Novo Nordisk (NVO), the maker of the GLP-1 obesity and diabetes drugs, reported revenue of DKK 78.49B for the quarter ended June 30, 2026, up 2.1% from a year earlier, while net income fell 20.8% to DKK 20.99B. The company still beat Wall Street's estimates on its Aug. 5, 2026 report. The data show sales still growing while margins narrowed.
Key facts
- Aug. 5, 2026 report: earnings per share were 0.96 USD against an estimate of 0.82 USD (a difference of +$0.14, or 17.1%). Revenue was $12.13B against an estimate of $10.89B (+$1.24B, or 11.4%).
- Quarter ended June 30, 2026 (Q2 FY2026): revenue DKK 78.49B, operating income DKK 27.06B, net income DKK 20.99B, diluted EPS 4.74 DKK.
- Year-ago quarter (ended June 30, 2025): revenue DKK 76.86B, operating income DKK 33.45B, net income DKK 26.50B, diluted EPS 5.96 DKK.
- Share price: 39.43 USD as of Oct. 22, 2026, up 0.95% on the latest quote. The 52-week range is 35.12-64.16 USD. Market cap is $174.58B.
- Next earnings date: Nov. 4, 2026, with an EPS estimate of 0.742 USD and a revenue estimate of $11.14B.
Note on currencies: Novo reports in Danish kroner (DKK). The US-listed shares trade in dollars, and the Aug. 5 EPS and revenue comparison above is in USD. We do not mix the two.
What happened
The theme first. GLP-1 drugs mimic a gut hormone that lowers appetite and blood sugar. Investors are debating whether competition and pricing will weigh on profit per patient, while demand for the class remains a central part of the story. Headlines this week, such as comparisons with smaller obesity-focused rivals and previews of how Novo's GLP-1 portfolio sales may support upcoming results, reflect that debate.
Novo's latest quarter is a concrete example. Revenue grew modestly from a year earlier, but operating income and net income fell. Operating margin (the share of sales left after running the business) was 34.5%, against 43.5% in the year-ago quarter. Gross margin, which shows what is left after the direct cost of making the drugs, was 78.2%, against 83.3%.
The company's own filings and statements are the best place to see exactly why margins narrowed. We did not have a call transcript for this piece, so we are not quoting executives. The financial statements show that profit fell faster than sales, which usually points to some mix of lower selling prices, higher costs, or heavier spending on selling and research. We cannot say from the data given how much each contributed.
The beat against estimates is real, but estimates are set by analysts and can be low. Beating them does not mean the business earned more than it did a year ago in kroner. It did not.
The quarterly trend
The past quarters show how uneven results have been:
| Quarter ended | Revenue | Gross margin | Operating margin | Net income | |---|---|---|---|---| | June 30, 2025 | DKK 76.86B | 83.3% | 43.5% | DKK 26.50B | | Sept. 30, 2025 | DKK 74.98B | 76.1% | 31.6% | DKK 20.01B | | Dec. 31, 2025 | DKK 79.14B | 80.9% | 40.1% | DKK 26.89B | | March 31, 2026 | DKK 96.82B | 86.0% | 61.6% | DKK 48.56B | | June 30, 2026 | DKK 78.49B | 78.2% | 34.5% | DKK 20.99B |
The quarter ended March 31, 2026 stands out, with revenue of DKK 96.82B and an operating margin of 61.6%. The June quarter returned to a level close to the other quarters. That makes the March quarter look like the exception rather than the new normal, though the data alone does not tell us why it was so high.
Cash flow
Cash flow was uneven too. In the quarter ended June 30, 2026, operating cash flow was DKK 55.20B and free cash flow (cash left after capital spending) was DKK 42.40B. In the quarter ended March 31, 2026, free cash flow was DKK 12.04B. In the quarter ended Dec. 31, 2025, free cash flow was negative DKK 36.22B, when capital expenditure reached DKK 43.84B. That points to heavy investment, possibly in manufacturing capacity, though the figures alone do not confirm the purpose.
The balance sheet as of June 30, 2026 shows cash and short-term investments of DKK 44.98B, total debt of DKK 140.13B, net debt of DKK 95.64B and shareholders' equity of DKK 221.28B. Debt to equity is 0.63.
