares
-3 074
-5 430
Proceeds from exercised options and other treasury share transactions, net
14
21
Proceeds from non-current financial debts
10
12 900
Repayments of the current portion of non-current financial debts
-39
-1 613
Change in current financial debts
10
955
1 406
Payments of lease liabilities
-140
-135
Other financing cash flows, net
11
-192
Net cash flows from/(used in) financing activities
1 559
-13 761
Net change in cash and cash equivalents before effect of exchange rate changes
-3 724
-5 365
Effect of exchange rate changes on cash and cash equivalents
-95
562
Net change in cash and cash equivalents
-3 819
-4 803
Cash and cash equivalents at January 1
11 435
11 459
Cash and cash equivalents at June 30
7 616
6 656
The accompanying Notes form an integral part of the condensed interim consolidated financial statements
Notes to the Condensed Interim Consolidated Financial Statements for the three month and six month period ended June 30, 2026 (unaudited)
1. Basis of preparation
The consolidated financial statements of the Company are prepared in accordance with International Financial Reporting Standards (IFRS®) Accounting Standards as issued by the International Accounting Standards Board. They are prepared in accordance with the historical cost convention, except for items that are required to be accounted for at fair value.
These Condensed Interim Consolidated Financial Statements for the three month and six month period ended June 30, 2026, were prepared in accordance with International Accounting Standards (IAS®) Standards 34 Interim Financial Reporting and accounting policies set out in the 2025 Annual Report published on February 4, 2026.
2. Accounting policies
The Company’s accounting policies are set out in Note 1 to the Consolidated Financial Statements in the 2025 Annual Report and conform with IFRS Accounting Standards as issued by the International Accounting Standards Board.
The preparation of financial statements requires management to make certain estimates and assumptions, either at the balance sheet date or during the period, which affect the reported amounts of revenues, expenses, assets, liabilities, and contingent amounts.
Estimates are based on historical experience and other assumptions that are considered reasonable under the given circumstances and are regularly monitored. Actual outcomes and results could differ from those estimates and assumptions. Revisions to estimates are recognized in the period in which the estimate is revised.
As disclosed in the 2025 Annual Report, goodwill, and the intangible assets not yet available for use (in-process research and development (IPR&D)) are evaluated for impairment annually, or when facts and circumstances warrant. The intangible assets available for use (currently marketed products and other intangible assets) are evaluated for potential impairment whenever facts and circumstances indicate that their carrying value may not be recoverable. The amount of goodwill and intangible assets other than goodwill on the Company’s consolidated balance sheet has risen significantly in recent years, primarily from acquisitions. Impairment testing may lead to potentially significant impairment charges in the future that could have a materially adverse impact on the Company’s results of operations and financial condition.
The Company’s activities are not subject to significant seasonal fluctuations.
Status of adoption of significant new or amended IFRS standards or interpretations
No new IFRS Accounting Standards were adopted by the Company in 2026. There were no new IFRS Accounting Standards amendments or interpretations that became effective in 2026 and 2025, that had a material impact on the Company’s consolidated financial statements.
In 2024, the International Accounting Standards Board issued the following new IFRS Accounting Standard, which is not yet effective:
IFRS 18 Presentation and Disclosure in Financial Statements
IFRS 18 Presentation and Disclosure in Financial Statements was issued by the International Accounting Standards Board in April 2024. IFRS 18 will become effective on January 1, 2027, and is required to be applied retrospectively to comparative periods presented, with early adoption permitted. Upon adoption, IFRS 18 replaces International Accounting Standards (IAS®) Standards 1 – Presentation of Financial Statements.
IFRS 18 sets out new requirements focused on improving financial reporting by:
• requiring additional defined structure to the statement of profit or loss (i.e. consolidated statement of income), to reduce diversity in the reporting, by requiring five categories (operating, investing, financing, income taxes and discontinued operations) and defined subtotals and totals (operating income, income before financing, income taxes and net income),
• requiring disclosures in the notes to the financial statements about management-defined performance measures (i.e. certain non-IFRS measures), and
• adding new principles for aggregation and disaggregation of information in the primary financial statements and notes.
IFRS 18 will not affect the recognition or measurement of items in the financial statements, but it might change what an entity reports as its “operating profit or loss”, due to the classification of certain income and expense items between the five categories of the consolidated income statement. It might also change what an entity reports as operating activities, investing activities and financing activities within the statement of cash flows, due to the change in classification of certain cash flow items between these three categories of the cash flows statement.
The Company’s preliminary assessment of IFRS 18 impacts indicates that certain income and expense amounts are expected to be reclassified within the consolidated income statement. For example, portions of foreign currency results and monetary losses from hyperinflation accounting will move from non-operating to operating income and expense. These expected presentation changes will not affect reported net income. The consolidated statement of cash flows presentation will change. It will start with operating income instead of net income, and certain cash flows are expected to be reclassified among the operating, investing, and financing activities categories. For example, dividends received and interest received are expected to be reclassified from operating activities to investing activities, while interest paid is expected to be reclassified from operating activities to financing activities. These presentation changes will not affect the net change in cash and cash equivalents reported for the period.
Novartis is currently finalizing its assessment of the impact of adopting IFRS 18, which will be effective January 1, 2027.
Based on the Company’s assessment, there were no other IFRS Accounting Standards, amendments or interpretations not yet effective in 2026 that would have been expected to have a material impact on the Company’s consolidated financial statements.
3. Significant acquisitions of businesses
The following are the significant acquisitions of businesses where the Company applied the business combination acquisition method of accounting.
Significant transaction in 2026
Acquisition of Avidity Biosciences, Inc.
On October 25, 2025, Novartis entered into an agreement and plan of merger to acquire Avidity Biosciences, Inc. (“Avidity”), a US-based, publicly traded biotechnology company specializing in RNA therapeutics, with a focus on rare neuromuscular genetic disorders such as myotonic dystrophy type 1 (DM1), facioscapulohumeral muscular dystrophy (FSHD), and Duchenne muscular dystrophy (DMD).
Pursuant to the merger agreement, on February 27, 2026, following the satisfaction of the closing conditions, Novartis, through an indirect wholly owned subsidiary, acquired all outstanding shares of Avidity’s common stock for USD 72.00 per share in cash. The total consideration amounted to approximately USD 12.0 billion in cash on a fully diluted basis. The acquiring subsidiary merged with and into Avidity, resulting in Avidity becoming an indirect wholly owned subsidiary of Novartis. Avidity shares admitted to trading on NASDAQ were subsequently delisted. The acquisition was financed through a combination of available cash and third-party debt financing.
The fair value of the total purchase consideration was approximately USD 12.0 billion. The preliminary purchase price allocation resulted in net identifiable assets of approximately USD 10.6 billion. These comprised identifiable intangible assets, including IPR&D, of USD 11.3 billion (of which approximately USD 7.5 billion is attributable to the DM1 IPR&D intangible asset), marketable security funds of USD 0.7 billion (which were settled to cash on February 27, 2026 by Novartis), cash of USD 0.4 billion, other net assets of USD 0.1 billion, and net deferred tax liabilities of USD 1.9 billion. Goodwill arising from the acquisition amounted to approximately USD 1.4 billion.
The purchase price allocation is preliminary as the detailed valuation of certain acquired assets and liabilities, including identifiable intangible assets and deferred tax balances, has not yet been completed. The finalization of the purchase price allocation may result in changes to the amounts recognized for net identifiable assets and goodwill in subsequent reporting periods.
The results of operations from the date of acquisition were not material.
Significant transaction in 2025
In 2025, there were no acquisitions of businesses where the Company applied the business combination acquisition method of accounting.
Fair value of assets and liabilities acquired through business combinations
The following table presents the fair value of the assets and liabilities acquired through business combinations and the total purchase consideration for the first half of 2026. In 2025, there were no business combinations.
(USD billions)
Jun 30,
2026
In-process research and development
11.3
Deferred tax assets
0.6
Other non-current assets
0.2
Marketable securities
0.7
Cash
0.4
Other current assets
0.1
Deferred tax liabilities
-2.5
Other non-current liabilities
-0.1
Current liabilities
-0.1
Net identifiable assets acquired
10.6
Goodwill
1.4
Total purchase consideration for business combinations
12.0
The business combination in the first half of 2026 was Avidity. The goodwill arising out of the Avidity business combination is not tax deductible. It is primarily attributable to the deferred tax effects arising from the recognition of identifiable intangible assets for which no corresponding tax basis exists, expected synergies and the value of the acquired assembled workforce.
The following are the significant acquisitions where Novartis elected to apply the optional concentration test, resulting in the transaction being accounted for as assets separately acquired rather than as a business combination within the meaning of IFRS Accounting Standards.
Significant transaction in 2026
Acquisition of Excellergy, Inc.
On March 26, 2026, Novartis entered into an agreement and plan of merger to acquire all outstanding shares of Excellergy, Inc. (“Excellergy”), a US-based, private clinical-stage biotechnology company focused on the development of next-generation anti-IgE therapies for IgE-driven diseases. The transaction closed on June 24, 2026.
The purchase price consisted of cash consideration of USD 0.9 billion and potential additional milestones of up to USD 1.1 billion, which Excellergy shareholders are eligible to receive upon the achievement of specified milestones. The optional concentration test was applied as it indicated that substantially all of the fair value of the gross assets acquired was concentrated in an identifiable IPR&D intangible asset.
