Novo Nordisk Shares Plunge on Grim 2026 Forecast

Novo Nordisk DK0062498333

Investors in pharmaceutical giant Novo Nordisk were dealt a severe blow this week as the company issued a surprisingly weak outlook. The Danish firm, long a market favorite, projected declining sales and profits for 2026, triggering a sharp sell-off that erased billions in market value.

The primary catalyst for the downturn was the financial guidance for the coming year. In a report released Tuesday, Novo Nordisk stated it anticipates both its adjusted sales and operating profit to fall by between 5% and 13% in 2026, measured at constant exchange rates.

Company leadership pointed to several specific headwinds. Intensifying pricing pressure in the critical U.S. market, driven by regulatory shifts, is a key concern. Furthermore, competition is heating up in the lucrative obesity treatment sector. Compounding these issues is the impending loss of patent protection for the key drug semaglutide in several major international markets, which is expected to significantly pressure revenue.

Strong Past Performance Offers Some Solace

This sobering forecast stands in contrast to a robust performance for the recently concluded fiscal year. Novo Nordisk finished 2025 with sales rising 10% to 309.1 billion Danish kroner (DKK). Operating profit increased by 6%. The growth engine remained the obesity care division, which surged 31% thanks to the blockbuster drug Wegovy.

A potential bright spot for the future is the newly launched oral formulation of Wegovy, introduced in the United States in January 2026. The weekly prescription rate for this new product had already reached approximately 50,000 by the end of its first month. In an effort to maintain shareholder confidence, the board has proposed a total dividend of 11.70 DKK per share for 2025 and authorized a new share repurchase program of up to 15 billion DKK.

Technical Picture Reflects Fundamental Concerns

The fundamental disappointment has been vividly reflected in the share price. Over the past seven trading sessions, the stock has shed more than 15% of its value. It now trades more than 50% below its 52-week high, which was recorded in February 2025.

The 2026 outlook represents a definitive turning point for the pharmaceutical leader. While the ongoing buyback initiative and dividend provide some underlying support, the company's operational focus must now squarely shift to successfully commercializing its new products. This strategy is critical to mitigating the projected sales decline stemming from U.S. market pressures and patent expirations.