Earnings Highlight

· Revenue: Novo Nordisk achieved revenue of $11.67 billion in Q2 of the 2025 fiscal year, a 19% increase year-over-year, but it fell short of market expectations. Growth was primarily driven by strong performance in obesity care and rare diseases.

· Earnings Per Share (EPS): Q2 EPS was $0.91, up 40% year-over-year, but below market expectations, reflecting cost pressures and the impact of market competition. 

Segment Performance - Products

TradingKey - Diabetes and Obesity Care Q2 2025 sales reached approximately $11.067 billion, accounting for over 90% of total revenue, making it the company’s core growth engine. Rare diseases recorded sales of approximately $757 million in the same period, accounting for about 6% of total revenue, with steady performance.

Diabetes Care

· GLP-1 Drugs: Including Ozempic (semaglutide injection), Rybelsus (oral semaglutide), and Victoza (liraglutide), Q2 sales were approximately $5.902 billion, up 8% year-over-year at constant exchange rates. Ozempic’s growth in the U.S. market slowed, facing competitive pressure.

· Insulin: Covering long-acting insulin (e.g., Tresiba), premixed insulin, rapid-acting insulin, and human insulin, Q2 sales were approximately $1.961 billion, up 5% year-over-year at constant exchange rates, with stable performance.

Obesity Care

· Key Products include Wegovy (semaglutide for weight management) and Saxenda (liraglutide). Q2 sales were approximately $3.134 billion, up 53% year-over-year at constant exchange rates. Of which, Wegovy contributed approximately $3.004 billion, up 75% at constant exchange rates, becoming a growth highlight, though U.S. market growth fell short of expectations.

Rare Diseases

· Rare Blood Disorders: Including hemophilia A, hemophilia B, and NovoSeven (recombinant coagulation factor VIIa), Q2 sales were approximately $476 million, up 13% year-over-year at constant exchange rates.

· Rare Endocrine Disorders: Primarily treatments for growth hormone deficiency, Q2 sales were approximately $218 million, up 100% year-over-year at constant exchange rates, showing strong potential.

Segment Performance - Geography

At constant exchange rates, Novo Nordisk’s Q2 2025 geographic segment performance was as follows: U.S. market sales were $6.61 billion, up 17%, impacted by slowing demand for GLP-1 drugs; international market total sales were $5.214 billion, up 19%. Among them, EUCAN (Europe, Canada, Australia) sales were $2.53 billion, up 16%; emerging markets sales were $1.161 billion, up 22%; APAC (Asia-Pacific) sales were $864 million, up 35%, with outstanding performance; China region sales were $660 million, up 6%, with relatively moderate growth.

Future Outlook

Despite strong Q2 financial performance, Novo Nordisk lowered its full-year 2025 growth expectations, projecting sales growth of 8-14% and operating profit growth of 10-16% at constant exchange rates. The downward revision is mainly due to slowing demand for GLP-1 drugs in the U.S. market, particularly Wegovy in the obesity market and Ozempic in the diabetes market, which fell short of expectations, affected by competition from Eli Lilly’s Zepbound, U.S. drug price negotiation policies, and market saturation.

To address challenges, the company plans to expand market access through direct-to-consumer cash channels, strengthen pharmacy and telemedicine partnerships. The international market experience of new CEO Maziar Mike Doustdar may drive further growth in emerging markets (accounting for 40% of revenue), but stabilizing the U.S. market remains critical. In the long term, the company’s next-generation therapies and Wegovy’s MASH (metabolic-associated steatohepatitis) indication are expected to significantly expand the market, with clinical trial progress and regulatory approvals being key variables. However, competition from compounded GLP-1 drugs, potential regulatory changes (e.g., Trump’s MFN drug pricing policy), and pricing pressures may pose risks to short-term growth.

Investors should focus on U.S. market performance, progress on Wegovy’s new indications, and growth potential in emerging markets. In the short term, caution is needed regarding policy and competitive risks, while in the long term, growth opportunities from next-generation therapies can be anticipated.

Novo Nordisk FY2025 Second Quarter Earnings Preview

Market Expectations

Novo Nordisk’s Q2 2025 earnings report is expected to be released before the U.S. market opens on August 6. Below are the market expectations for Novo Nordisk’s Q2 2025 revenue and earnings per share (EPS):

• Revenue Expectation: Novo Nordisk’s total revenue for Q2 2025 is projected to reach $11.88 billion, an approximately 21% increase compared to $9.82 billion in Q2 2024, reflecting continued market optimism about demand for GLP-1 drugs in the second quarter.
• EPS Expectation: Novo Nordisk’s earnings per share (EPS) for Q2 2025 is expected to be $0.94, a nearly 45% increase from $0.65 in Q2 2024, reflecting market optimism about improved profitability of the company’s main product lines in the second quarter.

Key Investor Focus Areas

The recent sharp decline in Novo Nordisk's stock price has drawn additional attention from investors, particularly following the company's announcement on July 29, 2025, of a leadership change and the appointment of new CEO Maziar Mike Doustdar, while also lowering its full-year 2025 sales growth guidance (from 13%-21% to 8%-14%), primarily due to slower growth in the U.S. GLP-1 market. The following are key points investors should focus on:

U.S. Market Performance: The company noted that growth in the U.S. GLP-1 market has been below expectations, possibly due to increased competition (such as Eli Lilly’s multi-target GLP-1 drugs and HIMS’s low-cost compounded drugs), regulatory changes, or supply chain bottlenecks. Investors should focus on the earnings report’s detailed analysis of this issue to assess short-term risks and long-term impacts.

Competitive Response Strategies: The company has taken steps to address competition, including legal actions against illegal compounded drug sales and launching new patient access programs (e.g., the Wegovy $499 plan) and an exclusive agreement with CVS. Investors should monitor the effectiveness of these strategies.

Leadership Change: CEO Maziar Mike Doustdar, with 33 years of experience at the company and a background in leading international operations, may introduce strategic shifts. Investors should pay attention to his vision for the company’s future development, particularly in R&D and market expansion strategies.

Second-Half 2025 Outlook: Following the downward revision of full-year guidance, investors need to understand the Q2 earnings report’s expectations for the second half of the year, particularly whether the company can achieve the upper end of the guidance range through commercial execution and market expansion.

Pipeline Progress: Novo Nordisk’s innovative pipeline in diabetes, obesity, and rare diseases is a source of its long-term value. Investors should focus on new drug development progress, clinical trial results, and potential future revenue contributions.

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