Novartis AG (NVS) Q2 Surge: Oncology Brands Defy U.S. Rivals & China Headwinds

Big Pharma's proving it can still pack a punch—Novartis just flexed its oncology division to power through another quarter. Forget the 'slowdown' narrative—this is how you play defense in a bearish market.

Oncology Carries the Load

While rivals sweat over patent cliffs, Novartis' cancer portfolio is printing money. No specifics shared, but the numbers don’t lie—this segment’s dragging the rest of the company into the green.

U.S. Competition? More Like U.S. Distraction

Wall Street’s obsessed with stateside price wars, but Novartis is busy cashing checks overseas. Yeah, biosimilars are gnawing at margins—but not enough to derail the growth train.

China’s ‘Slowdown’ Is Relative

Beijing’s tightening screws on pharma? Sure. But Novartis isn’t some meme stock relying on hype—it’s got the pipeline to weather the storm. (Unlike certain crypto ‘blue chips’ we could name.)

Bottom line: While analysts nitpick regional risks, Novartis keeps delivering the only metric that matters—growth. Maybe traditional finance isn’t completely obsolete after all.

TLDR

• Q2 core EPS rose 24% to $2.42, topping forecasts
• Sales climbed 11% in constant currency; core margin expanded to 42.2%
• Oncology brands like Kisqali, Kesimpta, and Pluvicto drove double-digit growth
• Cosentyx faced competition and regional headwinds, growing just 6%
• $10B share buyback program announced, ending in 2027

Novartis AG (NYSE: NVS) reported its Q2 2025 earnings on July 17, showing robust performance across key financial metrics. The stock closed down 3.25% at $114.52, despite a 24% year-over-year jump in core EPS to $2.42. Free cash FLOW rose to $6.3 billion, a 37% increase in U.S. dollar terms.

Novartis AG (NVS)

Sales grew by 11% in constant currency, while Core operating income surged 21%, driven by higher sales from oncology and specialty medicines. The company improved its core margin by 340 basis points to 42.2%, reflecting operating leverage and strong cost control.

Novartis, $NVS, Q2-25. Results:

📊 Adj. EPS: $2.42 🟢
💰 Revenue: $14.05B 🟢
📈 Net Income: $4.02B
🔎 Raised FY25 CORE operating income guidance; strong growth from Kisqali, Pluvicto, and Scemblix pic.twitter.com/A3rCOORH0n

— EarningsTime (@Earnings_Time) July 17, 2025

Oncology Drugs Power Growth

Novartis saw major gains across its priority brands. Kisqali led the quarter with a 64% sales increase globally and 100% growth in the U.S. Kesimpta posted a 33% global rise, while Pluvicto gained 30%, with new patient starts rising 40%.

Other strong performers included Leqvio, up 61% globally, and Scemblix, which surged 79% in constant currency. Entresto, one of Novartis’ top-selling drugs, generated $1.2 billion in Q2 sales, though future results may face pressure from upcoming U.S. generic entry.

China and Cosentyx Present Challenges

Cosentyx, another major product, saw only 6% growth in Q2. The brand faced increased competition in some markets and geographic-specific hurdles. A slowdown in pharmaceutical spending in China impacted Cosentyx and Entresto alike, as local pricing pressures weigh on revenue growth.

U.S. policy changes are also presenting headwinds. Medicare Part D redesign and uncertainties around U.S. drug pricing reforms could affect future rebate structures and pricing strategies, especially in immunology and cardiology drugs.

Share Buyback and Updated Outlook

Novartis launched a new $10 billion share buyback plan, expected to be completed by the end of 2027. This MOVE reflects confidence in its cash flow and balance sheet. Year-to-date, Novartis shares are up 22.04%, outperforming the MSCI World Index’s 9.33% gain.

Despite Q2 strength, the company maintained a cautious tone. It guided for high single-digit sales growth and low teens growth in core operating income for the full year, reflecting both momentum and upcoming risks.

Conclusion

Novartis delivered strong earnings driven by its oncology portfolio and margin expansion. However, competitive pressure on Cosentyx, generic threats to Entresto, and slower Chinese growth are tempering investor optimism. With a robust buyback plan and rising cash flow, Novartis appears well-positioned, but execution in H2 2025 will be key.