TLDR
- Novartis reported Q1 2025 EPS of $2.28, beating expectations by 7.55%.
- Revenue reached $13.23 billion, surpassing estimates and up 11.9% year over year.
- Strong performance came from Kisqali (+52.5%) and Entresto (+20.3%).
- Immunology drug Ilaris rose 31.3%, while Cosentyx slightly missed total estimates.
- The stock is up 21% YTD, outpacing the MSCI World Index, and currently trades at $113.93.
Novartis (NYSE: NVS) delivered a solid first quarter for 2025, outperforming Wall Street expectations on both revenue and earnings. The stock rose over 1% in Tuesday’s session, trading at $113.93 as of early afternoon. Earnings per share came in at $2.28, up from $1.80 a year ago, and well ahead of the $2.12 estimate.
Revenue climbed to $13.23 billion, an 11.9% increase year over year, and beat forecasts of $12.86 billion. The strong results were fueled by gains in oncology, cardiovascular, and immunology therapies.
Kisqali and Entresto Lead Sales Surge
The standout performer in Q1 was Kisqali, Novartis’s breast cancer drug, which generated $956 million in total revenue. That’s a 52.5% increase from the same quarter last year and ahead of the $936 million estimate. Cardiovascular drug Entresto also impressed, delivering $2.26 billion in sales, up 20.3% and slightly above forecasts.
Other winners included the immunology drug Ilaris, which brought in $218 million in U.S. revenue, exceeding expectations by 17.7%. Cosentyx saw a 15.7% gain in total revenue to $1.53 billion, though it came in just below the $1.57 billion estimate.
Mixed Performance in Established Brands
While Novartis’s growth segments outperformed, its established brand portfolio posted mixed results. Exforge, a hypertension treatment, saw total revenue drop 6.8% to $179 million. Sales in the U.S. plummeted 50% year over year, though the total still slightly beat consensus estimates.
Galvus, another aging product, posted a 16.8% decline in global sales to $124 million.
Hematology Lags Behind
In hematology, sales of Kymriah fell 16.7% year over year to $100 million, missing estimates. This segment remains a weak point for the company amid stiff competition and pricing pressures.
Stock Outperforms Market Index
Novartis shares have outperformed broader indices, with a 21.44% YTD return as of April 29, compared to a 1.89% decline for the MSCI World Index. Its one-year return stands at 21.31%.
The company’s consistent growth and product pipeline strength, especially in oncology and immunology, have helped drive strong investor confidence. Novartis currently yields 3.55% and has a one-year target estimate of $111.67.
Conclusion
Novartis’s first-quarter beat highlights the momentum in its core drug franchises, particularly Kisqali and Entresto. While legacy products are declining, growth in high-margin areas suggests strong fundamentals going forward. Investors appear optimistic, and the stock’s solid performance reinforces its appeal in a volatile market.
