(USD millions unless indicated otherwise)		Q3 2025 USD m		Q3 2024 USD m		% change USD		% change cc 1		9M 2025 USD m		9M 2024 USD m		% change USD		% change cc 1
Net sales to third parties		13 909		12 823		8		7		41 196		37 164		11		11
Other revenues		449		349		29		27		1 618		1 000		62		61
Cost of goods sold		-3 539		-3 234		-9		-6		-10 088		-9 503		-6		-5
Gross profit		10 819		9 938		9		8		32 726		28 661		14		15
Selling, general and administration		-3 308		-3 134		-6		-4		-9 808		-9 065		-8		-8
Research and development		-2 944		-2 392		-23		-19		-8 037		-7 180		-12		-10
Other income		269		355		-24		-31		1 043		877		19		14
Other expense		-335		-1 140		71		74		-1 896		-2 279		17		19
Operating income		4 501		3 627		24		27		14 028		11 014		27		31
% of net sales		32.4		28.3						34.1		29.6
Loss from associated companies		-4		-4		0		3		-10		-35		71		74
Interest expense		-281		-264		-6		-7		-840		-731		-15		-16
Other financial income and expense		-20		26		nm		nm		-44		107		nm		nm
Income before taxes		4 196		3 385		24		26		13 134		10 355		27		29
Income taxes		-266		-200		-33		-35		-1 571		-1 236		-27		-29
Net income		3 930		3 185		23		25		11 563		9 119		27		29
Basic earnings per share (USD)		2.04		1.58		29		31		5.94		4.50		32		35
Net cash flows from operating activities		6 571		6 286		5				16 880		13 426		26
Non-IFRS measures 1
Free cash flow		6 217		5 965		4				15 941		12 618		26
Core operating income		5 460		5 145		6		7		16 960		14 635		16		18
% of net sales		39.3		40.1						41.2		39.4
Core net income		4 330		4 133		5		6		13 522		11 822		14		17
Core basic earnings per share (USD)		2.25		2.06		9		10		6.94		5.83		19		21
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 42. 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 13.9 billion (+8%, +7% cc), with volume contributing 16 percentage points to growth. Generic competition had a negative impact of 7 percentage points and pricing had a negative impact of 2 percentage points, driven by revenue deduction adjustments mainly in the US. Currency had a positive impact of 1 percentage point. Sales in the US were USD 6.0 billion (+12%) and in the rest of the world USD 7.9 billion (+6%, +4% cc).

Sales growth was mainly driven by continued strong performance from Kisqali (USD 1.3 billion, +69%, +68% cc), Kesimpta (USD 1.2 billion, +46%, +44% cc), Pluvicto (USD 564 million, +46%, +45% cc) and Scemblix (USD 358 million, +97%, +95% cc), partly offset by generic competition.

In the US (USD 6.0 billion, +12%), sales growth was mainly driven by Kisqali, Kesimpta, Pluvicto and Scemblix, partly offset by generic competition, mainly for Promacta, Tasigna and Entresto. In Europe (USD 4.3 billion, +7%, +2% cc), sales growth was mainly driven by Kesimpta, Kisqali and Entresto, partly offset by generic competition, mainly for Tasigna and Lucentis. Sales in emerging growth markets were USD 3.4 billion (+3%, +5% cc), including USD 1.0 billion of sales from China (-3%, -3% cc).

Operating income was USD 4.5 billion (+24%, +27% cc), mainly driven by higher net sales and lower impairments, partly offset by higher R&D investments. Operating income margin was 32.4% of net sales, increasing 4.1 percentage points (5.1 percentage points cc). Other revenue as a percentage of net sales increased by 0.5 percentage points (0.6 percentage points cc). Cost of goods sold as a percentage of net sales increased by 0.2 percentage points (decreased by 0.2 percentage points cc). R&D expenses as a percentage of net sales increased by 2.5 percentage points (2.1 percentage points cc). SG&A expenses as a percentage of net sales decreased by 0.6 percentage points (0.7 percentage points cc). Other income and expense as a percentage of net sales increased the margin by 5.7 percentage points (5.7 percentage points cc).

Core adjustments were USD 1.0 billion, mainly from amortization, compared with USD 1.5 billion in the prior-year quarter. Core adjustments decreased compared with the prior-year quarter, mainly due to lower impairment.

Core operating income was USD 5.5 billion (+6%, +7% cc), mainly driven by higher net sales, partly offset by higher R&D investments. Core operating income margin was 39.3% of net sales (-0.8 percentage points, stable in cc). Core other revenue as a percentage of net sales increased by 0.6 percentage points (cc). Core cost of

goods sold as a percentage of net sales increased by 0.6 percentage points (cc). Core R&D expenses as a percentage of net sales increased by 0.8 percentage points (cc). Core SG&A expenses as a percentage of net sales decreased by 0.7 percentage points (cc). Core other income and expense as a percentage of net sales increased the margin by 0.1 percentage points (cc).

Interest expense amounted to USD 281 million compared with USD 264 million in the prior-year quarter.

Other financial income and expense amounted to an expense of USD 20 million compared with an income of USD 26 million in prior-year quarter.

Core other financial income and expense amounted to an expense of USD 7 million compared with an income of USD 56 million in prior-year quarter, mainly due to lower interest income and higher currency losses.

