(USD millions unless indicated otherwise)		Q4 2025 USD m		Q4 2024 USD m		% change USD		% change cc 1		FY 2025 USD m		FY 2024 USD m		% change USD		% change cc 1
Net sales to third parties		13 336		13 153		1		-1		54 532		50 317		8		8
Other revenues		524		405		29		27		2 142		1 405		52		51
Cost of goods sold		-3 611		-3 324		-9		-4		-13 699		-12 827		-7		-5
Gross profit		10 249		10 234		0		-2		42 975		38 895		10		10
Selling, general and administration		-3 440		-3 501		2		5		-13 248		-12 566		-5		-4
Research and development		-3 163		-2 842		-11		-6		-11 200		-10 022		-12		-9
Other income		417		298		40		27		1 460		1 175		24		17
Other expense		-447		-659		32		38		-2 343		-2 938		20		24
Operating income		3 616		3 530		2		4		17 644		14 544		21		25
% of net sales		27.1		26.8						32.4		28.9
Loss from associated companies		-2		-3		33		28		-12		-38		68		70
Interest expense		-304		-275		-11		-11		-1 144		-1 006		-14		-14
Other financial income and expense		-92		33		nm		nm		-136		140		nm		nm
Income before taxes		3 218		3 285		-2		-1		16 352		13 640		20		22
Income taxes		-814		-465		-75		-76		-2 385		-1 701		-40		-43
Net income		2 404		2 820		-15		-14		13 967		11 939		17		19
Basic earnings per share (USD)		1.26		1.42		-11		-11		7.21		5.92		22		24
Net cash flows from operating activities		2 264		4 193		-46				19 144		17 619		9
Non-IFRS measures 1
Free cash flow		1 655		3 635		-54				17 596		16 253		8
Core operating income		4 929		4 859		1		1		21 889		19 494		12		14
% of net sales		37.0		36.9						40.1		38.7
Core net income		3 889		3 933		-1		-2		17 411		15 755		11		12
Core basic earnings per share (USD)		2.03		1.98		3		2		8.98		7.81		15		17
1  Constant currencies (cc), core results and free cash flow are non-IFRS measures. An explanation of non-IFRS measures can be found on page 44. Unless otherwise noted, all growth rates in this release refer to same period in prior-year.

Novartis is a “pure-play” innovative medicines company. We have a clear focus on four core therapeutic areas (cardiovascular-renal-metabolic, immunology, neuroscience and oncology), with multiple significant in-market and pipeline assets in each of these areas, that address high disease burden and have substantial growth potential. In addition to two established technology platforms (chemistry and biotherapeutics), three emerging platforms (gene & cell therapy, radioligand therapy and xRNA) are being prioritized for continued investment into new R&D capabilities and manufacturing scale. Geographically, we are focused on growing in our priority geographies – the US, China, Germany and Japan.

1. Accelerate growth: Renewed attention to deliver high-value medicines (NMEs) and focus on launch excellence, with a rich pipeline across our core therapeutic areas.

2. Deliver returns: Continuing to embed operational excellence and deliver improved financials. Novartis remains disciplined and shareholder-focused in our approach to capital allocation, with substantial cash generation and a strong capital structure supporting continued flexibility.

3. Strengthen foundations: Unleashing the power of our people, scaling data science and technology and continuing to build trust with society.

Net sales were USD 13.3 billion (+1%, -1% cc), with volume contributing 18 percentage points to growth. Generic competition had a negative impact of 15 percentage points, including a negative impact of 3 percentage points from revenue deduction adjustments in the US, mainly related to Entresto and Promacta. Pricing had a negative impact of 4 percentage points. Currency had a positive impact of 2 percentage points. Sales in the US were USD 5.3 billion (-11%) and in the rest of the world USD 8.0 billion (+12%, +7% cc).

Sales were broadly in line, reflecting generic competition mainly for Entresto, Promacta and Tasigna, partly offset by continued strong performance from Kisqali (USD 1.3 billion, +46%, +44% cc), Kesimpta (USD 1.2 billion, +29%, +27% cc), Pluvicto (USD 605 million, +72%, +70% cc), Scemblix (USD 391 million, +89%, +87% cc) and Cosentyx (USD 1.8 billion, +13%, +11% cc).

In the US (USD 5.3 billion, -11%), sales decline was driven by generic competition, including revenue deduction adjustments mainly for Entresto and Promacta, partly offset by growth from Kisqali, Pluvicto, Kesimpta and Scemblix. In Europe (USD 4.4 billion, +11%, +3% cc), sales growth was mainly driven by Kisqali, Entresto and Kesimpta, partly offset by generic competition, mainly for Promacta, Tasigna and Lucentis. Sales in emerging growth markets were USD 3.5 billion (+18%, +16% cc), including USD 1.0 billion of sales from China (+20%, +19% cc).

Gross profit was USD 10.2 billion (0%, -2% cc), broadly in line with net sales performance.

SG&A expenses were USD 3.4 billion (+2%, +5% cc), mainly driven by lower marketing and sales investments.

R&D expenses were USD 3.2 billion (-11%, -6% cc), driven by an increase in confirmatory development (-25%, -20% cc), mainly due to higher investments in recently acquired assets, partly offset by a decrease in research and exploratory development (+7%, +10% cc), mainly due to lower impairments.

Other income was USD 0.4 billion (+40%, +27% cc), mainly driven by higher government grant income.

Other expense was USD 0.4 billion (+32%, +38% cc), mainly due to a goodwill impairment in the prior year.

Operating income was USD 3.6 billion (+2%, +4% cc), benefiting from higher government grant income and lower SG&A expenses, partly offset by higher R&D expenses. Operating income margin was 27.1% of net sales, increasing 0.3 percentage points (1.3 percentage points in cc).

Core adjustments were USD 1.3 billion, mainly due to amortization. Core adjustments were broadly in-line with the prior-year quarter.

Core gross profit was USD 11.0 billion (0%, -2% cc), broadly in line with net sales performance.

Core SG&A expenses were USD 3.4 billion (+2%, +5% cc), mainly driven by lower marketing and sales investments.

