Sandoz (SDZ) Q1 2026 TU earnings summary

Executive summary

• Q1 2026 delivered net sales of $2.8 billion (USD 2,756 million), up 11% headline and 3% at constant currencies, 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 significant launches in the U.S. and Europe.

• Generics faced a 3% decline due to portfolio rationalization, adverse sales phasing, and mild seasonality in Europe, mainly impacted by anti-infective B2B headwinds.

• Strategic partnership with Samsung Bioepis expanded the biosimilar pipeline to up to 32 assets, including commercialization of ENTYVIO biosimilar and up to four additional assets.

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

Financial highlights

• Net sales reached $2.8 billion (USD 2,756 million), up 11% headline and 3% at constant currencies; underlying growth was 5% excluding adverse B2B dynamics.

• Biosimilar sales rose to $0.9 billion (USD 853 million), up 18% year-over-year at constant currencies; generics were broadly stable, declining 3% at constant currencies.

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

• North America sales grew 12% at constant currencies, with Europe up 2% at constant currencies and double-digit biosimilars growth.

• Excluding anti-infective B2B impact, net sales growth was 5% at constant currencies; generics decline narrowed to 1%.

Outlook and guidance

• Net sales expected to grow mid to high single digits 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 impact on EBITDA margin.

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