(USD millions unless indicated otherwise)		Q1 2026 USD m		Q1 2025 USD m		% change USD		% change cc 1
Net sales to third parties		13 113		13 233		-1		-5
Other revenues		411		387		6		5
Cost of goods sold		-3 459		-3 227		-7		-1
Gross profit		10 065		10 393		-3		-7
Selling, general and administration		-3 140		-3 058		-3		2
Research and development		-2 740		-2 366		-16		-9
Other income		478		226		112		94
Other expense		-428		-532		20		26
Operating income		4 235		4 663		-9		-11
% of net sales		32.3		35.2
Loss from associated companies		-3		-3		0		-2
Interest expense		-343		-270		-27		-27
Other financial income and expense		-50		17		nm		nm
Income before taxes		3 839		4 407		-13		-14
Income taxes		-683		-798		14		15
Net income		3 156		3 609		-13		-13
Basic earnings per share (USD)		1.65		1.83		-10		-11
Net cash flows from operating activities		3 676		3 645		1
Non-IFRS measures 1
Free cash flow		3 330		3 391		-2
Core operating income		4 897		5 575		-12		-14
% of net sales		37.3		42.1
Core net income		3 794		4 482		-15		-17
Core basic earnings per share (USD)		1.99		2.28		-13		-15
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 32. Unless otherwise noted, all growth rates in this release refer to same period in prior-year.
nm = not meaningful

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 13.1 billion (-1%, -5% cc), with volume contributing 13 percentage points to growth, more than offset by 14 percentage points of generic competition. Pricing had a negative impact of 4 percentage points, including net 1 percentage point from revenue deduction adjustments in the US, and currency had a positive impact of 4 percentage points. By region, sales in the US were USD 5.0 billion (-13%) and sales in the rest of the world were USD 8.2 billion (+8%, +1% cc).

Generic competition negatively impacted sales performance for Entresto (USD 1.3 billion, -42%, -46% cc), Promacta (USD 184 million, -66%, -68% cc) and Tasigna (USD 155 million, -59%, -61% cc), partly offset by continued strong growth from Kisqali (USD 1.5 billion, +59%, +55% cc), Pluvicto (USD 642 million, +73%, +70% cc), Kesimpta (USD 1.2 billion, +29%, +26% cc), Scemblix (USD 433 million, +82%, +79% cc) and Leqvio (USD 452 million, +76%, +69% cc).

In the US (USD 5.0 billion, -13%), the sales decline was due to generic competition, mainly Entresto, Promacta and Tasigna, partly offset by strong growth from Kisqali, Pluvicto, Kesimpta and Scemblix. In Europe (USD 4.2 billion, +7%, -3% cc), sales increased in USD but declined in cc, mainly due to generic competition, including Promacta and Xolair, offset by strong performance from Kisqali and Kesimpta. Sales in emerging growth markets were USD 3.9 billion (+8%, +3% cc), including USD 1.3 billion of sales from China (+13%, +8% cc).

Gross profit was USD 10.1 billion (-3%, -7% cc), declining broadly in line with net sales.

SG&A expenses were USD 3.1 billion (-3%, +2% cc)¹, increasing in USD but decreasing in cc, mainly driven by marketing and sales productivity.

R&D expenses were USD 2.7 billion (-16%, -9% cc), mainly due to investments in recently acquired assets.

Other income was USD 0.5 billion (+112%, +94% cc), increasing mainly driven by higher divestment gains.

Other expense was USD 0.4 billion (+20%, +26% cc), decreasing mainly due to lower restructuring costs and lower negative impact from revaluation of financial assets.

¹ For ease of understanding, Novartis uses a sign convention for its growth rates such that a reduction in operating expenses or losses compared with the prior year is shown as a positive growth.

Operating income was USD 4.2 billion (-9%, -11% cc), declining due to lower net sales and higher R&D investments, partly offset by higher divestment gains. Operating income margin was 32.3% of net sales, decreasing 2.9 percentage points (2.1 percentage points in cc).

Core adjustments were USD 0.7 billion, mainly due to amortization, compared with USD 0.9 billion in the prior-year quarter. Core adjustments decreased mainly due to higher divestments gains.

Core gross profit was USD 10.8 billion (-3%, -6% cc), declining broadly in line with net sales.

Core SG&A expenses were USD 3.1 billion (-3%, +2% cc), increasing in USD but decreasing in cc, mainly driven by marketing and sales productivity.

Core R&D expenses were USD 2.7 billion (-17%, -11% cc), mainly due to investments in recently acquired assets.

Core other income was USD 0.1 billion (+43%, +11% cc) and core other expense was USD 0.2 billion (+32%, +40% cc).

Core operating income was USD 4.9 billion (-12%, -14% cc), declining due to lower net sales and higher R&D investments. Core operating income margin was 37.3% of net sales, decreasing 4.8 percentage points (4.1 percentage points in cc).

Interest expense amounted to USD 343 million compared with USD 270 million in the prior-year quarter, mainly due to the increase in financial debt.

Other financial income and expense amounted to an expense of USD 50 million compared with an income of USD 17 million in the prior-year quarter, mainly due to higher monetary losses from hyperinflation accounting.

Core interest expense amounted to USD 343 million compared with USD 270 million in the prior-year quarter.

Core other financial income and expense amounted to an income of USD 4 million, broadly in line with the prior-year quarter.

The tax rate in the first quarter was 17.8% compared to 18.1% in the prior-year quarter. The prior-year tax rate was negatively impacted by the effect of remeasuring deferred tax balances following a tax rate change in Switzerland, which was effective from January 1, 2026, and prior-year items. Excluding these impacts, the prior-year tax rate would have been 16.7%. The increase from the prior-year quarter was mainly the result of a change in profit mix.

The core tax rate (core taxes as a percentage of core income before tax) was 16.7% compared to 16.2% in the prior-year quarter. The increase from the prior year was mainly the result of a change in profit mix.

Net income was USD 3.2 billion (-13%, -13% cc), mainly due to lower operating income. EPS was USD 1.65 (-10%, -11% cc), due to lower net income, partly offset by the benefit of the lower weighted average number of shares outstanding.

Core net income was USD 3.8 billion (-15%, -17% cc), mainly due to lower core operating income. Core EPS was USD 1.99 (-13%, -15% cc), due to lower core net income, partly offset by the benefit of the lower weighted average number of shares outstanding.

Net cash flows from operating activities amounted to USD 3.7 billion, in line with the prior-year quarter, as lower net income, adjusted for non-cash items and other adjustments, and higher income taxes paid were offset by favorable changes in working capital.

