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Novo Nordisk Q1 Earnings: Lower Expectations, but Greater Clarity

ByJakob Christensen
Published 09/05/2025, 12:53
NOVOb
-5.72%

Today’s first-quarter results from Novo Nordisk (CSE:NOVOb) were highly anticipated, with investors hoping that they might mark the end of the share price declines seen since the start of the year. The quarterly figures came in broadly as expected, with the company reporting a 19% increase in sales to DKK 78.1 billion and a 22% rise in operating profit. The real test, however, was the company’s full-year guidance.

For weeks, the market had rumoured that Novo Nordisk would be forced to revise its initially strong outlook. The company has faced growing headwinds from slower prescription growth for its blockbuster weight-loss drug Wegovy in the US, increasing competition from cheaper, non-patented alternatives, and a nearly 10% decline in the US dollar. These are significant drags when roughly 60% of revenue comes from the US.

With today’s announcement, these factors are now reflected in Novo Nordisk’s more cautious outlook. The company expects sales growth of 13–21%, down from the original 16–24%, with a similar downgrade to operating profit. While downgrades are rarely good news, this one is unlikely to shake investors. The numbers still represent solid growth for a company that, after the recent stock price declines, is no longer valued as a growth company.

For investors accustomed to years of outperformance and upward guidance revisions, a downgrade is naturally unwelcome. But with expectations now reset and guidance more in line with market realities, the added clarity may be just what Novo Nordisk needs.

eToro Nordic Market Analyst, Jakob Christensen

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