Novartis has presented impressive results for the first quarter of 2025, showing double-digit growth and exceeding expectations. These positive figures reflect a strong growth momentum that is of high relevance to investors.
Main Results
- Revenue Growth: Novartis reported a revenue growth of 15% in local currencies (cc) for Q1 2025, which corresponds to a 12% increase in US dollars. Net revenue amounted to 13.233 billion USD, compared to 11.829 billion USD in the previous year.
- Operating Income: Operating income increased by 44% in local currencies (cc), equivalent to a 38% increase in US dollars. Operating income was 4.663 billion USD, compared to 3.373 billion USD in the previous year.
- Net Profit: Net profit rose by 37% in local currencies (cc), corresponding to a 34% increase in US dollars. Net profit amounted to 3.609 billion USD, up from 2.688 billion USD in the previous year.
- Earnings Per Share (EPS): Earnings per share grew by 42% in local currencies (cc), which translates to a 40% increase in US dollars. EPS was 1.83 USD, compared to 1.31 USD in the previous year.
- Core Results: Core operating income increased by 27% in local currencies (cc), which corresponds to a 23% increase in US dollars. Core operating income amounted to 5.575 billion USD, compared to 4.537 billion USD in the previous year.
- Core Profit Margin: The core operating profit margin reached 42.1%, representing an increase of 4.0 percentage points in local currencies (cc).
- Free Cash Flow: Free cash flow was 3.391 billion USD, marking a 66% increase in US dollars.
Drivers of Growth
- Product Performance: The strong performance of key products such as Entresto (+22% cc), Kisqali (+56% cc), Kesimpta (+43% cc), Cosentyx (+18% cc), Leqvio (+72% cc), and Scemblix (+76% cc) significantly contributed to revenue growth.
- Innovation Milestones: Novartis received several new approvals, including Pluvicto for the treatment of mCRPC in the pre-taxane setting, Vanrafia for IgA nephropathy, and Fabhalta for C3G. Additionally, global submissions for Remibrutinib in the indication of CSU were completed.
Outlook
Novartis has raised its revenue and profit forecast for the year, reflecting the strong momentum in the first quarter. The company remains confident in achieving its growth targets through 2030 and beyond, driven by its leading brands and strong innovation portfolio.