Core R&D expenses were USD 2.8 billion (-10%, -6% cc), driven by increases in core confirmatory development (-10%, -5% cc) and core research and exploratory development (-12%, -8% cc), mainly due to higher investments in recently acquired assets.

Core other income was USD 0.3 billion, increasing mainly due to higher government grant income.

Core other expense was USD 0.2 billion (-28%, -17% cc).

Core operating income was USD 4.9 billion (+1%, +1% cc), benefiting from higher government grant income and lower SG&A expenses, partly offset by higher R&D expenses. Core operating income margin was 37.0% of net sales, increasing 0.1 percentage points (0.7 percentage points in cc).

Interest expense amounted to USD 0.3 billion in line with the prior-year quarter.

Other financial income and expense amounted to an expense of USD 92 million compared with an income of USD 33 million in prior-year quarter, mainly due to lower interest income and higher financial expense.

Core interest expense amounted to USD 0.3 billion in line with the prior-year quarter.

Core other financial income and expense amounted to an income of USD 18 million, compared with an income of USD 83 million in prior-year quarter, mainly due to lower interest income.

The tax rate in the fourth quarter was 25.3% compared to 14.2% in the prior-year quarter. The current-year tax rate was negatively impacted by intercompany transactions, and the effect of adjusting to the full-year actual rate, which was higher than previously estimated. The prior-year tax rate was impacted mainly by the effect of adjusting to the full-year actual rate, which was lower than previously estimated. Excluding these impacts, the current-year tax rate would have been 15.0% compared with 15.0% in the prior-year period.

The core tax rate (core taxes as a percentage of core income before tax) was 16.2% compared to 15.7% in the prior year. The prior-year tax rate was impacted by the effect of adjusting to the full-year actual rate.

Net income was USD 2.4 billion (-15%, -14% cc), impacted by higher income taxes. EPS was USD 1.26 (-11%, -11% cc), benefiting from the lower weighted average number of shares outstanding.

Core net income was USD 3.9 billion (-1%, -2% cc), mainly due to lower other financial income. Core EPS was USD 2.03 (+3%, +2% cc), benefiting from the lower weighted average number of shares outstanding.

Net cash flows from operating activities amounted to USD 2.3 billion (-46%) as higher net income, adjusted for non-cash items and other adjustments, was more than offset by unfavorable changes in working capital and higher payments out of provisions.

Free cash flow amounted to USD 1.7 billion (-54%), driven by lower net cash flows from operating activities.

Net sales were USD 54.5 billion (+8%, +8% cc), with volume contributing 15 percentage points to growth. Generic competition had a negative impact of 6 percentage points, pricing had a negative impact of 1 percentage point and currency had no impact. Sales in the US were USD 23.3 billion (+10%) and in the rest of the world USD 31.2 billion (+7%, +6% cc).

Sales growth was mainly driven by continued strong performance from Kisqali (USD 4.8 billion, +58%, +57% cc), Kesimpta (USD 4.4 billion, +37%, +36% cc), Pluvicto (USD 2.0 billion, +43%, +42% cc), Scemblix (USD 1.3 billion, +87%, +85% cc) and Cosentyx (USD 6.7 billion, +9%, +8% cc), partly offset by generic competition, mainly for Promacta, Tasigna and Lucentis.

In the US (USD 23.3 billion, +10%), sales growth was mainly driven by Kisqali, Kesimpta, Pluvicto, Scemblix and Cosentyx, partly offset by generic competition, mainly for Entresto, Promacta and Tasigna. In Europe (USD 16.7 billion, +8%, +4% cc), sales growth was mainly driven by Kesimpta, Entresto, Kisqali and Pluvicto, partly offset by generic competition, mainly for Lucentis and Tasigna. Sales in emerging growth markets were USD 14.0 billion (+8%, +10% cc), including USD 4.2 billion of sales from China (+8%, +8% cc).

Gross profit was USD 43.0 billion (+10%, +10% cc), mainly driven by higher net sales.

SG&A expenses were USD 13.2 billion (-5%, -4% cc), mainly driven by higher investments behind priority brands and launches.

R&D expenses were USD 11.2 billion (-12%, -9% cc), driven by increases in confirmatory development (-15%, -12% cc) and research and exploratory development (-7%, -4% cc), mainly due to higher investments in recently acquired assets.

Other income was USD 1.5 billion (+24%, +17% cc), mainly driven by higher government grant income.

Other expense was USD 2.3 billion (+20%, +24% cc), as higher legal related costs were more than offset by a goodwill impairment in the prior year.

Operating income was USD 17.6 billion (+21%, +25% cc), mainly driven by higher net sales and lower impairments, partly offset by higher investments behind priority brands and launches. Operating income margin was 32.4% of net sales, increasing 3.5 percentage points (4.4 percentage points in cc).

Core adjustments were USD 4.2 billion, mainly due to amortization, compared with USD 5.0 billion in the prior year. Core adjustments decreased compared with the prior year, mainly due to lower impairments.

Core gross profit was USD 45.5 billion (+9%, +9% cc), mainly driven by higher net sales.

Core SG&A expenses were USD 13.2 billion (-5%, -4% cc), mainly driven by higher investments behind priority brands and launches.

Core R&D expenses were USD 10.3 billion (-11%, -8% cc), driven by increases in core confirmatory development (-10%, -7% cc) and core research and exploratory development (-13%, -10% cc), mainly due to higher investments in recently acquired assets.

Core other income was USD 0.7 billion (+144%, +121% cc), mainly driven by higher government grant income.

Core other expense was USD 0.8 billion (+3%, +8% cc).

Core operating income was USD 21.9 billion (+12%, +14% cc), mainly driven by higher net sales, partly offset by higher investments behind priority brands and launches. Core operating income margin was 40.1% of net sales, increasing 1.4 percentage points (2.1 percentage points cc).

Interest expense amounted to USD 1.1 billion compared with USD 1.0 billion in the prior year.

Other financial income and expense amounted to an expense of USD 136 million compared with an income of USD 140 million in the prior year, mainly due to lower interest and other financial income, partially offset by lower monetary losses from hyperinflation accounting.

