Novo Nordisk (NOVO) Q4 2025 earnings summary

Executive summary

• Achieved 10% sales growth at constant exchange rates (CER) in 2025, driven by GLP-1 products and strong obesity care performance, with operating profit up 6% at CER and major R&D milestones including successful phase 3 trials for CagriSema and FDA approval of the Wegovy pill.

• Obesity care sales surged 31% at CER to DKK 82.3 billion, reaching 45.6 million patients globally, with Wegovy launches in 35 new countries and strong early uptake of the Wegovy pill.

• Rare disease sales rose 9% at CER, led by rare endocrine disorder products and Sogroya uptake.

• Executive management changes announced, including new CEO and EVPs for U.S. Operations and Product & Portfolio Strategy, effective February 2026.

• Akero acquisition closed, adding a late-stage MASH asset to the pipeline.

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.

• Operating profit was DKK 127.7 billion, down 1% in DKK but up 6% at CER, impacted by DKK 8 billion restructuring costs.

• Gross margin declined to 81.0% from 84.7% in 2024, mainly due to amortizations, depreciation, and restructuring.

• Free cash flow was DKK 28.3–29 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 impact from 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%.

• Share repurchase program of up to DKK 15 billion approved for the next 12 months.