Canadian Halal Investor.

NYSE Shariah screener · October 2026

Is Novartis AG (NVS) Halal?

PASS

Novartis AG · NYSE: NVS · Healthcare

The short answer

Yes - Novartis AG (NVS) passes this Shariah stock screen at all three gates. Novartis, the Basel-based innovative medicines company, earns its revenue from prescription medicines across cardiovascular, immunology, neuroscience, and oncology (FY2025 net sales $54,532m; Sandoz spun off in 2023) - none of which involve alcohol, tobacco, gambling, weapons, adult entertainment, pork, or conventional finance. The financial ratios pass: total financial debts of $33,537m are about 12.5% of its ~$269.1B market cap ($141.05/share, October 2, 2026), below the ~33% ceiling, and interest income of $373m is about 0.68% of revenue, below the 5% ceiling. Zoya and Musaffa independently rate Novartis Shariah-compliant / halal. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.

Gate 1 — Business activity: PASS

Novartis AG (NYSE: NVS), headquartered in Basel, Switzerland, is an innovative medicines company (CEO Vas Narasimhan since 2018). Per its Form 20-F for FY2025 (filed February 4, 2026), its disease areas are cardiovascular, renal and metabolic; immunology; neuroscience; and oncology and hematology, with key products including Entresto, Cosentyx, Kisqali, Kesimpta, Leqvio, Pluvicto, and Scemblix. The generics/biosimilars business Sandoz was spun off in 2023 (the 20-F reports a $5,860M gain on the distribution and Sandoz as discontinued operations), leaving Novartis a pure innovative-medicines company. Business-screen implication (factual): prescription medicines only - no alcohol, tobacco, gambling, weapons, adult entertainment, pork, or conventional-finance segments are disclosed. Gate 1 passes. Facts only.

Gate 2 — Debt and cash: PASS

Per Novartis's Form 20-F for FY2025 (filed February 4, 2026; IFRS; USD millions), total financial debts were $33,537m at December 31, 2025 - noncurrent financial debts $27,935m plus current financial debts and derivative financial instruments $5,602m (2024: $29,598m). Against a market cap of about $269.1B (1,908,151,679 shares outstanding x $141.05, October 2, 2026), debt / market cap is about 12.5% - below the ~33% ceiling. Cash and cash equivalents of $11,435m is about 4.2% of market cap. Gate 2 passes. Facts only.

Gate 3 — Non-compliant income: PASS

Novartis's FY2025 Form 20-F, Note 5, discloses interest income of $373m (2024: $568m; 2023: $627m), against total interest expense of $1,144m. $373m / net sales from continuing operations of $54,532m = about 0.68% of revenue - below the 5% non-compliant income ceiling. Third-party screener Zoya independently reports interest income of about $374.91m against revenue of about $54,811,252,000 (0.68%) - consistent with the 20-F figure. Gate 3 passes. Facts only.

Key figures used

Frequently asked questions

What does Novartis do?

Novartis AG (NYSE: NVS), based in Basel, Switzerland, is an innovative medicines company. Per its Form 20-F for FY2025, its disease areas are cardiovascular, renal and metabolic; immunology; neuroscience; and oncology and hematology. Key products include Entresto, Cosentyx, Kisqali, Kesimpta, Leqvio, Pluvicto, and Scemblix. The generics/biosimilars business Sandoz was spun off in 2023, leaving Novartis a pure innovative-medicines company. Its shares trade on the NYSE as American Depositary Shares (ticker NVS), each representing one share.

Why does Novartis pass this Shariah stock screen?

Novartis passes all three gates of this Shariah stock screen. Gate 1 (business activity): innovative prescription medicines involve no alcohol, tobacco, gambling, weapons, adult entertainment, pork, or conventional finance - a clean business. Gate 2 (debt): total financial debts of $33,537m are about 12.5% of its ~$269.1B market cap, below the ~33% ceiling. Gate 3 (non-compliant income): interest income of $373m is about 0.68% of FY2025 net sales ($54,532m), below the 5% ceiling. Result: PASS. This is a factual screen, not a religious ruling - consult a qualified scholar for personal rulings.

What is Novartis's interest-bearing debt ratio?

Per Novartis's Form 20-F for FY2025 (filed February 4, 2026; IFRS; USD millions), total financial debts were $33,537m at December 31, 2025 - noncurrent financial debts $27,935m plus current financial debts and derivative financial instruments $5,602m (2024: $29,598m). Against a market cap of about $269.1B (1,908,151,679 shares outstanding x $141.05, October 2, 2026), debt / market cap is about 12.5% - below the ~33% ceiling. Cash and cash equivalents of $11,435m is about 4.2% of market cap. Gate 2 passes. Facts only.

How much interest income does Novartis earn?

Novartis's FY2025 Form 20-F, Note 5, discloses interest income of $373m (2024: $568m; 2023: $627m), against total interest expense of $1,144m. $373m / net sales from continuing operations of $54,532m = about 0.68% of revenue, below the 5% non-compliant income ceiling. Third-party screener Zoya independently reports interest income of about $374.91m against revenue of about $54,811,252,000 (0.68%) - consistent with the 20-F figure. Gate 3 passes. Facts only.

Do Zoya, Musaffa, or ShariaPortfolio cover Novartis?

Zoya covers Novartis at zoya.finance/stocks/nvs (updated September 2026): 'NVS is Shariah-compliant and therefore considered halal to invest in,' citing FY2025 revenue of about $54,811,252,000 and interest income of about $374,910,000 (0.68%). Musaffa's Academy MSCI World halal-stocks list states Novartis is screened as halal on the Musaffa platform at its most recent quarterly review (pharmaceuticals are a permissible business activity under AAOIFI standards). ShariaPortfolio: no per-ticker Novartis coverage was found - honestly reported as no coverage found, not invented.

Sources

Screened 2026-10-02 from published company figures and market data. Figures change; this page is educational, not financial advice and not a religious ruling.

Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).