Novartis Trading Volume Plummets 47.93% Despite Strong Q2 Earnings and Record Free Cash Flow

On July 18, 2025, Novartis (NVS) experienced a significant drop in trading volume, with a 47.93% decrease from the previous day, totaling 2.92 billion. The stock price also declined by 0.24%, marking the fourth consecutive day of losses, with a total decrease of 5.61% over the past four days.

Novartis AG reported strong second-quarter 2025 results, exceeding market expectations. The company's sales increased by 11% in constant currency, while core operating income rose by 21%. This robust performance was driven by important innovation highlights and a strong core pipeline. The company's free cash flow surged by 37% to USD 6.3 billion, prompting Novartis to raise its full-year 2025 guidance and announce additional investments.

Despite the strong financial performance, Novartis faces challenges related to patent expiries for major drugs such as Entresto, Tasigna, and Promacta. The company's CFO also announced retirement, adding to the uncertainty surrounding its future leadership. However, the company's upward revision of its 2025 earnings outlook and strong second-quarter performance indicate a positive outlook for the remainder of the year.