Novartis Boosts 2025 Earnings Forecast as US Tariff Risks Loom $23 Billion Investment and $10 Billion Buyback Unveiled

Novartis has raised its full-year 2025 earnings outlook, projecting core operating income to rise by low-teens percentages—up from earlier expectations—despite potential US drug tariffs. The Swiss pharmaceutical giant reported strong Q2 results, with operating income up 20% to $5.9 billion and sales climbing 12% to $14 billion.

CEO Vas Narasimhan emphasized that Novartis is well-prepared for any new US tariff impacts in 2025, citing robust inventory levels and a strategic plan to mitigate risks. The company is committed to investing $23 billion to expand its US manufacturing footprint, shifting production of key products closer to its largest market.

Novartis also announced a new $10 billion share buyback program through 2027, rewarding investors amid ongoing volatility. Kisqali sales soared 64% to $1.2 billion, while heart drug Entresto posted a 24% gain to $2.36 billion, though generic competition is expected to intensify after patent expiry.

Shares dipped after the company missed expectations for psoriasis drug Cosentyx and announced CFO Harry Kirsch’s retirement, but quickly recovered. The firm is restructuring to produce more in the US, aiming to shield itself from future trade tensions and maintain growth momentum.