Swiss pharmaceutical giant Novartis reported better-than-expected sales for the fourth quarter of 2024 on January 31, 2025, in Basel, Switzerland. The company’s fourth-quarter net sales rose 16% on a constant currency basis to $13.2 billion, surpassing analyst estimates of $12.795 billion.
- Novartis reports better-than-expected fourth-quarter sales.
- Fourth-quarter net sales reached $13.2 billion.
- Core operating income increased to $4.86 billion.
- CEO highlights positive signals from strategic overhaul.
- 2025 guidance predicts mid- to high single-digit growth.
- Focus on advancing over 30 development assets.
In the fourth quarter, Novartis achieved a quarterly adjusted core operating income of $4.86 billion, exceeding the expected $4.23 billion. For the full year, net sales increased 12% on a constant currency basis to $50.32 billion, falling short of the $50.47 billion forecast. However, full-year core operating income rose 22% to $19.5 billion, surpassing the $17.02 billion predicted by analysts.
CEO Vas Narasimhan highlighted the results as a positive indication of the company’s strategic overhaul initiated in 2023. He stated, “In our first full year as a pure-play innovative medicines company, Novartis delivered one of the strongest financial performances in our history.” The company raised its 2024 earnings guidance for the third consecutive quarter in October, expecting both net sales and core operating income to grow by “high teens” percentages.
Looking forward, Novartis is focused on advancing its development pipeline, which includes over 30 assets that have the potential to drive long-term growth. The company provided guidance for 2025, forecasting net sales growth in the “mid- to high single digits” and core operating income growth in the “high single to low double-digits.”
In summary, Novartis reported strong fourth-quarter results, with net sales and core operating income exceeding expectations. Despite slightly missing full-year sales forecasts, the company remains optimistic about its growth trajectory and strategic initiatives for the coming years.
