Novartis Ag premarket drops 1.47% due to raised profit guidance, reflecting strong sales growth but dampened expectations.

Novartis AG experienced a premarket decline of 1.47% before the trading started. The primary reason for the drop was the company raising its 2024 profit guidance for the second time this year, indicating a stronger-than-expected performance in the previous quarter. Despite the increase in sales driven by blockbuster treatments, Novartis' revised guidance to a mid-to-high double-digit growth range exceeded market expectations, causing a temporary sell-off among investors. The company's solid financial results and upward revision in forecast demonstrate the upward momentum in its core operating income, but this news might have led to profit-taking ahead of the official earnings release.