Core interest expense amounted to USD 1.1 billion compared with USD 1.0 billion in the prior year.

Core other financial income and expense amounted to an income of USD 44 million compared with an income of USD 295 million in the prior year, mainly due to lower interest income.

The tax rate was 14.6% compared with 12.5% in the prior year. The current-year tax rate was favorably impacted by changes in uncertain tax positions and the remeasurement of deferred tax balances following tax law changes, primarily in Switzerland and the US, partially offset by the impact of intercompany transactions, prior-year items and other items. The prior-year tax rate was favorably impacted by the effect of changes in uncertain tax positions. Excluding these impacts, the current-year tax rate would have been 15.0% compared with 15.0% in the prior year.

The core tax rate (core taxes as a percentage of core income before tax) was 16.2% compared with 16.1% in the prior year.

Net income was USD 14.0 billion (+17%, +19% cc), mainly driven by higher operating income. EPS was USD 7.21 (+22%, +24% cc), benefiting from the lower weighted average number of shares outstanding.

Core net income was USD 17.4 billion (+11%, +12% cc), mainly due to higher core operating income. Core EPS was USD 8.98 (+15%, +17% cc), benefiting from the lower weighted average number of shares outstanding.

Net cash flows from operating activities amounted to USD 19.1 billion (+9%), mainly driven by higher net income, adjusted for non-cash items and other adjustments, partly offset by unfavorable changes in working capital, higher payments out of provisions and higher income taxes paid.

Free cash flow amounted to USD 17.6 billion (+8%), driven by higher net cash flows from operating activities.

		Q4 2025		Q4 2024		% change		% change		FY 2025		FY 2024		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Cardiovascular, renal and metabolic
Entresto		1 253		2 180		-43		-45		7 748		7 822		-1		-2
- excl. revenue deduction adjust. 1						-32		-34
Leqvio		335		223		50		46		1 198		754		59		57
Vanrafia		13				nm		nm		13				nm		nm
Total cardiovascular, renal and metabolic		1 601		2 403		-33		-36		8 959		8 576		4		3
1  Q4 sales growth impacted by US revenue deduction adjustments in the current and prior year. No significant impact on full year.
nm = not meaningful

Entresto (USD 1 253 million, -43%, -45% cc) sales declined due to generic entry in the US in Q3 2025. US performance was also impacted by revenue deduction adjustments. Entresto continued to grow ex-US, where the product is approved for heart failure globally as well as hypertension in China and Japan. Novartis is in litigation with a generic manufacturer to protect its Entresto IP rights.

Leqvio (USD 335 million, +50%, +46% cc) sales grew across all regions, achieving blockbuster status for 2025. Focus remains on increasing account and patient adoption and continuing medical education. Leqvio is registered in more than 107 countries worldwide and commercially available in 87 countries. In Q4, Leqvio was added to China’s National Drug Reimbursement List (NRDL). Novartis obtained global rights to develop, manufacture and commercialize Leqvio under a license and collaboration agreement with Alnylam Pharmaceuticals.

Vanrafia (USD 13 million) received accelerated approval in the US and conditional approval in China in Q2 and Q4 2025, respectively, as the first and only selective endothelin A (ETA) receptor antagonist for proteinuria reduction in primary IgA nephropathy (IgAN). Launch momentum reflects Vanrafia’s differentiated label and broad access.

		Q4 2025		Q4 2024		% change		% change		FY 2025		FY 2024		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Immunology
Cosentyx		1 807		1 596		13		11		6 668		6 141		9		8
Ilaris		514		413		24		22		1 883		1 509		25		24
Xolair 1		384		399		-4		-8		1 723		1 643		5		4
Rhapsido		19				nm		nm		19				nm		nm
Total immunology		2 724		2 408		13		11		10 293		9 293		11		10
1  Net sales to third parties reflect Xolair sales for all indications.
nm = not meaningful

Cosentyx (USD 1 807 million, +13%, +11% cc) sales grew across all regions, driven by volume, with continued demand for recent launches (including HS and IV in the US) and steady performance in core indications (PsO, PsA, AS and nr-AxSpA). Since initial approval in 2015, Cosentyx has shown sustained efficacy and a robust safety profile, treating more than 2 million patients across 8 indications.

Ilaris (USD 514 million, +24%, +22% cc) sales grew across all major geographies, led by the US, Europe and Japan, with continued momentum in the Periodic Fever Syndromes and Still’s disease indications.

Xolair (USD 384 million, -4%, -8% cc) sales declined mainly in Europe, driven by the launch of a biosimilar in Q3 2025. Novartis co-promotes Xolair with Genentech in the US and shares a portion of revenue as operating income but does not record any US sales.

Rhapsido (USD 19 million) received FDA approval in September 2025 as the only oral, targeted BTK inhibitor for CSU and has shown strong uptake with appropriate use of a free drug program to help support patient access. Rhapsido was also approved in China in Q4 2025.

		Q4 2025		Q4 2024		% change		% change		FY 2025		FY 2024		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Neuroscience
Kesimpta		1 228		950		29		27		4 426		3 224		37		36
Zolgensma Group		307		262		17		12		1 232		1 214		1		0
Aimovig		90		80		13		3		335		312		7		3
Total neuroscience		1 625		1 292		26		23		5 993		4 750		26		25

Kesimpta (USD 1 228 million, +29%, +27% cc) sales grew across all regions, driven by increased demand and strong access, as a high efficacy B-cell therapy with at-home self-administration for a broad population of RMS patients. Kesimpta is now approved in 94 countries with more than 187,000 patients treated since launch.

Zolgensma Group (USD 307 million, +17%, +12% cc) sales grew, reflecting strong demand for the IV formulation in the incident SMA population. Itvisma, the intrathecal formulation, was approved in both the US and UAE in Q4 2025, followed shortly by the treatment of the first patients in the UAE.

Aimovig (USD 90 million, +13%, +3% cc) sales grew driven by increased demand for migraine prevention. Novartis commercializes Aimovig ex-US and ex-Japan, while Amgen retains all rights in the US and Japan.

