Why did NVS's earnings growth slow in Q3 2024?

Novartis AG's diluted EPS growth rate slowed by 5.71% in Q3 2024 compared to the previous year. The decline in earnings growth can be attributed to several factors: 1. **Revenue Growth Rate**: The total revenue growth rate for Q3 2024 was 15.13%, which is a significant increase from the previous year's growth rate. This indicates that the company's sales are growing, but the net income growth rate is not keeping up with this sales growth. 2. **Net Income Growth Rate**: The net income growth rate for Q3 2024 is negative at -66.75%, which suggests that the company's net income is actually declining despite the revenue growth. This could be due to increased costs or expenses that are outpacing the revenue growth. 3. **Cost and Expense Management**: The company's core operating income grew by 20% in constant currencies, which is a positive indicator. However, the net income growth rate does not align with this positive trend. This discrepancy could be attributed to higher costs or expenses that are impacting the net income. 4. **One-Time Charges or Non-Recurring Costs**: The company's earnings were adjusted for non-recurring costs to show a profit of $2.06 per share, which is a 20% increase. This suggests that there may have been one-time charges or non-recurring costs that impacted the net income in Q3 2024. In conclusion, Novartis AG's diluted EPS growth rate slowed in Q3 2024 due to a combination of factors, including increased costs or expenses, non-recurring charges, and the need to adjust for these factors to show a profit. Despite a positive revenue growth rate, the net income growth rate was negatively impacted, leading to a slowdown in earnings growth.