NVO Stock Down Despite Q2 Earnings and Sales Beat on GLP-1 Growth

Novo Nordisk A/S NVO reported adjusted second-quarter 2026 earnings of 96 cents per American Depositary Receipt (ADR), which beat the Zacks Consensus Estimate of 82 cents. The company had reported adjusted earnings of 90 cents per ADR in the year-ago quarter.

Revenues of $12.21 billion increased 3% year over year at the constant exchange rate (CER) and topped the Zacks Consensus Estimate of $11.27 billion. However, NVO stock dropped 6% on Tuesday, as investors were disappointed by continued pricing pressure, uncertain U.S. growth and an outlook that still allows for a decline in 2026 sales and operating profit. All reported sales growth rates mentioned below are on a year-over-year basis and at CER.

NVO’s Q2 Results in Detail

Novo Nordisk operates through two segments, Obesity and Diabetes Care, and Rare Disease. Sales in the Obesity and Diabetes Care segment increased 3% to DKK 73.58 billion.

Obesity Care sales climbed 15% to DKK 23.15 billion, reflecting continued demand for the Wegovy portfolio. Diabetes Care sales declined 1% to DKK 50.43 billion, partly offsetting momentum in obesity care.

Novo Nordisk’s Obesity Portfolio Gains

Wegovy injectable generated second-quarter sales of DKK 19.48 billion, remaining flat year over year, likely disappointing investors. Wegovy pill contributed DKK 3.22 billion in the second quarter.

The pill recorded roughly 2.9 million U.S. prescriptions during the quarter. Weekly prescriptions exceeded 265,000 for the week ended July 17, while total prescriptions since launch surpassed 5 million.

Year to date, Novo Nordisk shares have lost 12.9% against the industry’s 8.2% growth.

Image Source: Zacks Investment Research

NVO’s Diabetes Franchise Shows Mixed Trends

Ozempic sales reached DKK 31.38 billion, also remaining flat year over year. Sales of Ozempic pill and Rybelsus declined 5% to DKK 5.23 billion, while Victoza sales fell 81% to DKK 181 million.

Total insulin sales remained flat year over year at DKK 12.94 billion. Fast-acting insulin (Fiasp and NovoRapid) sales grew 3%; long-acting insulin (Tresiba, Xultophy, Levemir, and Awiqli) sales declined 1%; premix insulin (Ryzodeg and NovoMix) sales remained flat year over year; and human insulin sales declined 3%.

Novo Nordisk’s Rare Disease Sales Improve

Rare Disease sales increased 3% to DKK 4.91 billion. The segment represented a much smaller share of quarterly revenues than the Obesity and Diabetes Care business.

Rare blood disorder (NovoSeven, NovoEight, Esperoct, Refixia, NovoThirteen and Alhemo) sales declined 4% to DKK 2.90 billion. Rare endocrine disorder (primarily Norditropin and Sogroya) sales increased 13% to DKK 1.54 billion, while other rare disease (primarily Vagifem and Activelle) sales rose 18% to DKK 473 million.

NVO Raises Its 2026 Outlook

Novo Nordisk now expects adjusted sales growth in the range of 0% to a decline of 6%. The prior outlook called for a decline of 4-12%.

Adjusted operating profit growth is also projected between 0% and a decline of 6% compared with the previous expectation of a 4-12% decrease. The improved outlook reflects higher expectations for GLP-1 product sales.

The guidance still allows for contraction, which may have tempered the market’s response to the quarterly beat. Lower realized prices, stronger competition and semaglutide patent expirations in certain markets remain key concerns.

Novo Nordisk’s Pipeline Adds Uncertainty

The ZEUS phase III cardiovascular outcomes study, which evaluated ziltivekimab in patients with atherosclerotic cardiovascular disease, chronic kidney disease and systemic inflammation, failed to reduce the risk of major adverse cardiovascular events, its primary endpoint. The outcome of the ZEUS may result in a non-cash impairment charge in third-quarter 2026. Novo Nordisk also terminated development of monlunabant due to portfolio considerations.

In the REIMAGINE 4 study, CagriSema demonstrated non-inferiority to rival Eli Lilly’s Mounjaro (tirzepatide) for weight reduction but not for blood sugar reduction. These developments may have weighed on sentiment despite the strong quarterly results.

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 on NVO Stock

Novo Nordisk delivered a comprehensive second-quarter beat, with earnings and revenues surpassing expectations as obesity-care demand offset softer trends in parts of the diabetes portfolio. Wegovy pill uptake remains a notable growth driver, while Ozempic continued to post sales growth.

Nevertheless, the stock remained down because the results did not fully resolve longer-term concerns. The updated outlook still includes the possibility of declining sales and operating profit, while lower realized prices and intensifying GLP-1 competition could limit growth.

Pipeline setbacks added another layer of uncertainty. Although the broader Wegovy portfolio gives Novo Nordisk several growth opportunities, sustained execution will be critical as the company works to expand patient access and defend its market position.

NVO’s Zacks Rank & Stocks to Consider

Novo Nordisk currently carries a Zacks Rank #5 (Strong Sell).

Some better-ranked stocks in the biotech sector are Harmony Biosciences HRMY, Repligen RGEN and Liquidia Corporation LQDA, each currently sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

Over the past 60 days, estimates for Harmony Biosciences’ 2026 earnings per share have risen from $3.20 to $3.33, while estimates for 2027 have increased from $3.64 to $3.87 during the same time. HRMY shares have gained 3.5% year to date.

Harmony Biosciences’ earnings missed estimates in three of the trailing four quarters and beat on the remaining occasion, delivering an average negative surprise of 13.97%.

Over the past 60 days, estimates for Repligen’s 2026 earnings per share have risen from $1.99 to $2.06, while estimates for 2027 have increased from $2.57 to $2.62 during the same time. RGEN shares have declined 8.6% year to date.

Repligen’s earnings beat estimates in each of the trailing four quarters, with the average surprise being 16.80%.

Over the past 60 days, estimates for Liquidia’s 2026 earnings per share have risen from $2.97 to $3.02, while estimates for 2027 have increased from $4.81 to $5.31 during the same time. LQDA shares have surged 156.2% year to date.

Liquidia’s earnings beat estimates in three of the trailing four quarters, while missing the same on the remaining occasion, with the average surprise being 54.40%.

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This article originally published on Zacks Investment Research (zacks.com).

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