Novartis Shares Hit All-Time Highs Amid Strong Sales and Positive Clinical Data

Novartis US shares were trading at all-time highs in early February 2026, even as the pharmaceutical company faces expected generic competition that could dent sales in 2026. The company's market capitalization reached $265.2 billion, making it the second-most valuable Swiss company.

Sales of key Novartis brands in 2025 were well above expectations, according to the company's annual report. The strong performance boosted CEO compensation by 30%. The company rose from 66th to 53rd in a global ranking by consulting firm EY, replacing food giant Nestlé as Switzerland's second-most valuable company.

Novartis shares gained following positive Phase 3 results that suggested its kidney drug Vanrafia slowed decline in IgA nephropathy. The clinical data contributed to the stock's upward momentum as Swiss shares climbed after mild Swiss inflation and softer US price data revived hopes for lower interest rates.

Share performance showed returns of 8.3% over 30 days and 15.3% year to date as of mid-February 2026. Shares last closed at CHF 125.14, with returns of 4.3% over 7 days, 35.9% over 1 year, 84.2% over 3 years and 102.0% over 5 years.

The Swiss Market Index reached new record highs, moving beyond the 13,600-point threshold. Roche, the pharmaceutical group, has seen its share price increase by nearly 10% since January, while its Basel-based rival Novartis has done even better.

Switzerland's inflation stayed unusually quiet in January, with consumer prices up just 0.1% year over year and falling 0.1% from December, helped by cheaper electricity, air travel, and seasonal clothing discounts. In the US, headline inflation cooled to 2.4% from 2.7% and core eased to 2.5% from 2.6%. Traders responded by pricing roughly 63 basis points of Federal Reserve cuts in 2026, up from about 57.

Novartis currently trades on a P/E of 22.24x, very close to the Pharmaceuticals industry average P/E of 22.24x. A discounted cash flow model suggests an estimated intrinsic value of US$251.33 per share compared with the recent share price of CHF 125.14.

The biopharma industry as a whole was responsible for 40% of Switzerland's economic growth over the last decade. It generates around 7% of GDP and over 40% of Swiss exports, making it the most important export sector. Roche and Novartis are among the country's biggest taxpayers and employ some 25,000 people in Switzerland.