The tax rate in the third quarter was 6.3% compared with 5.9% in the prior-year quarter. The current-year tax rate was favorably impacted by the remeasurement of deferred tax balances following tax law changes, primarily in the US, and the effect of adjusting the current-year tax rate to the estimated full-year tax rate, which was lower than previously estimated, partially offset by prior-year items. The prior-year tax rate was favorably impacted by changes in uncertain tax positions, the recognition of deferred tax assets on prior-years’ tax credit carryforwards and the effect of adjusting the current-year tax rate to the estimated full-year tax rate, which was lower than previously estimated, partially offset by a non-deductible impairment of goodwill. Excluding these impacts, the current and prior-year tax rate would have been 14.3% and 15.1%, respectively. The decrease from the prior year 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 16.2% in both the current and prior-year quarter.

Net income was USD 3.9 billion (+23%, +25% cc), mainly driven by higher operating income. EPS was USD 2.04 (+29%, +31% cc), benefiting from the lower weighted average number of shares outstanding.

Core net income was USD 4.3 billion (+5%, +6% cc), mainly due to higher core operating income, partly offset by other core financial income and expense. Core EPS was USD 2.25 (+9%, +10% cc), benefiting from the lower weighted average number of shares outstanding.

Net cash flows from operating activities amounted to USD 6.6 billion, compared with USD 6.3 billion in the prior-year quarter. Free cash flow amounted to USD 6.2 billion (+4% USD), compared with USD 6.0 billion in the prior-year quarter, driven by higher net cash flows from operating activities.

Net sales were USD 41.2 billion (+11%, +11% cc), with volume contributing 14 percentage points to growth. Generic competition had a negative impact of 3 percentage points, while pricing and currency had no impact. Sales in the US were USD 18.0 billion (+19%) and in the rest of the world USD 23.2 billion (+5%, +6% cc).

Sales growth was mainly driven by continued strong performance from Kisqali (USD 3.5 billion, +62%, +63% cc), Kesimpta (USD 3.2 billion, +41%, +40% cc), Entresto (USD 6.5 billion, +15%, +15% cc), Scemblix (USD 894 million, +85%, +84% cc) and Pluvicto (USD 1.4 billion, +33%, +33% cc), partly offset by generic competition, mainly for Lucentis, Tasigna and Promacta.

In the US (USD 18.0 billion, +19%), sales growth was mainly driven by Kisqali, Kesimpta, Entresto, Scemblix and Pluvicto, partly offset by the impact of generic competition, mainly for Promacta and Tasigna. In Europe (USD 12.3 billion, +6%, +4% cc), sales growth was mainly driven by Kesimpta, Entresto, Pluvicto, Kisqali and Leqvio, partly offset by generic competition, mainly for Lucentis and Gilenya. Sales in emerging growth markets were USD 10.5 billion (+5%, +8% cc), including USD 3.2 billion of sales from China (+4%, +5% cc).

Operating income was USD 14.0 billion (+27%, +31% cc), mainly driven by higher net sales and lower impairments, partly offset by higher investments behind priority brands and launches. Operating income margin was 34.1% of net sales, increasing 4.5 percentage points (5.3 percentage points cc). Other revenue as a percentage of net sales increased by 1.2 percentage points (1.2 percentage points cc). Cost of goods sold as a percentage of net sales decreased by 1.1 percentage points (1.5 percentage points cc). R&D expenses as a percentage of net sales increased by 0.2 percentage points (decreased by 0.2 percentage points cc). SG&A expenses as a percentage of net sales decreased by 0.6 percentage points (0.8 percentage points cc). Other income and expense as a percentage of net sales increased the margin by 1.8 percentage points (1.6 percentage points cc).

Core adjustments were USD 2.9 billion, mainly due to amortization, compared with USD 3.6 billion in the prior-year period. Core adjustments decreased compared with the prior year, mainly due to lower impairments.

Core operating income was USD 17.0 billion (+16%, +18% cc), mainly driven by higher net sales, partly offset by higher investments behind priority brands and launches. Core operating income margin was 41.2% of net sales, increasing 1.8 percentage points (2.5 percentage points cc). Core other revenue as a percentage of net sales increased by 0.4 percentage points (cc). Core cost of goods sold as a percentage of net sales decreased by 0.5 percentage points (cc). Core R&D expenses as a percentage of net sales decreased by 0.4 percentage points (cc). Core SG&A expenses as a percentage of net sales decreased by 0.8 percentage points (cc). Core other income and expense as a percentage of net sales increased the margin by 0.4 percentage points (cc).

Interest expense amounted to USD 840 million compared with USD 731 million in the prior year.

Other financial income and expense amounted to an expense of USD 44 million compared with an income of USD 107 million in the prior year, mainly due to lower interest and other financial income, and higher currency losses, partially offset by lower monetary losses from hyperinflation accounting.

Core other financial income and expense amounted to an income of USD 26 million compared with USD 212 million in the prior year, mainly due to lower interest income and higher currency losses.

The tax rate in the first nine months was 12% compared with 11.9% in the prior year. The current-year tax rate was favorably impacted by changes in uncertain tax positions and the remeasurement of deferred tax balances following tax law changes, primarily in Switzerland and the US, partially offset by prior-year items and other items. The prior-year tax rate was favorably impacted by changes in uncertain tax positions and the recognition of deferred tax assets on prior-years’ tax credit carryforwards, partially offset by the effect of a non-deductible impairment of goodwill. Excluding these impacts, the current and prior-year tax rate would have been 14.3% and 15.1%, respectively. The decrease from the prior year 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 16.2% in both the current and prior-year period.