Free cash flow amounted to USD 3.3 billion, broadly in line with the prior-year quarter.

		Q1 2026		Q1 2025		% change		% change
		USD m		USD m		USD		cc
Cardiovascular, renal and metabolic
Entresto		1 305		2 261		-42		-46
Leqvio		452		257		76		69
Vanrafia		16				nm		nm
Total cardiovascular, renal and metabolic		1 773		2 518		-30		-33
nm = not meaningful

Entresto (USD 1 305 million, -42%, -46% cc) sales declined due to generic competition in the US. Entresto continued to grow ex-US, where the product is approved for heart failure globally as well as hypertension in China and Japan.

Leqvio (USD 452 million, +76%, +69% cc) sales grew across all regions, with an acceleration ex-US driven by China, following inclusion in the National Reimbursement Drug List (NRDL) in January. Leqvio is registered in 108 countries worldwide and commercially available in 89 countries. Novartis obtained global rights to develop, manufacture and commercialize Leqvio under a license and collaboration agreement with Alnylam Pharmaceuticals. Novartis is in US ANDA litigation with a generic manufacturer.

Vanrafia (USD 16 million) sales reflect continued launch execution following 2025 approvals in the US and China, as the first and only selective endothelin A (ETA) receptor antagonist for proteinuria reduction in primary IgA nephropathy (IgAN).

		Q1 2026		Q1 2025		% change		% change
		USD m		USD m		USD		cc
Immunology
Cosentyx		1 566		1 534		2		-2
- excluding revenue deduction adjustments 1						5		2
Ilaris		475		419		13		10
Xolair 2		388		456		-15		-20
Rhapsido		37				nm		nm
Total immunology		2 466		2 409		2		-1
1  Q1 sales growth impacted by US revenue deduction adjustments in the current and prior year.
2  Net sales to third parties reflect Xolair sales for all indications.
nm = not meaningful

Cosentyx (USD 1 566 million, +2%, -2% cc) sales were broadly stable. US sales declined, as demand growth was offset by positive revenue deduction adjustments in the prior-year quarter. Ex-US, sales grew in Europe and most emerging markets, partially offset by a decline in China. Underlying sales growth globally was +2% cc.

Ilaris (USD 475 million, +13%, +10% cc) sales grew across most regions, with continued momentum in the Periodic Fever Syndromes and Still’s disease indications.

Xolair (USD 388 million, -15%, -20% cc) sales declined in Europe and some emerging markets, mainly driven by the launch of a biosimilar in 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 37 million) continued to show strong early uptake in the US, supported by a free drug program to facilitate patient access and increasing coverage. Rhapsido also launched in China following Q4 approval in CSU.

		Q1 2026		Q1 2025		% change		% change
		USD m		USD m		USD		cc
Neuroscience
Kesimpta		1 164		899		29		26
Zolgensma Group		302		327		-8		-12
Aimovig		95		76		25		14
Total neuroscience		1 561		1 302		20		16

Kesimpta (USD 1 164 million, +29%, +26% 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 200,000 patients treated since launch.

Zolgensma Group (USD 302 million, -8%, -12% cc) sales declined, reflecting a lower incidence of SMA, despite continued strong share in the incident population, as well as treatment phasing. The intrathecal formulation is now approved in the US, UAE, Qatar and Japan, with first patients treated in the UAE and US.

Aimovig (USD 95 million, +25%, +14% 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.

		Q1 2026		Q1 2025		% change		% change
		USD m		USD m		USD		cc
Oncology
Kisqali		1 516		956		59		55
Pluvicto		642		371		73		70
Jakavi		557		492		13		5
Tafinlar + Mekinist 1		493		552		-11		-14
Scemblix		433		238		82		79
Lutathera		211		193		9		7
Fabhalta 2		169		81		109		103
Total oncology		4 021		2 883		39		35
1  Majority of sales for Mekinist and Tafinlar are combination, but both can be used as monotherapy.
2  Net sales to third parties reflect Fabhalta sales for all indications.

Kisqali (USD 1 516 million, +59%, +55% cc) sales grew strongly across all regions, with continued momentum in the early breast cancer indication as well as leadership in metastatic breast cancer. 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.

Pluvicto (USD 642 million, +73%, +70% cc) sales showed continued strong demand in the pre-taxane metastatic castration-resistant prostate cancer (mCRPC) setting in the US. Access ex-US continued to expand, with the post-taxane mCRPC setting now approved in 51 countries and the pre-taxane setting approved in 9 countries.

Jakavi (USD 557 million, +13%, +5% cc) sales grew across most regions and indications. Incyte retains all rights to ruxolitinib (Jakafi®) in the US.

Tafinlar + Mekinist (USD 493 million, -11%, -14% cc) sales declined in the US due to competitive pressure and ex-US mainly due to shipment phasing. Novartis is in US ANDA litigations with a generic manufacturer.

Scemblix (USD 433 million, +82%, +79% cc) sales grew across all regions, with continued momentum in the early line setting, where 64 markets have secured approvals, including EU in Q4 2025.

Lutathera (USD 211 million, +9%, +7% cc) sales grew mainly in the US and Europe due to increased demand, with continued 2L leadership. Novartis is in patent litigation with manufacturers having FDA applications referencing Lutathera.

Fabhalta (USD 169 million, +109%, +103% cc) sales more than doubled in Q1, reflecting continued expansion in PNH and renal indications.

		Q1 2026		Q1 2025		% change		% change
		USD m		USD m		USD		cc
Established brands
Sandostatin Group		287		317		-9		-12
Exforge Group		203		179		13		7
Promacta/Revolade		184		546		-66		-68
Tasigna		155		377		-59		-61
Diovan Group		150		150		0		-4
Myfortic		111		99		12		9
Lucentis		104		189		-45		-50
Piqray/Vijoice		81		100		-19		-20
Kymriah		81		100		-19		-22
Contract manufacturing		352		343		3		-5
Other		1 584		1 721		-8		-13
Total established brands		3 292		4 121		-20		-24

Sandostatin Group (USD 287 million, -9%, -12% cc) sales declined due to generic competition.

Exforge Group (USD 203 million, +13%, +7% cc) sales grew, driven by China.

Promacta/Revolade (USD 184 million, -66%, -68% cc) sales continued to decline globally due to generic competition.

Tasigna (USD 155 million, -59%, -61% cc) sales continued to decline globally due to generic competition.

Diovan Group (USD 150 million, 0%, -4% cc) sales declined in most regions except Europe.

Myfortic (USD 111 million, +12%, +9% cc) sales grew, driven by China and other emerging markets.

