Pharmaceutical giant Novartis (NVS) is set to release its Q2 earnings report this week. This has some investors wondering whether it’s a good idea to buy shares of NVS stock beforehand.
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What Wall Street Expects
Wall Street is expecting Novartis to announce quarterly earnings of $2.38 per share, up 20.8% on the same period last year. Revenues are projected to reach $14.04 billion, increasing 9% from the same quarter last year.
Will NVS be able to beat these estimates? As one can see below, it has a very strong track record in doing just that.
Key Issues Ahead of Earnings
Novartis has had a strong start to 2025, with its stock soaring nearly 27%. It has been helped by some landmark wins such as recently winning approval for a new baby malaria treatment.
Its cardiovascular drug Entresto has also performed well, helped by increased demand in China and Japan. Its breast cancer drug Kisqali and multiple sclerosis treatment Kesimpta will also likely have boosted sales in the quarter.
There are challenges, however, emanating from the Trump administration over drug prices and advertising. It will be interesting to hear from Novartis what kind of short and long-term impact these might have both for it and its peers.
Tariff concerns are also not far away, with Trump threatening to impose levies on pharmaceuticals from the start of August.
Is NVS a Good Stock to Buy Now?
On TipRanks, NVS has a Moderate Sell consensus based on 2 Hold and 1 Sell ratings. Its highest price target is $139.13. NVS stock’s consensus price target is $111.71, implying a 6.65% downside.