The cash purchase price was allocated to an IPR&D intangible asset of USD 0.9 billion, and other net assets including cash of USD 5 million. Subsequent payments for the potential additional milestones will be recognized as additions to the intangible asset when the specified milestones have been achieved.
Acquisition of Pikavation Therapeutics, Inc.
On March 18, 2026, Novartis entered into a stock purchase agreement to acquire Pikavation Therapeutics, Inc., (“Pikavation”), a wholly owned subsidiary of Synnovation Therapeutics, LLC (“Synnovation”), that holds a pan-mutant selective PI3Ka inhibitor IP, including SNV4818 phase 1 program. The transaction closed on May 28, 2026.
The purchase price consisted of cash consideration of USD 1.8 billion and potential additional milestones of up to USD 1.2 billion, which Synnovation is eligible to receive upon the achievement of specified milestones. The optional concentration test was applied as it indicated that substantially all of the fair value of the gross assets acquired was concentrated in an identifiable IPR&D intangible asset.
The cash purchase price was allocated to an IPR&D intangible asset of USD 1.8 billion, and other net assets. Subsequent payments for the potential additional milestones will be recognized as additions to the intangible asset when the specified milestones have been achieved.
Significant transaction in 2025
Acquisition of Tourmaline Bio, Inc.
On September 8, 2025, Novartis entered into an agreement and plan of merger to acquire Tourmaline Bio, Inc. (“Tourmaline”), a US-based, publicly traded clinical-stage biopharmaceutical company focused on developing a treatment option for atherosclerotic cardiovascular disease.
Pursuant to the merger agreement, on September 29, 2025, Novartis, through an indirect, wholly owned subsidiary, commenced a tender offer (the “Offer”) to acquire all of the outstanding shares of common stock of Tourmaline in exchange for USD 48.00 in cash per share. The tender offer expired at one minute past 11:59 p.m., New York City time on October 27, 2025 with a payment on October 28, 2025 in the amount of USD 1.4 billion for the tendered outstanding shares to the Tourmaline shareholders. On October 28, 2025, the acquiring subsidiary merged with and into Tourmaline, resulting in Tourmaline becoming an indirect wholly owned subsidiary of Novartis. Tourmaline shares admitted to trading on NASDAQ were subsequently delisted.
The cash purchase price consisted of cash consideration of USD 1.4 billion. The optional concentration test was applied as it indicated that substantially all of the fair value of the gross assets acquired was concentrated in an identifiable IPR&D intangible asset.
The cash purchase price was allocated to an IPR&D intangible asset of USD 1.2 billion, and other net assets including cash and cash equivalents of USD 0.2 billion.
Option agreement to acquire a private clinical-stage biotech company
On September 16, 2025, Novartis entered into an agreement granting it an option to acquire all outstanding shares of a private clinical-stage biotech company (the “Biotech company”). The option is subject to pre-defined terms and is exercisable at Novartis sole discretion. Management concluded that the terms of the option agreement conferred substantive control over the Biotech company, in accordance with the principles of IFRS Accounting Standards. Consequently, the Biotech company was consolidated into Novartis consolidated financial statements effective from September 2025.
If Novartis decides to exercise the option to acquire, it would make a payment to the Biotech company’s shareholders, with potential additional payments, which they are eligible to receive upon achievement of specified milestones. The optional concentration test was applied as it indicated that substantially all of the fair value of the gross assets at the consolidation date was concentrated in an identifiable IPR&D intangible asset.
The purchase price as at the option agreement date was USD 0.4 billion. The amount was allocated to the net assets at the consolidation date, including USD 0.4 billion IPR&D intangible assets and USD 18 million in cash and cash equivalents. A non-controlling interest of USD 0.4 billion was recognized in equity. Subsequent milestone-related payments will be recognized as additions to the intangible asset when the specified milestones are achieved.
Acquisition of Regulus Therapeutics Inc.
On April 29, 2025, Novartis entered into an agreement and plan of merger to acquire Regulus Therapeutics Inc. (“Regulus”), a US-based, publicly traded clinical-stage biopharmaceutical company focused on developing microRNA therapeutics. Regulus lead development phase asset, farabursen, is a potential first-in-class, next-generation oligonucleotide targeting miR-17 for the treatment of autosomal dominant polycystic kidney disease (ADPKD).
Pursuant to the merger agreement, on May 27, 2025, Novartis, through an indirect, wholly owned subsidiary, commenced a tender offer (the “Offer”) to acquire all of the outstanding shares of common stock of Regulus in exchange for (i) USD 7.00 in cash per Share, plus (ii) one contingent value right (each, a “CVR”) per Share, representing the right to receive one contingent payment of USD 7.00 in cash, upon the achievement of a specified regulatory milestone. The tender offer expired at one minute past 11:59 p.m., New York City time on June 24, 2025 with a payment of USD 0.7 billion for the outstanding shares to the Regulus shareholders for their tendered shares and the issuance of 1 CVR per share. Additionally, the liability related to the Regulus employee share plans amounted to USD 0.1 billion and was paid on July 11, 2025, with the issuance of 1 CVR per share. On June 25, 2025, the acquiring subsidiary merged with and into Regulus, resulting in Regulus becoming an indirect wholly owned subsidiary of Novartis. Regulus shares admitted to trading on NASDAQ were subsequently delisted.
The purchase price consisted of cash consideration of USD 0.8 billion and CVRs of up to USD 0.9 billion, which Regulus shareholders are eligible to receive upon the achievement of a specified regulatory milestone. The optional concentration test was applied as it indicated that substantially all of the fair value of the gross assets acquired was concentrated in an identifiable IPR&D intangible asset.
The cash purchase price was allocated to an IPR&D intangible asset of USD 0.8 billion, and other net assets including cash and cash equivalents of USD 23 million. Subsequent payments for the potential CVRs upon achievement of the specified regulatory milestone will be recognized as additions to the intangible asset if the specified regulatory milestone is achieved.
Acquisition of Anthos Therapeutics, Inc.
On February 10, 2025, Novartis entered into an agreement and plan of merger to acquire all of the outstanding shares of common stock of Anthos Therapeutics, Inc. (“Anthos”), a US-based, privately held clinical stage biopharmaceutical company with abelacimab, a late-stage medicine in development for the prevention of stroke and systematic embolism in patients with atrial fibrillation. The transaction closed on April 3, 2025.
The purchase price consisted of cash consideration of USD 0.9 billion and potential additional milestones of up to USD 2.1 billion, which Anthos shareholders are eligible to receive upon the achievement of specified milestones. The optional concentration test was applied as it indicated that substantially all of the fair value of the gross assets acquired was concentrated in an identifiable IPR&D intangible asset.
The cash purchase price was allocated to an IPR&D intangible asset of USD 0.9 billion, and other net assets including cash and cash equivalents of USD 47 million. Subsequent payments for the potential additional milestones will be recognized as additions to the intangible asset when the specified milestones have been achieved.
Identifiable net assets acquired through acquisitions applying the optional concentration test
The following table presents the identifiable net assets acquired through acquisitions applying the optional concentration test:
(USD billions)
Jun 30,
2026
Dec 31,
2025
In-process research and development
2.7
3.2
Deferred tax assets 1
0.0
0.2
Cash and cash equivalents 2
0.0
0.3
Other current and non-current assets
0.0
0.1
Current and non-current liabilities
0.0
-0.2
Identifiable net assets acquired through acquisitions applying the optional concentration test
2.7
3.6
1 Deferred tax assets are attributable to tax loss and tax credit carryforwards.
2 H1 2026 includes cash of USD 5 million.
For significant pending transactions, see Note 10. Other interim disclosures — Commitments — Other commitments.
4. Summary of equity attributable to Novartis AG shareholders
Number of outstanding shares (in millions)
Equity attributable to Novartis AG shareholders
Note
2026
2025
H1 2026
USD millions
H1 2025
USD millions
Balance at beginning of year
1 908.2
1 975.1
46 130
44 046
Shares acquired to be canceled
-18.2
-48.8
-2 771
-5 350
Other share purchases
-2.0
-1.6
-292
-159
Equity-based compensation plans
12.6
11.1
616
557
Taxes on treasury share transactions
-23
-33
Dividends
4.1
-9 068
-7 818
Net income of the period attributable to shareholders of Novartis AG
6 420
7 647
Other comprehensive income attributable to shareholders of Novartis AG
432
3 027
Changes in non-controlling interests
1
Other movements
4.3
0.1
0.1
98
67
Balance at June 30
1 900.7
1 935.9
41 542
41 985
4.1. The annual gross dividend to shareholders of Novartis AG amounted to USD 9.1 billion (2025: USD 7.8 billion). The net dividend payment to Novartis AG shareholders paid in March 2026 amounted to USD 6.2 billion (2025: USD 5.3 billion paid in March 2025). The USD 2.9 billion Swiss withholding tax on the gross dividend was paid at its due date in April 2026 (2025: USD 2.5 billion paid at its due date in April 2025).
4.2. In July 2023, Novartis entered into an irrevocable, non-discretionary arrangement with a bank to repurchase Novartis shares on the second trading line under its up-to USD 15.0 billion share buyback. In June 2024, Novartis amended the arrangement to include the repurchase of an additional 8.7 million Novartis shares on the second trading line to mitigate the impact of share deliveries under the equity-based compensation plans for employees. These additional repurchases of 8.7 million shares concluded in October 2024. In June 2025, Novartis amended the arrangement to include the repurchase of an additional 10.7 million Novartis shares on the second trading line to mitigate the impact of share deliveries under the equity-based compensation plans for employees. These additional repurchases of 10.7 million shares concluded in August 2025.
