Novartis Q2 Net Income Jumps 24% on Strong U.S. Sales and Blockbuster Drugs

Novartis (SIX:NOVN) reported a 24% surge in Q2 net income to $4 billion, driven by robust demand for key therapies like Kisqali, Entresto, and Kesimpta. Earnings per share rose 29% to $2.07, supported by a lower average share count. Revenue climbed 12% to $14.1 billion, with U.S. sales up 21% to $6.2 billion and international sales growing 6% to $7.8 billion.

The company saw strong volume growth of 12%, partially offset by a 2-point decline from generic competition. Pricing and currency each contributed a 1-point gain. Kisqali revenue soared 64% to $1.2 billion, Entresto jumped 24% to $2.4 billion, and Kesimpta rose 35% to $1.1 billion. Scemblix and Leqvio each posted $298 million in sales, up 82% and 64% respectively. Cosentyx grew 7% to $1.6 billion.

Operating income increased 21% to $4.9 billion, boosting the margin to 34.6% from 32.1%. Core operating income rose 20% to $5.9 billion, with the core margin improving to 42.2% from 39.6%. Gross profit rose to $11.5 billion, while cost of goods sold fell to 23.6% of sales.

R&D spending rose 15% to $2.7 billion. SG&A costs increased to $3.4 billion but declined slightly as a percentage of sales. Free cash flow surged 37% to $6.3 billion.

For H1 2025, Novartis posted a 29% increase in net income to $7.6 billion on $27.3 billion in sales. Free cash flow rose 46% to $9.7 billion. Oncology sales rose 22% to $4.3 billion, cardiovascular therapies surged 28% to $2.7 billion, and neuroscience grew 19% to $1.5 billion. Net debt increased to $23.8 billion following $13.3 billion in dividend and buyback outflows.