Novartis Surges to 199th in Trading Volume Despite Stock Decline

On July 17, 2025, Novartis (NVS) experienced a significant increase in trading volume, with a turnover of $561 million, marking an 88.83% rise from the previous day. This surge placed Novartis at the 199th position in terms of trading volume for the day. However, despite the high trading volume, the stock price of Novartis declined by 3.25%, marking the third consecutive day of decline and a total decrease of 5.39% over the past three days.

Novartis reported adjusted earnings of $2.42 per share for the second quarter of 2025, surpassing the consensus estimate of $2.38. The company's net sales for the quarter reached $14.05 billion, reflecting a 9.2% year-over-year increase. This growth was driven by strong performances from key therapies such as Kisqali, Entresto, Kesimpta, Scemblix, Leqvio, and Pluvicto. Notably, U.S. sales contributed significantly to this growth, increasing by 21% to $6.2 billion, while international sales grew by 6%, or 4% at constant currency.

In response to these strong financial results, Novartis revised its fiscal year 2025 core operating income growth outlook to the low teens, up from the previous low double-digit estimate. The company also reaffirmed its expectation for high single-digit annual sales growth. Additionally, Novartis initiated a share buyback program worth up to $10 billion, to be completed by the end of 2027. This move underscores the company's confidence in its financial health and future growth prospects.

Novartis' robust second-quarter performance was highlighted by a 21% increase in operating income, reaching $4.9 billion. Net income also saw a substantial rise, increasing to $4.041 billion from $3.246 billion in the same period last year. Earnings per share (EPS) grew by 29% to $2.07. The company's core operating income margin reached 42.2% of sales, up by 2.6 percentage points from the previous year. Free cash flow increased by 37% to $6.3 billion, driven by higher net cash flows from operating activities.

Vas Narasimhan, CEO of Novartis, commented on the Q2 results, stating that the company delivered another strong quarter with double-digit sales and core operating income growth. He emphasized the strong performance of ongoing launches for Kisqali, Pluvicto, and Scemblix, demonstrating the replacement power in the company's portfolio. The robust balance sheet and confidence in mid and long-term growth enabled Novartis to initiate the share buyback program as part of its commitment to balanced capital allocation.