The repurchases under the USD 15.0 billion share buyback that commenced in July 2023 concluded in July 2025.
In July 2025, Novartis amended and restated its arrangement to repurchase Novartis shares on the second trading line under its new up-to USD 10.0 billion share buyback.
In March 2026, Novartis replaced its July 2025 arrangement with a new irrevocable, non-discretionary arrangement with a bank to continue repurchasing Novartis shares on the second trading line under its up-to USD 10.0 billion share buyback. In May 2026, Novartis amended the arrangement to include the repurchase of an additional 12.1 million Novartis shares on the second trading line to mitigate the impact of share deliveries under the equity-based compensation plans for employees.
Novartis is able to cancel this arrangement at any time but may be subject to a 90 day waiting period. As of June 30, 2026, and December 31, 2025, these waiting period conditions were not applicable and as a result, there was no requirement to record a liability under this arrangement as of June 30, 2026, and December 31, 2025.
4.3. Other movements include mainly the impact of the application of IAS Standards 29 “Financial Reporting in Hyperinflationary Economies,” for subsidiaries in hyperinflationary economies.
5. Financial instruments
The following table illustrates the three hierarchical levels for valuing financial instruments at fair value as of June 30, 2026, and December 31, 2025. For additional information on the hierarchies and other matters, please refer to the Consolidated Financial Statements in the 2025 Annual Report, published on February 4, 2026.
Level 1
Level 2
Level 3
Total
(USD millions)
Jun 30,
2026
Dec 31,
2025
Jun 30,
2026
Dec 31,
2025
Jun 30,
2026
Dec 31,
2025
Jun 30,
2026
Dec 31,
2025
Financial assets
Cash and cash equivalents – debt securities
10
10
Derivative financial instruments
72
57
72
57
Current contingent consideration receivables
111
101
111
101
Current debt and equity securities
5
15
1
12
12
18
27
Total current financial assets at fair value
15
15
73
57
123
113
211
185
Non-current debt and equity securities
448
255
6
7
498
529
952
791
Fund investments
19
19
214
183
233
202
Non-current contingent consideration receivables
742
758
742
758
Associated companies at fair value through profit or loss
59
88
59
88
Total non-current financial assets at fair value
467
274
6
7
1 513
1 558
1 986
1 839
Financial liabilities
Current contingent consideration liabilities
-72
-215
-72
-215
Derivative financial instruments
-113
-81
-113
-81
Total current financial liabilities at fair value
-113
-81
-72
-215
-185
-296
Non-current contingent consideration liabilities
-351
-452
-351
-452
In the first half of 2026, there was one transfer of equity securities from Level 3 to Level 1 for USD 8 million due to Initial Public Offering of the invested company.
The carrying amount of non-current debt and equity securities, fund investments and non-current contingent consideration receivables totaling USD 2.0 billion at June 30, 2026 (USD 1.8 billion at December 31, 2025) is included in the line “Financial assets” of the consolidated balance sheets. The carrying amount of current contingent consideration liabilities of USD 0.1 billion at June 30, 2026 (USD 0.2 billion at December 31, 2025) is included in the line “Provisions and other current liabilities” of the consolidated balance sheets. The carrying amount of non-current contingent consideration liabilities of USD 0.4 billion at June 30, 2026 (USD 0.5 billion at December 31, 2025) is included in the line “Provisions and other non-current liabilities” of the consolidated balance sheets.
The fair value of straight bonds and floating rate bonds amounted to USD 39.2 billion at June 30, 2026 (USD 26.6 billion at December 31, 2025) compared with the carrying amount of USD 40.5 billion at June 30, 2026 (USD 27.9 billion at December 31, 2025). For all other financial assets and liabilities, the carrying amount is a reasonable approximation of the fair value.
The Company’s exposure to financial risks has not changed significantly during the period and there have been no major changes to the risk management department or in any risk management policies.
6. Details to the consolidated statements of cash flows
6.1. Non-cash items and other adjustments
The following tables show the reversal of non-cash items and other adjustments in the consolidated statements of cash flows.
(USD millions)
Q2 2026
Q2 2025
Depreciation, amortization and impairments on:
Property, plant and equipment
261
245
Right-of-use assets
78
68
Intangible assets
1 061
943
Financial assets 1
6
-4
Change in provisions and other non-current liabilities
466
665
Gains on disposal on property, plant and equipment; intangible assets; other non-current assets; and other adjustments on financial assets and other non-current assets, net
-247
-67
Equity-settled compensation plans
267
267
Loss from associated companies
2
3
Income taxes
1 012
507
Net financial expense
479
330
Other
-8
-3
Total
3 377
2 954
1 Includes fair value changes
(USD millions)
H1 2026
H1 2025
Depreciation, amortization and impairments on:
Property, plant and equipment
559
462
Right-of-use assets
151
133
Intangible assets
1 918
1 815
Financial assets 1
-14
37
Change in provisions and other non-current liabilities
536
847
Gains on disposal on property, plant and equipment; intangible assets; other non-current assets; and other adjustments on financial assets and other non-current assets, net
-406
-45
Equity-settled compensation plans
570
529
Loss from associated companies
5
6
Income taxes
1 695
1 305
Net financial expense
872
583
Other
-18
-6
Total
5 868
5 666
1 Includes fair value changes
6.2. Cash flows from changes in working capital and other operating cash flow items included in the net cash flows from operating activities
(USD millions)
Q2 2026
Q2 2025
H1 2026
H1 2025
(Increase)/decrease in inventories
30
-44
-65
11
Increase in trade receivables
-256
-167
-760
-1 210
Decrease in trade payables
-184
-143
-237
-315
Change in other current and non-current assets
22
172
368
-252
Change in provisions and other current liabilities
620
624
139
440
Total
232
442
-555
-1 326
6.3. Cash flows related to acquisitions of businesses
The following table is a summary of the cash flow impact of acquisitions of businesses:
(USD millions)
Note
Q2 2026
Q2 2025
H1 2026
H1 2025
Total purchase consideration for business combinations
3
0
0
-12 031
0
Acquired cash
371
Contingent consideration payables, net
-23
-127
-44
-127
Acquisitions of businesses
-23
-127
-11 704
-127
Note 3 provides disclosure of the fair value of assets and liabilities acquired through business combinations. All considerations paid for acquisitions were in cash.
6.4. Cash flows used for acquisitions by applying the optional concentration test
In the current-year period, the total cash consideration paid for acquisitions where the Company elected to apply the optional concentration test to determine that the transaction is not a business combination within the meaning of IFRS Accounting Standards, and to account for the acquisition as assets separately acquired amounted to USD 2.7 billion, net of cash acquired of USD 5 million (Q2 2026: USD 2.7 billion, net of cash acquired of USD 5 million; Q2 2025 and H1 2025: USD 1.5 billion, net of cash and cash equivalents acquired of USD 70 million).
Note 3 provides disclosure of the identifiable net assets acquired through acquisitions where the Company elected to apply the optional concentration test. All consideration paid for acquisitions were in cash.
6.5. Cash flows related to divestments of businesses
Cash flows related to divestments of businesses were not material. All considerations received or paid related to divestments were in cash.
7. Legal proceedings update
A number of Novartis companies are, and will likely continue to be, subject to various legal proceedings, including litigations, arbitrations and governmental investigations, that arise from time to time. Legal proceedings are inherently unpredictable. As a result, the Company may become subject to substantial liabilities that may not be covered by insurance and may in the future incur judgments or enter into settlements of claims that could have a material adverse effect on its results of operations or cash flow. Note 20 to the Consolidated Financial Statements in our 2025 Annual Report and 2025 Form 20-F contains a summary as of the date of these reports of significant legal proceedings to which Novartis or its subsidiaries were a party. The following is a summary as of July 20, 2026, of significant developments in those proceedings, as well as any new significant proceedings commenced since the date of the 2025 Annual Report and 2025 Form 20-F.
Investigations and related litigations
Southern District of New York (S.D.N.Y.) Gilenya marketing practices investigation and litigation
In 2013, Novartis Pharmaceuticals Corporation (NPC) received a civil investigative demand from the United States Attorney’s Office for the S.D.N.Y. requesting the production of documents and information relating to marketing practices for Gilenya, including the remuneration of healthcare providers in connection therewith. In 2017, the S.D.N.Y. and New York State declined to intervene in claims raised by an individual relator in a qui tam complaint. In 2022, NPC’s motion to dismiss this complaint was granted. In December 2024, the appeals court affirmed in part but remanded in part, sending the case back to the district court for further proceedings. In March 2026, the district court denied Novartis motion to dismiss and the case proceeded to discovery. The claims are being vigorously contested.
Inflation Reduction Act (IRA) litigation
In 2023, following the U.S. government’s selection of Entresto for the first round of the IRA’s “Medicare Drug Price Negotiation Program,” NPC filed a complaint in the U.S. District Court (USDC) for the District of New Jersey on the grounds that those drug price-setting provisions are unconstitutional under the First, Fifth and Eighth Amendments to the U.S. Constitution. In October 2024, the court granted the government’s motion for summary judgment. NPC appealed to the Third Circuit and in September 2025, the Third Circuit affirmed. In May 2026, the U.S. Supreme Court declined to hear NPC’s petition, concluding this litigation.
