Swiss pharmaceutical major Novartis AG (NVS,NOVN.SW) reported Tuesday lower profit in its second quarter, despite higher net sales and volume growth.

Further, the company said it continues to expect fiscal 2026 core operating income to decline low single-digit and net sales to grow low single-digit.

In the second quarter, net income totaled $3.257 billion, down 19 percent from $4.024 billion last year. Earnings per share reached $1.71 for the quarter, 17 percent lower than $2.07 a year ago.

Core net income was $4.578 billion, compared to $4.71 billion last year. Core earnings per share were $2.41, compared to $2.42 in the prior year period.

Operating income dropped 2 percent from last year, while core operating income slightly increased to $5.94 billion. Core operating income margin stood at 41.2 percent, down 70 basis points at constant currency.

Net sales reached $14.408 billion in the second quarter, a growth of 3 percent from $14.054 billion a year ago. Sales growth was 1 percent at constant currency.

The company noted that volume growth contributed 18 percentage points to sales, while generic competition offset 14 percentage points. Pricing had a negative impact of 3 percentage points, though currency provided a positive impact of 2 percentage points.

Sales growth was driven by priority brands, with Kisqali increasing 43 percent at constant currency, Kesimpta rising 32 percent, Scemblix climbing 89 percent, Pluvicto advancing 43 percent, and Leqvio growing 59 percent at constant currency.

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