Novo Nordisk stock came under heavy selling pressure on Tuesday, with NVO shares plunging more than 12% after the Danish drugmaker warned that sales and profit growth could decline sharply in 2026. The outlook jolted investors who had grown accustomed to years of rapid expansion driven by blockbuster weight-loss and diabetes treatments.
Shares of Novo Nordisk were trading near $51 in US markets, down from a previous close near $59, marking one of the stock’s steepest single-day drops in recent years. The sell-off briefly triggered a trading halt as volatility surged across the healthcare sector.
The move followed the company’s release of its initial 2026 outlook alongside mixed full-year 2025 results. While Novo Nordisk reported revenue growth that narrowly exceeded market expectations, investors focused squarely on management’s warning that the growth engine powering its rise may be slowing.
For 2026, Novo Nordisk expects sales to decline between 5% and 13% at constant exchange rates, a far weaker trajectory than analysts had anticipated. Operating profit is also expected to contract, reflecting mounting pricing pressure and the approaching loss of exclusivity for semaglutide, the active ingredient behind Wegovy and Ozempic.
Semaglutide is set to face patent expirations in several key international markets, including Canada, Brazil, and China, while pricing dynamics in the United States are becoming increasingly challenging. Management cited regulatory and policy pressures that could weigh on margins in its most profitable market.
The company’s 2025 numbers painted a more nuanced picture. Novo Nordisk reported approximately DKK 309 billion in annual sales, representing mid-single-digit growth year over year. Its obesity care segment continued to expand at a robust pace, while diabetes care delivered more modest gains.
However, operating profit and net income both came in slightly below market expectations, reinforcing concerns that rising competition and pricing headwinds are beginning to erode the profitability of Novo’s core franchises.
Investors are also closely watching competitive dynamics in the weight-loss market. US rival Eli Lilly has gained significant ground with its own GLP-1 therapies, capturing market share and setting the stage for an intensifying battle as new oral and injectable treatments approach commercialization.
Novo Nordisk is betting that innovation can help it regain momentum. The company recently launched an oral version of Wegovy in the United States, marking a first for obesity treatment and offering a potential advantage in convenience-focused patient segments. Early uptake has been described as encouraging, though investors remain cautious about how quickly it can translate into meaningful revenue.
Alongside its outlook, Novo Nordisk proposed a final dividend of DKK 7.95 per share for 2025 and announced a new share buyback program of up to DKK 15 billion, signaling confidence in its balance sheet despite the tougher growth environment ahead.
Still, sentiment around the stock remains fragile. NVO shares lost nearly half their value last year amid repeated guidance cuts and leadership changes, and Tuesday’s warning reignited fears that the worst of the adjustment may not yet be over.
For investors, the next phase hinges on whether Novo Nordisk can defend pricing, scale its new oral therapies, and stabilize US sales before competitive pressure further compresses margins. Until clearer signs of a turnaround emerge, volatility in NVO stock is likely to remain elevated.
Broader market reaction to the update underscored the sector-wide implications of Novo’s warning, with rival drugmakers also seeing shares drift lower as investors reassessed growth expectations across the weight-loss space. More context on the company’s outlook can be found through Reuters’ market coverage.