Greece investigation
The Greek authorities are investigating legacy allegations of potentially inappropriate economic benefits to healthcare providers (HCPs), government officials and others in Greece. These authorities include the Greek Coordinating Body for Inspection and Control, and the Greek Body of Prosecution of Financial Crime (SDOE), from which the Company received a summons in 2018 and 2020. Novartis has cooperated in these investigations. In 2021, SDOE imposed on Novartis Hellas a fine equivalent to approximately USD 1.2 million; Novartis Hellas appealed the fine and, in September 2023, the Court overturned the decision and fine. The Greek State appealed. In June 2026, the Court of Appeal upheld the decision annulling the fine. In 2022, the Greek State served a civil lawsuit on Novartis Hellas, seeking approximately USD 225 million for moral damages allegedly arising from the conduct that was the subject of the Company’s 2020 settlement with the US Department of Justice regarding allegations of inappropriate economic benefits in Greece that was disclosed in the 2020 Annual Report and the 2020 Form 20-F. In May 2025, the court issued its decision rejecting the claims of the Greek State, which the Greek State appealed in October 2025. In June 2025, the National Social Security Fund of Greece filed a civil lawsuit against Novartis seeking approximately EUR 229 million for moral damages arising from the same facts. The claims will be vigorously contested.
In addition to the matters described above, there have been other non-material developments in the other legal matters described in Note 20 to the Consolidated Financial Statements contained in our 2025 Annual Report and 2025 Form 20-F.
Novartis believes that its total provisions for investigations, product liability, arbitration and other legal matters are adequate based upon currently available information. However, given the inherent difficulties in estimating liabilities, there can be no assurance that additional liabilities and costs will not be incurred beyond the amounts provided.
8. Operating segment
Novartis operates as a single global operating segment innovative medicines company that is engaged in the research, development, manufacturing, distribution, marketing and sale of a broad range of innovative pharmaceuticals medicines, with a focus on the core therapeutic areas: cardiovascular, renal and metabolic; immunology; neuroscience; oncology; and established brands. The Company’s research, development, manufacturing and supply of products and functional activities are managed globally on a vertically integrated basis. Commercial efforts that coordinate marketing, sales and distribution of these products are organized by geographic region, therapeutic area and established brands.
The Executive Committee of Novartis (ECN), chaired by the CEO, is the governance body responsible for allocating resources and assessing the business performance of the operating segment of the Company on a global basis and is the chief operating decision-maker (CODM) for the Company.
The determination of a single operating segment is consistent with the financial information regularly reviewed by the CODM for purposes of assessing performance and allocating resources.
See Note 9 for revenues and geographic information disclosures.
9. Revenues and geographic information
Net sales to third parties
Net sales to third parties by region1
Second quarter
Q2 2026
USD m
Q2 2025
USD m
% change
USD
% change
cc2
Q2 2026
% of total
Q2 2025
% of total
US
5 954
6 249
-5
-5
41
44
Europe
4 441
4 170
6
4
31
30
Asia/Africa/Australasia
3 018
2 713
11
11
21
19
Canada and Latin America
995
922
8
3
7
7
Total
14 408
14 054
3
1
100
100
Of which in established markets
10 536
10 537
0
0
73
75
Of which in emerging growth markets
3 872
3 517
10
6
27
25
1 Net sales to third parties by location of customer. Emerging growth markets comprise all markets other than the established markets of the US, Canada, Western Europe, Japan, Australia and New Zealand. Novartis definition of Western Europe includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Malta, The Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43.
First half
H1 2026
USD m
H1 2025
USD m
% change
USD
% change
cc2
H1 2026
% of total
H1 2025
% of total
US
10 913
11 961
-9
-9
40
44
Europe
8 627
8 075
7
1
31
30
Asia/Africa/Australasia
6 038
5 485
10
8
22
20
Canada and Latin America
1 943
1 766
10
5
7
6
Total
27 521
27 287
1
-2
100
100
Of which in established markets
19 798
20 206
-2
-4
72
74
Of which in emerging growth markets
7 723
7 081
9
4
28
26
1 Net sales to third parties by location of customer. Emerging growth markets comprise all markets other than the established markets of the US, Canada, Western Europe, Japan, Australia and New Zealand. Novartis definition of Western Europe includes Austria, Belgium, Denmark, Finland, France, Germany, Greece, Iceland, Ireland, Italy, Luxembourg, Malta, The Netherlands, Norway, Portugal, Spain, Sweden, Switzerland, and the United Kingdom.
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43.
Net sales to third parties by core therapeutic area and established brands
Second quarter
Q2 2026
Q2 2025
% change
% change
USD m
USD m
USD
cc1
Cardiovascular, renal and metabolic
Entresto
1 181
2 357
-50
-51
Leqvio
480
298
61
59
Vanrafia
27
nm
nm
Total cardiovascular, renal and metabolic
1 688
2 655
-36
-37
Immunology
Cosentyx
1 824
1 629
12
10
Ilaris
550
477
15
15
Xolair 2
342
443
-23
-25
Rhapsido
64
nm
nm
Total immunology
2 780
2 549
9
8
Neuroscience
Kesimpta
1 424
1 077
32
32
Zolgensma Group
365
297
23
20
Aimovig
88
83
6
3
Total neuroscience
1 877
1 457
29
28
Oncology
Kisqali
1 695
1 177
44
43
Pluvicto
651
454
43
43
Jakavi
576
524
10
8
Tafinlar + Mekinist
581
573
1
0
Scemblix
562
298
89
89
Lutathera
225
207
9
8
Fabhalta 3
225
120
88
88
Total oncology 4
4 515
3 353
35
34
Established brands
Sandostatin Group
302
303
0
-1
Exforge Group
191
191
0
-3
Promacta/Revolade 4
179
502
-64
-65
Diovan Group
160
154
4
2
Tasigna 4
142
327
-57
-58
Lucentis
126
173
-27
-30
Myfortic 4
105
102
3
0
Piqray/Vijoice 4
123
111
11
10
Kymriah
88
99
-11
-10
Contract manufacturing
472
276
71
68
Other 4
1 660
1 802
-8
-9
Total established brands 4
3 548
4 040
-12
-14
Total net sales to third parties
14 408
14 054
3
1
1 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43.
2 Net sales to third parties reflect Xolair sales for all indications.
3 Net sales to third parties reflect Fabhalta sales for all indications.
4 Reclassified to conform with 2026 presentation of brands by therapeutic area and established brands.
nm = not meaningful
Net sales to third parties by core therapeutic area and established brands
First half
H1 2026
H1 2025
% change
% change
USD m
USD m
USD
cc1
Cardiovascular, renal and metabolic
Entresto
2 486
4 618
-46
-48
Leqvio
932
555
68
64
Vanrafia
43
nm
nm
Total cardiovascular, renal and metabolic
3 461
5 173
-33
-35
Immunology
Cosentyx
3 390
3 163
7
5
Ilaris
1 025
896
14
13
Xolair 2
730
899
-19
-22
Rhapsido
101
nm
nm
Total immunology
5 246
4 958
6
3
Neuroscience
Kesimpta
2 588
1 976
31
29
Zolgensma Group
667
624
7
3
Aimovig
183
159
15
8
Total neuroscience
3 438
2 759
25
22
Oncology
Kisqali
3 211
2 133
51
48
Pluvicto
1 293
825
57
55
Jakavi
1 133
1 016
12
6
Tafinlar + Mekinist
1 074
1 125
-5
-7
Scemblix
995
536
86
85
Lutathera
436
400
9
8
Fabhalta 3
394
201
96
94
Total oncology 4
8 536
6 236
37
34
Established brands
Sandostatin Group
589
620
-5
-7
Exforge Group
394
370
6
2
Promacta/Revolade 4
363
1 048
-65
-66
Diovan Group
310
304
2
-2
Tasigna 4
297
704
-58
-59
Lucentis
230
362
-36
-40
Myfortic 4
216
201
7
4
Piqray/Vijoice 4
204
211
-3
-4
Kymriah
169
199
-15
-16
Contract manufacturing
824
619
33
27
Other 4
3 244
3 523
-8
-11
Total established brands 4
6 840
8 161
-16
-19
Total net sales to third parties
27 521
27 287
1
-2
1 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43.
