Strong Q1 Performance for Novartis: Double-Digit Sales Growth and Significant Core Operating Income Increase

April 29, 2025 — Novartis Group announced its financial results for the first quarter of 2025, with core financial indicators showing strong performance. Sales grew by double digits, core operating income rose significantly, and the company made substantial regulatory progress.

Financial Highlights:

• Net sales reached USD 13.233 billion (up 12% year-over-year, 15% at constant currencies), driven by strong performance of key products such as Entresto (+22% cc), Kisqali (+56% cc), and Kesimpta (+43% cc).
• Core operating income increased by 27% (at constant currencies), with profit margin rising to 42.1%, an increase of 400 basis points year-over-year.
• Free cash flow surged by 66% year-over-year, reaching USD 3.4 billion.
• Core earnings per share (EPS) was USD 2.28, up 31% year-over-year (at constant currencies).

Innovation Milestones:

• Pluvicto received FDA approval for pre-chemotherapy prostate cancer treatment, tripling the potential patient population.
• Vanrafia (atrasentan) received FDA accelerated approval for IgA nephropathy, becoming the first targeted therapy for the disease.
• Fabhalta (iptacopan) was approved in the U.S., EU, and China for C3 glomerulopathy (C3G), covering major global markets.
• Remibrutinib completed global submissions for chronic spontaneous urticaria (CSU), with priority review granted in the U.S.

Strategic Progress:

Novartis CEO Vas Narasimhan stated: "Our Q1 results demonstrate the strength of our ‘pure-play innovative medicines’ strategy. Continued volume growth from core products and rapid advancement of our pipeline lay the foundation for growth through 2030 and beyond." The company has raised its full-year 2025 guidance, expecting high single-digit sales growth and low double-digit growth in core operating income.

Regional and Product Performance:

• Key markets including the U.S., China, Germany, and Japan made significant contributions. In China, Entresto continues to gain penetration for hypertension treatment.
• Oncology product line showed strong performance: sales of Pluvicto, Kisqali (for breast cancer), and Scemblix (for leukemia) grew by 21%, 56%, and 76% respectively (at constant currencies).

Capital Management:

• In Q1, Novartis repurchased 24.8 million shares for USD 2.6 billion.
• Net debt increased to USD 22.3 billion, mainly due to annual dividend payments and asset acquisitions.
• The company maintains credit ratings of Aa3 from Moody's and AA- from S&P.

Forward-Looking Statements:

Novartis notes that its outlook is subject to risks including drug pricing, R&D outcomes, and macroeconomic conditions. Please refer to the full financial report for complete disclaimers.