Lucentis (USD 104 million, –45%, –50% cc) sales declined, mainly due to increased competition. Novartis only commercializes Lucentis in markets ex-US.

Piqray/Vijoice (USD 81 million, -19%, -20% cc) sales declined, driven by increased competition for Piqray.

Kymriah (USD 81 million, –19%, –22% cc) sales declined globally, mainly due to continued competitive pressure.

Net cash flows from operating activities amounted to USD 3.7 billion, in line with the prior-year quarter, as lower net income, adjusted for non-cash items and other adjustments, and higher income taxes paid were offset by favorable changes in working capital.

Net cash outflows used in investing activities amounted to USD 11.7 billion, compared with USD 0.3 billion net cash inflows in the prior-year quarter.

In the current-year quarter, net cash outflows for investing activities were mainly driven by USD 12.0 billion paid for the acquisition of Avidity Biosciences, Inc. (net of cash acquired of USD 11 million). In addition, cash outflows for purchases of intangible assets amounted to USD 0.5 billion and purchases of property, plant and equipment amounted to USD 0.3 billion. These cash outflows were partly offset by proceeds of USD 1.1 billion from time deposits and from the sale of marketable securities, mainly acquired through the Avidity Biosciences, Inc. acquisition.

In the prior-year quarter, net cash inflows from investing activities were mainly driven by the net proceeds of USD 1.8 billion from marketable securities and time deposits, mainly due to the maturity of time deposits. These cash inflows were partly offset by cash outflows of USD 1.2 billion for purchases of intangible assets and by USD 0.3 billion for purchases of property, plant and equipment.

Net cash inflows from financing activities amounted to USD 3.6 billion, compared with USD 8.5 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 10.9 billion from the issuance of US dollar denominated bonds with a notional amount of USD 11.0 billion, which were used to repay a bridge loan of USD 11.0 billion entered into in February 2026 to fund the Avidity Biosciences, Inc. acquisition. In addition, changes in current financial debts resulted in net cash inflows of USD 0.7 billion. These inflows were partly offset by USD 6.2 billion for the annual net dividend payment (which is the gross dividend of USD 9.1 billion reduced by the USD 2.9 billion Swiss withholding tax paid in April 2026, according to its due date) and USD 1.9 billion for treasury share transactions.

In the prior-year quarter, net cash outflows used in financing activities were mainly driven by USD 5.3 billion for the annual net dividend payment (which is the gross dividend of USD 7.8 billion reduced by the USD 2.5 billion Swiss withholding tax paid in April 2025 according to its due date), the USD 2.7 billion payments for treasury share transactions, and the USD 1.0 billion repayment of a US dollar denominated bond at maturity. These cash outflows were partly offset by the net increase in current financial debts of USD 0.6 billion.

Free cash flow amounted to USD 3.3 billion, broadly in line with the prior-year quarter.

Total non-current assets of USD 91.9 billion increased by USD 11.4 billion compared with December 31, 2025.

Intangible assets other than goodwill increased by USD 10.8 billion, mainly due to the Avidity Biosciences, Inc. acquisition and additions, partially offset by amortization.

Goodwill increased by USD 1.3 billion mainly due to the acquisition of Avidity Biosciences, Inc.

Other non-current assets decreased by USD 0.3 billion, mainly due to the decrease in prepaid post-employment benefit plans.

Property, plant and equipment, right-of-use assets, deferred tax assets, investments in associated companies, and financial assets were broadly in line with December 31, 2025.

Total current assets of USD 26.6 billion decreased by USD 3.9 billion compared with December 31, 2025.

Cash and cash equivalents decreased by USD 4.6 billion compared with December 31, 2025. Net cash inflows from operating activities of USD 3.7 billion, net proceeds of USD 11.6 billion from financial debts and net proceeds of USD 1.1 billion from the sale of marketable securities and time deposits, were more than offset by cash outflows mainly relating to the acquisition of Avidity Biosciences, Inc. of USD 12.0 billion, the annual net dividend payment of USD 6.2 billion (which is the gross dividend of USD 9.1 billion reduced by the USD 2.9 billion Swiss withholding tax paid in April 2026, according to its due date), the purchase of treasury shares of USD 1.9 billion, as well as other net cash outflows from investing and financing activities, and currency effects of USD 0.9 billion.

Trade receivables increased by USD 0.4 billion and other current assets increased by USD 0.3 billion. Inventories, marketable securities, time deposits and derivative financial instruments, and income tax receivables were broadly in line with December 31, 2025.

Total non-current liabilities of USD 48.2 billion increased by USD 11.1 billion compared with December 31, 2025.

Non-current financial debts increased by USD 9.5 billion, mainly due to the issuance of US dollar denominated bonds with a notional amount of USD 11.0 billion, partly offset by the reclassification from non-current to current financial debts of a US dollar denominated bond with a notional amount of USD 1.3 billion maturing in February 2027.

Deferred tax liabilities increased by USD 1.7 billion mainly due to the acquisition of Avidity Biosciences, Inc.

Provisions and other non-current liabilities and non-current lease liabilities were broadly in line with December 31, 2025.

Total current liabilities of USD 31.4 billion increased by USD 4.1 billion compared with December 31, 2025.

Current financial debts and derivative financial instruments increased by USD 2.0 billion compared with December 31, 2025, mainly due to the reclassification from non-current to current financial debts of a US dollar denominated bond with a notional amount of USD 1.3 billion maturing in February 2027, and the issuance of commercial paper notes of USD 0.7 billion, mainly under the US commercial paper program.

Provisions and other current liabilities increased by USD 2.4 billion, mainly driven by USD 2.9 billion of Swiss withholding tax on the annual dividend to Novartis AG shareholders, which was paid in April 2026 according to its due date, and by an increase of USD 0.5 billion in provisions for revenue deductions, partially offset by a decrease of USD 0.8 billion in accruals for compensation and benefits.

Trade payables, current income tax liabilities and current lease liabilities were broadly in line with December 31, 2025.

The Company’s equity decreased by USD 7.6 billion to USD 38.9 billion compared with December 31, 2025. This decrease was mainly driven by the net income of USD 3.2 billion, more than offset by the annual gross dividend to Novartis AG shareholders of USD 9.1 billion, and the purchase of treasury shares of USD 1.9 billion.

The Company’s liquidity amounted to USD 7.0 billion as at March 31, 2026, compared with USD 11.6 billion as at December 31, 2025. Total non-current and current financial debts, including derivatives, amounted to USD 45.1 billion as at March 31, 2026, compared with USD 33.5 billion as at December 31, 2025.