2 Net sales to third parties reflect Xolair sales for all indications.
3 Net sales to third parties reflect Fabhalta sales for all indications.
4 Reclassified to conform with 2026 presentation of brands by therapeutic area and established brands.
nm = not meaningful
Net sales to third parties1 of the top 20 brands in 2026
Second quarter
US
Rest of world
Total
Brands
Brand classification by therapeutic area or established brands
Key indications
USD m
% change USD/cc2
USD m
% change USD
% change cc2
USD m
% change USD
% change cc2
Cosentyx
Immunology
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA), hidradenitis suppurativa (HS)
1 069
16
755
7
3
1 824
12
10
Kisqali
Oncology
HR+/HER2- metastatic breast cancer and early breast cancer
1 045
39
650
52
49
1 695
44
43
Kesimpta
Neuroscience
Relapsing forms of multiple sclerosis (MS)
942
32
482
32
30
1 424
32
32
Entresto
Cardiovascular, renal and metabolic
Chronic heart failure, hypertension
-2 5
nm
1 183
4
3
1 181
-50
-51
Pluvicto
Oncology
PSMA-positive mCRPC patients post-ARPI, pre- and post-Taxane
493
38
158
65
62
651
43
43
Jakavi
Oncology
Myelofibrosis (MF), polycythemia vera (PV), graft-versus-host disease (GvHD)
576
10
8
576
10
8
Tafinlar + Mekinist
Oncology
BRAF V600+ metastatic and adjuvant melanoma, advanced non-small cell lung cancer (NSCLC), tumor agnostic with BRAF mutation indication, pediatric low grade glioma (pLGG)
197
-20
384
17
15
581
1
0
Ilaris
Immunology
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout)
315
21
235
8
8
550
15
15
Scemblix
Oncology
Philadelphia chromosome-positive chronic myeloid leukemia (Ph+ CML) in chronic phase (CP); Ph+ CML in CP with the T315I mutation
369
93
193
80
82
562
89
89
Leqvio
Cardiovascular, renal and metabolic
Atherosclerotic cardiovascular disease (ASCVD)
214
55
266
66
63
480
61
59
Xolair 3
Immunology
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps, food allergy (FA)
342
-23
-25
342
-23
-25
Zolgensma Group
Neuroscience
Spinal muscular atrophy (SMA)
152
58
213
6
2
365
23
20
Sandostatin Group
Established brands
Carcinoid tumors, acromegaly
177
-5
125
8
7
302
0
-1
Lutathera
Oncology
GEP-NETs gastroenteropancreatic neuroendocrine tumors
163
9
62
9
6
225
9
8
Exforge Group
Established brands
Hypertension
191
1
-3
191
0
-3
Fabhalta 4
Oncology
Paroxysmal Nocturnal Hemoglobinuria (PNH), IgA Nephropathy (IgAN), Adult C3 Glomerulopathy (C3G)
124
63
101
130
130
225
88
88
Promacta/Revolade
Established brands
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA)
39
-83
140
-49
-50
179
-64
-65
Diovan Group
Established brands
Hypertension
6
-14
154
5
3
160
4
2
Tasigna
Established brands
Chronic myeloid leukemia (CML)
30
-81
112
-32
-34
142
-57
-58
Lucentis
Established brands
Age-related macular degeneration (AMD), diabetic macular edema (DME), retinal vein occlusion (RVO)
126
-27
-30
126
-27
-30
Top 20 brands total
5 333
-7
6 448
10
8
11 781
2
1
Rest of portfolio
621
14
2 006
4
2
2 627
6
5
Net sales to third parties
5 954
-5
8 454
8
6
14 408
3
1
1 Net sales to third parties by location of customer
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43.
3 Net sales to third parties reflect Xolair sales for all indications.
4 Net sales to third parties reflect Fabhalta sales for all indications.
5 Mainly due to change in revenue deductions
nm = not meaningful
Net sales to third parties1 of the top 20 brands in 2026
First half
US
Rest of world
Total
Brands
Brand classification by therapeutic area or established brands
Key indications
USD m
% change USD/cc2
USD m
% change USD
% change cc2
USD m
% change USD
% change cc2
Cosentyx
Immunology
Psoriasis (PsO), ankylosing spondylitis (AS), psoriatic arthritis (PsA), non-radiographic axial spondyloarthritis (nr-axSPA), hidradenitis suppurativa (HS)
1 839
6
1 551
9
3
3 390
7
5
Kisqali
Oncology
HR+/HER2- metastatic breast cancer and early breast cancer
1 970
47
1 241
56
49
3 211
51
48
Kesimpta
Neuroscience
Relapsing forms of multiple sclerosis (MS)
1 666
28
922
36
31
2 588
31
29
Entresto
Cardiovascular, renal and metabolic
Chronic heart failure, hypertension
70
-97
2 416
9
5
2 486
-46
-48
Pluvicto
Oncology
PSMA-positive mCRPC patients post-ARPI, pre- and post-Taxane
999
55
294
63
55
1 293
57
55
Jakavi
Oncology
Myelofibrosis (MF), polycythemia vera (PV), graft-versus-host disease (GvHD)
1 133
12
6
1 133
12
6
Tafinlar + Mekinist
Oncology
BRAF V600+ metastatic and adjuvant melanoma, advanced non-small cell lung cancer (NSCLC), tumor agnostic with BRAF mutation indication, pediatric low grade glioma (pLGG)
367
-19
707
5
1
1 074
-5
-7
Ilaris
Immunology
Auto-inflammatory (CAPS, TRAPS, HIDS/MKD, FMF, SJIA, AOSD, gout)
561
17
464
11
7
1 025
14
13
Scemblix
Oncology
Philadelphia chromosome-positive chronic myeloid leukemia (Ph+ CML) in chronic phase (CP); Ph+ CML in CP with the T315I mutation
655
90
340
78
76
995
86
85
Leqvio
Cardiovascular, renal and metabolic
Atherosclerotic cardiovascular disease (ASCVD)
380
43
552
90
83
932
68
64
Xolair 3
Immunology
Severe allergic asthma (SAA), chronic spontaneous urticaria (CSU), nasal polyps, food allergy (FA)
730
-19
-22
730
-19
-22
Zolgensma Group
Neuroscience
Spinal muscular atrophy (SMA)
269
20
398
0
-6
667
7
3
Sandostatin Group
Established brands
Carcinoid tumors, acromegaly
339
-12
250
6
2
589
-5
-7
Lutathera
Oncology
GEP-NETs gastroenteropancreatic neuroendocrine tumors
314
9
122
10
5
436
9
8
Exforge Group
Established brands
Hypertension
2
-33
392
7
2
394
6
2
Fabhalta 4
Oncology
Paroxysmal Nocturnal Hemoglobinuria (PNH), IgA Nephropathy (IgAN), Adult C3 Glomerulopathy (C3G)
223
74
171
134
128
394
96
94
Promacta/Revolade
Established brands
Immune thrombocytopenia (ITP), severe aplastic anemia (SAA)
64
-88
299
-44
-46
363
-65
-66
Diovan Group
Established brands
Hypertension
16
-20
294
4
0
310
2
-2
Tasigna
Established brands
Chronic myeloid leukemia (CML)
58
-84
239
-31
-34
297
-58
-59
Lucentis
Established brands
Age-related macular degeneration (AMD), diabetic macular edema (DME), retinal vein occlusion (RVO)
230
-36
-40
230
-36
-40
Top 20 brands total
9 792
-10
12 745
11
6
22 537
1
-2
Rest of portfolio
1 121
3
3 863
1
-3
4 984
1
-2
Net sales to third parties
10 913
-9
16 608
8
4
27 521
1
-2
1 Net sales to third parties by location of customer
2 Constant currencies (cc) is a non-IFRS measure. A definition of non-IFRS measures used by Novartis can be found starting on page 43.
3 Net sales to third parties reflect Xolair sales for all indications.
4 Net sales to third parties reflect Fabhalta sales for all indications.
(USD millions)
Q2 2026
Q2 2025
H1 2026
H1 2025
Profit sharing income
456
356
788
613
Royalty income 1
27
318
53
326
Milestone income
5
35
18
89
Other 2
55
73
95
141
Total other revenues
543
782
954
1 169
1 In the second quarter and first half of 2025, royalty income includes a royalty settlement of USD 0.3 billion.
2 Other includes revenue from activities such as manufacturing or other services rendered, to the extent such revenue is not recorded under net sales to third parties.
10. Other interim disclosures
Property, plant and equipment, right-of-use assets and intangible assets
The following table shows additional disclosures related to property, plant and equipment, right-of-use assets and intangible assets:
(USD millions)
Q2 2026
Q2 2025
H1 2026
H1 2025
Property, plant and equipment impairment charges
-4
-39
-6
Property, plant and equipment depreciation charge
-261
-241
-520
-456
Right-of-use assets impairment charges
-1
-1
Right-of-use assets depreciation charge
-77
-68
-150
-133
Intangible assets impairment charges
-199
-92
-199
-94
Intangible assets amortization charge
-862
-851
-1 719
-1 721
In the first half of 2026 and 2025, there were no reversals of impairment charges on property, plant and equipment, right-of-use assets and intangible assets.
The following table shows the additions to property, plant and equipment, right-of-use assets and intangible assets other than goodwill, excluding the impacts of the first half of 2026 business combinations and acquisitions applying the optional concentration test, which are disclosed in Note 3:
(USD millions)
Q2 2026
Q2 2025
H1 2026
H1 2025
Additions to property, plant and equipment
335
349
610
559
Additions to right-of-use assets
102
81
151
137
Additions to intangible assets other than goodwill
408
198
852
1 377
Financial debts
The acquisition of Avidity Biosciences, Inc., completed on February 27, 2026, was initially financed through a USD 11.0 billion bridge loan with an interest rate based on compounded Secured Overnight Financing Rate (SOFR). The bridge loan was fully repaid on March 18, 2026, using the proceeds from the straight and floating rate bonds issued in the first quarter of 2026.