Net income was USD 11.6 billion (+27%, +29% cc), mainly driven by higher operating income. EPS was USD 5.94 (+32%, +35% cc), benefiting from the lower weighted average number of shares outstanding.

Core net income was USD 13.5 billion (+14%, +17% cc), mainly due to higher core operating income. Core EPS was USD 6.94 (+19%, +21% cc), benefiting from the lower weighted average number of shares outstanding.

Net cash flows from operating activities amounted to USD 16.9 billion, compared with USD 13.4 billion in the prior-year period. Free cash flow amounted to USD 15.9 billion (+26% USD), compared with USD 12.6 billion in the prior-year period, driven by higher net cash flows from operating activities.

		Q3 2025		Q3 2024		% change		% change		9M 2025		9M 2024		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Cardiovascular, renal and metabolic
Entresto		1 877		1 865		1		-1		6 495		5 642		15		15
Leqvio		308		198		56		54		863		531		63		61
Total cardiovascular, renal and metabolic		2 185		2 063		6		4		7 358		6 173		19		19

Entresto (USD 1 877 million, +1%, -1% cc) sales grew ex-US, where the product is approved for heart failure globally as well as hypertension in China and Japan. Growth ex-US was offset by a decline in the US, where FDA-approved generics have now launched. Novartis is in US litigation with a generic manufacturer and FDA to protect its Entresto IP and regulatory rights.

Leqvio (USD 308 million, +56%, +54% cc) sales grew across all regions. Focus remains on increased account and patient adoption and continuing medical education. Leqvio is registered in more than 107 countries worldwide and commercially available in 87 countries. Novartis obtained global rights to develop, manufacture and commercialize Leqvio under a license and collaboration agreement with Alnylam Pharmaceuticals.

		Q3 2025		Q3 2024		% change		% change		9M 2025		9M 2024		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Immunology
Cosentyx		1 698		1 693		0		-1		4 861		4 545		7		7
excl. revenue deduction adjust. 1						5		4						9		9
Ilaris		473		372		27		26		1 369		1 096		25		24
Xolair 2		440		418		5		3		1 339		1 244		8		8
Total immunology		2 611		2 483		5		4		7 569		6 885		10		10
1  Sales growth impacted by a one-time revenue deduction adjustment in the US
2  Net sales to third parties reflect Xolair sales for all indications.

Cosentyx (USD 1 698 million, 0%, -1% cc) sales were broadly stable. Strong volume growth in the US was partially offset by higher revenue deductions, including a one-time adjustment related to prior quarters (USD 74 million). Ex-US sales declined due to a one-time price effect in the prior year. Since initial approval in 2015, Cosentyx has shown sustained efficacy and a robust safety profile, treating more than 1.8 million patients across 8 indications. Novartis remains confident in Cosentyx USD 8 billion+ peak sales guidance.

Ilaris (USD 473 million, +27%, +26% cc) sales grew across all major geographies, led by the US, Europe and Japan, with continued momentum in the Periodic Fever Syndromes and Still’s disease indications.

Xolair (USD 440 million, ex-US +5%, +3% cc) sales grew driven by the CSU indication, with contributions from Europe and emerging growth markets. A biosimilar was introduced in some European markets in September. 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.

		Q3 2025		Q3 2024		% change		% change		9M 2025		9M 2024		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Neuroscience
Kesimpta		1 222		838		46		44		3 198		2 274		41		40
Zolgensma		301		308		-2		-5		925		952		-3		-4
Aimovig		86		79		9		2		245		232		6		3
Total neuroscience		1 609		1 225		31		29		4 368		3 458		26		26

Kesimpta (USD 1 222 million, +46%, +44% cc) sales grew across all regions driven by increased demand and strong access. Kesimpta is a high efficacy B-cell therapy with a favorable safety and tolerability profile and

at-home self-administration for a broad population of RMS patients. Kesimpta is now approved in 94 countries with more than 155,000 patients treated.

Zolgensma (USD 301 million, -2%, -5% cc) sales declined reflecting a lower incidence of SMA compared with the prior year. Zolgensma is now approved in 62 countries, with over 5,000 patients treated globally through clinical trials, early access programs and commercial use.

Aimovig (USD 86 million, +9%, +2% 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.

		Q3 2025		Q3 2024		% change		% change		9M 2025		9M 2024		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Oncology
Kisqali		1329		787		69		68		3 462		2 131		62		63
Tafinlar + Mekinist 1		550		534		3		1		1 675		1 531		9		9
Jakavi		539		500		8		4		1 555		1 449		7		6
Promacta/Revolade		362		569		-36		-38		1 410		1 633		-14		-14
Pluvicto		564		386		46		45		1 389		1 041		33		33
Tasigna		221		419		-47		-48		925		1 260		-27		-26
Scemblix		358		182		97		95		894		482		85		84
Lutathera		213		190		12		11		613		534		15		14
Fabhalta 2		149		44		239		236		350		72		nm		nm
Piqray/Vijoice		90		111		-19		-19		301		340		-11		-11
Total oncology		4 375		3 722		18		16		12 574		10 473		20		20
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.
nm = not meaningful

Kisqali (USD 1 329 million, +69%, +68% cc) sales grew strongly across all regions, including +91% growth in the US, reflecting continued share gains in HR+/HER2- metastatic breast cancer (mBC), as well as leading NBRx share in HR+/HER2- early breast cancer (eBC). Kisqali performance is underpinned by increasing recognition of the overall survival benefit consistently demonstrated across all Phase III clinical trials in mBC, Category 1 preferred NCCN Guidelines recommendation and highest ESMO magnitude of clinical benefit score in both mBC and eBC.

