Is Novartis AG NVS stock halal to invest in?

Yes, as of August 2026, Novartis AG stock (NVS) is classified as a Shariah compliant stock. This verdict follows the screening methodology of AAOIFI (the Accounting and Auditing Organization for Islamic Financial Institutions), whose Shariah Standard No. 21 is the leading global benchmark for screening halal stocks. Novartis AG currently passes all four AAOIFI financial screens: non-permissible income remains below 5% of total revenue, interest-bearing investments and interest-bearing debt each remain below 30% of market capitalisation, and the company has no impermissible preference share structure. The stock's current purification factor is 99.34%. Compliance is reassessed every month as updated screening data arrives, and a stock's status can change when new financial reports are released. You can always check the current status of Novartis AG and explore other Shariah compliant stocks in the Tabadulat app.

How often is Novartis AG NVS reviewed for Shariah compliance?

Tabadulat reviews Novartis AG NVS for Shariah compliance every month. Each review applies the AAOIFI Shariah Standard No. 21 methodology, screening the company's business activities, non-permissible income, interest-bearing investments, interest-bearing debt, and preference shares, against the company's latest available financial data. The process operates under the direct supervision of Tabadulat's dedicated Shariah Supervisory Board of Islamic finance scholars. Because compliance depends on financial ratios that move with market capitalisation and reported results, a stock's status can change from one review to the next. Monthly screening ensures the status shown for Novartis AG reflects current financial data rather than an outdated assessment, and Tabadulat app users are notified if a holding in their portfolio becomes non-compliant.

Does Novartis AG NVS pass the AAOIFI Non Permissible Income criteria?

Yes, as of August 2026, Novartis AG stock (NVS) passes the AAOIFI non-permissible income screen. Under AAOIFI Shariah Standard No. 21, income from impermissible sources (such as interest or riba, conventional financial services, alcohol, gambling, or tobacco) must remain below 5% of a company's total revenue. Novartis AG's income from non-permissible sources is currently within this 5% threshold. Even permissible levels of incidental impure income should still be purified: investors donate the corresponding share of dividends to charity, as reflected in the stock's purification factor. This screen is reassessed monthly using the company's latest financial disclosures.

Does Novartis AG NVS pass the AAOIFI Interest Bearing Investments criteria?

Yes, as of August 2026, Novartis AG stock (NVS) passes the AAOIFI interest-bearing investments screen. Under AAOIFI Shariah Standard No. 21, the cash a company places in interest-earning instruments (such as conventional deposits, bonds, treasury bills and money-market funds) must remain below 30% of its market capitalisation. This limit ensures shareholders are not materially profiting from riba (interest). Novartis AG's interest-bearing investments are currently within the 30% threshold. Because the ratio is measured against market capitalisation, it can move with the share price as well as the balance sheet, which is why Tabadulat rescreens the stock every month.

Does Novartis AG NVS pass the AAOIFI Interest Bearing Debt criteria?

Yes, as of August 2026, Novartis AG stock (NVS) passes the AAOIFI interest-bearing debt screen. Under AAOIFI Shariah Standard No. 21, a company's borrowings that accrue interest (conventional bank loans, bonds and similar riba-based financing) must remain below 30% of its market capitalisation. This cap limits shareholders' exposure to interest-based leverage. Novartis AG's interest-bearing debt is currently within the 30% threshold. Because market capitalisation changes daily, a company's debt ratio can drift toward or away from the limit even without new borrowing, which is why this screen is reassessed every month.

What is the dividend purification factor for Novartis AG NVS stock?

As of August 2026, the dividend purification factor for Novartis AG (NVS) is 99.34%. Purification (tazkiyah) is the practice of donating to charity the portion of dividend income attributable to incidental non-permissible sources, typically interest earned on a company's cash, and AAOIFI methodology requires it even for fully compliant stocks. The purification factor is the figure halal investors use to work out that donation on Novartis AG dividends. It is recalculated with each monthly screening as new financial data arrives, and the Tabadulat app can help you calculate and track purification across your whole portfolio.

Does Novartis AG NVS pass the AAOIFI Preference Share screen?

Yes, as of August 2026, Novartis AG stock (NVS) passes the AAOIFI preference share screen. AAOIFI Shariah Standard No. 21 prohibits investing in preference shares because they grant holders guaranteed or priority rights to dividends and capital ahead of ordinary shareholders, a structure that conflicts with the Shariah principle that investors should share profit and loss in proportion to their ownership. Novartis AG has no impermissible preference share structure affecting its ordinary shares, so the stock is compliant on this criterion. Like all AAOIFI screens, this is verified in each monthly review.

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Novartis AG

NYSE

Shariah-Compliant

Not Shariah

NVS

About

Novartis AG

NVS

Novartis AG Sponsored ADR represents the American Depositary Receipts of Novartis AG, a global healthcare company. The primary role of this ADR is to provide U.S. investors with a convenient way to invest in Novartis AG shares on American exchanges. Novartis is renowned for its innovative and research-driven approach in pharmaceuticals, focusing on a broad range of therapeutic areas, including oncology, immunology, neuroscience, respiratory, and cardiology. Its significant investment in research and development facilitates the creation of pioneering treatments and medical products that impact patient care worldwide. The ADRs are crucial in enabling liquidity and accessibility for the company's securities in markets outside their Swiss origins, reflecting the company’s global footprint and influence. Novartis’s contributions to both generic and biosimilar market segments additionally underscore its importance in making healthcare more affordable and accessible. By participating in such a wide array of healthcare solutions while reaching international financial markets through ADRs, Novartis AG plays a vital role in sustaining the innovative landscape of global medicine and health management. The existence of its ADRs aids in bridging international investment for U.S. investors seeking exposure to the pharmaceutical industry.

Sector:

Healthcare

Industry:

Drug Manufacturers - General

Employees:

75883

Website:

https://www.novartis.com

NVS

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Novartis AG

About

Novartis AG

NVS

Frequently asked questions

Is Novartis AG NVS stock halal to invest in?

How often is Novartis AG NVS reviewed for Shariah compliance?

Does Novartis AG NVS pass the AAOIFI Non Permissible Income criteria?

Does Novartis AG NVS pass the AAOIFI Interest Bearing Investments criteria?

Does Novartis AG NVS pass the AAOIFI Interest Bearing Debt criteria?

What is the dividend purification factor for Novartis AG NVS stock?

Does Novartis AG NVS pass the AAOIFI Preference Share screen?

How do I buy Novartis (NVS) stock?

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