Novartis AG NVS

Health CarePharmaceuticalsSwitzerland

Last close 161.52 USD on Nov 2, 2026, +20.7% year to date

Quant rating

Quant rating A Rank 30 of 211 in Health Care

Growth C 104 of 211
Valuation B 79 of 211
Quality A 16 of 211
Revisions C 103 of 211
Momentum B 37 of 211

Wall Street consensus Hold (2.75)Average target 153.86 USD −4.7%

Historical valuation

Multiples use consensus estimates for the next twelve months. The dashed line is the 5-year average.

Key data

Market cap: 324.4B
Enterprise value: 364.0B
52-week range: 122.86 – 170.34
3-year range: 92.57 – 170.34
Dividend yield: 2.95%
Beta (5 years): 0.40
Shares outstanding: 2,035M
Next earnings: Feb 2, 2027

About the company

Novartis AG is a Switzerland-based pharmaceutical company. The Company develops, manufactures, and markets branded and generic prescription drugs, active pharmaceutical ingredients (APIs), biosimilars and ophthalmic products. The Company uses science and digital technologies for treatments in the disease areas of immunology, dermatology, cancer, ophthalmology, neuroscience, respiratory, cardiovascular, renal and metabolism. The business activities of the Company are divided into two segments: Innovative Medicines, which includes innovative patent-protected prescription medicines for blood pressure, cancer and other ailments, and Sandoz, which includes generic pharmaceuticals and biosimilars.

Growth and profitability fiscal year ends December 31

Growth and profitability by fiscal year
	2025	2024	2023	2022	2021	5Y avg
Revenue (mil)	56,330	51,722	46,660	43,375	43,974	–
Revenue growth	8.9%	10.8%	7.6%	−1.4%	−11.9%	2.5%
EPS (basic, normalized)	8.98	7.81	6.90	6.12	6.29	–
EPS growth	15.0%	13.2%	12.7%	−2.7%	–	–
Gross margin	75.8%	75.2%	74.2%	74.2%	74.1%	74.7%
Net margin	24.8%	23.1%	18.4%	13.9%	52.1%	26.5%
ROE	31.0%	26.3%	16.2%	9.5%	36.9%	24.0%

Balance sheet, last quarter
Cash & short-term investments (mil)	8,872
Current ratio	0.88x
Long-term debt (mil)	38,382
Net debt (mil)	39,577
Total equity (mil)	37,228
Net debt / equity	1.06x
Net debt / EBITDA	1.69x

Estimates and valuation

Consensus estimates and implied multiples
	Sales (mil)			EBITDA (mil)			EPS
Fiscal year	Mean est.	Growth	EV/Sales	Mean est.	Growth	EV/EBITDA	Mean est.	Growth	P/E
2025 actual	56,330	+8.9%	6.5x	23,415	+16.6%	15.5x	8.98	+15.0%	18.0x
2026	57,207	+1.6%	6.4x	23,184	−1.0%	15.7x	8.87	−1.2%	18.2x
2027	60,929	+6.5%	6.0x	25,808	+11.3%	14.1x	9.86	+11.2%	16.4x
2028	64,923	+6.6%	5.6x	27,691	+7.3%	13.1x	10.86	+10.1%	14.9x

Estimate revisions

Change in consensus estimates over 1, 3 and 6 months
	Sales				EPS
Fiscal year	Estimate (mil)	1M	3M	6M	Estimate	1M	3M	6M
2026	57,207	+0.3%	+0.7%	+0.7%	8.87	+0.8%	+0.7%	+0.1%
2027	60,929	+0.3%	+0.8%	+1.4%	9.86	+0.1%	+0.1%	+0.3%
2028	64,923	0.0%	+0.1%	+1.5%	10.86	+0.4%	−0.8%	+0.4%

