Novo Nordisk raised its fiscal 2026 sales and operating profit outlook due to strong GLP-1 product momentum, particularly Wegovy and Ozempic. However, the stock tanked after Q2 sales fell significantly from Q1, primarily due to a tough comparison from a prior-year rebate reversal and non-cash impairment charges.
Novo Nordisk reported a mixed bag of results that led to a significant stock decline. While the company raised its fiscal 2026 outlook, driven by strong demand for its GLP-1 drugs like Wegovy and Ozempic, its second-quarter sales were down 19% from the first quarter. This decline was attributed to a DKK 2.6 billion rebate provision reversal in Q2 2025, creating a tough year-over-year comparison, and DKK 6.3 billion in non-cash impairment charges related to intangible pipeline assets. The market appears to be reacting more to the immediate sales decline and impairment charges than the positive long-term guidance, indicating short-term investor concern over the optics of the Q2 performance. This creates a potential short-term risk for traders focused on quarterly results, but a long-term opportunity for those believing in the sustained growth of GLP-1 products.