Press Release: Novartis delivered strong growth in priority brands and launches in Q1; FY 2026 guidance reaffirmed

Ad hoc announcement pursuant to Art. 53 LR

First quarter

-- Net sales declined -5% (cc1, -1% USD), as growth drivers were more than

offset by US generic erosion

-- Continued strong performance from priority brands including

Kisqali (+55% cc), Pluvicto (+70% cc), Kesimpta (+26% cc),

Scemblix (+79% cc) and Leqvio (+69% cc)

-- Core operating income1 down -14% (cc, -12% USD), due to lower net sales

and higher R&D investment

-- Core operating income margin1 was 37.3%

-- Operating income declined -11% (cc, -9% USD); net income down -13% (cc,

-13% USD)

-- Core EPS1 declined -15% (cc, -13% USD) to USD 1.99

-- Free cash flow1 was USD 3.3 billion, broadly in line with the prior-year

quarter

-- Q1 selected innovation milestones:

-- Remibrutinib positive CHMP opinion for CSU, positive Phase III

readout in CIndU and Phase II data in food allergy

-- Ianalumab FDA Breakthrough Therapy designation and priority review

in SjD

-- Cosentyx FDA approval for pediatric HS patients, regulatory

submissions for PMR

-- Fabhalta positive Phase III eGFR results in IgAN, FDA priority

review for traditional approval

-- Completed acquisition of Avidity, adding three late-stage

medicines addressing neuromuscular disease

-- Full year 2026 guidance2 reaffirmed

-- Net sales expected to grow low single-digit and core operating

income expected to decline low single-digit

Basel, April 28, 2026 -- Commenting on Q1 2026 results, Vas Narasimhan, CEO of Novartis, said:

"Novartis delivered a strong start to 2026 across our priority brands and launches, while US generic erosion weighed on results in Q1 as expected. We continued to advance our pipeline, with compelling Phase III results for remibrutinib in chronic inducible urticaria and Phase II data in food allergy, reinforcing the medicine's pipeline-in-a-pill potential. We also completed the acquisition of Avidity and announced early-stage deals to support our breast cancer and allergic disease franchises. With the momentum we are seeing across the business, we remain on track to deliver our full year guidance and look forward to multiple readouts in the second half that could raise our mid- to long-term growth outlook."

Key figures

Q1 2026 Q1 2025 % change

USD m(3) USD m(3) USD cc

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Net sales 13 113 13 233 -1 -5

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Operating income 4 235 4 663 -9 -11

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Net income 3 156 3 609 -13 -13

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EPS (USD) 1.65 1.83 -10 -11

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Free cash flow 3 330 3 391 -2

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Core operating income 4 897 5 575 -12 -14

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Core net income 3 794 4 482 -15 -17

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Core EPS (USD) 1.99 2.28 -13 -15

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1. Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 32 of the Condensed Interim Financial Report. Unless otherwise noted, all growth rates in this Release refer to same period in prior year. 2. Please see detailed guidance assumptions on page 6. 3. USD millions unless indicated otherwise.

Strategy

Our focus

Novartis is a "pure-play" innovative medicines company. We have a clear focus on four core therapeutic areas (cardiovascular-renal-metabolic, immunology, neuroscience and oncology), with multiple significant in-market and pipeline assets in each of these areas, that address high disease burden and have substantial growth potential. In addition to two established technology platforms (chemistry and biotherapeutics), three emerging platforms (gene & cell therapy, radioligand therapy and xRNA) are being prioritized for continued investment into new R&D capabilities and manufacturing scale. Geographically, we are focused on growing in our priority geographies -- the US, China, Germany and Japan.

Our priorities

1. Accelerate growth: Renewed attention to deliver high-value medicines

(NMEs) and focus on launch excellence, with a rich pipeline across our

core therapeutic areas.

2. Deliver returns: Continuing to embed operational excellence and deliver

improved financials. Novartis remains disciplined and shareholder-focused

in our approach to capital allocation, with substantial cash generation

and a strong capital structure supporting continued flexibility.

3. Strengthen foundations: Unleashing the power of our people, scaling data

science and technology and continuing to build trust with society.

Financials

First quarter

Net sales were USD 13.1 billion (-1%, -5% cc), with volume contributing 13 percentage points to growth, more than offset by 14 percentage points of generic competition. Pricing had a negative impact of 4 percentage points, including net 1 percentage point from revenue deduction adjustments in the US, and currency had a positive impact of 4 percentage points.

Operating income was USD 4.2 billion (-9%, -11% cc), declining due to lower net sales and higher R&D investments, partly offset by higher divestment gains.

Net income was USD 3.2 billion (-13%, -13% cc), mainly due to lower operating income. EPS was USD 1.65 (-10%, -11% cc), due to lower net income, partly offset by the benefit of the lower weighted average number of shares outstanding.

Core operating income was USD 4.9 billion (-12%, -14% cc), declining due to lower net sales and higher R&D investments. Core operating income margin was 37.3% of net sales, decreasing 4.8 percentage points (4.1 percentage points in cc).

Core net income was USD 3.8 billion (-15%, -17% cc), mainly due to lower core operating income. Core EPS was USD 1.99 (-13%, -15% cc), due to lower core net income, partly offset by the benefit of the lower weighted average number of shares outstanding.

Free cash flow amounted to USD 3.3 billion, broadly in line with the prior-year quarter.

Q1 priority brands

Underpinning our financial results in the quarter is a continued focus on key growth drivers (ranked in order of contribution to Q1 growth) including:

Kisqali (USD 1 516 million, +55% cc) sales grew strongly across

all regions, with continued momentum in the early

breast cancer indication as well as leadership in

metastatic breast cancer.

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Pluvicto (USD 642 million, +70% cc) sales showed continued

strong demand in the pre-taxane metastatic castration-resistant

prostate cancer (mCRPC) setting in the US, as well

as access expansion ex-US.

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Kesimpta (USD 1 164 million, +26% cc) sales grew across all

regions, driven by increased demand and strong access.

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Leqvio (USD 452 million, +69% cc) accelerated growth ex-US,

driven by strong uptake in China following NRDL-listing.

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Scemblix (USD 433 million, +79% cc) sales grew across all regions,

with continued strong momentum from the early-line

indication in the US, Japan and Germany.

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Fabhalta (USD 169 million, +103% cc) sales more than doubled

in Q1, reflecting continued expansion in PNH and renal

indications.

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Rhapsido (USD 37 million) continued to show strong early uptake

in the US, supported by a free drug program to facilitate

patient access and increasing coverage.

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Cosentyx (USD 1 566 million, -2% cc) sales were broadly stable.

US sales declined, as demand growth was offset by

positive revenue deduction adjustments in the prior-year

quarter. Ex-US, sales continued to grow. Underlying

sales growth globally was +2% cc.

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Zolgensma (USD 302 million, -12% cc) sales declined, reflecting

Group a lower incidence of SMA, despite continued strong

share in the incident population, as well as treatment

phasing.

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