Sandoz (SDZ) Q2 2026 earnings summary

Executive summary

• H1 2026 net sales rose 5% at constant currencies to $5.8 billion, driven by 20% biosimilars growth and successful launches, with biosimilars now 33% of net sales and strong gains in North America.

• Generics sales declined 1% at constant currencies but returned to growth in Q2; over 300 assets in the pipeline targeting major LOE opportunities.

• Opened a new $99 million biosimilar development center in Ljubljana, Slovenia, and expanded the biosimilar pipeline to 36 assets, including new in-house and partnered assets.

• Achieved regulatory milestones for biosimilars and GLP-1 semaglutide, including approvals in Brazil and Europe.

• Confirmed full-year 2026 guidance for mid- to high-single-digit net sales growth and ~100 basis points core EBITDA margin expansion.

Financial highlights

• Net sales reached $5.8 billion in H1 2026, up 5% at constant currencies and 10% in USD year-over-year.

• Core EBITDA was $1.2 billion, up 15% year-over-year, with margin expanding to 20.9%.

• Core diluted EPS increased 17% to $1.71; core net income rose 18% to $750 million.

• Management free cash flow stable at $503 million despite higher CapEx.

• Gross profit margin improved to 49.7%.

Outlook and guidance

• Full-year 2026 guidance confirmed: net sales expected to grow mid- to high-single-digit percentage at constant currencies, with core EBITDA margin expansion of around 100 basis points.

• Price erosion expected in the mid-single-digit percentage range, offset by volume growth and favorable mix.

• Currency tailwind to net sales anticipated at 2 percentage points for the year.

• Strong confidence in growth for 2027 and 2028, supported by pipeline launches and GLP-1 rollout.

• Guidance excludes unforeseen events or new US tariffs; no material impact from potential generic semaglutide launch in 2026.