Key Takeaways
Novo Nordisk (NYSE: NVO) raised its full-year guidance and saw its stock climb 7% after reporting first-quarter earnings that beat estimates, supported by strong sales from its Wegovy weight-loss drug.
"Our performance in the obesity care segment continues to demonstrate strong momentum, offsetting challenges in the diabetes market," CEO Lars Fruergaard Jørgensen said in the company's earnings release.
The Danish drugmaker reported Q1 2026 revenue of $15.17 billion, a 32% increase at constant exchange rates and well ahead of the $11.13 billion consensus estimate. Adjusted earnings per share came in at $1.04, beating the forecast of 87 cents. Sales in the company's Obesity Care division grew 35%, with the newly launched oral Wegovy pill contributing over $300 million.
Following the strong quarter, Novo Nordisk narrowed its full-year 2026 forecast for adjusted sales and operating profit decline to a range of 4% to 12%, an improvement from the previously anticipated 5% to 13% contraction. The results come as the company also announced new data showing a higher-dose Wegovy injection helped some patients lose 28% of their body weight.
The company announced on May 12 that a higher-dose version of its Wegovy shot resulted in some patients losing 28% of their body weight in clinical trials. According to the announcement, the majority of the weight loss—around 84%—came from losing body fat while preserving muscle function. This significant improvement in efficacy could help Novo Nordisk defend its market share against intense competition from Eli Lilly and other pharmaceutical rivals in the lucrative obesity treatment market.
The strong results were driven by the company's Diabetes and Obesity Care segment, which reported sales of DKK 91.36 billion ($13.2 billion), a 32% increase. Wegovy injection sales reached DKK 20.51 billion ($3 billion), up 26% year over year. While the performance was strong, the company continues to face pricing pressure in the U.S. diabetes market.
Despite the headwinds, the robust uptake of its GLP-1 products gave management the confidence to raise its 2026 outlook. The improved guidance reflects stronger expectations for GLP-1 product sales, particularly in obesity care. However, analysts at TD Cowen reiterated a Hold rating on the stock with a $42 price target, suggesting some caution remains.
The guidance lift signals management's confidence that demand for its key obesity treatments will remain strong, offsetting pricing pressures elsewhere. Investors will watch for the continued uptake of the Wegovy pill and the rollout of the higher-dose formulation to see if the momentum can be sustained against a backdrop of increasing competition.
This article is for informational purposes only and does not constitute investment advice.