		Q4 2025		Q4 2024		% change		% change		FY 2025		FY 2024		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Oncology
Kisqali		1321		902		46		44		4 783		3 033		58		57
- excl. revenue deduction adjust. 1						57		54
Tafinlar + Mekinist 2		540		527		2		-2		2 215		2 058		8		6
Jakavi		555		487		14		8		2 110		1 936		9		7
Pluvicto		605		351		72		70		1 994		1 392		43		42
Promacta/Revolade		226		583		-61		-63		1 636		2 216		-26		-27
- excl. revenue deduction adjust. 1						-47		-49
Scemblix		391		207		89		87		1 285		689		87		85
Tasigna		179		411		-56		-58		1 104		1 671		-34		-34
Lutathera		203		190		7		5		816		724		13		12
Fabhalta 3		155		57		172		167		505		129		291		287
Piqray/Vijoice		81		109		-26		-28		382		449		-15		-15
Total oncology		4 256		3 824		11		8		16 830		14 297		18		17
1  Q4 sales growth impacted by US revenue deduction adjustments in the current and prior year. No significant impact on full year.
2  Majority of sales for Mekinist and Tafinlar are combination, but both can be used as monotherapy.
3  Net sales to third parties reflect Fabhalta sales for all indications.

Kisqali (USD 1 321 million, +46%, +44% cc) sales grew strongly across all regions, reflecting continued share gains in metastatic breast cancer (mBC), as well as leading NBRx share in early breast cancer (eBC). Strong volume growth in the US was partially offset by revenue deduction adjustments; underlying growth globally was +54% (cc). Kisqali performance reflects its consistent overall survival benefit across all Phase III mBC trials, its NCCN Category 1 Preferred status, and its highest ESMO clinical benefit ratings in mBC and eBC.

Tafinlar + Mekinist (USD 540 million, +2%, -2% cc) sales grew across most regions ex-US, driven by demand in BRAF+ adjuvant melanoma, NSCLC and tumor agnostic indications. Sales declined in the US due to competitive pressure.

Jakavi (USD 555 million, +14%, +8% cc) sales grew across regions and indications. Incyte retains all rights to ruxolitinib (Jakafi®) in the US.

Pluvicto (USD 605 million, +72%, +70% cc) showed strong demand growth in the US following the pre-taxane metastatic castration-resistant prostate cancer (mCRPC) approval in Q1 2025. Access ex-US continued to expand, with the pre-taxane setting approved in Japan and China in Q4 2025 and the post-taxane mCRPC setting now approved in 32 countries.

Promacta/Revolade (USD 226 million, -61%, -63% cc) sales declined due to generic entry in the US in Q2 2025 and ex-US in Q3 2025. US performance was also impacted by revenue deduction adjustments.

Scemblix (USD 391 million, +89%, +87% cc) sales grew across all regions, demonstrating the continued high unmet need for treatment options with high efficacy and tolerability for adult CML patients. Launch momentum in the early line setting continues, with 61 markets having secured early-line approvals, including approval in EU in Q4 2025.

Tasigna (USD 179 million, -56%, -58% cc) sales declined due to generic competition globally.

Lutathera (USD 203 million, +7%, +5% cc) sales grew mainly in the US, Europe and Japan due to increased demand and earlier-line adoption (within indication) in the US and Japan. Novartis is in patent litigation with manufacturers having FDA applications referencing Lutathera.

Fabhalta (USD 155 million, +172%, +167% cc) sales grew due to continued launch execution in PNH as well as renal indications IgAN and C3G.

Piqray/Vijoice (USD 81 million, -26%, -28% cc) sales declined, mainly in the US, driven by increased competition for Piqray.

		Q4 2025		Q4 2024		% change		% change		FY 2025		FY 2024		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Established brands
Sandostatin Group		291		306		-5		-7		1 213		1 279		-5		-5
Exforge Group		181		159		14		11		727		703		3		4
Lucentis		133		210		-37		-40		643		1 044		-38		-40
Diovan Group		157		140		12		9		604		590		2		2
Galvus Group		114		144		-21		-21		487		602		-19		-17
Kymriah		85		108		-21		-23		381		443		-14		-15
Contract manufacturing		404		323		25		17		1 419		1 152		23		19
Other		1 765		1 836		-4		-5		6 983		7 588		-8		-6
Total established brands		3 130		3 226		-3		-5		12 457		13 401		-7		-7

Sandostatin Group (USD 291 million, -5%, -7% cc) sales declined primarily due to erosion from generic competition.

Exforge Group (USD 181 million, +14%, +11% cc) sales grew mainly in China.

Lucentis (USD 133 million, -37%, -40% cc) sales declined mainly due to increased competition. Novartis only commercializes Lucentis in markets ex-US.

Diovan Group (USD 157 million, +12%, +9% cc) sales grew mainly in China.

Galvus Group (USD 114 million, -21%, -21% cc) sales declined mainly in Japan and other emerging markets due to continued competition.

Kymriah (USD 85 million, -21%, -23% cc) sales declined across most markets, mainly due to competitive pressure in DLBCL.

Net cash flows from operating activities amounted to USD 2.3 billion, compared with USD 4.2 billion in the prior-year quarter. This decrease was mainly driven by higher net income, adjusted for non-cash items and other adjustments, being more than offset by unfavorable changes in working capital and higher payments out of provisions.

Net cash outflows used in investing activities amounted to USD 2.1 billion, compared with USD 3.0 billion in the prior-year quarter.

In the current-year quarter, net cash outflows used in investing activities were mainly driven by the acquisition of Tourmaline Bio, Inc. for USD 1.2 billion, net of USD 0.2 billion in cash acquired, applying the optional concentration test. In addition, cash outflows for purchases of property, plant and equipment amounted to USD 0.6 billion and purchases of intangible assets amounted to USD 0.4 billion.

In the prior-year quarter, net cash outflows used in investing activities were mainly driven by USD 1.7 billion for net investments in time deposits and marketable securities, USD 0.6 billion for purchases of intangible assets and USD 0.6 billion for purchases of property, plant and equipment. In addition, net cash outflows for acquisitions and divestments of businesses amounted to USD 0.3 billion, including the acquisition of Kate Therapeutics for USD 0.4 billion.