Tafinlar + Mekinist (USD 550 million, +3%, +1% cc) sales grew across most regions, driven by demand in BRAF+ adjuvant melanoma, NSCLC and tumor agnostic indications, while maintaining demand in the highly competitive BRAF+ metastatic melanoma market.

Jakavi (USD 539 million, +8%, +4% cc) sales grew across all regions driven by sustained demand across indications. Incyte retains all rights to ruxolitinib (Jakafi^®) in the US.

Promacta/Revolade (USD 362 million, -36%, -38% cc) declined due to discontinued promotion in most markets and generic entry in the US in Q2 2025. Sales ex-US were stable in Q3 following generic entry in Europe in September 2025.

Pluvicto (USD 564 million, +46%, +45% cc) showed sustained demand growth in the US following the pre-taxane metastatic castration-resistant prostate cancer (mCRPC) approval, as well as continued access expansion ex-US in the post-taxane mCRPC setting, with 25 countries now approved including Japan. Pluvicto is the only PSMA-targeted radioligand therapy approved by the FDA and Japan’s PMDA to significantly delay progression after one ARPI and before chemotherapy for the treatment of adult patients with progressive, PSMA+ mCRPC.

Tasigna (USD 221 million, -47%, -48% cc) sales declined due to lower demand and increasing competition including recent generic entry in the US and ex-US.

Scemblix (USD 358 million, +97%, +95% cc) sales grew across all regions, demonstrating the continued high unmet need for treatment options with high efficacy and tolerability for adult CML patients previously treated with two or more tyrosine kinase inhibitors, as well as strong momentum from the early-line indication in the US and Japan. As of Q3 2025, 26 ex-US markets have secured approval in early lines, including China and Switzerland.

Lutathera (USD 213 million, +12%, +11% cc) sales grew mainly in the US, Japan and Europe due to increased demand and earlier-line adoption (within indication) in the US and Japan. Novartis is in US patent litigation with manufacturers having FDA applications referencing Lutathera.

Fabhalta (USD 149 million, +239%, +236% cc) sales grew driven by market share gains in PNH globally as well as continued launch progress in IgAN and C3G in the US.

Piqray/Vijoice (USD 90 million, -19%, -19% cc) sales declined, driven by increased competition for Piqray across all markets.

		Q3 2025		Q3 2024		% change		% change		9M 2025		9M 2024		% change		% change
		USD m		USD m		USD		cc		USD m		USD m		USD		cc
Established brands
Sandostatin Group		302		305		-1		-1		922		973		-5		-5
Exforge Group		176		174		1		0		546		544		0		2
Lucentis		148		245		-40		-42		510		834		-39		-39
Diovan Group		143		150		-5		-5		447		450		-1		0
Galvus Group		126		159		-21		-20		373		458		-19		-16
Kymriah		97		102		-5		-7		296		335		-12		-12
Contract manufacturing		396		279		42		36		1 015		829		22		20
Other		1 741		1 916		-9		-8		5 218		5 752		-9		-7
Total established brands		3 129		3 330		-6		-6		9 327		10 175		-8		-7

Sandostatin Group (USD 302 million, -1%, -1% cc) declined slightly, primarily due to erosion from generic competition.

Exforge Group (USD 176 million, +1%, 0% cc) sales were broadly stable, as growth mainly in China was offset by a decline in Europe.

Lucentis (USD 148 million, ex-US -40%, -42% cc) sales declined, mainly due to increased competition. Novartis only commercializes Lucentis in markets ex-US.

Diovan Group (USD 143 million, -5%, -5% cc) sales declined in most markets due to competition.

Galvus Group (USD 126 million, -21%, -20% cc) sales declined mainly due to continued competition.

Kymriah (USD 97 million, -5%, -7% cc) sales declined across most markets, partly offset by increased uptake in the follicular lymphoma indication ex-US.

Net cash flows from operating activities amounted to USD 6.6 billion, compared with USD 6.3 billion in the prior-year quarter. This increase was mainly driven by higher net income, adjusted for non-cash items and other adjustments, as well as favorable changes in working capital. These were partly offset by lower net other financial receipts, and increased outflows from net interest paid and income taxes paid.

Net cash outflows used in investing activities amounted to USD 0.9 billion, compared with USD 0.4 billion in the prior-year quarter.

In the current-year quarter, net cash outflows used in investing activities were mainly driven by USD 0.5 billion for purchases of intangible assets and USD 0.4 billion for purchases of property, plant and equipment.

In the prior-year quarter, net cash outflows used in investing activities of USD 0.4 billion were mainly driven by USD 0.5 billion for purchases of intangible assets and USD 0.3 billion for purchases of property, plant and equipment. These were partly offset by cash inflows of USD 0.2 billion from the sale of financial assets, and by net proceeds of USD 0.3 billion from marketable securities and time deposits, mainly due to the maturity of time deposits.

Net cash outflows used in financing activities amounted to USD 2.8 billion, compared with USD 0.4 billion in the prior-year quarter.

In the current-year quarter, net cash outflows used in financing activities were mainly driven by USD 2.3 billion for net treasury share transactions and USD 0.4 billion for the net decrease in current and non-current financial debts.