The debt/equity ratio increased to 1.16:1 as at March 31, 2026, compared with 0.72:1 as at December 31, 2025. The net debt increased to USD 38.1 billion as at March 31, 2026, compared with USD 21.9 billion as at December 31, 2025.

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
Cosentyx		secukinumab		Hidradenitis suppurativa, pediatrics aged 12+		US
Leqvio		inclisiran		Hypercholesterolaemia, pediatrics		US
Zolgensma		OAV101		Spinal muscular atrophy (IT formulation)		JP

				Completed submissions
Product		Indication		US		EU		Japan		News update
Cosentyx		Polymyalgia rheumatica		Q1 2026		Q1 2026		Q1 2026		– US, EU & JP submissions
		Hidradenitis suppurativa, pediatrics aged 12+		Approved		Q1 2026				– US approval – EU submission
Fabhalta		IgA nephropathy						Q1 2026		– JP submission – Final two-year results from PhIII APPLAUSE-IgAN study published in NEJM – FDA granted priority review for traditional approval
VAY736 (ianalumab)		Sjögren’s disease		Q1 2026		Q1 2026		Q1 2026		– US, EU, JP & CN submissions – FDA Breakthrough Therapy designation – FDA Priority Review designation – Japan Orphan Drug designation
Leqvio		Hypercholesterolaemia, pediatrics		Approved		Q3 2025				– US approval
OAV101		Spinal muscular atrophy (IT formulation)		Approved		Q2 2025		Approved		– JP approval
Pluvicto		Metastatic castration-resistant prostate cancer pre-taxane		Approved		Withdrawn		Approved		– Withdrew EU type II variation application following CHMP feedback on trial design (not related to product quality, efficacy or safety)
		Metastatic hormone sensitive prostate cancer		Q4 2025				Q4 2025
Rhapsido (remibrutinib)		Chronic spontaneous urticaria		Approved		Q1 2025		Q2 2025		– Received positive EMA CHMP opinion
		Chronic inducible urticaria		Q4 2025						– US submission for symptomatic dermograpahism subtype in Q4 2025 – Primary endpoint met for cold and cholinergic urticaria subtypes (RemIND)

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
DAK539 (pelabresib)		Myelofibrosis		2026		3
DII235		CVRR-Lp(a)		≥2029		2
DWH213 (del-brax)		Facioscapulohumeral muscular dystrophy		2028		3		– Avidity acquisition completed
EWF980 (del-desiran)		Myotonic dystrophy type 1		2027		3		– Avidity acquisition completed – PhI/II MARINA study results published in NEJM
FUB523 (zigakibart)		IgA nephropathy		2027		3
GHZ339		Atopic dermatitis		≥2029		2

Compound/ product		Potential indication/ Disease area		First planned submissions		Current Phase		News update
GIA632		Atopic dermatitis		≥2029		2
		Vitiligo		≥2029		2		– PhII achieved FPFV
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
KPE179 (del-zota)		Duchenne muscular dystrophy		2026		2		– Avidity acquisition completed – One-year data from PhI/II studies presented at MDA
Leqvio		Secondary prevention of cardiovascular events in patients with elevated LDL-C		2027		3
		Primary prevention CVRR		≥2029		3
LNP023		Myasthenia gravis		2027		3
(iptacopan)		IC-MPGN		≥2029		3
		Atypical haemolytic uraemic syndrome		≥2029		3
LOU064 (remibrutinib)		Food allergy		≥2029		2		– PhII data presented at AAAAI Annual Meeting
		Hidradenitis suppurativa		2027		3		– Accelerated submission timing from 2028
		Multiple sclerosis, relapsing		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		2
LXE408		Visceral leishmaniasis		≥2029		2
MAA868 (abelacimab)		Atrial fibrillation		2028		3
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
VAY736 (ianalumab)		Lupus nephritis		2028		3
		Systemic lupus erythematosus		2028		3
		Systemic sclerosis		2028		2
		1L immune thrombocytopenia		2027		3
		2L immune thrombocytopenia		2027		3
		Warm autoimmune hemolytic anemia		2027		3		– PhIII trial (VAYHIA) did not meet primary endpoint in April – While not statistically significant, ianalumab showed numerical improvements vs placebo – Safety profile of ianalumab was consistent with prior clinical studies
VHB937		Alzheimer's disease		≥2029		2
		Amyotrophic lateral sclerosis		≥2029		2
Vijoice		Lymphatic malformations		≥2029		3
Votoplam		Huntington's disease		≥2029		3		– PhIII trial (INVEST-HD) achieved FPFV
YTB323		Active refractory lupus nephritis		2028		2
		Active refractory systemic lupus erythematosus		2028		2
		1L high-risk large B-cell lymphoma		≥2029		2
		Systemic sclerosis		≥2029		2
		Myositis		≥2029		2		– EMA Priority Medicines (PRIME) designation in April
		ANCA associated vasculitis		≥2029		2

First quarter (unaudited)

(USD millions unless indicated otherwise)		Note		Q1 2026		Q1 2025
Net sales to third parties		9		13 113		13 233
Other revenues		9		411		387
Cost of goods sold				-3 459		-3 227
Gross profit				10 065		10 393
Selling, general and administration				-3 140		-3 058
Research and development				-2 740		-2 366
Other income				478		226
Other expense				-428		-532
Operating income				4 235		4 663
Loss from associated companies				-3		-3
Interest expense				-343		-270
Other financial income and expense				-50		17
Income before taxes				3 839		4 407
Income taxes				-683		-798
Net income				3 156		3 609
Attributable to:
Shareholders of Novartis AG				3 156		3 606
Non-controlling interests				0		3
Weighted average number of shares outstanding – Basic (million)				1 909		1 968
Basic earnings per share (USD) 1				1.65		1.83
Weighted average number of shares outstanding – Diluted (million)				1 916		1 979
Diluted earnings per share (USD) 1				1.65		1.82
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 interim consolidated financial statements

First quarter (unaudited)

(USD millions)		Q1 2026		Q1 2025
Net income		3 156		3 609
Other comprehensive income
Items that are or may be recycled into the consolidated income statement
Cash flow hedge, net of taxes		22		1
Net investment hedge, net of taxes		68		-60
Currency translation effects, net of taxes		-129		720
Total of items that are or may be recycled		-39		661
Items that will never be recycled into the consolidated income statement
Actuarial (losses)/gains from defined benefit plans, net of taxes		-252		436
Fair value adjustments on equity securities, net of taxes		129		-56
Total of items that will never be recycled		-123		380
Total other comprehensive income		-162		1 041
Total comprehensive income		2 994		4 650
Total comprehensive income for the period attributable to:
Shareholders of Novartis AG		2 998		4 646
Non-controlling interests		-4		4
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

