Novartis’ third-quarter net income fell 70% to USD 1. 196 billion as the company recorded a USD 1. 9 billion partial impairment of its del-desiran research asset. Operating income dropped 59% to USD 1. 843 billion, while earnings per share declined 69% to USD 0. The impairment, higher research and development expenses, other expenses and increased interest costs outweighed the effect of higher sales.
Revenue nonetheless rose 4% to USD 14. 522 billion, with the same growth rate at constant exchange rates. Volume contributed 14 percentage points of growth, partly offset by 9 percentage points from generic competition and 1 percentage point from pricing.
Growth was led by several priority medicines. Cosentyx sales grew 9% to USD 1. 857 billion, while Pluvicto increased 20% to USD 674 million.
The company raised its full-year 2026 core operating-income outlook from a low-single-digit decline to a range of being in line with the prior year through low-single-digit growth. Its sales forecast remained unchanged at low-single-digit growth. Chief Executive Vas Narasimhan said priority brands and recent launches had more than offset generic erosion and that productivity measures supported the guidance increase.
The quarter also brought regulatory and pipeline developments. And Chinese regulators approved Pluvicto with an androgen-receptor pathway inhibitor for certain patients with PSMA-positive metastatic prostate cancer, extending its approval across all metastatic stages. Approved Rhapsido for symptomatic dermographism, Japan and the United States approved Fabhalta for IgA nephropathy, and the FDA granted priority review to del-zota for Duchenne muscular dystrophy involving an exon 44-skipping variant.
Del-desiran remained a setback despite the impairment. The Phase III HARBOR study did not meet its primary endpoint in myotonic dystrophy type 1, although secondary and exploratory analyses showed evidence of clinical activity. Novartis said it was evaluating the full dataset and would consult health authorities on the medicine’s development path. The company also reported positive Phase III results for remibrutinib in relapsing multiple sclerosis, while discontinuing a separate remibrutinib study in generalized myasthenia gravis after a futility analysis found it was unlikely to meet its efficacy objectives; no safety concern was identified for that decision.
The results leave Novartis with stronger quarterly underlying profitability and an improved annual earnings target, while the reported profit decline and the del-desiran trial outcome underscore the financial and development risks still affecting the business.