In the prior-year quarter, net cash outflows used in financing activities amounted to USD 0.4 billion. These were driven by the cash outflows of USD 4.1 billion, mainly driven by USD 2.8 billion for net treasury share transactions, the change in current financial debts of USD 0.8 billion, and the repayments of other current financial debts of USD 0.3 billion. These cash outflows were partly offset by cash inflows of USD 3.7 billion from the issuance of US dollar denominated bonds with a notional amount of USD 3.7 billion.

Free cash flow amounted to USD 6.2 billion (+4% USD), compared with USD 6.0 billion in the prior-year quarter, driven by higher net cash flows from operating activities.

Net cash flows from operating activities amounted to USD 16.9 billion, compared with USD 13.4 billion in the prior-year period. This increase was mainly driven by higher net income, adjusted for non-cash items and other adjustments, as well as favorable changes in working capital.

Net cash outflows used in investing activities amounted to USD 2.8 billion, compared with USD 4.5 billion in the prior-year period.

In the current-year period, net cash outflows used in investing activities were mainly driven by USD 1.9 billion for purchases of intangible assets and by USD 1.6 billion for acquisitions applying the optional concentration test, net of USD 0.1 billion in cash acquired (Anthos Therapeutics, Inc. for USD 0.8 billion and Regulus Therapeutics Inc. for USD 0.8 billion). Cash outflows for purchases of property, plant and equipment amounted to USD 0.9 billion. These cash outflows were partly offset by the net proceeds of USD 1.8 billion from marketable securities and time deposits, mainly due to the maturity of time deposits.

In the prior-year period, net cash outflows used in investing activities of USD 4.5 billion were mainly driven by USD 3.6 billion for acquisitions and divestments of businesses, including the acquisition of Mariana Oncology Inc. for USD 1.0 billion (USD 1.04 billion, net of cash acquired of USD 80 million) and the acquisition of MorphoSys AG for USD 2.3 billion (USD 2.5 billion, net of cash acquired of USD 0.2 billion). Cash outflows for purchases of intangible assets amounted to USD 1.9 billion, purchases of property, plant and equipment amounted to USD 0.8 billion, and purchases of financial assets amounted to USD 0.1 billion. These were partly offset by cash inflows of USD 0.9 billion from the sale of financial assets (including USD 0.7 billion proceeds from the sale of

Sandoz Group AG shares by consolidated foundations), and by net proceeds of USD 1.0 billion from marketable securities, commodities and time deposits, mainly due to the maturity of time deposits.

Net cash outflows used in financing activities amounted to USD 16.6 billion, compared with USD 8.7 billion in the prior-year period.

In the current-year period, net cash outflows used in financing activities were mainly driven by USD 7.8 billion for the annual dividend payment and USD 7.7 billion for net treasury share transactions. Cash outflows also included USD 1.6 billion for the repayment of two bonds at maturity, comprising a US dollar denominated bond with a notional amount of USD 1.0 billion and a Swiss franc denominated bond with a notional amount of CHF 0.5 billion, equivalent to USD 0.6 billion. Cash outflows for lease liabilities amounted to USD 0.2 billion. These cash outflows were partly offset by cash inflows of USD 1.0 billion from the net increase in current and non-current financial debts.

The prior-year period net cash outflows used in financing activities of USD 8.7 billion were mainly driven by USD 7.6 billion for the annual dividend payment, USD 5.5 billion for net treasury share transactions, the USD 2.15 billion repayment of a US dollar bond at maturity, and the USD 0.3 billion repayments of other current financial debts. These cash outflows were partly offset by cash inflows from the issuance of bonds totaling USD 6.1 billion (denominated in US dollars with a notional amount of USD 3.7 billion and in Swiss francs with a notional amount of CHF 2.2 billion, equivalent to USD 2.5 billion). The change in current financial debts resulted in net cash inflows of USD 1.0 billion.

Free cash flow amounted to USD 15.9 billion (+26% USD), compared with USD 12.6 billion in the prior-year period, driven by higher net cash flows from operating activities.

Total non-current assets of USD 79.1 billion increased by USD 6.5 billion compared with December 31, 2024.

Intangible assets other than goodwill increased by USD 2.1 billion, mainly due to acquisitions applying the optional concentration test (Anthos Therapeutics, Inc., Regulus Therapeutics Inc. and a private clinical-stage biotech company), additions, and favorable currency translation adjustments, partially offset by amortization.

Goodwill increased by USD 0.8 billion, due to favorable currency translation adjustments.

Property, plant and equipment increased by USD 1.0 billion, mainly due to additions and favorable currency translation adjustments, partially offset by depreciation.

Other non-current assets increased by USD 1.3 billion, mainly due to an increase in prepaid post-employment benefit plans, driven by an increase in the fair value of plan assets, a higher discount rate used in calculating the actuarial defined benefit obligations, and favorable currency translation effects.

Deferred tax assets increased by USD 1.2 billion. Right-of-use assets, investments in associated companies, and financial assets were broadly in line with December 31, 2024.

Total current assets of USD 28.2 billion decreased by USD 1.5 billion compared with December 31, 2024.

Cash and cash equivalents decreased by USD 1.9 billion, as cash inflows from operating activities of USD 16.9 billion and net proceeds of USD 1.8 billion from marketable securities and time deposits, mainly due to the maturity of time deposits, were more than offset by cash outflows of USD 7.8 billion for the annual dividend payment, USD 7.7 billion for net purchases of treasury shares, USD 1.6 billion for the acquisitions applying the optional concentration test, USD 2.8 billion for net purchases of property, plant and equipment and intangible assets, and other net cash outflows from investing and financing activities, and currency effects of USD 0.7 billion.