(USD millions)		Mar 31, 2026 (unaudited)		Dec 31, 2025 (audited)
Assets
Non-current assets
Property, plant and equipment		10 654		10 782
Right-of-use assets		1 584		1 570
Goodwill		26 819		25 567
Intangible assets other than goodwill		40 209		29 411
Investments in associated companies		100		98
Deferred tax assets		5 247		5 438
Financial assets		2 331		2 348
Other non-current assets		4 981		5 275
Total non-current assets		91 925		80 489
Current assets
Inventories		6 286		6 269
Trade receivables		9 386		8 937
Income tax receivables		216		205
Marketable securities, time deposits and derivative financial instruments		100		155
Cash and cash equivalents		6 877		11 435
Other current assets		3 742		3 459
Total current assets		26 607		30 460
Total assets		118 532		110 949
Equity and liabilities
Equity
Share capital		736		766
Treasury shares		-47		-50
Reserves		37 823		45 414
Equity attributable to Novartis AG shareholders		38 512		46 130
Non-controlling interests		415		419
Total equity		38 927		46 549
Liabilities
Non-current liabilities
Financial debts		37 447		27 935
Lease liabilities		1 663		1 657
Deferred tax liabilities		5 104		3 397
Provisions and other non-current liabilities		4 017		4 133
Total non-current liabilities		48 231		37 122
Current liabilities
Trade payables		4 322		4 456
Financial debts and derivative financial instruments		7 617		5 602
Lease liabilities		271		263
Current income tax liabilities		1 807		1 969
Provisions and other current liabilities		17 357		14 988
Total current liabilities		31 374		27 278
Total liabilities		79 605		64 400
Total equity and liabilities		118 532		110 949
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

First 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 January 1, 2026				766		-50		44 720		694		46 130		419		46 549
Net income								3 156				3 156		0		3 156
Other comprehensive income										-158		-158		-4		-162
Total comprehensive income								3 156		-158		2 998		-4		2 994
Dividends		4.1						-9 068				-9 068				-9 068
Purchase of treasury shares						-5		-1 884				-1 889				-1 889
Reduction of share capital				-30		30
Equity-based compensation plans						4		293				297				297
Taxes on treasury share transactions								-21				-21				-21
Value adjustments related to financial assets sold and divestments								-35		35
Other movements		4.3				-26		91				65				65
Total of other equity movements				-30		3		-10 624		35		-10 616				-10 616
Total equity at March 31, 2026				736		-47		37 252		571		38 512		415		38 927
The accompanying Notes form an integral part of the condensed interim 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, 2025				793		-53		46 561		-3 255		44 046		80		44 126
Net income								3 606				3 606		3		3 609
Other comprehensive income										1 040		1 040		1		1 041
Total comprehensive income								3 606		1 040		4 646		4		4 650
Dividends		4.1						-7 818				-7 818				-7 818
Purchase of treasury shares						-14		-2 778				-2 792				-2 792
Reduction of share capital				-27		42		-15
Equity-based compensation plans						6		267				273				273
Taxes on treasury share transactions								-31				-31				-31
Changes in non-controlling interests								1				1		-1
Value adjustments related to financial assets sold and divestments								2		-2
Other movements		4.3						44				44				44
Total of other equity movements				-27		34		-10 328		-2		-10 323		-1		-10 324
Total equity at March 31, 2025				766		-19		39 839		-2 217		38 369		83		38 452
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

First quarter (unaudited)

(USD millions)		Note		Q1 2026		Q1 2025
Net income				3 156		3 609
Adjustments to reconcile net income to net cash flows from operating activities
Reversal of non-cash items and other adjustments		6.1		2 491		2 712
Interest received				83		122
Interest paid				-201		-232
Other financial payments				-12		-21
Income taxes paid				-787		-540
Net cash flows from operating activities before working capital and provision changes				4 730		5 650
Payments out of provisions and other net cash movements in non-current liabilities				-267		-237
Changes in working capital and other operating cash flow items		6.2		-787		-1 768
Net cash flows from operating activities				3 676		3 645
Purchases of property, plant and equipment				-346		-254
Proceeds from sale of property, plant and equipment				5		10
Purchases of intangible assets				-461		-1 240
Purchases of financial assets				-24		-18
Proceeds from sale of financial assets				37		25
Acquisitions of businesses		6.3		-12 041
Divestments of businesses, net		6.4		-2		-4
Investments in time deposits and marketable securities				-30		-37
Proceeds from time deposits and from sale of marketable securities				1 129		1 851
Other investing cash flows, net				-3		-3
Net cash flows (used in)/from investing activities				-11 736		330
Dividends paid to shareholders of Novartis AG		4.1		-6 197		-5 333
Purchases of treasury shares				-1 875		-2 716
Proceeds from exercised options and other treasury share transactions, net						1
Proceeds from non-current financial debts		10		10 918
Repayments of the current portion of non-current financial debts				-19		-1 010
Change in current financial debts		10		747		556
Payments of lease liabilities				-73		-69
Other financing cash flows, net				78		23
Net cash flows from/(used in) financing activities				3 579		-8 548
Net change in cash and cash equivalents before effect of exchange rate changes				-4 481		-4 573
Effect of exchange rate changes on cash and cash equivalents				-77		180
Net change in cash and cash equivalents				-4 558		-4 393
Cash and cash equivalents at January 1				11 435		11 459
Cash and cash equivalents at March 31				6 877		7 066
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

1. Basis of preparation

The consolidated financial statements of the Company are prepared in accordance with International Financial Reporting Standards (IFRS^®) Accounting Standards as issued by the International Accounting Standards Board. They are prepared in accordance with the historical cost convention, except for items that are required to be accounted for at fair value.

These Condensed Interim Consolidated Financial Statements for the three month period ended March 31, 2026, were prepared in accordance with International Accounting Standards (IAS®) Standards 34 Interim Financial Reporting and accounting policies set out in the 2025 Annual Report published on February 4, 2026.

2. Accounting policies

The Company’s accounting policies are set out in Note 1 to the Consolidated Financial Statements in the 2025 Annual Report and conform with IFRS Accounting Standards as issued by the International Accounting Standards Board.

The preparation of financial statements requires management to make certain estimates and assumptions, either at the balance sheet date or during the period, which affect the reported amounts of revenues, expenses, assets, liabilities, and contingent amounts.

