# Novartis Raises Core Profit Outlook Despite $1.9 Billion Drug Write-Down

The October 27 results show higher sales and adjusted operating income, alongside a sharp decline in reported profit.

By Will Langan | 24X7 News
Published: 2026-10-27T07:07:14.620Z
Updated: 2026-10-27T07:07:14.620Z
Section: Business
Format: News
Canonical: https://24x7news.us/articles/novartis-third-quarter-2026-profit-outlook-impairment

Novartis raised its annual core operating income outlook on October 27 after sales growth offset pressure from generic medicines, even as a drug-asset write-down sharply reduced reported profit.

Third-quarter sales increased 4% to $14.522 billion. Core operating income, a supplemental measure excluding specified items, rose 11% in dollars to $6.036 billion, or 10% at constant currencies.

Reported operating income fell 59% in dollars to $1.843 billion. Net income declined 70% to $1.196 billion, while reported earnings per share fell to 63 cents from $2.04.

The company recorded a $1.9 billion partial impairment of del-desiran, following a trial setback. Higher research expenses also weighed on reported operating income.

Free cash flow declined 18% to $5.111 billion.

For the year, Novartis now expects core operating income to be flat or grow by a low single-digit percentage at constant currencies, replacing a projected low single-digit decline. Its low single-digit sales-growth forecast is unchanged.

The outlook remains a management projection; core measures differ from reported accounting results.

Sources:
Novartis — October 27 results release: https://www.novartis.com/sites/novartis_com/files/q3-2026-media-release-en.pdf

## Sources
- Novartis — October 27 third-quarter results: https://www.novartis.com/sites/novartis_com/files/q3-2026-media-release-en.pdf