Marketable securities, time deposits and derivative financial instruments decreased by USD 1.8 billion, mainly due to the maturity of time deposits.

Trade receivables increased by USD 1.4 billion, mainly due to the increase in net sales.

Inventories increased by USD 0.7 billion. Other current assets and income tax receivables were broadly in line with December 31, 2024.

Total non-current liabilities of USD 30.5 billion increased by USD 1.1 billion compared with December 31, 2024.

Non-current financial debts increased by USD 1.2 billion, due to unfavorable currency translation adjustments.

Provisions and other non-current liabilities, non-current lease liabilities and deferred tax liabilities were broadly in line with December 31, 2024.

Total current liabilities of USD 32.0 billion increased by USD 3.3 billion compared with December 31, 2024.

Current financial debts and derivative financial instruments decreased by USD 0.7 billion, mainly due to the repayment at maturity of a US dollar denominated bond of USD 1.0 billion, and a Swiss franc denominated bond of CHF 0.5 billion, partially offset by the issuance of commercial paper notes of USD 0.8 billion, mainly under the US commercial paper program.

Provisions and other current liabilities increased by USD 2.3 billion, mainly driven by the increase in provisions for deductions from revenue.

Current income tax liabilities increased by USD 1.7 billion. Trade payables and current lease liabilities were broadly in line with December 31, 2024.

The Company’s equity increased by USD 0.6 billion, to USD 44.8 billion compared with December 31, 2024.

This increase was mainly driven by net income of USD 11.6 billion, a favorable impact from currency translation differences of USD 2.9 billion, actuarial gains from defined benefit plans of USD 0.8 billion, and a favorable impact from equity-based compensation of USD 0.8 billion, partially offset by the annual dividends of USD 7.8 billion paid to Novartis AG shareholders, and the purchase of treasury shares of USD 7.7 billion.

The Company’s liquidity amounted to USD 9.8 billion as at September 30, 2025, compared with USD 13.5 billion as at December 31, 2024. Total non-current and current financial debts, including derivatives, amounted to USD 30.1 billion as at September 30, 2025, compared with USD 29.6 billion as at December 31, 2024.

The debt/equity ratio of 0.67:1 as at September 30, 2025, was in line with December 31, 2024. The net debt increased to USD 20.4 billion as at September 30, 2025, compared with USD 16.1 billion as at December 31, 2024.

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
Rhapsido		remibrutinib		Chronic spontaneous urticaria		US
Vanrafia		atrasentan		IgA nephropathy		China (conditional)
Fabhalta		iptacopan		IgA nephropathy		China (conditional)
Pluvicto				Metastatic castration-resistant prostate cancer pre/post-taxane		Japan
Coartem Baby		artemether and lumefantrine		Malaria (<5kg patients)		Switzerland

				Completed submissions
Product		Indication		US		EU		Japan		News update
LOU064 (remibrutinib)		Chronic spontaneous urticaria		Approved		Q1 2025				– US approval
Scemblix		1L chronic myeloid leukemia		Approved		Q1 2025		Approved		– Positive CHMP opinion
OAV101		Spinal muscular atrophy (IT formulation)		Q2 2025		Q2 2025		Q3 2025		– Japan and China submissions
Pluvicto		Metastatic castration-resistant prostate cancer pre-taxane		Approved		Q3 2025		Approved		– EU submission, Japan approval
Leqvio		Hypercholesterolaemia, pediatrics		Q3 2025		Q3 2025				– US and EU submissions
Beovu		Diabetic retinopathy						Q4 2024

Compound/ product		Potential indication/ Disease area		First planned submissions		Current Phase		News update
225Ac-PSMA-617		Metastatic castration-resistant prostate cancer		≥2028		3
Aimovig		Migraine, pediatrics		≥2028		3
Cosentyx		Polymyalgia rheumatica		2026		3		– PhIII REPLENISH study met primary endpoint
DAK539 (pelabresib)		Myelofibrosis				3		– MorphoSys aquisition – Based on Novartis review of 48-week data from the PhIII MANIFEST-2 study, longer follow-up time is needed to determine, in consultation with Health Authorities, the regulatory path for pelabresib in myelofibrosis
FUB523 (zigakibart)		IgA nephropathy		2027		3
GHZ339		Atopic dermatitis		≥2028		2
JSB462		Prostate cancer		≥2028		2
KAE609		Malaria, uncomplicated		≥2028		2
(cipargamin)		Malaria, severe		≥2028		2
Kesimpta		Multiple sclerosis new dosing regimen		2027		3		– Accelerated submission timing from 2028
KLU156 (ganaplacide + lumefantrine)		Malaria, uncomplicated		2026		3		– FDA Orphan Drug designation – FDA Fast Track designation
Leqvio		Secondary prevention of cardiovascular events in patients with elevated LDL-C		2027		3
		Primary prevention CVRR		≥2028		3

