Why did Novartis beat Q2 profit forecasts, and why won’t this lead to an upgrade in its full-year guidance?

Novartis beat Q2 profit forecasts due to one-off benefits—including a ~1% sales boost and ~5% core operating profit lift from temporary sales and cost advantages—but CFO Mukul Mehta stated these would reverse in the second half as the company increases R&D and launch spending; Vontobel analyst Stefan Schneider confirmed the strong quarter didn’t trigger a guidance upgrade because the timing of cost spending had 'just moved around things' within the year.

What are the key late-stage drug candidates Novartis is awaiting data for, and why are they critical to its future growth?

Novartis is awaiting late-stage trial readouts for pelacarsen (cardiovascular disease), remibrutinib (multiple sclerosis), and del-desiran (myotonic dystrophy type 1)—a trio representing a ~$10 billion peak annual sales opportunity, according to analyst estimates; CEO Vas Narasimhan called this 'first batch' of data imminent 'in the coming months', underscoring their importance in sustaining growth beyond the Entresto patent cliff, which is driving a $4 billion expected sales decline this year.

Novartis Backs Full-Year Forecast After Profit Beat Driven by One-Offs

Jul 20, 2026

Novartis reported a second-quarter profit beat and maintained its 2026 outlook despite facing patent cliffs on key drug Entresto. The company highlighted upcoming trial results for three experimental drugs representing a $10 billion sales opportunity while noting temporary benefits will reverse in the second half.

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