Novo Nordisk Q1 Profit Beats Expectations, Slightly Upgrades Full-Year Outlook

Novo Nordisk announced its financial results for the first quarter on Wednesday, reporting a net sales amount of 96.823 billion Danish kroner, representing a 24% year-on-year increase; net profit reached 48.557 billion Danish kroner, surging by 67% from the expected 23.49 billion Danish kroner. On an adjusted basis, net sales stood at 70.063 billion Danish kroner, exceeding the expected 69.072 billion Danish kroner, and the adjusted EBIT was 32.858 billion Danish kroner, also above the expected 28.743 billion Danish kroner.

Following the better-than-expected performance, the company modestly raised its full-year outlook. Novo Nordisk anticipates that, in 2026, adjusted sales and adjusted operating profit will decrease by 4-12% year-on-year at constant exchange rates, a revision from the previous expectation of a 5-13% decrease.

The core focus of the market remains on the weight loss drug business. Novo Nordisk needs to rely on its star weight loss drugWegovy to maintain growth, but price reductions are compressing profit margins, and increasing competition also tests the sustainability of growth. In the first quarter, Wegovy sales reached 18.235 billion Danish kroner, higher than the expected 17.396 billion Danish kroner. Notably, Wegovy tablets' sales amounted to 2.256 billion Danish kroner, nearly double the expected 1.156 billion Danish kroner.

Chief Executive Officer Mike Doustdar stated: "The strong performance of Wegovy, coupled with the continued growth of our international business, has enabled us to raise our guidance for adjusted sales and adjusted operating profit for 2026."

This is also the part that Novo Nordisk currently needs to prove to the market: whether the growth in oral weight loss drugs and international business can offset the profit pressure brought about by price wars in obesity drugs. Eli Lilly was granted FDA approval for its competitor drug Foundayo in early April, ending Novo Nordisk's phase as the sole supplier of oral obesity drugs in the U.S. market.