Novo beats all expectations
Novo’s net sales amounted to 79,195 million Danish kroner, compared to an average forecast of 73,066 million Danish kroner. This represents a very strong increase in sales that caught everyone by surprise.
Operating profit reached 23,011 million Danish kroner (down from 23,682 million), with an operating margin of 29.1 percent. The result was impacted by write-downs totaling 8.7 billion Danish kroner. On average, analysts had expected 25,640 million.
At the same time, the company is raising its full-year 2026 forecasts—a shift upward following a series of downward adjustments. This was not entirely unexpected; the CEO has indicated in various interviews that the company intends to be more cautious in its future guidance, aiming to deliver positive surprises instead.
Sales within the obesity treatment segment increased by 24 percent.
The obesity medication Wegovy generated 5.4 billion Danish kroner in sales, exceeding the expected 4.6 billion. This points toward a higher share price, as estimates for both this product and the 2026 outlook are set to rise. The actual figure came in nearly 17 percent above expectations.
Ozempic recorded quarterly sales of 29,706 million Danish kroner, surpassing the forecast of 26,546 million. Consequently, the result was nearly 12 percent higher than anticipated. Rybelsus, an oral diabetes medication, generated sales of 4,938 million kronor, compared to expectations of 4,753 million Danish kroner. The result was just under 4 percent above expectations.
Capital expenditures (Capex) are expected to be around 50 billion Danish kroner, down from the previous estimate of approximately 55 billion Danish kroner.
Novo forecasts free cash flow for the year to be between 60 and 70 billion Danish kroner—an increase from the previous range of 45–55 billion Danish kroner. The dividend is secure.
Novo shares rose by approximately 6% at the opening on Wednesday morning and now account for about 3.5% of my total portfolio. The company is performing well—perhaps not as strongly as in previous years, but still showing growth.
I entered Novo end of last year seeing opprtunity as a long-term investor. I am happy to add more at these levels…
