Novartis Q1 Revenue Falls 1% as Generics Erode Drug Market Share

Novartis AG, a Swiss pharmaceutical leader based in Basel, reported a first-quarter 2026 revenue decline of 1% to $13.1 billion, marking a 5% drop at constant exchange rates. Core operating profit fell 12% to $4.9 billion, below the $5.2 billion consensus estimate from AWP analysts, while consolidated profit slid to $3.2 billion from $3.6 billion in the prior year’s first quarter. The company highlighted over $4 billion in annual sales at risk as generic alternatives enter the market, particularly for blockbuster drugs like Entresto, Promacta, and Tasigna, whose patent protections have expired or are expiring. CEO Vas Narasimhan noted the impact would be more pronounced in the first half of the fiscal year, with projections for low single-digit sales growth and only a modest decline in core operating profit over the full year.