Fabian Schneider @FabiGoesForGold: "Novo Nordisk Q2 2026 –..."

Germany

Novo Nordisk Q2 2026 – Summary 𝐎𝐯𝐞𝐫𝐚𝐥𝐥 𝐜𝐨𝐧𝐜𝐥𝐮𝐬𝐢𝐨𝐧: 𝐁𝐞𝐭𝐭𝐞𝐫 𝐭𝐡𝐚𝐧 𝐞𝐱𝐩𝐞𝐜𝐭𝐞𝐝 At first glance, the figures appear weak due to the decline in profit. However, this is mainly due to one-time items. On an adjusted basis, Novo Nordisk delivered a solid quarter and once again raised its full-year outlook!! 𝐊𝐞𝐲 𝐌𝐞𝐭𝐫𝐢𝐜𝐬 Revenue +3% (adjusted +7%) Operating profit -16% (adjusted +11%) Free cash flow +57% Full-year forecast - raised again! Reported profit was impacted by a non-cash impairment charge of DKK 6.3 billion on pipeline projects. From an operational perspective, business performance was significantly better. 𝐖𝐞𝐠𝐨𝐯𝐲 𝐑𝐞𝐦𝐚𝐢𝐧𝐬 𝐭𝐡𝐞 𝐆𝐫𝐨𝐰𝐭𝐡 𝐄𝐧𝐠𝐢𝐧𝐞 Once again, the most important news is the performance of Wegovy. The Wegovy pill is performing exceptionally well. In the U.S., over 265,000 prescriptions were recently being filled each week. Since its launch, over 5 million prescriptions have already been written. Novo calls it the most successful GLP-1 product launch ever. Expansion is also underway internationally: Market launch in the UAE and the UK. Additional countries will follow in the second half of the year. The high-dose Wegovy HD (7.2 mg) is also being rolled out. 𝐏𝐢𝐩𝐞𝐥𝐢𝐧𝐞 positive: EMA approval for the Wegovy pill. EMA approval for Wegovy 7.2 mg. Additional approvals for various products. negative: The ZEUS study of ziltivekimab for the treatment of cardiovascular disease failed to meet its primary endpoint. This is a disappointment, but does not affect the core GLP-1 business. BUT - As I've already said, that was to be expected from Novo anyway. 𝐎𝐮𝐭𝐥𝐨𝐨𝐤 Management has once again raised its outlook: Adjusted revenue growth for 2026: now 0% to -6% previously -4% to -12% The forecast for operating profit has also been revised upward accordingly. The main reason is stronger-than-expected demand for GLP-1 products! 𝐃𝐢𝐯𝐢𝐝𝐞𝐧𝐝 Interim dividend of 3.75 DKK per share (not riased) but even if Novo keeps the dividend the same during a more challenging period, that sends a strong signal. The payout ratio should not increase either. Free cash flow rose significantly and 41.2 billion DKK distributed to shareholders (dividends and share buybacks). So for me the dividend continues to appear very well supported. 𝐏𝐞𝐫𝐬𝐨𝐧𝐚𝐥 𝐕𝐢𝐞𝐰 Overall, I would view these figures as clearly positive. The headlines about the decline in profits make the operational performance seem more dramatic than it actually is. On an adjusted basis, Novo Nordisk continues to grow solidly, Wegovy sales are accelerating, and the latest upward revision to the outlook suggests that management has become more confident. In my view, Novo Nordisk remains a very high-quality company for long-term investors. $NVO (Novo-Nordisk A/S SPONS ADR) $NOVO-B.CO (Novo Nordisk B A/S)

Not investment advice. The author may have financial interests in the mentioned instruments.

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NVO

Novo-Nordisk A/S SPONS ADR

NOVO-B.CO

Novo Nordisk B A/S

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