Compound/ product		Potential indication/ Disease area		First planned submissions		Current Phase		News update
LNP023		Myasthenia gravis		2027		3
(iptacopan)		IC-MPGN		≥2028		3
		Atypical haemolytic uraemic syndrome		≥2028		3
LOU064		CINDU		2026		3
(remibrutinib)		Food allergy		≥2028		2
		Hidradenitis suppurativa		≥2028		3
		Multiple sclerosis		2027		3
		Myasthenia gravis		≥2028		3
LTP001		Pulmonary arterial hypertension		≥2028		2
Lutathera		GEP-NETs		≥2028		3
177Lu-NeoB		Multiple solid tumors		≥2028		1
LXE408		Visceral leishmaniasis		≥2028		2		– FDA Orphan Drug designation
MAA868 (abelacimab)		Atrial fibrillation		2027		3
Pluvicto		Metastatic hormone sensitive prostate cancer		2025		3		– PSMAddition data presentation at ESMO
		Oligometastatic prostate cancer		≥2028		3
QCZ484		Hypertension		≥2028		2
TQJ230 (pelacarsen)		Secondary prevention of cardiovascular events in patients with elevated levels of lipoprotein(a)		2026		3		– FDA Fast Track designation – China Breakthrough Therapy designation
VAY736 (ianalumab)		Sjögren’s disease		2026		3		– FDA Fast Track designation – NEPTUNUS-1 and -2 studies met primary endpoint
		Lupus nephritis		≥2028		3
		Systemic lupus erythematosus		≥2028		3
		Systemic sclerosis		≥2028		2
		1L immune thrombocytopenia		2027		3
		2L immune thrombocytopenia		2027		3		– PhIII VAYHIT2 study met primary endpoint
		Warm autoimmune hemolytic anemia		2027		3
VHB937		Alzheimer's disease		≥2028		2
Vijoice		Lymphatic malformations		≥2028		3		– US, EU Orphan Drug designation
YTB323		Severe refractory lupus nephritis / Systemic lupus erythematosus		≥2028		2
		Systemic sclerosis		≥2028		2
		Myositis		≥2028		2
		ANCA associated vasculitis		≥2028		2
		1L high-risk large B-cell lymphoma		≥2028		2

Third quarter (unaudited)

(USD millions unless indicated otherwise)		Note		Q3 2025		Q3 2024
Net sales to third parties		9		13 909		12 823
Other revenues		9		449		349
Cost of goods sold				-3 539		-3 234
Gross profit				10 819		9 938
Selling, general and administration				-3 308		-3 134
Research and development				-2 944		-2 392
Other income				269		355
Other expense				-335		-1 140
Operating income				4 501		3 627
Loss from associated companies				-4		-4
Interest expense				-281		-264
Other financial income and expense				-20		26
Income before taxes				4 196		3 385
Income taxes				-266		-200
Net income				3 930		3 185
Attributable to:
Shareholders of Novartis AG				3 928		3 189
Non-controlling interests				2		-4
Weighted average number of shares outstanding – Basic (million)				1 926		2 012
Basic earnings per share (USD) 1				2.04		1.58
Weighted average number of shares outstanding – Diluted (million)				1 940		2 027
Diluted earnings per share (USD) 1				2.02		1.57
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

Nine months to September 30 (unaudited)

(USD millions unless indicated otherwise)		Note		9M 2025		9M 2024
Net sales to third parties		9		41 196		37 164
Other revenues		9		1 618		1 000
Cost of goods sold				-10 088		-9 503
Gross profit				32 726		28 661
Selling, general and administration				-9 808		-9 065
Research and development				-8 037		-7 180
Other income				1 043		877
Other expense				-1 896		-2 279
Operating income				14 028		11 014
Loss from associated companies				-10		-35
Interest expense				-840		-731
Other financial income and expense				-44		107
Income before taxes				13 134		10 355
Income taxes				-1 571		-1 236
Net income				11 563		9 119
Attributable to:
Shareholders of Novartis AG				11 575		9 123
Non-controlling interests				-12		-4
Weighted average number of shares outstanding – Basic (million)				1 947		2 029
Basic earnings per share (USD) 1				5.94		4.50
Weighted average number of shares outstanding – Diluted (million)				1 961		2 044
Diluted earnings per share (USD) 1				5.90		4.46
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

Third quarter (unaudited)

(USD millions)		Note		Q3 2025		Q3 2024
Net income				3 930		3 185
Other comprehensive income
Items that are or may be recycled into the consolidated income statement
Cash flow hedge, net of taxes				1		-25
Net investment hedge, net of taxes		5		2		-65
Currency translation effects, net of taxes				19		1 310
Total of items that are or may be recycled				22		1 220
Items that will never be recycled into the consolidated income statement
Actuarial gains/(losses) from defined benefit plans, net of taxes				287		-16
Fair value adjustments on equity securities, net of taxes				57		-34
Total of items that will never be recycled				344		-50
Total other comprehensive income				366		1 170
Total comprehensive income				4 296		4 355
Total comprehensive income for the period attributable to:
Shareholders of Novartis AG				4 293		4 354
Non-controlling interests				3		1
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

Nine months to September 30 (unaudited)

(USD millions)		Note		9M 2025		9M 2024
Net income				11 563		9 119
Other comprehensive income
Items that are or may be recycled into the consolidated income statement
Cash flow hedge, net of taxes				2		-25
Net investment hedge, net of taxes		5		-231		-14
Currency translation effects, net of taxes				2 853		-54
Total of items that are or may be recycled				2 624		-93
Items that will never be recycled into the consolidated income statement
Actuarial gains from defined benefit plans, net of taxes				767		120
Fair value adjustments on equity securities, net of taxes				4		85
Total of items that will never be recycled				771		205
Total other comprehensive income				3 395		112
Total comprehensive income				14 958		9 231
Total comprehensive income for the period attributable to:
Shareholders of Novartis AG				14 967		9 234
Non-controlling interests				-9		-3
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