Why it matters for investors
Valuation looks low next to peers, with a caveat. On a trailing 12-month basis, Novo's price-to-earnings ratio (share price divided by yearly earnings per share) is 10.10. Peers shown by our data: AbbVie (ABBV) 80.26, Amgen (AMGN) 27.58, AstraZeneca (AZN) 25.90 and GSK 15.95. Novo's net margin (profit as a share of sales) is 35.3%, against AbbVie 9.8%, Amgen 22.9%, AstraZeneca 17.0% and GSK 14.5%. However, both the trailing P/E and the trailing net margin include the unusually strong March 2026 quarter (net income DKK 48.56B, operating margin 61.6%), which lifts them and makes the stock look cheaper than the latest quarter alone would suggest. A low multiple can also mean the market expects profits to fall, which fits the recent decline in net income. Other trailing metrics: price-to-sales 3.55, EV/EBITDA 7.12 (a measure of company value against operating earnings), price-to-free-cash-flow 23.88, and a dividend yield of 4.4%.
Analysts lean positive. Of 39 ratings, 1 is strong buy, 22 are buy, 13 are hold and 3 are sell, for a consensus of "Buy". The analyst price targets average 42.33 USD, with a median of 40.00 USD, a high of 47.00 USD and a low of 40.00 USD. The shares were quoted at 39.43 USD on Oct. 22, 2026, so analysts' targets sit only modestly above the price. The most recent rating action in the past 30 days was BMO Capital maintaining Market Perform on Oct. 12, 2026. A financial model from FMP, a data provider, estimates a discounted cash flow value of 75.42 USD per share. That is a model output built on assumptions and is not a forecast from us. Models like this are sensitive to growth inputs, which are exactly what is uncertain here.
Our MoonshotScore. Stock Expert AI's MoonshotScore V2 for Novo is 91.5 (Exceptional). The pillars, compared with the sector, are quality 98, growth 77, valuation 67, safety 63 and momentum 49. Quality is the strongest area, reflecting the high margins above. Momentum is the weakest, which matches a share price well below its 52-week high of 64.16 USD. Financial strength scores are Piotroski 6 (on a 0-9 scale) and Altman Z 3.71.
What could go wrong. Profit has fallen while sales rose, and if that continues, a low P/E may reflect real pressure rather than a bargain. Competition in obesity drugs is a focus of investor debate, and it is an open question whether pricing will weigh on results. Spending swings, such as the large capital expenditure in the quarter ended Dec. 31, 2025, can strain cash flow. Analyst coverage for the coming quarters is thin: the estimates below rest on a single analyst each. Nothing here is a recommendation to buy or sell.
What to watch next
- Nov. 4, 2026 earnings: the EPS estimate is 0.742 USD and the revenue estimate is $11.14B. Check whether operating margin moves back toward the earlier quarters or stays near the latest figure.
- Analyst estimates: for the period ending March 30, 2027, the one analyst estimates revenue of DKK 77.15B (range DKK 72.77B-DKK 80.01B) and EPS of 6.38 DKK. For the period ending June 30, 2027, the estimate is revenue of DKK 78.21B (range DKK 73.78B-DKK 81.12B) and EPS of 5.76 DKK. Against the June 2026 quarter's DKK 78.49B, these point to roughly flat sales.
- Cash flow and capital spending: whether free cash flow stays positive after the investment seen in late 2025.
- Margins: gross and operating margins are the clearest signal of pricing pressure.
Frequently asked questions
Q: Did Novo Nordisk beat earnings estimates in its latest report?
Yes. On Aug. 5, 2026, Novo reported EPS of 0.96 USD against an estimate of 0.82 USD, and revenue of $12.13B against an estimate of $10.89B. However, net income in kroner for the quarter ended June 30, 2026 was lower than a year earlier.
Q: Why did Novo Nordisk's profit fall when revenue grew?
Revenue rose 2.1% to DKK 78.49B, but operating income fell to DKK 27.06B from DKK 33.45B and net income fell 20.8%. Both gross and operating margins narrowed, which means costs or prices took a larger bite out of each sale. The data we have does not break down the exact causes, so check the company's filings for the stated reasons.
Q: Is Novo Nordisk stock cheap compared with other drugmakers?
On trailing earnings it looks lower-priced than the peers we track. Its P/E is 10.10, against 15.95 for GSK, 25.90 for AstraZeneca, 27.58 for Amgen and 80.26 for AbbVie. Note that the trailing P/E and net margin are boosted by the unusually strong March 2026 quarter, so the stock looks cheaper than the latest quarter alone would imply. A low multiple can also reflect doubts about future profit, so it is not proof of a bargain. The analyst consensus target averages 42.33 USD, against a price of 39.43 USD on Oct. 22, 2026.
This is educational content, not investment advice. Past performance does not guarantee future results.