Sandoz stock outlook narrows as biosimilars lift margin target

Published on 11/05/2026 at 11:14 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS

Sandoz stock faces a tighter 2026 sales outlook after temporary biosimilar supply constraints. Management raised its profitability target on stronger mix and execution.

Sales Outlook Meets Margin Upgrade

Sandoz reported 5% constant-currency third-quarter sales growth and 17% biosimilar growth.
Temporary supply constraints and tougher German market conditions prompted the narrower sales outlook.
The company maintained its longer-term outlook through 2028 and 2030.

Sandoz, CH1243598427, Illustration mit AI erstellt.

Sandoz narrowed its 2026 sales-growth outlook on October 28 after stronger biosimilar demand exposed temporary supply constraints in Europe and International markets. The company also cited more challenging-than-expected short-term market conditions in Germany. In the same update, Sandoz raised its core EBITDA margin guidance, leaving investors with a mixed operating picture.

The company now expects 2026 net sales to grow by 5%-6% at constant currencies, compared with its previous mid-to-high single-digit range. Sandoz said the change reflects supply constraints linked to stronger volume demand and weaker German market dynamics than anticipated. Management said the issue was temporary and that work with partners to increase capacity should support future supply.

Biosimilars Drive Quarterly Growth

Third-quarter net sales rose 5% at constant currencies to USD 2.942 billion from USD 2.825 billion a year earlier, according to the Deutsche Boerse release. Biosimilar sales increased 17% at constant currencies to USD 998 million and represented 34% of quarterly sales. Generics sales were stable at constant currencies at USD 1.944 billion.

North America was the strongest regional contributor, with third-quarter sales up 20% at constant currencies. Europe grew 1%, while International sales also increased 1%. Across the first nine months, group sales rose 5% at constant currencies to USD 8.703 billion, with biosimilar sales up 19% and generics down 1% on the same basis.

Margin Target Supports Earnings View

Sandoz lifted its 2026 core EBITDA margin target to 23.0%-23.5%, compared with its previous expectation for an expansion of around 100 basis points from the 2025 margin of 21.7%. The company attributed the upgrade to a more favorable sales mix and stronger operational performance. It also said the business delivered an improved expectation for core earnings per share in 2026.

The revised guidance does not alter Sandoz's existing outlook through 2028 or its longer-term 2030 ambition. That plan targets mid-to-high single-digit annual net-sales growth at constant currencies between 2025 and 2030 and a core EBITDA margin of 25%-27% by 2030. Sandoz also expects no material contribution from generic semaglutide in 2026 and sees mid-single-digit price erosion for the year.

The real-time quote of Sandoz stock traded at 90.80 euros on Lang & Schwarz at 11:08 CET on Thursday, November 5, 2026.