Novo Nordisk reported fourth‑quarter 2025 revenue of $12.53 billion, a 10% increase from $11.32 billion in Q4 2024. Earnings per share rose to $1.02, beating the consensus estimate of $0.92 by $0.10, or 10.9%. The revenue lift was driven by strong demand in the obesity‑care segment, where sales grew 31% at constant exchange rates to DKK 82.3 billion for the full year, and by the launch of the Wegovy oral GLP‑1 therapy in the United States, which added a new revenue stream and helped offset a 2% decline in the Diabetes and Obesity Care segment’s Q4 sales.
The Diabetes and Obesity Care segment posted sales of DKK 73.8 billion in Q4 2025, down 2% year‑over‑year, reflecting a modest mix shift toward higher‑margin obesity products. The obesity‑care sub‑segment, however, grew 31% at constant exchange rates, underscoring the market’s appetite for the Wegovy pill. Management highlighted that the launch has already captured a significant share of the U.S. obesity‑drug market, positioning Novo Nordisk to benefit from a growing payer base and expanding Medicare Part D coverage.
Gross margin contracted to 81% in Q4 2025 from 84.7% in Q4 2024. The compression was largely attributable to amortization and depreciation charges related to the acquisition of Catalent’s manufacturing sites and one‑off restructuring costs. Despite the margin squeeze, operating income remained robust, driven by the high‑margin obesity portfolio and disciplined cost management across the organization.
For 2026, Novo Nordisk guided adjusted sales growth of –5% to –13% at constant exchange rates, a sharp decline from the 10% growth forecast for 2025. The company cited lower realized prices, U.S. pricing effects, channel and mix shifts, and the loss of exclusivity in certain international markets as key headwinds. CFO Carsten Munk Knudsen explained that pricing pressure in the U.S. market, coupled with increased competition from Eli Lilly’s upcoming oral GLP‑1, will temper revenue growth, while the company remains confident in maintaining profitability through cost discipline and strategic investments.
Investors reacted cautiously to the guidance, focusing on the projected contraction in 2026 sales and profit. CEO Mike Doustdar emphasized that the company’s 10% sales growth and 6% operating‑profit growth in 2025 marked the end of its 2019 strategic aspirations, but he warned that pricing headwinds and competitive dynamics will require continued vigilance. The market’s emphasis on the forward‑looking outlook underscores the importance of the 2026 guidance in shaping investor sentiment.
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