Novartis AG reported a significant transformation into a high-margin innovative medicines company in early 2026 following the successful spin-off of its Sandoz generics division. The Swiss pharmaceutical giant recorded a core operating margin of 40.1% as its specialized drug portfolio outpaced industry peers.
The company’s financial performance was bolstered by explosive growth in its primary treatment sectors, as reported by Detik Finance. Key growth drivers included Kisqali for breast cancer, which saw a 57% surge in sales, and the multiple sclerosis treatment Kesimpta.
Novartis has also established a dominant position in the radioligand therapy niche. Pluvicto, a flagship cancer treatment, recorded a 42% revenue increase in constant currencies. This expansion is supported by the scaling of the FDA-approved Millburn facility in early 2026.
Cash flow management remains a strength for the firm, which generated $17.6 billion in free cash flow over the last year. These funds supported strategic expansion efforts, including a $2 billion bolt-on acquisition of Excellergy in March 2026.
Shareholder returns were addressed in early 2026 with a proposed dividend of CHF 3.70 per share. This represents a 5.7% increase and provides a yield of approximately 3%, maintaining the company’s long-term record of uninterrupted payouts.