Novartis AGFRA:NOT +2.14%83 Net Margin % is 23.34% as of Mar. 2026, which is 1% below its 10-year median of 23.60. GuruFocus rates FRA:NOT with a GF Score™ of 83/100 and a GF Value™ of €109.77 (Modestly Overvalued). The stock has 6 warning signs investors should review. Among 956 Drug Manufacturers companies, Novartis AG ranks better than 91.21% on this metric.
Net margin is calculated as Net Income divided by its Revenue. Novartis AG's Net Income for the
three
months ended in Mar. 2026 was €2,730 Mil. Novartis AG's Revenue for the
three
months ended in Mar. 2026 was €11,698 Mil. Therefore, Novartis AG's net margin for the quarter that ended in Mar. 2026 was 23.34%.
The historical rank and industry rank for Novartis AG's Net Margin % or its related term are showing as below:
FRA:NOT'
s Net Margin % Range Over the Past 10 Years
Min: 13.58 Med: 23.6 Max: 54.63
Current: 23.94
FRA:NOT's Net Margin % is ranked better than 91.21% of 956
companies
in the Drug Manufacturers industry
Industry Median: 5.56
vs FRA:NOT: 23.94
Novartis AG (FRA:NOT) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Novartis AG Net Margin % Related Terms
Novartis AG Net Margin % Historical Data
* Premium members only.
The historical data trend for Novartis AG's Net 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.
FRA:NOT vs LLY, JNJ, ABBV: Net Margin % Comparison
For the Drug Manufacturers - General subindustry, Novartis AG's Net Margin %, along with its competitors' market caps and Net 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 Net Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Novartis AG's Net Margin % distribution charts can be found below:
* The bar in red indicates where Novartis AG's Net 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.
Novartis AG (FRA:NOT) has a Net Margin % of 23.34% as of Mar. 2026. Net margin is the ratio of total net income to net sales. View historical data on Novartis AG and its competitors. This is near median its historical median of 23.60. Over the past decade, Novartis AG's Net Margin % has ranged from 13.58 to 54.63. According to the industry distribution chart, Novartis AG ranks #84 out of 956 companies in the Drug Manufacturers industry, placing it in the top 8.8%.
Is Novartis AG's Net Margin % too high?
Novartis AG's current Net Margin % of 23.34% is near median its 10-year median of 23.60. Over the past 10 years, this metric has ranged from a low of 13.58 to a high of 54.63. The Drug Manufacturers industry median Net Margin % is 5.56. Novartis AG's value of 23.34% is 319.8% above this industry median. Based on the distribution chart, Novartis AG ranks #84 out of 956 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 Net Margin % compare to LLY and JNJ?
According to the Drug Manufacturers industry distribution chart, Novartis AG ranks #84 out of 956 companies for Net Margin %. This places Novartis AG in the top 9% of its industry — outperforming the majority of peers. The industry median Net Margin % is 5.56. Novartis AG's value of 23.34% is 319.8% above this benchmark. Historically, Novartis AG's own Net Margin % has ranged from 13.58 to 54.63 over the past decade. While the company's 10-year median is 23.60 vs. the industry median of 5.56, 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 Net Margin % for a Drug Manufacturers company?
The median Net Margin % among Drug Manufacturers companies is 5.56, based on 956 companies in the industry. Companies in the top quartile (top 25%) have a Net Margin % significantly above this median, while those in the bottom quartile fall well below. However, Net Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Novartis AG's current Net Margin % of 23.34% is 319.8% 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 Net Margin % mean?
A high Net Margin % can signal that a stock is expensive relative to its fundamentals. Net margin is the ratio of total net income to net sales. View historical data on Novartis AG and its competitors. For the Drug Manufacturers industry, the median Net Margin % is 5.56 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Novartis AG's current Net Margin % is 23.34%, which is near median its own 10-year median of 23.60. 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 (FRA:NOT) is currently considered Modestly Overvalued. The stock's GF Value™ is €109.77, compared to a current price of €131.52 — trading 19.8% above its estimated fair value. The current Net Margin % is 23.34%, which is near median its 10-year median of 23.60 and 319.8% above the Drug Manufacturers industry median of 5.56. Novartis AG's overall GF Score™ is 83/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Net Margin % calculated?
Net Margin % is calculated from a company's financial statements. For Novartis AG (FRA:NOT), the current Net Margin % is 23.34% 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 (FRA:NOT) Overvalued in 2026?
Based on GuruFocus' analysis, Novartis AG stock appears to be overvalued.
The current stock price of €131.52 is trading 19.8% above its estimated GF Value™ of €109.77.
GuruFocus considers Novartis AG to be Modestly Overvalued.
Key valuation signals for FRA:NOT:
Net Margin %: 23.34% (near median its 10-year median of 23.60)
GF Value™: €109.77 vs. price of €131.52 (19.8% above fair value)
Industry Position: 319.8% above the Drug Manufacturers median (#84 of 956)
No single metric tells the full story. See the FRA:NOT 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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