Net cash inflows from financing activities amounted to USD 1.7 billion, compared with USD 3.0 billion net cash outflows in the prior-year quarter.

In the current-year quarter, net cash inflows from financing activities were mainly driven by cash inflows of USD 6.0 billion, from the issuance of US dollar denominated bonds, with a notional amount of USD 6.0 billion. These inflows were partly offset by the repayment at maturity of a US dollar denominated bond with a notional amount of USD 1.75 billion and by net cash outflows related to treasury share transactions of USD 1.5 billion. In addition, changes in current financial debts resulted in net cash outflows of USD 0.8 billion.

In the prior-year quarter, net cash outflows used in financing activities were mainly driven by USD 2.8 billion for treasury share transactions and USD 0.2 billion cash outflows for purchased MorphoSys shares, in connection with the “squeeze-out” of the remaining minority shareholders.

Free cash flow amounted to USD 1.7 billion (-54%), compared with USD 3.6 billion in the prior-year quarter, driven by lower net cash flows from operating activities.

Net cash flows from operating activities amounted to USD 19.1 billion, compared with USD 17.6 billion in the prior year. This increase was mainly driven by higher net income, adjusted for non-cash items and other adjustments, partly offset by unfavorable changes in working capital, higher payments out of provisions and higher income taxes paid.

Net cash outflows used in investing activities amounted to USD 4.9 billion, compared with USD 7.5 billion in the prior year.

In the current year, net cash outflows used in investing activities were mainly driven by USD 2.8 billion for acquisitions applying the optional concentration test, net of USD 0.3 billion in cash acquired, including the acquisition of Anthos Therapeutics, Inc. for USD 0.8 billion, the acquisition of Regulus Therapeutics Inc. for USD 0.8 billion and the acquisition of Tourmaline Bio, Inc. for USD 1.2 billion. In addition, the cash outflows for purchases of intangible assets amounted to USD 2.4 billion and purchases of property, plant and equipment amounted to USD 1.5 billion. These cash outflows were partly offset by the net proceeds of USD 1.8 billion from marketable securities and time deposits, mainly due to the maturity of time deposits.

In the prior year, net cash outflows used in investing activities were mainly driven by USD 3.9 billion net cash outflows for acquisitions and divestments of businesses, including the acquisition of Kate Therapeutics for USD 0.4 billion, the acquisition of Mariana Oncology for USD 1.0 billion (USD 1.04 billion, net of cash acquired of USD 80 million) and the acquisition of MorphoSys for USD 2.3 billion (USD 2.5 billion, net of cash acquired of USD 0.2

billion). In addition, the cash outflows for purchases of intangible assets amounted to USD 2.4 billion, purchases of property, plant and equipment amounted to USD 1.4 billion, purchases of financial assets amounted to USD 0.2 billion and net investments in time deposits, marketable securities and commodities amounted to USD 0.7 billion. These cash outflows were partly offset by cash inflows of USD 1.0 billion from the sale of financial assets (including USD 0.7 billion proceeds from the sale of Sandoz Group AG shares by consolidated foundations) and by USD 0.2 billion from the sale of intangible assets and property, plant and equipment.

Net cash outflows used in financing activities amounted to USD 14.9 billion, compared with USD 11.7 billion in the prior year.

In the current year, net cash outflows used in financing activities were mainly driven by USD 9.2 billion for net treasury share transactions, USD 7.8 billion for the annual dividend payment and USD 3.35 billion for the repayment of three bonds at maturity, comprising two US dollar denominated bonds with notional amounts of USD 1.75 billion and USD 1.0 billion, respectively, and one Swiss franc denominated bond with a notional amount of CHF 0.5 billion, equivalent to USD 0.6 billion. These cash outflows were partly offset by cash inflows of USD 6.0 billion, from the issuance of US dollar denominated bonds with a notional amount of USD 6.0 billion.

In the prior year, net cash outflows used in financing activities were mainly driven by USD 8.3 billion for net treasury share transactions, USD 7.6 billion for the annual dividend payment, USD 2.15 billion for the repayment of a US dollar bond at maturity and USD 0.3 billion for the repayments of other current financial debts. Cash outflows for MorphoSys shares purchased outside the Offer amounted to USD 0.3 billion, which included a USD 0.2 billion payment to the former remaining minority shareholders in connection with the “squeeze-out.” These cash outflows were partly offset by cash inflows from the issuance of bonds totaling USD 6.1 billion (Swiss franc denominated bonds with a notional amount of CHF 2.2 billion, equivalent to USD 2.5 billion, and US dollar denominated bonds with a notional amount of USD 3.7 billion). The change in current financial debts resulted in net cash inflows of USD 1.0 billion.

Free cash flow amounted to USD 17.6 billion (+8%), compared with USD 16.3 billion in the prior year, driven by higher net cash flows from operating activities.

Total non-current assets of USD 80.5 billion increased by USD 7.9 billion compared with December 31, 2024.

Intangible assets other than goodwill increased by USD 2.5 billion, mainly due to acquisitions applying the optional concentration test (Anthos Therapeutics, Inc., Regulus Therapeutics Inc., Tourmaline Bio, Inc. and a private clinical-stage biotech company), additions, and currency translation adjustments, partially offset by amortization and impairment charges.

Goodwill increased by USD 0.8 billion, due to currency translation adjustments.

Property, plant and equipment increased by USD 1.3 billion, mainly due to additions and currency translation adjustments, partially offset by depreciation.

Other non-current assets increased by USD 1.8 billion, mainly due to an increase in prepaid post-employment benefit plans. This increase was driven by an increase in the fair value of plan assets, a higher discount rate applied in calculating actuarial defined benefit obligations, and currency translation adjustments.

Deferred tax assets increased by USD 1.1 billion, mainly due to higher deferred tax assets on inventories.

Financial assets increased by USD 0.3 billion. Right-of-use assets and investments in associated companies were broadly in line with December 31, 2024.

Total current assets of USD 30.5 billion increased by USD 0.8 billion compared with December 31, 2024.