The following table provides a breakdown of straight and floating rate bonds issued in the first half of 2026:
Coupon
Notional
amount
(millions)
Issuance
year
Maturity
year
USD
millions
SOFR + 0.65%
USD
500
2026
2029
Novartis Capital Corporation, New York, United States
100.000%
499
4.100%
USD
1 250
2026
2029
Novartis Capital Corporation, New York, United States
99.883%
1 247
4.400%
USD
1 750
2026
2031
Novartis Capital Corporation, New York, United States
99.960%
1 746
4.600%
USD
2 000
2026
2033
Novartis Capital Corporation, New York, United States
99.574%
1 986
4.900%
USD
2 250
2026
2036
Novartis Capital Corporation, New York, United States
99.719%
2 237
5.600%
USD
1 000
2026
2046
Novartis Capital Corporation, New York, United States
99.536%
990
5.700%
USD
2 250
2026
2056
Novartis Capital Corporation, New York, United States
99.120%
2 216
3.100%
EUR
600
2026
2032
Novartis Finance S.A., Luxembourg, Luxembourg
99.525%
679
3.500%
EUR
600
2026
2035
Novartis Finance S.A., Luxembourg, Luxembourg
99.757%
681
4.000%
EUR
500
2026
2041
Novartis Finance S.A., Luxembourg, Luxembourg
99.833%
568
Total straight and floating rate bonds issued in the first half of 2026
12 849
Total straight and floating rate bonds, June 30, 2026
40 542
Total straight and floating rate bonds, December 31, 2025
27 929
Net investment hedge designation
In addition to the existing hedges as of December 31, 2025, the Company has further designated the newly issued Euro-denominated straight bonds maturing 2032 (EUR 600 million), 2035 (EUR 600 million) and 2041 (EUR 500 million) as hedges of the translation risk arising on certain of these net investments in foreign operations with a Euro functional currency. As of June 30, 2026, long-term financial debt with a carrying amount of EUR 5.0 billion (USD 5.7 billion, December 31, 2025: USD 3.9 billion), have been designated as hedge instruments. The hedges remained effective since inception, and no amount was recognized in the consolidated income statement in 2025 and 2026 year-to-date.
Commitments
Research and development commitments
The Company has entered into long-term research and development agreements related to intangible assets with various third parties. The Company has also entered into acquisition agreements related to intangible assets with third parties that were accounted for as assets separately acquired by electing to apply the optional concentration test. These agreements may provide for potential milestone payments by Novartis, which are dependent on successful achievement of specified clinical development, regulatory approval, or sales milestones, or other conditions specified in the agreements.
As of June 30, 2026, the amount and estimated timing of the Company’s commitments to make payments under those agreements, which are shown without risk adjustment and on an undiscounted basis, were as follows:
(USD millions)
Jun 30,
2026
2026
263
2027
1 888
2028
957
2029
1 494
2030
1 095
2031
1 213
Thereafter
12 813
Total
19 723
Other commitments
The Company has entered into various purchase commitments for services and materials as well as for equipment in the ordinary course of business. These commitments are generally entered into at current market prices and reflect normal business operations.
The Company routinely acquires interests in intellectual property focused on key disease areas and indications that the Company expects to be growth drivers in the future.
Pending acquisition commitment to acquire Myricx Bio – On July 5, 2026, Novartis entered into a stock purchase agreement to acquire Myricx Bio, a privately held UK-based biotechnology company developing a new class of antibody-drug conjugates (ADCs), using N-myristoyltransferase inhibitor (NMTi) payloads. Under the terms of the agreement Novartis will make a payment of USD 1.1 billion at closing and up to USD 0.4 billion in additional payments contingent upon the achievement of specified milestones. The transaction is expected to close in the second half of 2026, subject to satisfaction or waiver of customary closing conditions, including regulatory approval.
11. Events subsequent to the June 30, 2026, consolidated balance sheet date
Significant transaction entered into in July 2026
On July 5, 2026, the Company entered into a commitment related to a purchase agreement to acquire a company. See Note 10 for further information.
Supplementary information (unaudited)
Non-IFRS measures as defined by Novartis
Novartis uses certain non-IFRS Accounting Standards metrics when measuring performance, especially when measuring current-year results against prior periods, including core results, constant currencies and free cash flow. These are referred to by Novartis as non-IFRS measures.
Despite the use of these measures by management in setting goals and measuring the Company’s performance, these are non-IFRS measures that have no standardized meaning prescribed by IFRS Accounting Standards. As a result, such measures have limits in their usefulness to investors.
Because of their non-standardized definitions, the non-IFRS measures (unlike IFRS Accounting Standards measures) may not be comparable to the calculation of similar measures of other companies. These non-IFRS measures are presented solely to permit investors to more fully understand how the Company’s management assesses underlying performance. These non-IFRS measures are not, and should not be viewed as, a substitute for IFRS Accounting Standards measures and should be viewed in conjunction with the consolidated financial statements presented in accordance with IFRS Accounting Standards.
As an internal measure of Company performance, these non-IFRS measures have limitations, and the Company’s performance management process is not solely restricted to these metrics.
Core results
The Company’s core results – including core operating income, core net income and core earnings per share – exclude fully the amortization and net impairment charges of intangible assets, excluding software, net gains and losses on fund investments and equity securities valued at fair value through profit and loss, impact of IAS Standards 29 “Financial Reporting in Hyperinflationary Economies” to other financial income and expense, and certain acquisition- and divestment-related items. The following items that exceed a threshold of USD 25 million are also excluded: integration- and divestment-related income and expenses; divestment gains and losses; restructuring charges/releases and related items; legal-related items; impairments of property, plant and equipment, software, and financial assets, and income and expense items that management deems exceptional and that are or are expected to accumulate within the year to be over a USD 25 million threshold.
Novartis believes that investor understanding of the Company’s performance is enhanced by disclosing core measures of performance since, core measures exclude items that can vary significantly from year to year, they enable better comparison of business performance across years. For this same reason, Novartis uses these core measures in addition to IFRS Accounting Standards measures and other measures as important factors in assessing the Company’s performance.
The following are examples of how these core measures are used:
• In addition to monthly reports containing financial information prepared under IFRS Accounting Standards, senior management receives a monthly analysis incorporating these non-IFRS core measures.
• Annual budgets are prepared for both IFRS Accounting Standards and non-IFRS core measures.
As an internal measure of Company performance, the core results measures have limitations, and the Company’s performance management process is not solely restricted to these metrics. A limitation of the core results measures is that they provide a view of the Company’s operations without including all events during a period, such as the effects of an acquisition, divestment, or amortization/impairments of intangible assets, impairments to property, plant and equipment and restructurings and related items.
Change in constant currency
Changes in the relative values of non-US currencies to the US dollar can affect the Company’s financial results. To provide additional context that may assist investors in understanding period-on-period movements, including changes in volume, price and generic competition impacts on net sales, we disclose year-over-year percentage changes in net sales and selected key figures, including operating income and net income, both as reported in USD and in constant currencies. Constant currency percentage changes are presented only as supplemental explanatory information to give context for the estimated currency effect on reported year-over-year percentage changes and should be considered together with the corresponding USD-reported percentage changes.
Constant currency percentage changes exclude the estimated impact of exchange rate movements arising from (i) translating results from functional currencies into USD, the Company’s reporting currency, and (ii) major transactions of consolidated entities performed in currencies other than their functional currency.
Constant currency percentage changes are calculated by translating current-year results into USD using prior-year average exchange rates (excluding adjustments required under IAS Standards 29 “Financial Reporting in Hyperinflationary Economies” for
subsidiaries operating in hyperinflationary economies), and adjusting for the estimated impact of exchange rate movements on major transactions of consolidated entities performed in currencies other than their functional currency. The translated current-year amounts are then compared with the prior-year results in USD to derive the constant currency percentage changes.
Free cash flow
Novartis defines free cash flow as net cash flows from operating activities less purchases of property, plant and equipment. Management believes that this definition provides a performance measure that focuses on core operating activities, and also excludes items that can vary significantly from year to year, thereby enabling better comparison of business performance across years.
Free cash flow is a non-IFRS measure, which means it should not be interpreted as a measure determined under IFRS Accounting Standards. Free cash flow is not intended to be a substitute measure for net cash flows from operating activities as determined under IFRS Accounting Standards. Free cash flow is presented as additional information because management believes it is a useful supplemental indicator of the Company’s ability to operate without reliance on additional borrowing or use of existing cash. Free cash flow is a measure of the net cash generated that is available for investment in strategic opportunities, returning to shareholders and for debt repayment.
Additional information
Growth rate calculation
For ease of understanding, Novartis uses a sign convention for its growth rates such that a reduction in operating expenses or losses compared with the prior year is shown as a positive growth.
Net debt
Novartis calculates net debt as current financial debts and derivative financial instruments plus non-current financial debts less cash and cash equivalents and marketable securities, time deposits and derivative financial instruments.
Net debt is presented as additional information because it sets forth how management monitors net debt or liquidity and management believes it is a useful supplemental indicator of the Company’s ability to pay dividends, to meet financial commitments, and to invest in new strategic opportunities, including strengthening its balance sheet.
See page 50 for additional disclosures related to net debt.
