Swiss pharmaceutical giant Novartis anticipates low single-digit sales growth in 2026. This forecast reflects the impact of upcoming patent expirations and increased competition from generic drugs. The company reported full-year 2025 net sales of $54.53 billion, an 8% increase in constant currencies. Core operating income also rose, reaching $21.89 billion.

Novartis's growth strategy centers on its key brands, including Kisqali, Kesimpta, and Pluvicto. Strong sales from these products helped offset declines in legacy drugs like Entresto, which suffered from generic competition. The company also achieved regulatory milestones, including FDA approval for Itvisma and European Commission approval for Scemblix, indicating continued pipeline progress.

In 2026, Novartis expects to navigate its largest patent expiry. Free cash flow increased to $17.60 billion. The company repurchased 77.60 million shares for $8.90 billion in 2025. Net debt increased to $21.90 billion due to share buybacks and acquisitions. Investors will watch how Novartis manages this transition.

CEO Vas Narasimhan expressed confidence in the company's ability to grow through the patent challenges. The board proposed a dividend of 3.70 Swiss francs per share. The company's five-year compound annual growth rate target is 5% to 6% for 2025-2030. This guidance incorporates the agreement with the U.S. government to lower drug prices.