Cash and cash equivalents were broadly in line with December 2024, as cash inflows from operating activities of USD 19.1 billion, net proceeds from changes in financial debts of USD 2.7 billion and from marketable securities and time deposits of USD 1.8 billion, mainly due to the maturity of time deposits, were offset by cash outflows of USD 9.2 billion for net purchases of treasury shares, USD 7.8 billion for the annual dividend payment, USD 3.7 billion for net purchases of property, plant and equipment and intangible assets, USD 2.8 billion for the acquisitions applying the optional concentration test, as well as other net cash outflows from investing and financing activities, and currency effects of USD 0.1 billion.

Marketable securities, time deposits and derivative financial instruments decreased by USD 1.8 billion, mainly due to the maturity of time deposits.

Trade receivables increased by USD 1.5 billion, mainly due to the increase in net sales.

Inventories increased by USD 0.5 billion. and other current assets increased by USD 0.5 billion, mainly due to higher prepaid expenses and other receivables and other current assets. Income tax receivables were broadly in line with December 31, 2024.

Total non-current liabilities of USD 37.1 billion increased by USD 7.7 billion compared with December 31, 2024.

Non-current financial debts increased by USD 6.6 billion, mainly due to the issuance of US dollar denominated bonds with a notional amount of USD 6.0 billion and currency translation adjustments of USD 1.1 billion, partly offset by the reclassification of a EUR denominated bond with a notional amount of EUR 0.6 billion maturing in 2026 from non-current to current financial debts.

Deferred tax liabilities increased by USD 1.0 billion, mainly due to higher deferred tax liabilities on other assets, provisions, and accruals.

Provisions and other non-current liabilities, and non-current lease liabilities, were broadly in line with December 31, 2024.

Total current liabilities of USD 27.3 billion decreased by USD 1.4 billion compared with December 31, 2024.

Current financial debts and derivative financial instruments decreased by USD 2.6 billion, mainly due to the repayment at maturity of two US dollar denominated bonds with a notional amount of USD 2.8 billion and a Swiss franc denominated bond with a notional amount of CHF 0.5 billion. This was partially offset by the reclassification

of a EUR denominated bond with a notional amount of EUR 0.6 billion maturing in 2026 from non-current to current financial debts.

Provisions and other current liabilities increased by USD 0.9 billion, mainly driven by the increase in provisions for deductions from revenue.

Current income tax liabilities increased by USD 0.4 billion. Trade payables and current lease liabilities were broadly in line with December 31, 2024.

The Company’s equity increased by USD 2.4 billion to USD 46.5 billion compared with December 31, 2024.

This increase was mainly driven by net income of USD 14.0 billion, a favorable impact from currency translation differences of USD 3.0 billion, actuarial gains from defined benefit plans of USD 1.2 billion, and a favorable impact from equity-based compensation plans of USD 1.2 billion. These were partially offset by annual dividends of USD 7.8 billion paid to Novartis AG shareholders and the purchase of treasury shares of USD 9.1 billion.

The Company’s liquidity amounted to USD 11.6 billion as at December 31, 2025, compared with USD 13.5 billion as at December 31, 2024. Total non-current and current financial debts, including derivatives, amounted to USD 33.5 billion as at December 31, 2025, compared with USD 29.6 billion as at December 31, 2024.

The debt/equity ratio increased to 0.72:1 as at December 31, 2025, compared with 0.67:1 as at December 31, 2024. The net debt increased to USD 21.9 billion as at December 31, 2025, compared with USD 16.1 billion as at December 31, 2024.

Novartis continues to focus its R&D portfolio prioritizing high value medicines with transformative potential for patients. We now focus on ~100 projects in clinical development.

Product		Active ingredient/ Descriptor		Indication		Region
Itvisma		OAV101		Spinal muscular atrophy (IT formulation)		US
Scemblix		asciminib		1L chronic myeloid leukemia		EU
Beovu		brolucizumab		Diabetic retinopathy		Japan

				Completed submissions
Product		Indication		US		EU		Japan		News update
Rhapsido (remibrutinib)		Chronic spontaneous urticaria		Approved		Q1 2025
OAV101		Spinal muscular atrophy (IT formulation)		Approved		Q2 2025		Q3 2025		– US approval
Pluvicto		Metastatic castration-resistant prostate cancer pre-taxane		Approved		Q3 2025		Approved
Leqvio		Hypercholesterolaemia, pediatrics		Q3 2025		Q3 2025
Rhapsido		CINDU symptomatic dermographism subtype		Q4 2025						– US submission
Pluvicto		Metastatic hormone sensitive prostate cancer		Q4 2025				Q4 2025		– US and Japan submissions

Compound/ product		Potential indication/ Disease area		First planned submissions		Current Phase		News update
225Ac-PSMA-617		post Lu metastatic castration-resistant prostate cancer		2028		3
		Metastatic castration-resistant prostate cancer 1L		≥2029		3
Aimovig		Migraine, pediatrics		2028		3
Cosentyx		Polymyalgia rheumatica		2026		3		– PhIII REPLENISH trial met primary endpoint
DAK539 (pelabresib)		Myelofibrosis		2026		3		– PhIII MANIFEST-2 trial 96-week results presented at ASH
DII235		CVRR-Lp(a)		≥2029		2
FUB523 (zigakibart)		IgA nephropathy		2027		3
GHZ339		Atopic dermatitis		≥2029		2
JSB462		Prostate cancer		≥2029		2
KAE609		Malaria, uncomplicated		≥2029		2
(cipargamin)		Malaria, severe		≥2029		2
Kesimpta		Multiple sclerosis new dosing regimen		2027		3
KLU156 (ganaplacide + lumefantrine)		Malaria, uncomplicated		2026		3		– PhIII KALUMA trial met primary endpoint
Leqvio		Secondary prevention of cardiovascular events in patients with elevated LDL-C		2027		3
		Primary prevention CVRR		≥2029		3

