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NovoCure
(NASDAQ:NVCR)
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Rating:58Neutral
Price Target:
$16.00
▼(-9.19% Downside)
Action:Reiterated
Date:07/25/26
The score is held back primarily by weak financial performance (ongoing losses and negative free cash flow), partially offset by constructive technical trend (price above major moving averages with balanced momentum) and a more encouraging near-term operating trajectory from the latest earnings call (record revenue growth and improved profitability metrics alongside reiterated breakeven ambitions). Valuation remains a risk signal due to negative earnings and no dividend support.
Positive Factors
Revenue and Patient Growth
Q2 revenue growth and rising active patients indicate broader adoption of the TTFields platform, while 2026 guidance embeds continued expansion. This recurring-treatment model can support durable revenue compounding if patient additions and utilization remain sustained across markets.
Negative Factors
Persistent Losses and Cash Burn
Despite improvement, ongoing GAAP losses and negative free cash flow mean the business has not yet proven sustainable earnings or self-funded expansion. Continued cash burn could require funding sources and may pressure the balance sheet, especially while launches and clinical programs remain active.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue and Patient Growth
Q2 revenue growth and rising active patients indicate broader adoption of the TTFields platform, while 2026 guidance embeds continued expansion. This recurring-treatment model can support durable revenue compounding if patient additions and utilization remain sustained across markets.
Read all positive factors
NovoCure (NVCR) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$1.82B
Dividend YieldN/A
Average Volume (3M)1.20M
Price to Earnings (P/E)―
Beta (1Y)1.36
Revenue Growth10.95%
EPS Growth16.12%
CountryUS
Employees1,605
SectorHealthcare
Sector Strength45
IndustryMedical - Devices
Share Statistics
EPS (TTM)-1.30
Shares Outstanding116,445,840
10 Day Avg. Volume873,478
30 Day Avg. Volume1,199,180
Financial Highlights & Ratios
PEG Ratio0.49
Price to Book (P/B)4.23
Price to Sales (P/S)2.20
P/FCF Ratio-19.05
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda>-0.01
Forecast
1Y Price Target
$29.50Price Target Upside67.42% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)-1.25
Revenue Forecast (FY)$725.81M
NovoCure Business Overview & Revenue Model
Company Description
NovoCure Limited, an oncology company, engages in the development, manufacture, and commercialization of tumor treating fields (TTFields) devices for the treatment of solid tumor cancers in the United States, Germany, France, Japan, Greater China,...
How the Company Makes Money
NovoCure primarily makes money by selling and supporting its TTFields therapy systems for approved cancer indications. Revenue is generated from providing patients access to the TTFields device and related components (e.g., arrays and other consum...
NovoCure Earnings Call Summary
Earnings Call Date:Jul 23, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 22, 2026
Earnings Call Sentiment Positive
The call conveyed substantial commercial momentum highlighted by record net revenue (+16% YoY), active patient growth (Optune Gio +11% YoY), successful early launches (Optune Pax and Optune Lua), and a return to positive adjusted EBITDA in the quarter. Management also emphasized disciplined cost-management actions (R&D reductions and LUNAR-2 optimization) and updated full-year guidance reflecting confidence in continued progress. Key challenges include reimbursement and contracting hurdles (EU and Japan), reliance on some one-time benefits in Q2, the need to convert one-time prescribers into repeat prescribers for sustained growth, and clinical trial redesign risks. Overall, the positives — stronger commercial performance, profitability trajectory, regulatory milestones and clear launch progress — meaningfully outweigh the identified lowlights.Positive Updates
Record Quarterly Net Revenue
Net revenue of $184 million in Q2 2026, up 16% year-over-year; company updated full-year revenue guidance to $710 million–$725 million (8%–11% growth).
Negative Updates
Net Loss Still Present Despite Improvement
Company reported a net loss of $16 million in Q2 2026 (improved from $40 million), indicating profitability progress but continued GAAP losses; adjusted EBITDA guidance remains modest at $0 million to $15 million for full-year 2026.
Read all updates
Q2-2026 Updates
Positive
Negative
Record Quarterly Net Revenue
Net revenue of $184 million in Q2 2026, up 16% year-over-year; company updated full-year revenue guidance to $710 million–$725 million (8%–11% growth).
