Novo Nordisk (NVO) reported second-quarter results today, showing solid sales growth for its key weight loss and diabetes drugs, even as it kept a reduced full-year outlook in place. Revenue rose 13% from a year earlier to 76.86 billion Danish kroner, or about $11.92 billion, slightly above the 76.6 billion kroner analysts had forecast.
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The stock has had a challenging year, down 44% year-to-date and about 29% over the past three months. Shares closed at $47.22 on Monday, down 3.26% for the day.
Earnings Highlights and Guidance
The highlight was strong demand for the company’s flagship treatments. Sales of Wegovy climbed 67% to 19.53 billion kroner, or about $3.03 billion. Ozempic brought in 31.8 billion kroner, or about $3.1 billion, compared with 28.88 billion kroner in the same period last year.
However, the company maintained last week’s lower guidance. It now expects sales growth of 8% to 14% for the year, down from its earlier forecast of 13% to 21%. Operating profit growth is expected between 10% and 16%, compared with the previous range of 16% to 24%. Novo Nordisk pointed to slower anticipated growth in the U.S. for Wegovy and Ozempic during the second half of 2025.
The earnings call was also the last for outgoing chief executive Lars Fruergaard Jorgensen. He will be succeeded by Maziar Mike Doustdar, the current head of international operations, who has said he will focus on performance and growth. In addition, the company faces potential macro headwinds. U.S. President Donald Trump has said he will announce tariffs on pharmaceutical imports in the coming days, possibly phasing in rates that could reach 250%. Novo Nordisk has manufacturing sites in Denmark, the United States, France, Brazil, and China, which could help offset some trade risk.
To conclude, although Wegovy sales have surged, investor concerns about guidance, competition from Eli Lilly (LLY), and political risk continue to weigh on investors’ sentiment.
Is NVO Stock a Buy?
The sentiment on the Street is optimistic, with the company boasting a Moderate Buy consensus. The average NVO stock price target is $73, implying a 54.60% upside from the current price.
