Novo Nordisk Q3 Earnings & Revenues Miss, GLP-1 Drugs Face US Hurdles

Novo Nordisk A/S NVO reported third-quarter 2025 earnings of 70 cents per American Depositary Receipt (ADR), which missed the Zacks Consensus Estimate of 77 cents. The company had reported earnings of 90 cents per ADR in the year-ago quarter.

Revenues of $11.74 billion increased 5% year over year in the Danish kroner (DKK) and 11% 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 $11.88 billion.

All growth rates mentioned below are on a year-over-year basis and at CER.

NVO’s Q3 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 70.26 billion in the quarter under review, representing an 11% increase. In Diabetes Care, fast-acting insulin Fiasp’s revenues were up 67%. NovoRapid revenues declined 2% and Human insulin revenues decreased 23%. Premix insulin (Ryzodeg and NovoMix) revenues decreased 1%. Sales of long-acting insulins (Tresiba, Xultophy, Levemir and Awiqli) increased 9% in the third quarter.

Ozempic, which had earlier witnessed a strong launch and solid uptake, recorded sales of DKK 30.74 billion for the quarter, up 9%. Rybelsus recorded sales of DKK 5.44 billion for the quarter, up 4%. Victoza sales recorded DKK 0.55 billion during the reported quarter.

Obesity Care (Saxenda and Wegovy) sales were up 18% to DKK 21.11 billion. Wegovy’s sales growth rate continues to slow, with third-quarter sales reaching DKK 20.35 billion, up 23%, as growth was impacted by the availability of illegal compounded versions in Novo Nordisk’s largest obesity market, the United States, as well as increased competition from Eli Lilly LLY.

Year to date, shares of NVO have plunged 43.9% against the industry’s 4.9% growth.

Sales in the Rare disease segment were up 9% to DKK 4.72 billion in the third quarter of 2025. Sales of rare blood disorder products were DKK 2.92 billion, up 3%. Sales of hemophilia A products increased 18%. Sales of hemophilia B products increased 29%. Sales of NovoSeven declined 13% to DKK 1.65 billion. Sales of Novo Nordisk’s rare endocrine disorder products jumped 20% to DKK 1.39 billion.

Sales and distribution costs climbed 14% in the reported quarter to DKK 16 billion. This increase was due to promotional activities related to Wegovy in the United States. In International Operations, costs related to the Wegovy launch and promotional activities for Ozempic contributed to the increase.

Research and development (R&D) costs shot up 65% to DKK 15.39 billion. R&D expenses rose due to higher spending on late-stage obesity research and one-time restructuring charges of about DKK 4 billion tied to the 2025 transformation and project closures, partly offset by the prior-year ocedurenone impairment.

NVO Cuts 2025 Outlook

Novo Nordisk further slashed the upper end of its 2025 guided range for both sales and operating profit growth. It now expects sales to increase 8-11%, down from the previous 8-14% range, and operating profit to grow 4-7% compared to the earlier 4-10% estimate, all at CER.

Novo Nordisk narrowed its full-year guidance as it continues to expect slower growth for its GLP-1 portfolio in diabetes and obesity amid intensifying competition, pricing pressure in the United States and continued mass compounding. While demand remains solid globally, especially in international markets, foreign-exchange headwinds and the absence of earlier U.S. gross-to-net benefits are weighing on reported performance. The company continues to pursue broader access initiatives and channel expansion for Wegovy, but competitive dynamics and pricing constraints are tempering expectations.

Operating profit guidance was also trimmed, reflecting the lower sales outlook and costs tied to recent M&A, including Akero and Omeros, along with ongoing investments from the company-wide transformation and Catalent site integration. While some spending reductions help offset these pressures, foreign-exchange headwinds are reducing reported earnings growth.

