This article first appeared on GuruFocus.
Novartis (NYSE:NVS) beat second-quarter expectations on both revenue and earnings, while reaffirming its full-year 2026 outlook despite weaker free cash flow.
The Swiss drugmaker reported adjusted earnings of $2.41 per share, beating estimates by $0.26. Revenue rose 2.6% from a year earlier to $14.41 billion, coming in about $350 million above Wall Street expectations.
Novartis develops prescription medicines across oncology, immunology, neuroscience and cardiovascular disease. Its performance depends heavily on growth from newer drugs offsetting competition and patent losses across older products.
Free cash flow fell 12% to $5.6 billion, making cash generation the softer part of the quarter. Still, management maintained its forecast for low-single-digit sales growth and a low-single-digit decline in core operating income for the full year.