Sandoz (SDZ) Q3 2026 TU earnings summary

Executive summary

• Q3 net sales reached USD 2.942bn, up 5% at constant currencies and 7% excluding the anti-infective B2B impact; biosimilars grew 17%.

• 20 consecutive quarters of net sales growth; biosimilars reached 34% of Q3 sales, with North America leading regional growth at 20%.

• 9M net sales were USD 8.703bn, up 5% at constant currencies and 6% excluding the anti-infective B2B impact.

• Biosimilars remained the principal growth engine; strategy focuses on portfolio expansion, in-house capabilities, generics and GLP-1 opportunities.

Financial highlights

• 9M net sales increased to USD 8.703bn from USD 8.1bn; volume growth of 10% was partly offset by 5% price erosion.

• Q3 biosimilar sales were USD 998m, up 17% at constant currencies; generics were flat, or up 2% excluding the anti-infective B2B impact.

• 9M biosimilar sales were USD 2.873bn, up 19% at constant currencies; generics sales were USD 5.830bn, down 1%, and flat excluding the anti-infective B2B headwind.

• Core EPS expectations improved; biosimilar mix and SG&A cost discipline supported the margin outlook.

Outlook and guidance

• FY26 net-sales growth guidance narrowed to 5%-6% at constant currencies from mid-to-high single digits; management expects Q4 growth to step up versus Q3.

• FY26 core EBITDA margin guidance rose to 23.0%-23.5%, versus 21.7% in 2025 and prior expectations of ~100 bps year-on-year expansion.

• Pricing is expected to decline mid-single digits; spot-rate FX implies a 2 percentage-point net-sales tailwind with no material core EBITDA margin impact.

• No material semaglutide net-sales contribution is expected in 2026; management sees underlying growth direction of ~7% excluding B2B in Q4 and 2027, with no formal 2027 guidance.

• 2025-2030 target: mid-to-high-single-digit net-sales CAGR at constant currencies and 25%-27% core EBITDA margin; Bio100 targets more than doubling 2035 sales versus 2025, excluding significant GLP-1 upside, and margin above 30%.