Estimates are based on historical experience and other assumptions that are considered reasonable under the given circumstances and are regularly monitored. Actual outcomes and results could differ from those estimates and assumptions. Revisions to estimates are recognized in the period in which the estimate is revised.

As disclosed in the 2025 Annual Report, goodwill, and the intangible assets not yet available for use (in-process research and development (IPR&D)) are evaluated for impairment annually, or when facts and circumstances warrant. The intangible assets available for use (currently marketed products and other intangible assets) are evaluated for potential impairment whenever facts and circumstances indicate that their carrying value may not be recoverable. The amount of goodwill and intangible assets other than goodwill on the Company’s consolidated balance sheet has risen significantly in recent years, primarily from acquisitions. Impairment testing may lead to potentially significant impairment charges in the future that could have a materially adverse impact on the Company’s results of operations and financial condition.

The Company’s activities are not subject to significant seasonal fluctuations.

No new IFRS Accounting Standards were adopted by the Company in 2026. There were no new IFRS Accounting Standards amendments or interpretations that became effective in 2026 and 2025, that had a material impact on the Company’s consolidated financial statements.

In 2024, the following new IFRS Accounting Standard, which is not yet effective, was issued by the International Accounting Standards Board:

IFRS 18 Presentation and Disclosure in Financial Statements was issued by the International Accounting Standards Board in April 2024. IFRS 18 will become effective on January 1, 2027, and is required to be applied retrospectively to comparative periods presented, with early adoption permitted. Upon adoption, IFRS 18 replaces International Accounting Standards (IAS®) Standards 1 – Presentation of Financial Statements.

IFRS 18 sets out new requirements focused on improving financial reporting by:

• requiring additional defined structure to the statement of profit or loss (i.e. consolidated statement of income), to reduce diversity in the reporting, by requiring five categories (operating, investing, financing, income taxes and discontinued operations) and defined subtotals and totals (operating income, income before financing, income taxes and net income),

• requiring disclosures in the notes to the financial statements about management-defined performance measures (i.e. certain non-IFRS measures), and

• adding new principles for aggregation and disaggregation of information in the primary financial statements and notes.

IFRS 18 will not affect the recognition or measurement of items in the financial statements, but it might change what an entity reports as its “operating profit or loss”, due to the classification of certain income and expense items between the five categories of the consolidated income statement. It might also change what an entity reports as operating activities, investing activities and financing activities within the statement of cash flows, due to the change in classification of certain cash flow items between these three categories of the cash flows statement.

The Company’s preliminary assessment of IFRS 18 impacts indicates that certain income and expense amounts are expected to be reclassified within the consolidated income statement. For example, portions of foreign currency results and monetary losses from hyperinflation accounting will move from non-operating to operating income and expense. These expected presentation changes will not affect reported net income. The consolidated statement of cash flows presentation will change. It will start with operating income instead of net income, and certain cash flows are expected to be reclassified among the operating, investing, and financing activities categories. For example, dividends received and interest received are expected to be reclassified from operating activities to investing activities, while interest paid is expected to be reclassified from operating activities to financing activities. These presentation changes will not affect the net change in cash and cash equivalents reported for the period.

Novartis is currently finalizing its assessment of the impact of adopting IFRS 18, which will be effective January 1, 2027.

Based on the Company’s assessment, there were no other IFRS Accounting Standards, amendments or interpretations not yet effective in 2026 that would have been expected to have a material impact on the Company’s consolidated financial statements.

3. Significant acquisitions of businesses

The following are the significant acquisitions of businesses where the Company applied the business combination acquisition method of accounting.

On October 25, 2025, Novartis entered into an agreement and plan of merger to acquire Avidity Biosciences, Inc. (“Avidity”), a U.S-based, publicly traded biotechnology company specializing in RNA therapeutics, with a focus on rare neuromuscular genetic disorders such as myotonic dystrophy type 1 (DM1), facioscapulohumeral muscular dystrophy (FSHD), and Duchenne muscular dystrophy (DMD).

Pursuant to the merger agreement, on February 27, 2026, following the satisfaction of the closing conditions, Novartis, through an indirect wholly owned subsidiary, acquired all outstanding shares of Avidity’s common stock for USD 72.00 per share in cash. The total consideration amounted to approximately USD 12.0 billion in cash on a fully diluted basis. The acquiring subsidiary merged with and into Avidity, resulting in Avidity becoming an indirect wholly owned subsidiary of Novartis. Avidity shares admitted to trading on NASDAQ were subsequently delisted. The acquisition was financed through a combination of available cash, and third-party debt financing.

The fair value of the total purchase consideration was approximately USD 12.0 billion. The preliminary purchase price allocation resulted in net identifiable assets of approximately USD 10.6 billion. These comprised identifiable intangible assets, including IPR&D, of USD 11.3 billion (of which approximately USD 7.5 billion is attributable to the DM1 IPR&D intangible asset), marketable securities of USD 1.1 billion, cash and cash equivalents of USD 11 million, other net assets of USD 0.1 billion, and net deferred tax liabilities of USD 1.9 billion. Goodwill arising from the acquisition amounted to approximately USD 1.4 billion.

The purchase price allocation is preliminary as the detailed valuation of certain acquired assets and liabilities, including identifiable intangible assets and deferred tax balances, has not yet been completed. The finalization of the purchase price allocation may result in changes to the amounts recognized for net identifiable assets and goodwill in subsequent reporting periods.

The results of operations from the date of acquisition were not material.

In 2025, there were no acquisitions of businesses where the Company applied the business combination acquisition method of accounting.

The following table presents the fair value of the assets and liabilities acquired through business

combinations and the total purchase consideration for the first quarter of 2026. In 2025, there were no business combinations.

(USD billions)		Mar 31, 2026
In-process research and development		11.3
Deferred tax assets		0.6
Other non-current assets		0.2
Marketable securities		1.1
Other current assets 1		0.1
Deferred tax liabilities		-2.5
Other non-current liabilities		-0.1
Other current liabilities		-0.1
Net identifiable assets acquired		10.6
Goodwill		1.4
Total purchase consideration for business combinations		12.0
1  Includes cash and cash equivalents of USD 11 million

The business combination in the first quarter of 2026 was Avidity. The goodwill arising out of the Avidity business combination is not tax deductible. It is primarily attributable to the deferred tax effects arising from the recognition of identifiable intangible assets for which no corresponding tax basis exists, expected synergies and the value of the acquired assembled workforce.

The following are the significant acquisitions where Novartis elected to apply the optional concentration test, resulting in the transaction being accounted for as assets separately acquired rather than as a business combination within the meaning of IFRS Accounting Standards.