Reconciliation from IFRS Accounting Standards results to non-IFRS measure core results
The following table provides an overview of the reconciliation from IFRS Accounting Standards results to non-IFRS measure core results:
(USD millions unless indicated otherwise)
Q2 2026
Q2 2025
H1 2026
H1 2025
IFRS Accounting Standards operating income
4 750
4 864
8 985
9 527
Amortization of intangible assets
778
770
1 553
1 559
Impairments
Intangible assets
199
92
199
93
Property, plant and equipment related to the company-wide rationalization of manufacturing sites
1
1
Other property, plant and equipment
34
Total impairment charges
199
93
233
94
Acquisition or divestment of businesses and related items
– Income
-51
-106
-180
-217
– Expense
85
143
208
246
Total acquisition or divestment of businesses and related items, net
34
37
28
29
Other items
Divestment gains
-50
-125
-50
Financial assets – fair value adjustments
6
-3
-13
38
Restructuring and related items
– Income
-24
-44
-38
-60
– Expense
472
147
586
292
Legal-related items
– Income
-280
-280
– Expense
46
443
46
443
Additional income
-321
-109
-470
-170
Additional expense
57
52
78
Total other items
179
161
38
291
Total adjustments
1 190
1 061
1 852
1 973
Core operating income
5 940
5 925
10 837
11 500
as % of net sales
41.2%
42.2%
39.4%
42.1%
Loss from associated companies
-2
-3
-5
-6
Interest expense
-462
-289
-805
-559
Other financial income and expense
-17
-41
-67
-24
Core adjustments to other financial income and expense
36
28
90
57
Income taxes, adjusted for core adjustment items (core income taxes)
-917
-910
-1 678
-1 776
Core net income
4 578
4 710
8 372
9 192
Core net income attributable to shareholders of Novartis AG
4 585
4 709
8 379
9 188
Core net income attributable to non-controlling interests
-7
1
-7
4
Core basic EPS (USD) 1
2.41
2.42
4.39
4.69
1 Core earnings per share (EPS) is calculated by dividing core net income attributable to shareholders of Novartis AG by the weighted average number of shares outstanding used in the basic EPS calculation in the reporting period.
Reconciliation from IFRS Accounting Standards results to non-IFRS measure core results
Second quarter
(USD millions unless indicated otherwise)
Q2 2026
IFRS
Accounting
Standards
results
Amortization
of intangible
assets1
Acquisition or
divestment of
businesses and
related items3
Gross profit
11 241
692
32
11 965
11 915
Operating income
4 750
778
199
34
179
5 940
5 925
Income before taxes
4 269
778
199
34
215
5 495
5 620
Income taxes 5
-1 012
-155
-35
-17
302
-917
-910
Net income
3 257
4 578
4 710
Attributable to:
Shareholders of Novartis AG
3 264
4 585
4 709
Non-controlling interests
-7
-7
1
Basic EPS (USD) 6
1.71
2.41
2.42
The following are adjustments to arrive at core gross profit
Cost of goods sold
-3 710
692
32
-2 986
-2 612
The following are adjustments to arrive at core operating income
Selling, general and administration
-3 241
5
5
-3 231
-3 441
Research and development
-2 847
86
199
9
-100
-2 653
-2 553
Other income
410
-51
-258
101
194
Other expense
-813
71
500
-242
-190
The following are adjustments to arrive at core income before taxes
Other financial income and expense
-17
36
19
-13
1 Amortization of intangible assets: cost of goods sold includes the amortization of currently marketed products intangible assets; research and development includes the amortization of scientific infrastructure and technologies intangible assets
2 Impairments: research and development includes net impairment charges related to intangible assets
3 Acquisition or divestment of businesses and related items, including integration-related charges: selling, general and administration, research and development, other income and other expense include integration-related charges and income; other income and other expense also include transitional services fee income and expenses related to the Sandoz distribution as well as adjustments to provisions; other income also includes settlement income related to a prior-year divestment
4 Other items: costs of goods sold, selling, general and administration, research and development, other income and other expense include net restructuring charges and related items; research and development include contingent consideration adjustments; other income and other expense include fair value adjustments on financial assets; other income also includes an asset divestment gain, fair value adjustments on contingent consideration receivables, a gain related to pension plan amendments and other items; other expense includes legal-related items; other financial income and expense includes the impact of IAS Standards 29 “Financial Reporting in Hyperinflationary Economies” for subsidiaries operating in hyperinflationary economies
5 Taxes on the adjustments between IFRS Accounting Standards and core results, for each item included in the adjustment, take into account the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortization and impairment of intangible assets other than goodwill and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although not always for items arising from legal settlements in certain jurisdictions. Other items include adjustments for the tax effects of intercompany transactions, including effects of adjusting deferred income taxes resulting from temporary differences on intercompany inventory transactions arising from the elimination of unrealized profit on consolidation when the seller and buyer subsidiaries are subject to different tax rates. Due to these factors and the differing effective tax rates in the various jurisdictions, the tax on the total adjustments of USD 1.2 billion to arrive at the core results before tax amounts to a tax benefit of USD 95 million and the average tax rate on the total adjustments was -7.7% since the estimated full year core tax charge of 16.7% has been applied to the pre-tax income of the period.
6 Core earnings per share (EPS) is calculated by dividing core net income attributable to shareholders of Novartis AG by the weighted average number of shares outstanding used in the basic EPS calculation in the reporting period.
Reconciliation from IFRS Accounting Standards results to non-IFRS measure core results
First half
(USD millions unless indicated otherwise)
H1 2026
IFRS
Accounting
Standards
results
Amortization
of intangible
assets1
Acquisition or
divestment of
businesses and
related items3
Gross profit
21 306
1 386
53
22 745
22 997
Operating income
8 985
1 553
233
28
38
10 837
11 500
Income before taxes
8 108
1 553
233
28
128
10 050
10 968
Income taxes 5
-1 695
-308
-41
-18
384
-1 678
-1 776
Net income
6 413
8 372
9 192
Attributable to:
Shareholders of Novartis AG
6 420
8 379
9 188
Non-controlling interests
-7
– 7
4
Basic EPS (USD) 6
3.37
4.39
4.69
The following are adjustments to arrive at core gross profit
Cost of goods sold
-7 169
1 386
53
-5 730
-5 115
The following are adjustments to arrive at core operating income
Selling, general and administration
-6 381
6
7
-6 368
-6 498
Research and development
-5 587
167
199
14
-150
-5 357
-4 855
Other income
888
-180
-494
214
273
Other expense
-1 241
34
188
622
-397
-417
The following are adjustments to arrive at core income before taxes
Other financial income and expense
-67
90
23
33
1 Amortization of intangible assets: cost of goods sold includes the amortization of currently marketed products intangible assets; research and development includes the amortization of scientific infrastructure and technologies intangible assets
2 Impairments: research and development includes net impairment charges related to intangible assets; other expense includes net impairment charges related to property, plant and equipment
3 Acquisition or divestment of businesses and related items, including integration-related charges: selling, general and administration, research and development, other income and other expense include integration-related charges and income; other income and other expense also include transitional services fee income and expenses related to the Sandoz distribution as well as adjustments to provisions; other income also includes settlement income related to a prior-year divestment
4 Other items: costs of goods sold, selling, general and administration, research and development, other income and other expense include net restructuring charges and related items; costs of goods sold and research and development include contingent consideration adjustments; other income and other expense include fair value adjustments on financial assets; other income also includes asset divestment gains, fair value adjustments on contingent consideration receivables, a gain related to pension plan amendments and other items; other expense includes legal-related items; other financial income and expense includes the impact of IAS Standards 29 “Financial Reporting in Hyperinflationary Economies” for subsidiaries operating in hyperinflationary economies
5 Taxes on the adjustments between IFRS Accounting Standards and core results, for each item included in the adjustment, take into account the tax rate that will finally be applicable to the item based on the jurisdiction where the adjustment will finally have a tax impact. Generally, this results in amortization and impairment of intangible assets other than goodwill and acquisition-related restructuring and integration items having a full tax impact. There is usually a tax impact on other items, although not always for items arising from legal settlements in certain jurisdictions. Other items include adjustments for the tax effects of intercompany transactions, including effects of adjusting deferred income taxes resulting from temporary differences on intercompany inventory transactions arising from the elimination of unrealized profit on consolidation when the seller and buyer subsidiaries are subject to different tax rates. Due to these factors and the differing effective tax rates in the various jurisdictions, the tax on the total adjustments of USD 1.9 billion to arrive at the core results before tax amounts to a tax benefit of USD 17 million and the average tax rate on the total adjustments was -0.9% since the estimated full year core tax charge of 16.7% has been applied to the pre-tax income of the period.
6 Core earnings per share (EPS) is calculated by dividing core net income attributable to shareholders of Novartis AG by the weighted average number of shares outstanding used in the basic EPS calculation in the reporting period.
Non-IFRS measure free cash flow
The following tables provide a reconciliation of the three major categories of the IFRS Accounting Standards consolidated statements of cash flows to the non-IFRS measure free cash flow:
Second quarter
Q2 2026
Q2 2025
(USD millions)
IFRS
Accounting
Standards
cash flow
IFRS
Accounting
Standards
cash flow
Net cash flows from operating activities
5 882
5 882
6 664
6 664
Net cash flows used in investing activities 1
-3 105
2 784
-321
-2 243
1 912
-331
Net cash flows used in financing activities 2
-2 020
2 020
0
-5 213
5 213
0
Non-IFRS measure free cash flow
5 561
6 333
1 With the exception of purchases of property, plant and equipment, all net cash flows used in investing activities are excluded from the free cash flow.