(USD millions)		Sep 30, 2025 (unaudited)		Dec 31, 2024 (audited)
Assets
Non-current assets
Property, plant and equipment		10 476		9 458
Right-of-use assets		1 515		1 415
Goodwill		25 551		24 756
Intangible assets other than goodwill		29 037		26 915
Investments in associated companies		85		119
Deferred tax assets		5 576		4 359
Financial assets		2 068		2 015
Other non-current assets		4 783		3 505
Total non-current assets		79 091		72 542
Current assets
Inventories		6 421		5 723
Trade receivables		8 844		7 423
Income tax receivables		140		133
Marketable securities, time deposits and derivative financial instruments		197		1 998
Cash and cash equivalents		9 556		11 459
Other current assets		3 040		2 968
Total current assets		28 198		29 704
Total assets		107 289		102 246
Equity and liabilities
Equity
Share capital		766		793
Treasury shares		-44		-53
Reserves		43 608		43 306
Equity attributable to Novartis AG shareholders		44 330		44 046
Non-controlling interests		422		80
Total equity		44 752		44 126
Liabilities
Non-current liabilities
Financial debts		22 598		21 366
Lease liabilities		1 640		1 568
Deferred tax liabilities		2 171		2 419
Provisions and other non-current liabilities		4 128		4 075
Total non-current liabilities		30 537		29 428
Current liabilities
Trade payables		4 555		4 572
Financial debts and derivative financial instruments		7 520		8 232
Lease liabilities		264		235
Current income tax liabilities		3 342		1 599
Provisions and other current liabilities		16 319		14 054
Total current liabilities		32 000		28 692
Total liabilities		62 537		58 120
Total equity and liabilities		107 289		102 246
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

Third 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 July 1, 2025				766		-33		41 527		-275		41 985		69		42 054
Net income								3 928				3 928		2		3 930
Other comprehensive income										365		365		1		366
Total comprehensive income								3 928		365		4 293		3		4 296
Purchase of treasury shares						-11		-2 134				-2 145				-2 145
Equity-based compensation plans						0		284				284				284
Taxes on treasury share transactions								-1				-1				-1
Changes in non-controlling interests								-91				-91		350		259
Value adjustments related to financial assets sold and divestments								-8		8
Other movements		4.3						5				5				5
Total of other equity movements						-11		-1 945		8		-1 948		350		-1 598
Total equity at September 30, 2025				766		-44		43 510		98		44 330		422		44 752
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 July 1, 2024				793		-25		45 836		-4 871		41 733		169		41 902
Net income								3 189				3 189		-4		3 185
Other comprehensive income										1 165		1 165		5		1 170
Total comprehensive income								3 189		1 165		4 354		1		4 355
Purchase of treasury shares						-15		-2 952				-2 967				-2 967
Exercise of options and employee transactions								33				33				33
Equity-based compensation						0		265				265				265
Shares delivered to Sandoz employees as a result of the Sandoz spin-off								0				0				0
Taxes on treasury share transactions								-35				-35				-35
Changes in non-controlling interests														-4		-4
Fair value adjustments on financial assets sold								22		-22
Impact of change in ownership of consolidated entities								-70				-70		-42		-112
Other movements		4.3						4				4				4
Total of other equity movements						-15		-2 733		-22		-2 770		-46		-2 816
Total equity at September 30, 2024				793		-40		46 292		-3 728		43 317		124		43 441
The accompanying Notes form an integral part of the condensed interim consolidated financial statements

Nine months to September 30 (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, 2025				793		-53		46 561		-3 255		44 046		80		44 126
Net income								11 575				11 575		–  12		11 563
Other comprehensive income										3 392		3 392		3		3 395
Total comprehensive income								11 575		3 392		14 967		-9		14 958
Dividends		4.1						-7 818				-7 818				-7 818
Purchase of treasury shares						-40		-7 614				-7 654				-7 654
Reduction of share capital				-27		42		-15
Equity-based compensation plans						7		834				841				841
Taxes on treasury share transactions								-34				-34				-34
Changes in non-controlling interests								-90				-90		351		261
Value adjustments related to financial assets sold and divestments								39		-39
Other movements		4.3						72				72				72
Total of other equity movements				-27		9		-14 626		-39		-14 683		351		-14 332
Total equity at September 30, 2025				766		-44		43 510		98		44 330		422		44 752
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, 2024				825		-41		49 649		-3 766		46 667		83		46 750
Net income								9 123				9 123		-4		9 119
Other comprehensive income										111		111		1		112
Total comprehensive income								9 123		111		9 234		-3		9 231
Dividends		4.1						-7 624				-7 624				-7 624
Purchase of treasury shares						-30		-5 750				-5 780				-5 780
Reduction of share capital				-32		26		6
Exercise of options and employee transactions								-2				-2				-2
Equity-based compensation						5		812				817				817
Shares delivered to Sandoz employees as a result of the Sandoz spin-off								12				12				12
Taxes on treasury share transactions								-27				-27				-27
Changes in non-controlling interests														-4		-4
Fair value adjustments on financial assets sold								73		-73
Impact of change in ownership of consolidated entities								-98				-98		48		-50
Other movements		4.3						118				118				118
Total of other equity movements				-32		1		-12 480		-73		-12 584		44		-12 540
Total equity at September 30, 2024				793		-40		46 292		-3 728		43 317		124		43 441
The accompanying Notes form an integral part of the condensed interim consolidated financial statements