Sandoz Cuts Expected Sales Growth to 5–6%, Raises EBITDA Margin to 23.0–23.5%
Key Facts
Sandoz cut its forecast for 2026 net sales growth to 5–6% at constant currencies, from a mid- to high-single-digit range, while raising its forecast for core EBITDA margin to 23.0–23.5%. The company announced the change in its nine-month and third-quarter sales update issued on 28 October 2026. The new guidance balances slower sales growth with an expected improvement in margin, compared with its previous forecast, which included an expansion of around 100 basis points in core EBITDA margin. Quarterly results pointed to continued growth in biosimilars, but the company said stronger volume demand had led to temporary supply constraints. It also described market conditions in Germany as tougher than expected.
Third-quarter net sales reached $2.942 billion, up 5% at constant currencies from the same period in 2025. This followed sales of $5.761 billion in the first half, up 5% at constant currencies. In the first half, sales volumes rose 10%, while a 5% decline in prices partly offset the impact of higher volumes. Sandoz had previously forecast an overall mid-single-digit percentage decline in prices during 2026. This pricing pressure provides context for the sales growth revision, while its goal of expanding EBITDA margin remained in place and was raised to a new range.
The biosimilars business led third-quarter growth, with sales up 17% at constant currencies, while generic drug sales were stable on the same basis. Biosimilar sales reached $998 million in the quarter, compared with $862 million in the corresponding period of 2025, while generics recorded $1.944 billion, compared with $1.963 billion. In the first half, biosimilar sales were $1.875 billion, up 20% at constant currencies. The company had reported that North American biosimilars offset the impact of short-term market dynamics in Germany during the first half. In the third quarter, it warned that volume demand growth had caused short-term constraints on biosimilar supplies in Europe and international markets.
North America posted the strongest regional performance in the third quarter, with net sales growth of 20% at constant currencies, driven by biosimilars, the company said. This performance stands alongside globally stable generic drug sales on the same basis, illustrating the differing growth drivers across business lines and markets. Chief Executive Richard Saynor said Sandoz continued to expand its biosimilar portfolio and that its development pipeline had reached 40 assets. The company aims to build a portfolio of more than 100 biosimilar medicines by 2040. The update did not change its previous forecasts through 2028 or its forecasts announced through 2030, according to the company statement.
The backdrop to the previous 2026 guidance was the first-half results, when Sandoz forecast mid- to high-single-digit sales growth at constant currencies and an expansion of around 100 basis points in core EBITDA margin. It also said at the time that it did not expect a material contribution from any potential launch of a generic version of semaglutide during 2026. In its October update, the company narrowed its sales growth forecast to 5–6% and raised its target margin to 23.0–23.5%. EL7 data showed SDZNY shares closed at $95 on 21 October, then at $99.36 on 27 October. Sandoz said it would publish its full-year 2026 results on 17 February 2027, and scheduled an analyst and investor visit to Slovenia for 9 and 10 November 2026.