Novo Nordisk reported third‑quarter 2025 results on November 5, 2025, with adjusted earnings per share of DKK 4.50 (US $0.69) and revenue of DKK 74.98 billion (US $11.53 billion). The company fell short of consensus estimates of DKK 4.79 per share and DKK 76.68 billion in sales, a miss of DKK 0.29 per share and DKK 1.70 billion in revenue. The miss reflects a 5.1% year‑over‑year revenue increase that was below analysts’ expectations, driven largely by a slowdown in the GLP‑1 segment.
Segment sales showed a 18% rise in Wegovy to DKK 20.35 billion, while Ozempic grew only 3% to DKK 30.74 billion. The modest growth in Ozempic is attributable to intensified competition from Eli Lilly’s Mounjaro and Zepbound, as well as the proliferation of compounded GLP‑1 products that erode Novo’s market share. Wegovy’s growth, though still strong, is decelerating from the 23% year‑over‑year increase reported in the prior quarter, indicating that the obesity‑drug market is becoming more price‑sensitive and competitive.
One‑off restructuring costs of roughly DKK 8 billion, stemming from a company‑wide transformation, weighed on operating profit and prompted a downward revision of the full‑year operating‑profit growth outlook to 4‑7% at constant exchange rates. The restructuring, which included significant job cuts and cost‑saving initiatives, is expected to generate long‑term efficiencies but has temporarily compressed margins. Consequently, Novo lowered its full‑year sales growth guidance to 8‑11% from the previously projected 8‑14%, signaling management’s concern about near‑term demand softness.
CEO Mike Doustdar emphasized that the transformation has already delivered operational efficiencies and that the company will reinvest the savings into core diabetes and obesity initiatives. He noted that intensified competition, pricing pressure, and the continued use of compounded GLP‑1s are key factors limiting growth, but reaffirmed confidence in the company’s pipeline, including the upcoming launch of the Wegovy pill in the U.S. and select international markets.
Analysts reacted to the guidance cut with caution, citing the lower sales and operating‑profit outlook as a disappointment. The miss on revenue and EPS, combined with the headwinds from competition and pricing pressure, tempered enthusiasm for the quarter’s results. However, the company’s focus on cost discipline and strategic investments in high‑return areas suggests a long‑term resilience despite short‑term challenges.
The broader implications are that Novo Nordisk’s GLP‑1 business is facing a more crowded market, with competitors gaining share and compounded drugs eroding pricing power. The company’s restructuring and cost‑saving measures aim to offset these headwinds, while the planned launch of the Wegovy pill and continued investment in obesity research provide potential tailwinds. Investors will likely monitor how the company balances short‑term margin compression against long‑term growth opportunities in the obesity and diabetes markets.
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