RBC Updates Model for Novartis After 'Solid' Q3 Results; Estimates Adjusted

12:49 AM EDT, 10/28/2026 (MT Newswires) -- RBC Capital Markets revised its model for Novartis (NOVN.SW), citing the Swiss pharmaceutical group's third-quarter performance and recent trends. "Solid 3Q26, albeit with older products driving the beat, and raised full-year guidance. Importantly, management remains confident in key growth drivers. Kisqali commands dominant early breast cancer share, now supported by OS data, while Kesimpta achieved 16% MS market share with 77% of US new patients in first-line/first-switch settings. On Pluvicto's weakness, we think consensus overlooked timing issues related to PET scan backlogs. This sets up well for the Meet-the-Management Event (Nov 18-19), where the team will detail pipeline timelines and opportunity sizing for post-2030 growth (cons: ~4% CAGR 2026-31E), which remains a key debate on the stock," analysts said Tuesday. Novartis reported a 4% year-over-year increase in net sales to $14.52 billion, driven primarily by brands including Kisqali, Kesimpta and Scemblix. The company raised its full-year 2026 core operating income guidance to low single-digit growth, from the previous expectation of a low single-digit decline. Against this backdrop, the research firm adjusted its 2026 revenue and EPS estimates to $56.2 billion and $8.89, respectively, from $56.3 billion and $8.75. For 2027, revenue is projected at $59.4 billion, down from the earlier $60.4 billion forecast, while EPS is expected to rise to $10.01 from $9.63. RBC raised the sector perform-rated stock's price target to 130 francs from 120 francs.