Novo Nordisk A/S NVO reported first-quarter 2025 earnings of 92 cents per American Depositary Receipt (ADR), which matched the Zacks Consensus Estimate. The company had reported earnings of 83 cents per ADR in the year-ago quarter.
Revenues of $11.02 billion increased 19% year over year in the Danish kroner (DKK) and 18% at the constant exchange rate (CER) in the reported quarter, driven by higher Diabetes and Obesity Care sales as GLP-1 product sales increased year over year, along with greater Rare disease sales. However, total revenues missed the Zacks Consensus Estimate of $11.33 billion. Novo Nordisk also trimmed its sales growth guidance to 13-21% in 2025 from the 16-24% expected growth announced earlier.
Despite lower-than-expected first-quarter revenues and a guidance cut for 2025, NVO stock price is gaining during the pre-market hours today, as the company expects its sales of its popular weight loss drug, Wegovy, to increase in the United States, its biggest market. Novo Nordisk hopes to achieve the same in the quarters ahead, as the impending shutdown of compounded versions of Wegovy, which have eroded its market share, may work in its favor. In late February, the FDA announced that the shortage of Wegovy has been resolved and the medicine is no longer in short supply.
All growth rates mentioned below are on a year-over-year basis and at CER. (See the Zacks Earnings Calendar to stay ahead of market-making news.)
NVO’s Q1 Results in Detail
Novo Nordisk operates under two segments: Diabetes and Obesity Care, and Rare disease.
The Diabetes and Obesity Care segment reported sales of DKK 73.5 billion in the quarter under discussion, which grew 19%. In Diabetes Care, fast-acting insulin Fiasp’s revenues were up 44%. NovoRapid revenues increased 5% and Human insulin revenues increased 2%. Premix insulin (Ryzodeg and NovoMix) revenues declined 7%. Sales of long-acting insulins (Tresiba, Xultophy, Levemir and Awiqli) increased 3% in the first quarter.
Ozempic, which has witnessed a strong launch and solid uptake so far, recorded sales of DKK 32.7 billion for the quarter, up 15%. Rybelsus, too, witnessed a strong uptake and recorded sales of DKK 5.7 billion for the quarter, up 13%. Victoza sales declined 46% during the reported quarter.
Obesity Care (Saxenda and Wegovy) sales were up 65% to DKK 18.4 billion. Wegovy sales continued to soar, recording DKK 17.4 billion in sales, representing a surge of 83%, driven by high prescription rates and Novo Nordisk’s efforts to meet the same.
Year to date, shares of NVO have plunged 22.9% against the industry’s 0.8% growth.
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Sales in the Rare disease segment were up 3% to DKK 4.6 billion in the first quarter of 2025. Sales of rare blood disorder products were DKK 2.9 billion, down 1%. Sales of hemophilia A products declined 10%. Hemophilia B products’ sales increased 27%. Sales of NovoSeven decline 5% to DKK 1.9 billion. Sales of Novo Nordisk’s rare endocrine disorder products jumped 14% to DKK 1.3 billion.
Sales and distribution costs climbed 10% in the reported quarter to DKK 14.9 billion. This increase was due to promotional activities related to Wegovy and Ozempic in the United States. In International Operations, costs related to the Wegovy launch and promotional activities contributed to the increase.
Research and development (R&D) costs were up 19% to DKK 10.3 billion. The rise in R&D costs was driven by increased clinical activity for late-stage studies and research activities mainly related to Diabetes and Obesity Care.
NVO Cuts 2025 Outlook
Novo Nordisk has revised its financial outlook for 2025. The company now expects its sales to grow in the range of 13-21% in 2025 compared with the previously guided range of 16-24%, both at CER. The company expects its operating profit growth to be in the range of 16-24% in the current year, down from 19-27%, both at CER. The sales guidance cut is a result of lower sales of branded GLP-1 treatments in the United States, due to the presence of compounded GLP-1s in the market.
Novo Nordisk’s outlook anticipates strong sales growth in both the United States and International markets, driven by rising demand for GLP-1-based obesity and diabetes treatments. With the FDA removing semaglutide injectables from its shortage list, the company expects a decline in compounded GLP-1 use in the second half of 2025. The outlook also factors in efforts to curb illegal compounding, expand Wegovy access through initiatives like NovoCare Pharmacy and CVS’ exclusive formulary coverage, as well as continued global market expansion for its weight loss drug.
However, NVO remains concerned about periodic supply constraints and drug shortages across certain products and geographies. To tackle the same, the company has been heavily investing in ramping up its internal and external production capacity to tackle both the short- and long-term demands of its GLP-1 products.
Novo Nordisk’s global diabetes value market share declined 0.6% over the past year to 33.3% due to increased competition from arch-rival Eli Lilly LLY, which markets its tirzepatide medicines as Mounjaro for diabetes and Zepbound for obesity. Despite this setback, the company remains focused on reinforcing its leadership in diabetes care, targeting a global market share of over one-third by 2025.
Novo Nordisk A/S Price, Consensus and EPS Surprise
Novo Nordisk A/S Price, Consensus and EPS Surprise
Novo Nordisk A/S price-consensus-eps-surprise-chart | Novo Nordisk A/S Quote
Our Take
Novo Nordisk reported lower-than-expected first-quarter revenues. Despite year-over-year increases in the sales of its Diabetes and Obesity Care and Rare disease products, the company’s total revenues fell short of expectations, primarily due to a slowdown in sales of its flagship GLP-1 obesity drug, Wegovy, amid increased availability of compounded alternatives. The recent removal of Wegovy from the FDA’s shortage list is expected to curb the supply of these compounded versions, potentially boosting Wegovy’s U.S. sales soon.
To tackle increasing competition from Eli Lilly, Novo Nordisk is developing new obesity treatments to stay competitive, especially in the U.S. market. A regulatory application seeking the approval of oral semaglutide 25 mg for weight management is currently under review by the FDA. NVO expects a final decision from the regulatory authority around the turn of the year. A positive outcome will greatly boost Novo Nordisk’s revenues as no other oral GLP-1 treatments for obesity are currently on the market. Oral pills, being more convenient than injectables, tend to boost patient adherence.
Novo Nordisk and Lilly have both announced price cuts for their respective obesity injections, allowing cash-paying patients to purchase the drugs for a reduced price. This has increased patient access, which is expected to drive the drugs’ sales in the future quarters.
Last week, Eli Lilly reported mixed first-quarter results as the company missed estimates for earnings but beat the same for sales. Mounjaro and Zepbound sales also beat first-quarter estimates. Additionally, LLY maintained its sales guidance for 2025 while lowering its earnings expectations to account for the acquired IPR&D charges incurred in the first quarter of 2025.
NVO’s Zacks Rank & Stocks to Consider
Novo Nordisk currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the biotech sector are Bayer BAYRY and ADMA Biologics Inc. ADMA, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
In the past 60 days, estimates for Bayer’s earnings per share have increased from $1.17 to $1.23 for 2025. During the same time, earnings per share have increased from $1.27 to $1.31 for 2026. Year to date, shares of Bayer have gained 39.3%.
BAYRY’s earnings matched estimates in two of the trailing three quarters while missing the same on the remaining occasion, the average negative surprise being 19.61%.
In the past 60 days, estimates for ADMA Biologics’ earnings per share have increased from 70 cents to 71 cents for 2025. During the same time, earnings per share estimates for 2026 have remained constant at 93 cents. Year to date, shares of ADMA have rallied 34.8%.
ADMA’s earnings beat estimates in three of the trailing four quarters while missing the same on the remaining occasion, the average surprise being 32.80%.
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