Sandoz (SDZ) Q3 2025 TU earnings summary

Executive summary

• Net sales for the first nine months of 2025 reached USD 8,057 million, up 5% at constant currencies and 6% at comparable growth rates, with Q3 growth accelerating to 6% at constant currencies and biosimilars up 13% at constant currencies.

• Biosimilars delivered double-digit growth, now representing a record 31% of Q3 net sales, driving margin upgrades and strong commercial execution across all geographies.

• Generics segment saw 3% growth in Q3 at both constant currencies and comparable growth rates, supported by 115 launches in 9M 2025 and a robust pipeline.

• Launched several key biosimilars and generics, including Pyzchiva, Wyost, and Jubbonti in the U.S., with further launches planned in Europe and the U.S.

• Upgraded full-year core EBITDA margin guidance to 21%-22% due to favorable sales mix and biosimilar momentum.

Financial highlights

• 9M 2025 net sales: USD 8,057 million, up 5% at constant currencies and 6% at comparable growth rates; Q3 2025 net sales: USD 2,825 million, up 6% at constant currencies.

• Biosimilars net sales for 9M: USD 2,358 million, up 12% at constant currencies and 17% at comparable growth rates; generics net sales: USD 5,699 million, up 2% at constant currencies.

• Volume growth was 8%, offset by 3 percentage points of price erosion, with FX impact stable.

• All regions posted growth: Europe 9M net sales USD 4,362 million (up 6% at constant currencies), International USD 1,943 million (up 4%), North America USD 1,752 million (up 1%).

• Ten largest-selling medicines grew by a combined 9% at constant currencies, representing 34% of net sales.

Outlook and guidance

• Full-year 2025 net sales growth expected at mid-single-digit percentage at constant currencies.

• Upgraded core EBITDA margin guidance to 21%-22% for the year.

• Price erosion anticipated at low to mid-single digit percentage; FX impact expected to be less than 0.5 percentage points adverse.

• Guidance excludes impacts from unforeseen events such as potential new US trade tariffs.

• Midterm guidance for 24%-26% margin remains, with progressive growth expected through 2026.