There were no acquisitions in the first quarter of 2026, where the Company elected to apply the optional concentration test to account for the acquisitions as assets separately acquired.

On September 8, 2025, Novartis entered into an agreement and plan of merger to acquire Tourmaline Bio, Inc. (“Tourmaline”), a US-based, publicly traded clinical-stage biopharmaceutical company focused on developing a treatment option for atherosclerotic cardiovascular disease.

Pursuant to the merger agreement, on September 29, 2025, Novartis, through an indirect, wholly owned subsidiary, commenced a tender offer (the “Offer”) to acquire all of the outstanding shares of common stock of Tourmaline in exchange for USD 48.00 in cash per share. The tender offer expired at one minute past 11:59 p.m., New York City time on October 27, 2025 with a payment on October 28, 2025 in the amount of USD 1.4 billion for the tendered outstanding shares to the Tourmaline shareholders. On October 28, 2025, the acquiring subsidiary merged with and into Tourmaline, resulting in Tourmaline becoming an indirect wholly owned subsidiary of Novartis. Tourmaline shares admitted to trading on NASDAQ were subsequently delisted.

The cash purchase price consisted of cash consideration of USD 1.4 billion. The optional concentration test was applied as it indicated that substantially all of the fair value of the gross assets acquired was concentrated in an identifiable IPR&D intangible asset.

The cash purchase price was allocated to an IPR&D intangible asset of USD 1.2 billion, and other net assets including cash and cash equivalents of USD 0.2 billion.

On September 16, 2025, Novartis entered into an agreement granting it an option to acquire all outstanding shares of a private clinical-stage biotech company (the “Biotech company”). The option is subject to pre-defined terms and is exercisable at Novartis sole discretion. Management concluded that the terms of the option agreement conferred substantive control over the Biotech company, in accordance with the principles of IFRS Accounting Standards. Consequently, the Biotech company was consolidated into Novartis consolidated financial statements effective from September 2025.

If Novartis decides to exercise the option to acquire, it would make a payment to the Biotech company’s shareholders, with potential additional payments, which they are eligible to receive upon achievement of specified milestones. The optional concentration test was applied as it indicated that substantially all of the fair value of the gross assets at the consolidation date was concentrated in an identifiable IPR&D intangible asset.

The purchase price as at the option agreement date was USD 0.4 billion. The amount was allocated to the net assets at the consolidation date, including USD 0.4 billion IPR&D intangible assets and USD 18 million in cash and cash equivalents. A non-controlling interest of USD 0.4 billion was recognized in equity. Subsequent milestone-related payments will be recognized as additions to the intangible asset when the specified milestones are achieved.

On April 29, 2025, Novartis entered into an agreement and plan of merger to acquire Regulus Therapeutics Inc. (“Regulus”), a US-based, publicly traded clinical-stage biopharmaceutical company focused on developing microRNA therapeutics. Regulus lead development phase asset, farabursen, is a potential first-in-class, next-generation oligonucleotide targeting miR-17 for the treatment of autosomal dominant polycystic kidney disease (ADPKD).

Pursuant to the merger agreement, on May 27, 2025, Novartis, through an indirect, wholly owned subsidiary, commenced a tender offer (the “Offer”)

to acquire all of the outstanding shares of common stock of Regulus in exchange for (i) USD 7.00 in cash per Share, plus (ii) one contingent value right (each, a “CVR”) per Share, representing the right to receive one contingent payment of USD 7.00 in cash, upon the achievement of a specified regulatory milestone. The tender offer expired at one minute past 11:59 p.m., New York City time on June 24, 2025 with a payment of USD 0.7 billion for the outstanding shares to the Regulus shareholders for their tendered shares and the issuance of 1 CVR per share. Additionally, the liability related to the Regulus employee share plans amounted to USD 0.1 billion and was paid on July 11, 2025, with the issuance of 1 CVR per share. On June 25, 2025, the acquiring subsidiary merged with and into Regulus, resulting in Regulus becoming an indirect wholly owned subsidiary of Novartis. Regulus shares admitted to trading on NASDAQ were subsequently delisted.

The purchase price consisted of cash consideration of USD 0.8 billion and CVRs of up to USD 0.9 billion, which Regulus shareholders are eligible to receive upon the achievement of a specified regulatory milestone. The optional concentration test was applied as it indicated that substantially all of the fair value of the gross assets acquired was concentrated in an identifiable IPR&D intangible asset.

The cash purchase price was allocated to an IPR&D intangible asset of USD 0.8 billion, and other net assets including cash and cash equivalents of USD 23 million. Subsequent payments for the potential CVRs upon achievement of the specified regulatory milestone will be recognized as additions to the intangible asset if the specified regulatory milestone is achieved.

On February 10, 2025, Novartis entered into an agreement and plan of merger to acquire all of the outstanding shares of common stock of Anthos Therapeutics, Inc. (“Anthos”), a US-based, privately held clinical stage biopharmaceutical company with abelacimab, a late-stage medicine in development for the prevention of stroke and systematic embolism in patients with atrial fibrillation. The transaction closed on April 3, 2025.

The purchase price consisted of cash consideration of USD 0.9 billion and potential additional milestones of up to USD 2.1 billion, which Anthos shareholders are eligible to receive upon the achievement of specified milestones. The optional concentration test was applied as it indicated that substantially all of the fair value of the gross assets acquired was concentrated in an identifiable IPR&D intangible asset.

The cash purchase price was allocated to an IPR&D intangible asset of USD 0.9 billion, and other net assets including cash and cash equivalents of USD 47 million. Subsequent payments for the potential additional milestones will be recognized as additions to the intangible asset when the specified milestones have been achieved.

In the first quarter of 2026, there were no assets acquired through acquisitions applying the optional concentration test. The following table presents the identifiable net assets acquired through acquisitions applying the optional concentration test for the year ended December 31, 2025:

(USD billions)		Dec 31, 2025
In-process research and development		3.2
Deferred tax assets 1		0.2
Cash and cash equivalents		0.3
Other current and non-current assets		0.1
Current and non-current liabilities		-0.2
Identifiable net assets acquired through acquisitions applying the optional concentration test		3.6
1  Deferred tax assets are attributable to tax loss and tax credit carryforwards.

For significant pending transactions, see Note 10. Other interim disclosures — Commitments — Other commitments.

