Novo Nordisk (NYSE:NVO) reported fourth-quarter results on Wednesday that exceeded analyst expectations, but shares plummeted as the Danish pharmaceutical giant issued a "shocking" outlook for 2026, warning of a potential double-digit decline in sales and profit.
The Bagsvaerd-based drugmaker reported fourth-quarter net income of $4.19 billion, or $0.94 per share.
When adjusted for non-recurring items, earnings reached $1 per share, topping the Zacks consensus of $0.90.
Revenue for the period hit $12.34 billion, a result that similarly beat the $12.08 billion anticipated by Wall Street.
For the full year 2025, Novo Nordisk generated a profit of $15.51 billion on $46.8 billion in revenue, representing 10% annual growth at constant exchange rates.
However, the stock fell as much as 14% in early trading after management projected that "adjusted" sales and operating profit could drop between 5% and 13% in 2026.
This stark reversal from years of double-digit growth is driven by intensifying competition in the obesity market and a landmark pricing deal with the Trump administration that significantly lowered the cost of its blockbuster GLP-1 therapies, Ozempic and Wegovy, in the U.S.