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Novo Nordisk Plunges After Releasing a Brutal Forecast. Should You Dump the Stock?

By David Jagielski | February 04, 2026, 3:15 PM

Key Points

  • Novo Nordisk expects its sales to decline, on an adjusted basis, by between 5% and 13% this year.

  • Pricing pressures and increased competition are weighing on its growth prospects.

  • The company recently obtained approval for its weight loss pill.

The share price of Novo Nordisk (NYSE: NVO) plunged by nearly 15% on Tuesday after the company posted sales and earnings numbers for its most recent quarter and released its 2026 guidance, which was downright awful.

Investors have been selling the stock in droves. Is it doomed and heading lower, or could this be a good time to buy the stock at a massive discount?

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Frustrated person sitting next to a laptop.

Image source: Getty Images.

Novo Nordisk expects revenue to drop as much as 13% this year

The big news that shook the stock market was the Denmark-based pharmaceutical giant's outlook for the year. Due to pricing pressure and rising competition in the GLP-1 market, the healthcare company is projecting its adjusted sales to drop between 5% and 13% this year. These are adjusted numbers that effectively represent what the company expects its true organic rate to be for the year.

It's a huge disappointment for the GLP-1 drug maker, especially after it recently obtained approval for its GLP-1 weight loss pill. The stock was doing well up until this recent news shattered investor confidence.

However, if demand for its weight loss pill proves to be stronger than anticipated, there could be upgrades to the guidance over time. Plus, with the stock trading at just 14 times its trailing earnings, it's a decent value buy at its current levels. The average stock on the S&P 500 trades at nearly 26 times its earnings.

As bad as things may seem, Novo Nordisk still has a robust diabetes and obesity business that should grow over the years. With it still in the early stages of rolling out its weight loss pill, it can still be a good buy for the long haul. Investors shouldn't panic on this news, as it may prove to be a great buying opportunity.

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David Jagielski, CPA has positions in Novo Nordisk. The Motley Fool recommends Novo Nordisk. The Motley Fool has a disclosure policy.

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