Sandoz stock outlook narrows as biosimilar growth lifts margin view

Sandoz narrowed its 2026 sales-growth outlook on October 28 after short-term supply constraints in biosimilars and more difficult market conditions in Germany affected the third quarter. At the same time, management raised its profitability target, pointing to a stronger product mix and operating performance.

In a release published through Deutsche Boerse, Sandoz said third-quarter net sales rose 5 percent at constant currencies to USD 2.942 billion from USD 2.825 billion a year earlier. Biosimilar sales increased 17 percent at constant currencies to USD 998 million, while generics sales were stable at constant currencies at USD 1.944 billion.

Biosimilars remain the growth engine

Biosimilars accounted for 34 percent of third-quarter net sales, compared with 31 percent in the prior-year quarter. North America led regional growth, with sales up 20 percent at constant currencies, supported by biosimilars. In Europe and International, stronger volume demand exposed short-term supply constraints.

For the first nine months, Sandoz reported net sales of USD 8.703 billion, up 5 percent at constant currencies. Biosimilar sales rose 19 percent at constant currencies to USD 2.873 billion, while generics declined 1 percent at constant currencies to USD 5.830 billion. Excluding an anti-infective business-to-business headwind, nine-month net sales growth was 6 percent at constant currencies.

Sales view falls, margin target rises

Sandoz now expects 2026 net sales to grow 5-6 percent at constant currencies, compared with its previous mid-to-high single-digit outlook. The company attributed the change to biosimilar supply constraints in Europe and International and temporary market conditions in Germany that were more challenging than expected.

The company raised its 2026 core EBITDA margin outlook to 23.0-23.5 percent. The previous guidance called for an expansion of around 100 basis points from the 21.7 percent core EBITDA margin recorded in 2025. Sandoz said the revised guidance does not change its existing outlook through 2028 or its recently introduced 2030 ambition, which targets a 25-27 percent core EBITDA margin.

Chief Executive Officer Richard Saynor said the company was expanding its biosimilar pipeline to 40 assets. Sandoz also outlined its Bio100 ambition, targeting more than 100 biosimilars in its portfolio by 2040. Management said the supply issue reflected stronger demand and that it was working with partners to increase capacity.

Stock and investor calendar

Sandoz stock traded at 89.28 euros on Lang & Schwarz at 11:00 CET on Monday, November 2, 2026. Investors can follow the real-time quote of Sandoz stock for the latest trading price.

The company will host an invitation-only analyst and investor site visit in Slovenia on November 9 and 10, 2026. Sandoz plans to publish its full-year 2026 results on February 17, 2027.

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