2 Net cash flows used in financing activities are excluded from the free cash flow.
First half
H1 2026
H1 2025
(USD millions)
IFRS
Accounting
Standards
cash flow
IFRS
Accounting
Standards
cash flow
Net cash flows from operating activities
9 558
9 558
10 309
10 309
Net cash flows used in investing activities 1
-14 841
14 174
-667
-1 913
1 328
-585
Net cash flows from/(used in) financing activities 2
1 559
-1 559
0
-13 761
13 761
0
Non-IFRS measure free cash flow
8 891
9 724
1 With the exception of purchases of property, plant and equipment, all net cash flows used in investing activities are excluded from the free cash flow.
2 Net cash flows from/(used in) financing activities are excluded from the free cash flow.
The following tables summarize the non-IFRS measure free cash flow:
Second quarter
(USD millions)
Q2 2026
Q2 2025
Operating income
4 750
4 864
Reversal of non-cash items and other adjustments
Depreciation, amortization and impairments
1 406
1 252
Change in provisions and other non-current liabilities
466
665
Other
12
197
Operating income adjusted for non-cash items
6 634
6 978
Dividends received from associated companies and others
1
1
Interest received and change in other financial receipts
44
437
Interest paid and change in other financial payments
-380
-240
Income taxes paid
-398
-675
Payments out of provisions and other net cash movements in non-current liabilities
-251
-279
Change in inventories and trade receivables less trade payables
-410
-354
Change in other operating cash flow items
642
796
Net cash flows from operating activities
5 882
6 664
Purchases of property, plant and equipment
-321
-331
Non-IFRS measure free cash flow
5 561
6 333
First half
(USD millions)
H1 2026
H1 2025
Operating income
8 985
9 527
Reversal of non-cash items and other adjustments
Depreciation, amortization and impairments
2 614
2 447
Change in provisions and other non-current liabilities
536
847
Other
146
478
Operating income adjusted for non-cash items
12 281
13 299
Dividends received from associated companies and others
1
1
Interest received and other financial receipts
127
559
Interest paid and other financial payments
-593
-493
Income taxes paid
-1 185
-1 215
Payments out of provisions and other net cash movements in non-current liabilities
-518
-516
Change in inventories and trade receivables less trade payables
-1 062
-1 514
Change in other operating cash flow items
507
188
Net cash flows from operating activities
9 558
10 309
Purchases of property, plant and equipment
-667
-585
Non-IFRS measure free cash flow
8 891
9 724
Additional information
Net debt
Condensed consolidated changes in net debt
Second quarter
(USD millions)
Q2 2026
Q2 2025
Net change in cash and cash equivalents
739
-410
Change in marketable securities, time deposits, financial debts and derivatives financial instruments
-2 039
-1 103
Change in net debt
-1 300
-1 513
Net debt at April 1
-38 087
-22 271
Net debt at June 30
-39 387
-23 784
First half
(USD millions)
H1 2026
H1 2025
Net change in cash and cash equivalents
-3 819
-4 803
Change in marketable securities, time deposits, financial debts and derivatives financial instruments
-13 621
-2 840
Change in net debt
-17 440
-7 643
Net debt at January 1
-21 947
-16 141
Net debt at June 30
-39 387
-23 784
Components of net debt
(USD millions)
Jun 30,
2026
Dec 31,
2025
Jun 30,
2025
Non-current financial debts
-37 489
-27 935
-22 470
Current financial debts and derivative financial instruments
-9 588
-5 602
-8 314
Total financial debts
-47 077
-33 537
-30 784
Less liquidity
Cash and cash equivalents
7 616
11 435
6 656
Marketable securities, time deposits and derivative financial instruments
74
155
344
Total liquidity
7 690
11 590
7 000
Net debt at end of period
-39 387
-21 947
-23 784
Share information
Jun 30,
2026
Jun 30,
2025
Number of shares outstanding
1 900 714 840
1 935 853 188
Registered share price (CHF)
126.58
96.17
ADR price (USD)
156.72
121.01
Market capitalization (USD billions) 1
297.4
233.5
Market capitalization (CHF billions) 1
240.6
186.2
1 Market capitalization is calculated based on the number of shares outstanding (excluding treasury shares). Market capitalization in USD is based on the market capitalization in CHF converted at the quarter end CHF/USD exchange rate.
Effects of currency fluctuations
Principal currency translation rates
(USD per unit)
Average
rates
Q2 2026
Average
rates
Q2 2025
Average
rates
H1 2026
Average
rates
H1 2025
Period-end
rates
Jun 30,
2026
Period-end
rates
Jun 30,
2025
1 CHF
1.266
1.209
1.271
1.161
1.236
1.254
1 CNY
0.147
0.138
0.146
0.138
0.147
0.140
1 EUR
1.163
1.133
1.167
1.093
1.140
1.174
1 GBP
1.343
1.335
1.345
1.297
1.324
1.373
100 JPY
0.628
0.692
0.633
0.674
0.616
0.695
100 RUB
1.345
1.235
1.309
1.154
1.289
1.272
Currency impact on key figures
The following table provides a summary of the currency impact on key Company figures due to their conversion into US dollars, the Company’s reporting currency, of the financial data from entities reporting in non-US dollars.
Second quarter
Change in
USD %
Q2 2026
Change in
constant
currencies %
Q2 2026
Percentage
point currency
impact
Q2 2026
Net sales to third parties
3
1
2
Operating income
-2
-3
1
Net income
-19
-19
0
Basic earnings per share (USD)
-17
-18
1
Core operating income
0
0
0
Core net income
-3
-4
1
Core basic earnings per share (USD)
0
-1
1
First half
Change in
USD %
H1 2026
Change in
constant
currencies %
H1 2026
Percentage
point currency
impact
H1 2026
Net sales to third parties
1
-2
3
Operating income
-6
-7
1
Net income
-16
-17
1
Basic earnings per share (USD)
-14
-15
1
Core operating income
-6
-7
1
Core net income
-9
-10
1
Core basic earnings per share (USD)
-6
-8
2
Disclaimer
This communication contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, that can generally be identified by words such as “expected,” “anticipated,” “planned,” “can,” “will,” “continue,” “ongoing,” “growth,” “launch,” “expanded,” “deliver,” “accelerate,” “guidance,” “outlook,” “priority,” “potential,” “momentum,” “on track,” “look forward,” “pipeline,” or similar expressions, or by express or implied discussions regarding: potential new products, potential new indications for existing products, potential product launches or potential future revenues from any such products; or results of ongoing clinical trials; potential future, pending or announced transactions; potential future sales or earnings; strategy, plans, expectations or intentions, including discussions regarding our continued investment into new R&D capabilities and manufacturing; our capital structure. You should not place undue reliance on these statements. Such forward-looking statements are based on the current beliefs and expectations of management regarding future events and are subject to significant known and unknown risks and uncertainties. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those set forth in the forward-looking statements. There can be no guarantee that the investigational or approved products described in this communication will be submitted or approved for sale or for any additional indications or labeling in any market, or at any particular time. Nor can there be any guarantee that such products will be commercially successful in the future. Neither can there be any guarantee that the expected benefits or synergies from the transactions described in this communication will be achieved in the expected timeframe, or at all. In particular, our expectations could be affected by, among other things, uncertainties concerning: global healthcare cost containment, including ongoing government, payer and general public pricing and reimbursement pressures and requirements for increased pricing transparency; the success of key products, commercial priorities and strategy; the research and development of new products, including clinical trial results and additional analysis of existing clinical data; our ability to obtain or maintain proprietary intellectual property protection, including the ultimate extent of the impact on Novartis of the loss of patent protection and exclusivity on key products; our ability to realize the strategic benefits, operational efficiencies or opportunities expected from our external business opportunities; the development or adoption of new technologies, including artificial intelligence, and new business models; the implementation of our new IT projects and systems; potential significant breaches of information security or disruptions of our information technology systems; actual or potential legal proceedings, including regulatory actions or delays or government regulation related to the products and pipeline products described in this communication; safety, quality, data integrity, or manufacturing issues; our performance on and ability to comply with environmental, social and governance measures and requirements; major macroeconomic and geo- and socio-political developments, including the impact of any potential tariffs on our products or the impact of war in certain parts of the world; future global exchange rates; future demand for our products; and other risks and factors referred to in Novartis AG’s most recently filed Form 20-F and in subsequent reports filed with, or furnished to, the US Securities and Exchange Commission. Novartis is providing the information in this communication as of this date and does not undertake any obligation to update any forward-looking statements as a result of new information, future events or otherwise.
All product names appearing in italics are trademarks owned by or licensed to Novartis.
About Novartis
Novartis is an innovative medicines company. Every day, we work to reimagine medicine to improve and extend people’s lives so that patients, healthcare professionals and societies are empowered in the face of serious disease. Our medicines reach more than 300 million people worldwide.
Reimagine medicine with us: Visit us at https://www.novartis.com and connect with us on LinkedIn, Facebook, X and Instagram.
Novartis will conduct a conference call with investors to discuss this news release today at 14:00 Central European time and 8:00 Eastern Time. A simultaneous webcast of the call for investors and other interested parties may be accessed by visiting the Novartis website. A replay will be available after the live webcast by visiting https://www.novartis.com/investors/event-calendar.
Important dates
October 27, 2026
Third quarter & nine months 2026 results
November 18-19, 2026
Meet Novartis Management 2026 (London, UK)
February 3, 2027
Fourth quarter & full year 2026 results