Novo Nordisk Lowers 2025 Outlook Despite Q1 Profit Beat on Strong GLP-1 Sales

Novo Nordisk (NYSE:NVO) trimmed its full-year 2025 sales and profit forecast on Wednesday, citing weaker-than-expected U.S. prescription growth for its branded GLP-1 drugs, even as first-quarter earnings surpassed analyst expectations. The Danish pharmaceutical giant, known for its obesity and diabetes treatments like Wegovy and Ozempic, attributed the lowered outlook to increasing competition from compounded versions of GLP-1 medications in the United States.

CEO Lars Fruergaard Jorgensen highlighted an 18% year-over-year sales growth in Q1, driven by the continued adoption of Novo's innovative GLP-1 therapies. However, he acknowledged the headwinds posed by the surge in compounding, which has undercut branded drug penetration in key U.S. markets.

As a result, Novo now expects full-year 2025 sales growth in local currencies to range between 13% and 21%, down from the previously guided 16%-24%. The company also revised its operating profit growth forecast to 16%-24%, from an earlier estimate of 19%-27%.

Despite the cautious outlook, Novo Nordisk delivered strong financial results for the quarter. Operating profit (EBIT) came in at 38.79 billion Danish crowns ($5.90 billion), beating the 37.20 billion average forecast from 26 analysts in a company-compiled consensus. This marks a 22% increase compared to the same period last year, reflecting robust global demand for its weight-loss and diabetes treatments.

Shares in Novo Nordisk are closely watched by investors amid the ongoing GLP-1 boom, as the company faces mounting challenges balancing supply, pricing pressure, and rising competition in the fast-growing obesity drug market.

The company remains a leader in the GLP-1 segment but must navigate a rapidly evolving landscape in its largest market.