Novo Nordisk (NOVO) Q4 2025 London conference call earnings summary

Executive summary

• Sales and profit more than doubled over five years, with 2025 sales reaching DKK 309.1 billion, up 10% at CER, driven by GLP-1 and obesity care, while operating profit grew 6% at CER but was flat in DKK due to restructuring costs.

• Obesity care sales surged 31% at CER to DKK 82.3 billion, with Wegovy pill launch exceeding expectations and rapid uptake in the US, making it the top brand for new prescriptions.

• Rare disease sales increased 9% at CER, with strong growth in rare endocrine disorders.

• Major R&D milestones included successful phase 3 trials for CagriSema, phase 2 for zenagamtide, and multiple regulatory submissions.

• Executive management changes and a 10% workforce reduction were announced.

Financial highlights

• Net profit for 2025 reached DKK 102.4 billion, with diluted EPS up 2% to DKK 23.03 and free cash flow of DKK 29 billion.

• Gross margin declined to 81.0% from 84.7% due to restructuring and acquisition-related costs.

• Dividend per share increased for the 30th consecutive year, reaching DKK 11.70, with a payout ratio around 50%.

• Share buyback program of DKK 15 billion initiated for 2026.

• Equity ratio improved to 35.7% from 30.8% year-over-year.

Outlook and guidance

• 2026 adjusted sales and operating profit guidance is -5% to -13% at CER, reflecting price declines, patent expiry, and competition.

• Non-adjusted 2026 guidance: sales growth -1% and operating profit growth 11% at CER, boosted by a USD 4.2 billion reversal of 340B provisions.

• Free cash flow for 2026 projected at DKK 35–45 billion; CAPEX around DKK 55–60 billion.

• Effective tax rate expected at 21–23%.

• Margin guidance remains flat despite top-line decline, supported by cost discipline and lower restructuring costs.