08:16 AM EDT, 10/05/2026 (MT Newswires) -- BofA Global Research forecasts Novartis (NOVN.SW) will see a year-over-year increase in sales in the third quarter, noting that the Swiss pharmaceutical giant's key growth drivers continue to be strong. The drugmaker is expected to report a 3% growth in sales to $14.3 billion when it releases its latest quarterly results on Oct. 27, while EPS is projected to come in flat on an annual basis at $2.24, the research firm said in a Monday earnings preview note. Both are in line with consensus estimates. "Key focus is 3Q margin development (we 39.0% vs VA cons 38.6%), with NVS citing part of 2Q margin beat as cost phasing. Though, 2Q commentary suggested stable GM & SG&A leverage, with key delta R&D investment," analysts said. "Although management flagged at 2Q that 2H margins are typically lower than 1H, we still see upside to FY26 guidance if strong 2Q margin continues in 2H. We see EBIT guide shift from low-single digit decline to include flat as possible, reflected in our FY26E EBIT of flat YoY growth, with Fx +1%, (with our forecast c1% above cons)." BofA also noted upcoming key catalysts for Novartis, including remibrutinib in multiple sclerosis and ianalumab in Sjögren's disease, among other pipeline assets. The buy rating on the stock was reiterated, with a price objective of 150 francs.

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