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Horvath survived the attack, he was simply knocked unconcious. It's assumed he ran away, because after the fight with Morgana, Balthazar only found Horvath's hat. At the very end of the movie, after the credits, Horvath's hat is shown sitting on a table (near the original sorcerer's apprentice hat that Micky Mouse wore) in what is supposedly Balthazar's Arcana store, and we see a hand with a figurine ring (assumedly a sorcerer's ring) pick up the hat, and the shadow of the person walking away is shown with a cane like the one Horvath used. This was probably meant to set up a sequel to the movie in case one was made.

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Q: What happens to horvath in sorcerer's apprentice?
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