4. Summary of equity attributable to Novartis AG shareholders

				Number of outstanding shares (in millions)				Equity attributable to Novartis AG shareholders
		Note		2026		2025		Q1 2026 USD millions		Q1 2025 USD millions
Balance at beginning of year				1 908.2		1 975.1		46 130		44 046
Shares acquired to be canceled				-10.4		-24.8		-1 600		-2 639
Other share purchases				-2.0		-1.5		-289		-153
Equity-based compensation plans				12.2		10.4		297		273
Taxes on treasury share transactions								-21		-31
Dividends		4.1						-9 068		-7 818
Net income of the period attributable to shareholders of Novartis AG								3 156		3 606
Other comprehensive income attributable to shareholders of Novartis AG								-158		1 040
Changes in non-controlling interests										1
Other movements		4.3		0.1		0.1		65		44
Balance at March 31				1 908.1		1 959.3		38 512		38 369

4.1. The annual gross dividend to shareholders of Novartis AG amounted to USD 9.1 billion (2025: USD 7.8 billion). The net dividend payment to Novartis AG shareholders paid in March 2026 amounted to USD 6.2 billion (2025: USD 5.3 billion paid in March 2025). The USD 2.9 billion Swiss withholding tax on the gross dividend was paid at its due date in April 2026 (2025: USD 2.5 billion paid at its due date in April 2025).

4.2. In July 2023, Novartis entered into an irrevocable, non-discretionary arrangement with a bank to repurchase Novartis shares on the second trading line under its up-to USD 15.0 billion share buyback. In June 2024, Novartis amended the arrangement to include the repurchase of an additional 8.7 million Novartis shares on the second trading line to mitigate the impact of share deliveries under the equity-based compensation plans for employees. These additional repurchases of 8.7 million shares concluded in October 2024. In June 2025, Novartis amended the arrangement to include the repurchase of an additional 10.7 million Novartis shares on the second trading line to mitigate the impact of share deliveries under the equity-based compensation plans for employees. These additional repurchases of 10.7 million shares concluded in August 2025.

The repurchases under the USD 15.0 billion share buyback that commenced in July 2023 concluded in July 2025.

In July 2025, Novartis amended and restated its arrangement to repurchase Novartis shares on the second trading line under its new up-to USD 10.0 billion share buyback.

In March 2026, Novartis replaced its July 2025 arrangement with a new irrevocable, non-discretionary arrangement with a bank to continue repurchasing Novartis shares on the second trading line under its up-to USD 10.0 billion share buyback.

Novartis is able to cancel this arrangement at any time but may be subject to a 90 day waiting period. As of March 31, 2026, and December 31, 2025, these waiting period conditions were not applicable and as a result, there was no requirement to record a liability under this arrangement as of March 31, 2026, and December 31, 2025.

4.3. Other movements include mainly the impact of the application of IAS Standards 29 “Financial Reporting in Hyperinflationary Economies,” for subsidiaries in hyperinflationary economies.

5. Financial instruments

The following table illustrates the three hierarchical levels for valuing financial instruments at fair value as of March 31, 2026, and December 31, 2025. For additional information on the hierarchies and other matters, please refer to the Consolidated Financial Statements in the 2025 Annual Report, published on February 4, 2026.

		Level 1				Level 2				Level 3				Total
(USD millions)		Mar 31, 2026		Dec 31, 2025		Mar 31, 2026		Dec 31, 2025		Mar 31, 2026		Dec 31, 2025		Mar 31, 2026		Dec 31, 2025
Financial assets
Cash and cash equivalents - debt securities		10												10
Derivative financial instruments						85		57						85		57
Current contingent consideration receivables										124		101		124		101
Current debt and equity securities		7		15		1				12		12		20		27
Total current financial assets at fair value		17		15		86		57		136		113		239		185
Non-current debt and equity securities		408		255		6		7		517		529		931		791
Fund investments		19		19						210		183		229		202
Non-current contingent consideration receivables										775		758		775		758
Associated companies at fair value through profit or loss										90		88		90		88
Total non-current financial assets at fair value		427		274		6		7		1 592		1 558		2 025		1 839
Financial liabilities
Current contingent consideration liabilities										-146		-215		-146		-215
Derivative financial instruments						-145		-81						-145		-81
Total current financial liabilities at fair value						-145		-81		-146		-215		-291		-296
Non-current contingent consideration liabilities										-441		-452		-441		-452

In the first quarter of 2026, there was one transfer of equity securities from Level 3 to Level 1 for USD 8 million due to Initial Public Offering of the invested company.

The carrying amount of non-current debt and equity securities, fund investments and non-current contingent consideration receivables totalling USD 1.9 billion at March 31, 2026 (USD 1.8 billion at December 31, 2025) is included in the line “Financial assets” of the consolidated balance sheets. The carrying amount of current contingent consideration liabilities of USD 0.1 billion at March 31, 2026 (USD 0.2 billion at December 31, 2025) is included in the line “Provisions and other current liabilities” of the consolidated balance sheets. The carrying amount of non-current contingent consideration liabilities of USD 0.4 billion at March 31, 2026 (USD 0.5 billion at December 31, 2025) is included in the line “Provisions and other non-current liabilities” of the consolidated balance sheets.

The fair value of straight bonds and floating rate bonds amounted to USD 37.3 billion at March 31, 2026 (USD 26.6 billion at December 31, 2025) compared with the carrying amount of USD 38.7 billion at March 31, 2026 (USD 27.9 billion at December 31, 2025). For all other financial assets and liabilities, the carrying amount is a reasonable approximation of the fair value.

The Company’s exposure to financial risks has not changed significantly during the period and there have been no major changes to the risk management department or in any risk management policies.

6. Details to the consolidated statements of cash flows

The following table shows the reversal of non-cash items and other adjustments in the consolidated statements of cash flows.

(USD millions)		Q1 2026		Q1 2025
Depreciation, amortization and impairments on:
Property, plant and equipment		298		217
Right-of-use assets		73		65
Intangible assets		857		872
Financial assets 1		-20		41
Change in provisions and other non-current liabilities		70		182
(Gains)/losses on disposal on property, plant and equipment; intangible assets; other non-current assets; and other adjustments on financial assets and other non-current assets, net		-159		22
Equity-settled compensation plans		303		262
Loss from associated companies		3		3
Income taxes		683		798
Net financial expense		393		253
Other		-10		-3
Total		2 491		2 712
1  Includes fair value changes

(USD millions)		Q1 2026		Q1 2025
(Increase)/decrease in inventories		-95		55
Increase in trade receivables		-504		-1 043
Decrease in trade payables		-53		-172
Change in other current and non-current assets		346		-424
Change in provisions and other current liabilities		-481		-184
Total		-787		-1 768