Compound/ product		Potential indication/ Disease area		First planned submissions		Current Phase		News update
LNP023		Myasthenia gravis		2027		3
(iptacopan)		IC-MPGN		≥2029		3
		Atypical haemolytic uraemic syndrome		≥2029		3
LOU064		Food allergy		≥2029		2
(remibrutinib)		Hidradenitis suppurativa		2028		3
		Multiple sclerosis		2027		3
		Multiple sclerosis, secondary progressive		≥2029		3
		Myasthenia gravis		2028		3
LTP001		Pulmonary arterial hypertension		≥2029		2
Lutathera		GEP-NETs		2028		3
177Lu-NeoB		Multiple solid tumors		≥2029		1
LXE408		Visceral leishmaniasis		≥2029		2
MAA868 (abelacimab)		Atrial fibrillation		2028		3		– Readout change to 2027, submission change to 2028
PAC001 (pacibekitug)		ASCVD		≥2029		2
Pluvicto		Oligometastatic prostate cancer		≥2029		3
QCZ484		Hypertension		≥2029		2
TQJ230 (pelacarsen)		Secondary prevention of cardiovascular events in patients with elevated levels of lipoprotein(a)		2026		3		– Readout change to H2 2026, submission remains 2026
VAY736 (ianalumab)		Sjögren’s disease		2026		3		– PhIII NEPTUNUS-1 and -2 study data presented at ACR – In January, ianalumab was awarded FDA breakthrough designation in Sjögren’s disease
		Lupus nephritis		2028		3
		Systemic lupus erythematosus		2028		3
		Systemic sclerosis		2028		2
		1L immune thrombocytopenia		2027		3
		2L immune thrombocytopenia		2027		3		– PhIII VAYHIT2 data presented at ASH with simultaneous NEJM publication
		Warm autoimmune hemolytic anemia		2027		3
VHB937		Alzheimer's disease		≥2029		2
		Amyotrophic lateral sclerosis		≥2029		2
Vijoice		Lymphatic malformations		≥2029		3
YTB323		Severe refractory lupus nephritis / Systemic lupus erythematosus		2028		2
		Systemic sclerosis		≥2029		2
		Myositis		≥2029		2
		ANCA associated vasculitis		≥2029		2
		1L high-risk large B-cell lymphoma		≥2029		2		– PhII interim data presented at ASH

Fourth quarter (unaudited)

(USD millions unless indicated otherwise)		Note		Q4 2025		Q4 2024
Net sales to third parties		9		13 336		13 153
Other revenues		9		524		405
Cost of goods sold				-3 611		-3 324
Gross profit				10 249		10 234
Selling, general and administration				-3 440		-3 501
Research and development				-3 163		-2 842
Other income				417		298
Other expense				-447		-659
Operating income				3 616		3 530
Loss from associated companies				-2		-3
Interest expense				-304		-275
Other financial income and expense				-92		33
Income before taxes				3 218		3 285
Income taxes				-814		-465
Net income				2 404		2 820
Attributable to:
Shareholders of Novartis AG				2 409		2 818
Non-controlling interests				-5		2
Weighted average number of shares outstanding – Basic (million)				1 913		1 987
Basic earnings per share (USD) 1				1.26		1.42
Weighted average number of shares outstanding – Diluted (million)				1 929		2 004
Diluted earnings per share (USD) 1				1.25		1.41
1  Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG.
The accompanying Notes form an integral part of the condensed consolidated financial statements

Full year (audited)

(USD millions unless indicated otherwise)		Note		FY 2025		FY 2024
Net sales to third parties		9		54 532		50 317
Other revenues		9		2 142		1 405
Cost of goods sold				-13 699		-12 827
Gross profit				42 975		38 895
Selling, general and administration				-13 248		-12 566
Research and development				-11 200		-10 022
Other income				1 460		1 175
Other expense				-2 343		-2 938
Operating income				17 644		14 544
Loss from associated companies				-12		-38
Interest expense				-1 144		-1 006
Other financial income and expense				-136		140
Income before taxes				16 352		13 640
Income taxes				-2 385		-1 701
Net income				13 967		11 939
Attributable to:
Shareholders of Novartis AG				13 984		11 941
Non-controlling interests				-17		-2
Weighted average number of shares outstanding – Basic (million)				1 939		2 018
Basic earnings per share (USD) 1				7.21		5.92
Weighted average number of shares outstanding – Diluted (million)				1 955		2 035
Diluted earnings per share (USD) 1				7.15		5.87
1  Earnings per share (EPS) is calculated on the amount of net income attributable to shareholders of Novartis AG.
The accompanying Notes form an integral part of the condensed consolidated financial statements

Fourth quarter (unaudited)

(USD millions)		Note		Q4 2025		Q4 2024
Net income				2 404		2 820
Other comprehensive income
Items that are or may be recycled into the consolidated income statement
Cash flow hedge, net of taxes				0		1
Net investment hedge, net of taxes		5		-1		105
Currency translation effects, net of taxes				173		-1 512
Total of items that are or may be recycled				172		-1 406
Items that will never be recycled into the consolidated income statement
Actuarial gains from defined benefit plans, net of taxes				388		1 904
Fair value adjustments on equity securities, net of taxes				35		-21
Total of items that will never be recycled				423		1 883
Total other comprehensive income				595		477
Total comprehensive income				2 999		3 297
Total comprehensive income for the period attributable to:
Shareholders of Novartis AG				3 002		3 299
Non-controlling interests				-3		-2
The accompanying Notes form an integral part of the condensed consolidated financial statements

Full year (audited)

(USD millions)		Note		FY 2025		FY 2024
Net income				13 967		11 939
Other comprehensive income
Items that are or may be recycled into the consolidated income statement
Cash flow hedge, net of taxes				2		-24
Net investment hedge, net of taxes		5		-232		91
Currency translation effects, net of taxes				3 026		-1 566
Total of items that are or may be recycled				2 796		-1 499
Items that will never be recycled into the consolidated income statement
Actuarial gains from defined benefit plans, net of taxes				1 155		2 024
Fair value adjustments on equity securities, net of taxes				39		64
Total of items that will never be recycled				1 194		2 088
Total other comprehensive income				3 990		589
Total comprehensive income				17 957		12 528
Total comprehensive income for the period attributable to:
Shareholders of Novartis AG				17 969		12 533
Non-controlling interests				-12		-5
The accompanying Notes form an integral part of the condensed consolidated financial statements