Earnings surprises EPS beat in 3 of the last 4 quarters

Reported results versus consensus, last 10 fiscal quarters
Quarter ended	Mar 2024	Jun 2024	Sep 2024	Dec 2024	Mar 2025	Jun 2025	Sep 2025	Dec 2025	Mar 2026	Jun 2026
Sales reported (mil)	11,829	12,512	12,823	13,153	13,233	14,054	13,909	13,336	13,113	14,408
Sales mean (mil)	11,265	12,375	12,764	12,811	13,058	14,081	13,913	13,580	13,357	14,500
Surprise	+5.0%	+1.1%	+0.5%	+2.7%	+1.3%	−0.2%	0.0%	−1.8%	−1.8%	−0.6%
EPS reported	1.80	1.97	2.06	1.98	2.28	2.42	2.25	2.03	1.99	2.41
EPS mean	1.69	1.89	1.96	1.81	2.13	2.36	2.23	1.99	2.08	2.36
Surprise	+6.8%	+4.2%	+5.1%	+9.3%	+6.9%	+2.7%	+0.8%	+2.0%	−4.2%	+2.2%

Peer comparison Pharmaceuticals

Peers in the same industry group, by market capitalization
Company	Market cap	Net debt/EBITDA	Net margin	P/B	FY1 P/E	FY2 P/E	FY1 EV/EBITDA	FY2 EV/EBITDA
NVS Novartis AG	324.4B	1.69x	24.8%	8.19x	18.2x	16.4x	15.7x	14.1x
ABBV AbbVie Inc.	510.4B	2.63x	6.8%	−86.00x	20.7x	17.8x	17.6x	15.4x
Mean		2.16x	15.8%	−38.90x	19.4x	17.1x	16.7x	14.7x
Median		2.16x	15.8%	−38.90x	19.4x	17.1x	16.7x	14.7x

Technical analysis

1M+14.6%
3M+3.4%
1Y+34.4%
3Y+90.3%

Financial statements in millions of USD

Income statement in millions of USD, fiscal years

Income statement, Novartis AG, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Total revenue	56,330	51,722	46,660	43,375	43,974	49,898
Cost of revenue	13,620	12,815	12,020	11,211	11,391	14,400
Gross profit	42,710	38,907	34,640	32,164	32,583	35,498
Selling, general & administrative expenses	13,238	12,564	12,489	12,193	12,756	14,093
Research & development	10,295	9,302	8,600	9,378	8,150	8,484
Depreciation/amortization	392	209	411	–	109	64.0
Interest expense (income), operating	48.0	45.0	105	260	−38.0	−336
Unusual expense (income)	1,105	1,962	2,962	2,137	1,009	2,503
Other operating expenses	93.0	512	498	387	605	538
Operating income	17,539	14,313	9,575	7,809	9,992	10,152
Net interest income (expense)	−1,011	−588	−392	−517	14,646	−146
Gain (loss) on sale of assets	–	–	–	–	–	–
Other non-operating income (expense)	−176	−85.0	−60.0	−115	−108	−128
Net income before taxes	16,352	13,640	9,123	7,177	24,530	9,878
Provision for taxes	2,385	1,701	551	1,128	1,625	1,807
Minority interest	17.0	2.0	−4.0	0	3.0	1.0
Equity in affiliates	–	–	–	–	–	–
U.S. GAAP adjustment	–	–	–	–	–	–
Net income before extraordinary items	13,984	11,941	8,568	6,049	22,908	8,072
Extraordinary items	–	–	6,282	906	1,113	–
Net income	13,984	11,941	14,850	6,955	24,021	8,072
EBIT, normalized	18,721	16,444	12,696	10,253	10,992	12,319
EBITDA, normalized	23,465	21,043	17,831	15,247	15,941	17,429
Basic EPS, normalized	8.98	7.81	6.90	6.12	6.29	–

