Novartis AGSTU:NOTA 83 Gross Margin % is 74.42% as of Mar. 2026, which is 4% above its 10-year median of 71.82. GuruFocus rates STU:NOTA with a GF Score™ of 83/100 and a GF Value™ of €111.51 (Modestly Overvalued). The stock has 7 warning signs investors should review. Among 936 Drug Manufacturers companies, Novartis AG ranks better than 88.46% on this metric.
Gross Margin % is calculated as gross profit divided by its revenue. Novartis AG's Gross Profit for the
three
months ended in Mar. 2026 was €8,706 Mil. Novartis AG's Revenue for the
three
months ended in Mar. 2026 was €11,698 Mil. Therefore, Novartis AG's Gross Margin % for the quarter that ended in Mar. 2026 was 74.42%.
The historical rank and industry rank for Novartis AG's Gross Margin % or its related term are showing as below:
STU:NOTA'
s Gross Margin % Range Over the Past 10 Years
Min: 64.56 Med: 71.82 Max: 75.83
Current: 75.39
During the past 13 years, the highestGross Margin % of Novartis AG was 75.83%. The lowest was 64.56%. And the median was 71.82%.
STU:NOTA's Gross Margin % is ranked better than 88.46% of 936
companies
in the Drug Manufacturers industry
Industry Median: 48.5
vs STU:NOTA: 75.39
Novartis AG had a gross margin of 74.42% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Novartis AG was 1.40% per year.
Novartis AG (STU:NOTA) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Novartis AG had a gross margin of 74.42% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Novartis AG Gross Margin % Related Terms
Novartis AG Gross Margin % Historical Data
* Premium members only.
The historical data trend for Novartis AG's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
STU:NOTA vs LLY, JNJ, ABBV: Gross Margin % Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Novartis AG Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Novartis AG's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Novartis AG (STU:NOTA) has a Gross Margin % of 74.42% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Novartis AG and its competitors. This is near median its historical median of 71.82. Over the past decade, Novartis AG's Gross Margin % has ranged from 64.56 to 75.83. According to the industry distribution chart, Novartis AG ranks #108 out of 936 companies in the Drug Manufacturers industry, placing it in the top 11.5%.
Is Novartis AG's Gross Margin % too high?
Novartis AG's current Gross Margin % of 74.42% is near median its 10-year median of 71.82. Over the past 10 years, this metric has ranged from a low of 64.56 to a high of 75.83. The Drug Manufacturers industry median Gross Margin % is 48.50. Novartis AG's value of 74.42% is 53.4% above this industry median. Based on the distribution chart, Novartis AG ranks #108 out of 936 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Novartis AG has a GF Score™ of 83/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Novartis AG's Gross Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #108 out of 936 companies for Gross Margin %. This places Novartis AG in the top 12% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.50. Novartis AG's value of 74.42% is 53.4% above this benchmark. Historically, Novartis AG's own Gross Margin % has ranged from 64.56 to 75.83 over the past decade. While the company's 10-year median is 71.82 vs. the industry median of 48.50, Novartis AG has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.50, based on 936 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current Gross Margin % of 74.42% is 53.4% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.50 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Gross Margin % is 74.42%, which is near median its own 10-year median of 71.82. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Novartis AG stock overvalued right now?
Based on GuruFocus' analysis, Novartis AG (STU:NOTA) is currently considered Modestly Overvalued. The stock's GF Value™ is €111.51, compared to a current price of €137.00 — trading 22.9% above its estimated fair value. The current Gross Margin % is 74.42%, which is near median its 10-year median of 71.82 and 53.4% above the Drug Manufacturers industry median of 48.50. Novartis AG's overall GF Score™ is 83/100 with 7 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Novartis AG (STU:NOTA), the current Gross Margin % is 74.42% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Novartis AG (STU:NOTA) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of €137.00 is trading 22.9% above its estimated GF Value™ of €111.51.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for STU:NOTA:
Gross Margin %: 74.42% (near median its 10-year median of 71.82)
GF Value™: €111.51 vs. price of €137.00 (22.9% above fair value)
Industry Position: 53.4% above the Drug Manufacturers median (#108 of 936)
No single metric tells the full story. See the STU:NOTA stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Novartis develops and manufactures innovative drugs. Key areas of drug development are oncology, immunology, neuroscience, respiratory, and cardiovascular, renal, and metabolic. It also has an established medicines business, which includes off-patent franchises. The company sells its products globally, with the United States constituting close to one-third of total revenue.
83GF Score
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