Novo Nordisk (NOVO) Q4 2025 earnings summary

Executive summary

• Achieved 10% sales growth at constant exchange rates (CER) in 2025, driven by GLP-1 and obesity care, with operating profit up 6% at CER and major R&D milestones including CagriSema and senagametide phase III readouts.

• Obesity care sales surged 31% at CER to DKK 82.3 billion, reaching 45.6 million patients globally, with WegovyⓇ pill launch and strong early uptake.

• Executive management changes announced, including new CEO and EVPs, and a 10% workforce reduction as part of restructuring.

• Akero acquisition closed, adding a late-stage MASH asset to the pipeline, and multiple regulatory submissions advanced the product portfolio.

• Reached 45.6 million patients globally, up 1% year-over-year.

Financial highlights

• Full-year 2025 sales reached DKK 309.1 billion, up 10% at CER and 6% reported, with net profit at DKK 102.4 billion and diluted EPS at DKK 23.03.

• Gross margin declined to 81.0% from 84.7% in 2024, impacted by restructuring and acquisition costs.

• Operating profit was DKK 127.7 billion, down 1% in DKK but up 6% at CER, with DKK 8 billion in restructuring costs excluded from adjusted metrics.

• Free cash flow was DKK 28.3 billion, rebounding from negative DKK 14.7 billion in 2024.

• DKK 52 billion returned to shareholders via dividends, with a 2.6% increase in dividend per share and a new DKK 15 billion share repurchase program for 2026.

Outlook and guidance

• 2026 adjusted sales and operating profit growth expected at -5% to -13% at CER, reflecting pricing headwinds, patent expiries, and a one-off non-cash US rebate provision reversal.

• 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 billion.

• Effective tax rate expected between 21% and 23%.

• U.S. operations anticipate sales decline due to price reductions, MFN agreements, and Medicaid coverage loss; international operations expect mid-single digit growth, offset by patent expiry and competition.