Novo Nordisk’s global diabetes value market share declined 2.3% over the past year to 31.6% due to increased competition from arch-rivalEli Lilly, which markets its tirzepatide medicines as Mounjaro for diabetes and Zepbound for obesity. Despite being on the market for less than three years, both drugs have become LLY’s key top-line drivers. In the first half of 2025, they generated combined sales of $14.7 billion, accounting for 52% of Eli Lilly’s total revenues. Last week, LLY reported strong third-quarter results, beating earnings and revenue estimates. Mounjaro and Zepbound revenues more than doubled year over year, driven by increased demand. The company also raised its 2025 full-year revenue and EPS guidance.

Our Take

Novo Nordisk reported weaker-than-expected third-quarter earnings results. 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.

Novo Nordisk is eyeing a comeback on the back of expanded indications of its semaglutide drugs, as well as good pipeline progress with several other new candidates for diabetes and obesity. These are part of the company’s efforts to tackle increasing competition from Eli Lilly, especially in the U.S. market.

Wegovy’s label has been expanded for reducing major cardiovascular events, easing HFpEF symptoms, noncirrhotic metabolic dysfunction-associated steatohepatitis, and relieving osteoarthritis-related knee pain in obesity. The FDA is also reviewing Novo Nordisk’s application for a 25 mg oral semaglutide (Wegovy pill) for obesity and cardiovascular disease, with a decision expected by year-end. Oral pills, being more convenient than injectables, tend to boost patient adherence.

Novo Nordisk A/S Price, Consensus and EPS Surprise

Novo Nordisk A/S price-consensus-eps-surprise-chart | Novo Nordisk A/S Quote

Ozempic is also the only GLP-1 therapy approved to reduce kidney disease progression and cardiovascular death in patients with type II diabetes (T2D) and chronic kidney disease. The drug is expected to have contributed meaningfully to the top line, along with Rybelsus oral pill, which is approved for T2D and cardiovascular risk reduction. NVO is also pursuing a label expansion of Ozempic in treating peripheral artery disease in the United States and the EU. Beyond metabolic diseases, NVO is also building out its rare disease segment, with the submission of a regulatory filing for Mim8 in hemophilia A in the United States and recent approvals of a broader label for its Alhemo injection for hemophilia A or B, further strengthening its position in the hemophilia space.

To tackle the GLP-1 product sales slowdown, Novo Nordisk has also announced a major restructuring program in September 2025, aimed at streamlining operations and reinvesting in its core diabetes and obesity businesses. The plan includes reducing its global workforce by about 9,000 employees, targeting annualized savings of around DKK 8 billion by 2026.

Novo Nordisk still has attractive long-term growth potential, but near-term risks remain elevated as reduced guidance, intensifying competition from Eli Lilly, persistent compounding pressure and U.S. pricing uncertainty weigh on GLP-1 momentum. With shares still struggling to recover, a cautious stance may be prudent until competitive and regulatory visibility improves.

NVO’s Zacks Rank & Stocks to Consider

Novo Nordisk currently carries a Zacks Rank #4 (Sell).

Some better-ranked stocks in the biotech sector are Beam Therapeutics BEAM and Amicus Therapeutics FOLD. While FOLD currently sports a Zacks Rank #1 (Strong Buy), BEAM carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

In the past 60 days, estimates for Amicus Therapeutics’ earnings per share have remained constant at 31 cents for 2025. During the same time, earnings per share estimates for 2026 have increased from 69 cents to 70 cents. Year to date, shares of FOLD have lost 4.5%.

Amicus Therapeutics’ earnings beat estimates in one of the trailing four quarters, missing the mark thrice, with the average negative surprise being 24.38%.

In the past 60 days, estimates for Beam Therapeutics' loss per share have narrowed from $4.36 to $4.23 for 2025. During the same time, loss per share estimates for 2026 have narrowed from $4.41 to $4.21. Year to date, shares of BEAM have lost 8.3%.

Beam Therapeutics’ earnings beat estimates in two of the trailing four quarters while missing the same on the remaining two occasions, the average negative surprise being 2.62%.

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