The Swiss pharmaceutical behemoth Novartis recently announced second quarter profits that beat analyst expectations by a wide margin. This landmark accomplishment seems especially remarkable given the backdrop of a stark economic climate. The company recently announced the start of a $10 billion share repurchase plan as part of a strategy to increase shareholder value. Year-to-date, Novartis shares have risen 7.2%, which speaks to the market’s optimism about its recent trajectory.
Shares of EasyJet were down 7% at the open. The decline comes on the heels of news that strike actions taken by French air traffic controllers and increasing fuel costs have hurt its quarterly results. EasyJet bounced back from this blow and recorded a headline net profit of £286 million. That’s a whopping 21% increase over last year! Though it faced challenging macroeconomic conditions, its earnings per share increased by 23% to 0.293 euros, a testament to its robustness on the balance sheet.
EQT, Europe’s largest private equity firm, announced it divested investments worth €13 billion (approximately $15.05 billion) in the first half of the year. The firm experienced a 10% increase in management fees. Meanwhile, the amount of investments on which these PE firms could collect carried interest soared over threefold—reaching €191 million over that same time span.
A further significant spinoff corporate governance measure, Johnson Matthey figured out a replacement chairman in Andrew Cosslett. Cosslett, who now chairs British broadcaster ITV, has deep roots in leadership. She was chair of DIY retailer Kingfisher beforehand and brings plenty of experience to her new role.
Novartis has experienced considerable momentum, with CEO Vas Narasimhan stating, “Our robust balance sheet and confidence in our mid and long-term growth enable us to initiate an up-to USD 10 billion share buyback as part of our commitment to balanced capital allocation.” This pledge reflects Novartis’ new capital allocation strategy to return capital to its shareholders while continuing to invest for future growth.
EasyJet’s recent trading update is a testament to the heavy toll that external challenges can take. CEO Kenton Jarvis expressed his dissatisfaction regarding the situation: “We are extremely unhappy with the strike action by the French ATC in early July, which as well as presenting unacceptable challenges for customers and crew created unexpected and significant costs for all airlines.” Those labor disputes rendered the airline with a double-edged sword – they faced a unique operational challenge while raking in profits.
Even through these challenges, analysts continue to be bullish on EasyJet’s future success. Ruairi Cullinane noted, “We see easyJet as well-positioned to exceed expectations in [2026 estimate], given continued fuel tailwinds and scope for an increased contribution from easyJet’s own measures to increase profitability (reducing winter losses, upgauging, Holidays growth).” This perspective suggests that EasyJet may rebound as it adapts to the current market conditions.
EQT’s strategic maneuvers are another example of a company taking the initiative to reshape its portfolio amid ever-changing market forces. Per Franzen, a representative from EQT, commented on their performance: “Following a difficult start to the year, global markets have regained strength – yet the outlook remains uncertain. Against this backdrop, EQT continues to deliver across all fronts: performance, exits, and fundraising.” The firm’s considerable track record of executing major divestitures implies considerable operational capacity exists in adjusting to this new landscape.
It was perhaps EQT’s biggest milestone thus far, having sold its holdings in Galderma, a Swiss maker of dermatological products. Further, they joined Enity’s IPO of the mortgage provider on the Stockholm exchange. These moves reinforce EQT’s disciplined, strategic approach to return maximization through optimized investment portfolio management.