(audited)

(USD millions)		Dec 31, 2025		Dec 31, 2024
Assets
Non-current assets
Property, plant and equipment		10 782		9 458
Right-of-use assets		1 570		1 415
Goodwill		25 567		24 756
Intangible assets other than goodwill		29 411		26 915
Investments in associated companies		98		119
Deferred tax assets		5 438		4 359
Financial assets		2 348		2 015
Other non-current assets		5 275		3 505
Total non-current assets		80 489		72 542
Current assets
Inventories		6 269		5 723
Trade receivables		8 937		7 423
Income tax receivables		205		133
Marketable securities, time deposits and derivative financial instruments		155		1 998
Cash and cash equivalents		11 435		11 459
Other current assets		3 459		2 968
Total current assets		30 460		29 704
Total assets		110 949		102 246
Equity and liabilities
Equity
Share capital		766		793
Treasury shares		-50		-53
Reserves		45 414		43 306
Equity attributable to Novartis AG shareholders		46 130		44 046
Non-controlling interests		419		80
Total equity		46 549		44 126
Liabilities
Non-current liabilities
Financial debts		27 935		21 366
Lease liabilities		1 657		1 568
Deferred tax liabilities		3 397		2 419
Provisions and other non-current liabilities		4 133		4 075
Total non-current liabilities		37 122		29 428
Current liabilities
Trade payables		4 456		4 572
Financial debts and derivative financial instruments		5 602		8 232
Lease liabilities		263		235
Current income tax liabilities		1 969		1 599
Provisions and other current liabilities		14 988		14 054
Total current liabilities		27 278		28 692
Total liabilities		64 400		58 120
Total equity and liabilities		110 949		102 246
The accompanying Notes form an integral part of the condensed consolidated financial statements

Fourth quarter (unaudited)

								Reserves
(USD millions)		Note		Share capital		Treasury shares		Retained earnings		Total value adjustments		Equity attributable to Novartis AG shareholders		Non- controlling interests		Total equity
Total equity at October 1, 2025				766		-44		43 510		98		44 330		422		44 752
Net income								2 409				2 409		-5		2 404
Other comprehensive income										593		593		2		595
Total comprehensive income								2 409		593		3 002		-3		2 999
Purchase of treasury shares						-6		-1 462				-1 468				-1 468
Equity-based compensation plans						0		316				316				316
Taxes on treasury share transactions								-79				-79				-79
Changes in non-controlling interests								1				1				1
Value adjustments related to financial assets sold and divestments								-3		3
Other movements		4.3						28				28				28
Total of other equity movements						-6		-1 199		3		-1 202				-1 202
Total equity at December 31, 2025				766		-50		44 720		694		46 130		419		46 549
The accompanying Notes form an integral part of the condensed consolidated financial statements

								Reserves
(USD millions)		Note		Share capital		Treasury shares		Retained earnings		Total value adjustments		Equity attributable to Novartis AG shareholders		Non- controlling interests		Total equity
Total equity at October 1, 2024				793		-40		46 292		-3 728		43 317		124		43 441
Net income								2 818				2 818		2		2 820
Other comprehensive income										481		481		-4		477
Total comprehensive income								2 818		481		3 299		-2		3 297
Purchase of treasury shares						-14		-2 656				-2 670				-2 670
Equity-based compensation plans						1		244				245				245
Taxes on treasury share transactions								-41				-41				-41
Changes in non-controlling interests								-128				-128		-42		-170
Value adjustments related to financial assets sold and divestments								8		-8
Other movements		4.3						24				24				24
Total of other equity movements						-13		-2 549		-8		-2 570		-42		-2 612
Total equity at December 31, 2024				793		-53		46 561		-3 255		44 046		80		44 126
The accompanying Notes form an integral part of the condensed consolidated financial statements

Full year (audited)

								Reserves
(USD millions)		Note		Share capital		Treasury shares		Retained earnings		Total value adjustments		Equity attributable to Novartis AG shareholders		Non- controlling interests		Total equity
Total equity at January 1, 2025				793		-53		46 561		-3 255		44 046		80		44 126
Net income								13 984				13 984		–  17		13 967
Other comprehensive income										3 985		3 985		5		3 990
Total comprehensive income								13 984		3 985		17 969		-12		17 957
Dividends		4.1						-7 818				-7 818				-7 818
Purchase of treasury shares						-46		-9 076				-9 122				-9 122
Reduction of share capital				-27		42		-15
Equity-based compensation plans						7		1 150				1 157				1 157
Taxes on treasury share transactions								-113				-113				-113
Changes in non-controlling interests								-89				-89		351		262
Value adjustments related to financial assets sold and divestments								36		-36
Other movements		4.3						100				100				100
Total of other equity movements				-27		3		-15 825		-36		-15 885		351		-15 534
Total equity at December 31, 2025				766		-50		44 720		694		46 130		419		46 549
The accompanying Notes form an integral part of the condensed consolidated financial statements

								Reserves
(USD millions)		Note		Share capital		Treasury shares		Retained earnings		Total value adjustments		Equity attributable to Novartis AG shareholders		Non- controlling interests		Total equity
Total equity at January 1, 2024				825		-41		49 649		-3 766		46 667		83		46 750
Net income								11 941				11 941		-2		11 939
Other comprehensive income										592		592		-3		589
Total comprehensive income								11 941		592		12 533		-5		12 528
Dividends		4.1						-7 624				-7 624				-7 624
Purchase of treasury shares						-44		-8 406				-8 450				-8 450
Reduction of share capital				-32		26		6
Equity-based compensation plans						6		1 054				1 060				1 060
Taxes on treasury share transactions								-68				-68				-68
Changes in non-controlling interests								-226				-226		2		-224
Value adjustments related to financial assets sold and divestments								81		-81
Other movements		4.3						154				154				154
Total of other equity movements				-32		-12		-15 029		-81		-15 154		2		-15 152
Total equity at December 31, 2024				793		-53		46 561		-3 255		44 046		80		44 126
The accompanying Notes form an integral part of the condensed consolidated financial statements