Read all positive updates
Company Guidance
NovoCure updated full‑year 2026 net revenue guidance to $710–$725 million (8–11% growth, 10% midpoint) and set combined Optune Lua/Optune Pax revenue guidance of $20–$30 million; Q2 net revenue was $184 million (up 16% YoY), including $5.4 million from Lua, $1.6 million from Pax and $3 million of one‑time items. Q2 gross margin was 78% (vs. 74% in Q2 2025) and management expects quarterly gross margins in the mid‑70s through year‑end; R&D was $51 million (down 8% YoY), sales & marketing $62 million (up 8%), and G&A $40 million (down 9%). The company reported Q2 adjusted EBITDA of $11 million (vs. -$10 million a year ago), a net loss of $16 million (EPS -$0.13) vs. $40 million prior, updated full‑year adjusted EBITDA guidance to $0–$15 million, reiterated a goal to achieve adjusted EBITDA breakeven for full‑year 2026, and held $441 million in cash and investments.NovoCure Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
55
Neutral
Cash Flow
42
Neutral
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 699.19M | 655.35M | 605.22M | 509.34M | 537.84M | 535.03M |
| Gross Profit | 532.27M | 488.47M | 468.04M | 381.06M | 422.97M | 420.15M |
| EBITDA | -134.40M | -119.05M | -109.58M | -177.45M | -67.89M | -38.38M |
| Net Income | -148.56M | -136.23M | -168.63M | -207.04M | -92.53M | -58.35M |
Balance Sheet | ||||||
| Total Assets | 795.19M | 804.33M | 1.24B | 1.15B | 1.19B | 1.14B |
| Cash, Cash Equivalents and Short-Term Investments | 440.56M | 457.52M | 959.87M | 910.62M | 969.42M | 938.51M |
| Total Debt | 233.42M | 290.00M | 683.35M | 596.24M | 584.27M | 581.90M |
| Total Liabilities | 457.10M | 463.86M | 880.61M | 783.63M | 750.48M | 729.00M |
| Stockholders Equity | 338.09M | 340.47M | 360.18M | 362.50M | 441.17M | 410.49M |
Cash Flow | ||||||
| Free Cash Flow | -21.13M | -75.68M | -69.22M | -100.43M | 9.43M | 58.59M |
| Operating Cash Flow | 1.49M | -49.03M | -26.37M | -73.34M | 30.79M | 82.76M |
| Investing Cash Flow | 409.13M | 437.28M | -140.24M | 184.15M | -139.96M | -144.83M |
| Financing Cash Flow | -454.60M | -451.34M | 90.31M | 15.79M | 15.49M | 25.70M |
NovoCure Technical Analysis
Negative
17.62
Price Trends
16.83
Negative
16.45
Negative
14.42
Positive
Market Momentum
-0.09
Positive
37.72
Neutral
7.34
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For NVCR, the sentiment is Negative. The current price of 17.62 is above the 20-day moving average (MA) of 17.33, above the 50-day MA of 16.83, and above the 200-day MA of 14.42, indicating a neutral trend. The MACD of -0.09 indicates Positive momentum. The RSI at 37.72 is Neutral, neither overbought nor oversold. The STOCH value of 7.34 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for NVCR.
NovoCure Risk Analysis
NovoCure disclosed 40 risk factors in its most recent earnings report. NovoCure reported the most risks in the "Legal & Regulatory" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
NovoCure Peers Comparison
UnderperformOutperform
Sector (51)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | C$87.92B | 20.22 | 18.76% | 1.84% | 6.90% | -6.08% | |
70 Outperform | $1.71B | 33.77 | 13.29% | ― | 0.17% | ― | |
67 Neutral | $2.70B | 249.58 | 2.14% | ― | 13.94% | ― | |
58 Neutral | $1.82B | -11.81 | -44.00% | ― | 10.95% | 16.12% | |
54 Neutral | $321.86M | -9.42 | -473.55% | 0.00% | 12.93% | -219.19% | |
51 Neutral | $7.86B | -0.30 | -43.30% | 2.27% | 22.53% | -2.21% | |
49 Neutral | $866.79M | -0.79 | -55.30% | ― | -2.57% | -135.75% |
* Healthcare Sector Average
NVCR
NovoCure
15.35
2.62
20.58%
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NovoCure Corporate Events
Executive/Board Changes
NovoCure Announces Routine Board Transition After Director Retirement
Neutral
Sep 9, 2026
NovoCure Limited announced that director Timothy Scannell retired from its Board, with his seat formally vacated in accordance with the company’s Articles of Association effective September 2, 2026. His departure after five years of service ...
Business Operations and StrategyProduct-Related Announcements
Novocure’s Optune Pax Secures CE Mark for Pancreatic Cancer
Positive
Jun 30, 2026
On June 30, 2026, Novocure announced that its wearable device Optune Pax received a CE Mark for use in adult patients with locally advanced pancreatic cancer of exocrine origin, when used alongside gemcitabine and nab-paclitaxel in line with treat...
Business Operations and Strategy
NovoCure Reports Phase 3 TRIDENT Trial Topline Results
Negative
Jun 18, 2026
On June 17, 2026, Novocure reported topline data from its Phase 3 TRIDENT trial, which tested starting Tumor Treating Fields therapy at the beginning of chemoradiation versus during the maintenance phase in newly diagnosed glioblastoma. The study ...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.