Novo Nordisk A/S

In Q1 2026, reported sales increased 32% to DKK 96.8 billion, but adjusted sales declined 4% at CER. Adjusted gross margin fell to 80.6% from 83.5% in 2025, and adjusted operating profit decreased 6% at CER. Obesity care sales rose 22%; U.S. operations sales fell 11% while international operations grew 6%. Novo said Q1 was impacted by lower realized prices, onetime costs, negative currency effects, and continued investment in R&D and commercial launches. Forward guidance for 2026 was raised: adjusted sales growth is now expected to be between minus 4% and minus 12% at CER, and adjusted operating profit growth is also expected to be minus 4% to minus 12% at CER. Management said the improved outlook reflects higher expectations for GLP-1 product sales, though it still incorporates competitive pressure, lower realized prices, Medicaid obesity coverage reductions in the U.S., compound semaglutide competition in some international markets, and assumed uptake for Wegovy pill. The SG&A ratio for the full year is expected to be in the low 20s.

The CEO framed 2026 as a year to improve competitiveness, progress the pipeline, and invest selectively for growth while still returning capital. He emphasized Novo Nordisk’s expanding reach in obesity, saying more than 4 million people are now using its obesity treatments and that Wegovy pill is creating a new oral peptide category. His tone was confident and forward-looking, especially around launches, pipeline breadth, and the company’s ability to treat more patients worldwide.

The CFO focused on the mix of reported versus adjusted results and the reasons behind margin pressure. He highlighted reported sales of DKK 96.8 billion, adjusted sales down 4%, adjusted gross margin of 80.6% versus 83.5% in 2025, and adjusted operating profit down 6% at CER. He also cited the DKK 8 billion transformation savings plan being on track, around 68,000 employees at quarter-end, and Q1 investment of about DKK 22 billion in R&D and commercial initiatives plus nearly DKK 38 billion returned to shareholders through dividends and buybacks. On capital allocation, he stressed reinvesting savings into growth opportunities rather than prioritizing short-term margin optimization.

Analysts pressed on Wegovy pill titration, supply, pricing, and inventory, and management said titration is tracking as expected, supply is not unlimited but is being scaled, and early international launches are being paced gradually. Questions also focused on SG&A and R&D phasing; management said Q1 benefited from a favorable legal provision adjustment, the company is heavily funding the Wegovy pill and other launches, and full-year SG&A should be in the low 20s while R&D spend should be higher in coming quarters. On pricing, management said the oral product is at the current “sweet spot,” but pricing remains dynamic as the addressable market expands.