Balance sheet in millions of USD, fiscal years

Balance sheet, Novartis AG, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Assets
Cash & short-term investments	11,533	13,351	14,073	18,726	28,113	11,293
Receivables	10,934	9,539	9,376	9,894	9,621	10,036
Total inventory	6,269	5,723	5,913	7,175	6,666	7,131
Prepaid expenses	1,153	985	764	911	1,102	943
Other current assets	571	106	355	204	216	270
Total current assets	30,460	29,704	30,481	36,910	45,718	29,673
Property, plant & equipment	12,352	10,873	10,924	12,195	13,106	13,939
Goodwill	25,567	24,756	23,341	29,301	29,595	29,999
Intangibles	29,411	26,915	26,879	31,644	34,182	36,809
Long-term investments	1,091	1,128	1,827	1,606	2,268	11,611
Note receivable	1,355	1,006	985	948	973	922
Other long-term assets	10,713	7,864	5,508	4,849	5,953	4,825
Total assets	110,949	102,246	99,945	117,453	131,795	127,778
Liabilities
Accounts payable	4,456	4,572	4,926	5,146	5,553	5,403
Payable/accrued	–	–	–	–	–	–
Accrued expenses	5,343	5,238	5,154	5,334	5,100	5,336
Short-term debt	4,727	4,733	3,893	3,635	3,606	7,319
Current portion of long-term debt	1,057	3,591	2,421	2,492	2,896	2,558
Other current liabilities	11,695	10,558	9,996	12,049	13,053	12,443
Total current liabilities	27,278	28,692	26,390	28,656	30,208	33,059
Long-term debt	29,592	22,934	20,034	21,782	24,523	27,978
Minority interest	419	80.0	83.0	81.0	167	68.0
Other liabilities	7,530	6,494	6,771	7,592	9,242	10,075
Total liabilities	64,819	58,200	53,278	58,111	64,140	71,180
Shareholders' equity
Preferred stock	–	–	–	–	–	–
Common stock	766	793	825	890	901	913
Additional paid-in capital	–	–	–	–	–	–
Retained earnings (accumulated deficit)	44,720	46,561	49,649	63,540	70,989	57,157
Treasury stock	−50.0	−53.0	−41.0	−92.0	−48.0	−53.0
Other equity	694	−3,255	−3,766	−4,996	−4,187	−1,419
Total equity	46,130	44,046	46,667	59,342	67,655	56,598
Total liabilities & shareholders' equity	110,949	102,246	99,945	117,453	131,795	127,778

Cash flow statement in millions of USD, fiscal years

Cash flow statement, Novartis AG, fiscal years, most recent first
	2025	2024	2023	2022	2021	2020
Operating activities
Net income	13,967	11,939	8,572	6,955	24,018	8,071
Depreciation, depletion & amortization	5,325	4,599	8,277	7,181	6,113	6,464
Deferred taxes	–	–	–	–	–	–
Non-cash items	6,144	5,517	2,403	4,404	−11,714	3,842
Changes in working capital	−6,292	−4,436	−4,794	−4,304	−3,346	−4,727
Cash from operations	19,144	17,619	14,458	14,236	15,071	13,650
Investing activities
Capital expenditures	−3,900	−3,814	−2,753	−2,671	−2,971	−2,585
Other investing cash flows	−977	−3,699	8,349	4,139	7,179	−10,597
Cash from investing	−4,877	−7,513	5,596	1,468	4,208	−13,182
Financing activities
Financing cash flow items	−294	−207	3,478	55.0	94.0	−199
Cash dividends paid	−7,818	−7,624	−7,255	−7,506	−7,368	−6,987
Issuance (retirement) of debt, net	–	–	–	–	–	–
Other financing cash flows	−6,755	−3,911	−10,501	−13,111	−8,990	4,978
Cash from financing	−14,867	−11,742	−14,278	−20,562	−16,264	−2,208
Foreign exchange effects	576	−298	100	−32.0	−266	286
Net change in cash	−24.0	−1,934	5,876	−4,890	2,749	−1,454
Free cash flow	15,244	13,805	11,705	11,565	12,100	11,065

Disclaimer

The financial data presented in this report is delayed and obtained from sources QDD Research believes to be reliable, including stock exchanges, SEDAR, and EDGAR. However, no representation or warranty is made as to the accuracy, completeness, or timeliness of the information. QDD Research accepts no liability for any errors, omissions, or financial losses arising from the use of this data.

This report is generated using a fully systematic and quantitative approach. All factor scores and the overall quant rating (ranging from D to A+) are derived from algorithmic models and are based solely on objective financial metrics. These scores are intended for informational purposes only and should not be interpreted as investment advice or a recommendation to buy, sell, or hold any securities.

QDD Research is not a registered investment advisor or broker-dealer and does not provide personalized financial advice. The content is not tailored to the specific investment goals, financial situation, or risk profile of any individual investor. We strongly encourage readers to consult with a licensed broker or investment advisor before making any investment decisions based on the information contained in this report.

Live quote provided by TradingView. Report data updated Nov 2, 2026 after market close.