Sandoz (SDZ) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 delivered net sales of $2.8 billion, up 3% at constant currency and 11% headline, driven by strong biosimilar momentum and robust execution in North America.

• Biosimilars now represent 31% of total net sales, with 18% growth year-over-year and strong launches of Wyost, Jubbonti, and Afqlir in the U.S. and Europe.

• Generics declined 3% at constant currency, mainly due to portfolio rationalization, adverse B2B sales phasing, and mild seasonality in Europe.

• Strategic partnership with Samsung Bioepis expanded the biosimilar pipeline, including commercialization of up to five assets such as Entyvio.

• Full-year 2026 guidance confirmed for mid to high single-digit net sales growth at constant currencies and core EBITDA margin expansion of ~100 basis points.

Financial highlights

• Net sales reached $2.8 billion (+3% at constant currency, +11% USD year-over-year); underlying growth 5% excluding anti-infective B2B impact.

• Biosimilar sales rose to $0.9 billion (+18% at constant currency); generics at $1.9 billion (-3% at constant currency).

• Volume growth contributed 7%, price impact was -4%, and FX provided an 8% tailwind.

• North America sales grew 12% at constant currency, with Europe up 2–4% (excluding anti-infective B2B sales), both led by biosimilars.

• Generics decline narrowed to 1% at constant currency when excluding anti-infective B2B impact.

Outlook and guidance

• Net sales expected to grow at mid to high single-digit percentage at constant currency for 2026.

• Core EBITDA margin targeted to increase by ~100 basis points, weighted to H2.

• Price erosion anticipated in the low to mid single-digit range.

• FX tailwind to net sales now expected at 4% for the year, with minimal margin impact.

• Guidance excludes material contribution from potential generic semaglutide launch in 2026.