Novo Nordisk Earnings Update: A quick look
Today Novo today submitted the Financial report for the period 1 January 2025 to 30 September 2025. The quarter was about what I expected and not thesis changing.
I was looking for low double-digit top-line growth, and Novo Nordisk achieved 15%. I also anticipated the restructuring cost would materially impact operating profits. The specific numbers are outlined below, but without the DKK 9 billion restructuring charge, operating profit would have increased by 15% (DKK) and 21% at CER, rather than the reported 5% (DKK) and 10% (CER).
Ensure to check out my free to read, easy to understand write up on NVO also:
Below we will take a look at the numbers but here is what Mike Doustdar, president and CEO had to say:
“Our company-wide transformation has already driven operational efficiencies, and we have a renewed focus that can deliver a range of potential treatment options that will serve millions more patients, mainly in obesity.
While we delivered robust sales growth in the first nine months of 2025, the lower growth expectations for our GLP-1 treatments have led to a narrowing of our guidance. We agreed to acquire Akero Therapeutics Inc., adding a potential first-and-best-in-class asset within F4 in MASH, and initiated our phase 3 programme with cagrilintide for weight management.
We aim to accelerate on all fronts to be able to compete better in dynamic and increasingly competitive markets”
Update Summary
Sales:
Sales in US Operations increased by 12% in Danish kroner (DKK) or 15% at CER. Sales in the US were positively impacted by gross-to-net sales adjustments (deductions taken from their gross sales were smaller than expected/relative to prior periods)
Sales in International Operations increased by 13% in DKK and 16% at CER.
Sales within Diabetes and Obesity care increased by 12% in DKK to DKK 215.7B or 15% at CER.
Obesity care growth of 37% to DKK 59.9 billion and 41% at CER. Note Wegovy sales in international operations increased 168% to approximately DKK 20B. This is promising and highlights the opportunity in Internationally.
GLP-1 diabetes sales growing 7% in Danish kroner 10% at CER.
Rare disease sales increased by 10% in Danish kroner 13% at CER
Gross Margins:
Gross Margin came in at 81.0%. This is down from 84.6% in 2024 and was impacted by restructuring and impairments.
Operating Profit:
Operating profit increased by 5% in Danish kroner and 10% at CER to DKK 95.9 billion, impacted by one-off restructuring costs of ~DKK 9B related to the company-wide transformation with the aim of streamlining Novo Nordisk’s operations to reinvest for growth.
If Novo had not incurred the restructuring costs of DKK 9B then operating profit would have increased by 15% in Danish kroner and 21% at CER.
Note the restructuring is expected to generate DKK 8 billion in annual savings for reinvestment
R&D:
Novo Nordisk announced that the US FDA had approved an indication for Wegovy® for the treatment of MASH.
Further, Novo Nordisk agreed to acquire Akero Therapeutics, Inc. and its phase 3 FGF21 analogue in MASH and Omeros’ clinical-stage MASP-3 inhibitor zaltenibart within Rare blood disorders.
Within Rare disease, Novo Nordisk submitted Mim8 for regulatory approval in the EU and in the US. Finally, cagrilintide phase 3 development was initiated, with the potential to be the first amylin monotherapy treatment on the market for weight management.
Extraordinary General Meeting:
Board of Directors decided to convene an Extraordinary general meeting, it is to be held on 14 November 2025 to elect new members of the Board of Directors of Novo Nordisk.
Full-year 2025 outlook:
Sales growth is now expected to be 8-11% at CER with operating profit growth now expected to be 4-7% also at CER, including a negative full-year impact of around DKK 8 billion from the company-wide transformation.
Sales and operating profit growth reported in Danish kroner is now expected to be 4 and 6 percentage points lower than at CER, respectively. The narrowing of the guidance ranges reflects lowered growth expectations for Novo Nordisk’s GLP-1 treatments within diabetes and obesity.
Challenges:
Competition from the likes of LLY, PFE and others
Compounding: Over 1 million US patients are using compounded GLP-1s, prompting expanded direct-to-patient and telehealth initiatives.
Medicaid coverage changes and the accepted Inflation Reduction Act’s maximum fair price for semaglutide products in Medicare Part D is set to impact sales from 2027.
Current position and plans:
I plan to hold my current position and will be monitoring quarter by quarter.
That DKK 9 billion restructuring charge is a huge hit but necesary for long-term positioning. The 15% growth without it shows the underlying business is still strong despite all the recent concerns. Market probably overreacted to the reported numbers without adjusting for that one-time expense.