Novartis Counts Its Blessings As Strong Earnings, US Nearshoring, and Solid Clinical Trials Keep Stock Above the Crowd

Not all health care stocks are created equal… that much is clear when you see how their 2025 has been going. But despite the drag from languishing insurance companies and weighed-down pharmas, there might be some hope if the industry could be more like Swiss pharma behemoth NovartisNVS

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• In its Thursday report, Novartis posted Q2 sales of $14B, which were up 12% year-over-year — driven by double-digit growth across its ‘priority brands’ like Kisqali, Entresto, and Kesimpta.
• Novartis CEO Vas Narasimhan stressed that although tariffs are an industry “overhang”, the organization would raise its profit expectations for a second time this year, crediting successful launches.

Victories, victories: Adding to the wins, Novartis unveiled a $10B share buyback. Not 24 hours later, it scored another win as Pluvicto, already approved for various cancers, looked prime to pick up a new indication thanks to positive data.

And spending, spending: Novartis also committed to nearshoring more “key medicines for the American market,” per Narasimhan, who promised $23B in new US investments.

The pharma sector has plenty of headwinds to navigate, but a comeback could simply be a matter of being more Novartis than AbbottABT

.NVS

is up 17.6% YTD.