Novo Nordisk significantly increased its financial outlook for 2026, driven by robust sales of its GLP-1 drugs, especially the Wegovy pill. The company now anticipates adjusted sales growth of 0% to -6% at constant exchange rates (CER) and adjusted operating profit growth of 0% at CER. This upward revision is primarily attributed to the strong adoption of the Wegovy pill in the US, which has garnered over 5 million prescriptions since its launch, and promising initial uptake in international markets.
For the second quarter of 2026, Novo Nordisk reported an adjusted operating profit of DKK 33,389 million, representing an 11% increase at CER. However, the reported operating profit for Q2 2026 decreased by 16% at CER due to non-recurring factors, including a DKK 6.3 billion non-cash impairment charge related to intangible pipeline assets like monlunabant (DKK 4.0 billion) and the impact of 340B rebate adjustments. This impairment follows the failure of the ZEUS phase 3 trial for ziltivekimab, which did not meet its primary endpoint in cardiovascular disease.
Mike Doustdar, president and CEO of Novo Nordisk, highlighted that the Wegovy product portfolio remains a key growth driver for the company in 2026. The company also announced plans for the rollout of a Wegovy HD (7.2 mg) single-dose pen across the EU in the second half of 2026. Despite the positive sales performance, the company faces increased competition in the obesity market and scrutiny over pricing trends.
Analysts are somewhat divided on Novo Nordisk's prospects. While a broader panel of 37 analysts in the US holds a 68% buy rating with an average 12-month target of $51.19, 26 analysts covering the Copenhagen-listed B-shares have a consensus "Hold" rating with an average price target of DKK 317.20. The market's reaction to the results on August 5th is expected to be significant, with the options market pricing in an expected move of around 8% for the US-listed shares, reflecting high investor uncertainty, particularly after the ZEUS setback.
The company's ability to deliver volume growth for Wegovy while managing potential price adjustments and intensifying competition, especially from Eli Lilly, will be crucial. Investors will be closely monitoring management's commentary on US pricing trends and the pace of the international rollout of the oral Wegovy.
