Novo Nordisk NVO stock has declined 4% over the past month, with the company’s second-quarter 2026 results emerging as the primary factor behind the recent weakness.
Although NVO beat earnings and revenue estimates, investors remained concerned about underlying growth trends in its core obesity franchise. Notably, sales of injectable Wegovy for obesity were flat year over year in the second quarter, reflecting intensifying competition from rival Eli Lilly’s LLY Zepbound injection and raising concerns about Novo Nordisk’s ability to sustain momentum in the highly competitive GLP-1 market. Novo Nordisk raised its 2026 outlook, narrowing the expected decline in adjusted sales and operating profit to 0-6% from the previous range of 4-12%. However, the revised guidance still allows for contraction in both metrics, while lower realized prices and uncertainty surrounding U.S. demand could continue to pressure growth and profitability.
Pipeline developments have added another layer of pressure. NVO’s ZEUS phase III cardiovascular outcomes study of ziltivekimab failed to reduce the risk of major adverse cardiovascular events in patients with atherosclerotic cardiovascular disease, chronic kidney disease and inflammation. The outcome may result in a non-cash impairment charge in the third quarter. Earlier, Novo Nordisk discontinued development of monlunabant due to portfolio considerations, while CagriSema failed to demonstrate non-inferiority to LLY’s Mounjaro, approved for type 2 diabetes (T2D), on blood sugar reduction in the REIMAGINE 4 study. Together, these developments have raised questions about the company’s ability to generate meaningful pipeline-driven growth beyond its established GLP-1 portfolio.
However, it’s not all negative for Novo Nordisk. NVO has one of the broadest cardiometabolic pipelines in the industry, supported by in-house innovation as well as strategic partnerships and acquisitions. It continues to advance multiple next-generation candidates across diabetes and obesity, while the global obesity market remains significantly underpenetrated. Backed by a strong core franchise and long-term demand for effective cardiometabolic treatments, Novo Nordisk retains meaningful growth potential. To better assess the stock’s investment appeal, let us weigh these long-term opportunities against its near-term competitive, pricing and pipeline challenges.
Semaglutide — Still NVO’s Primary Top-Line Driver
Novo Nordisk’s top line continues to be driven by its semaglutide franchise — Ozempic [T2D injection], Wegovy (obesity pill and injection) and Rybelsus (oral pill for T2D) — which forms the backbone of one of the industry’s broadest diabetes and obesity portfolios. Ozempic and Wegovy remain the company’s key revenue generators, while expanded distribution agreements with major U.S. pharmacies, telehealth providers and other platforms have improved access to authentic FDA-approved Wegovy and largely addressed the compounded-drug challenge.
The company is broadening semaglutide’s commercial opportunity through multiple label expansions. Wegovy is now approved not only for obesity but also for reducing major cardiovascular events, improving HFpEF symptoms and easing obesity-related knee pain from osteoarthritis. Novo Nordisk has also secured approvals for higher-dose Wegovy injections in the United States and Europe. NVO’s oral Wegovy, a GLP-1 therapy in pill form for weight management, is also approved in the United States and the EU.
Novo Nordisk is also strengthening its diabetes franchise. Ozempic remains the only GLP-1 approved to slow kidney disease progression and reduce cardiovascular death in T2D patients, while additional label expansions are being pursued in peripheral artery disease. Rybelsus has been approved for cardiovascular-risk reduction in T2D patients in the United States and Europe, and the company recently launched oral Ozempic for adults with T2D. Positive late-stage data in pediatric T2D and planned label-expansion filings for both Rybelsus and oral Ozempic could further expand the reach of its oral GLP-1 portfolio.
NVO’s Competition Heating Up in the Obesity Space
Competition in obesity treatment is intensifying as Eli Lilly has emerged as Novo Nordisk’s biggest rival. Lilly now competes in both injectable and oral obesity therapies with Zepbound and the recently launched oral GLP-1 drug, Foundayo. Novo Nordisk recently sued Eli Lilly over allegedly misleading U.S. GLP-1 advertising that compares Lilly’s Mounjaro and Zepbound with lower doses of Novo Nordisk’s Ozempic and Wegovy, respectively, while omitting newer, higher-dose data.
The obesity space has drawn much of the spotlight over the past year because of the sizeable and still underpenetrated market opportunity. Smaller biotech firms, such as Viking Therapeutics VKTX and Structure Therapeutics GPCR, are also advancing GLP-1–based therapies to challenge the incumbents. Viking Therapeutics’ dual GIPR/GLP-1 receptor agonist, VK2735, is being developed as both oral and subcutaneous formulations for the treatment of obesity. Viking Therapeutics plans to advance oral VK2735 into phase III development for obesity in the fourth quarter of 2026.
Structure Therapeutics’ phase II ACCESS study on its orally administered GLP-1 RA, aleniglipron, demonstrated significant weight loss across all doses. Based on such encouraging results, Structure Therapeutics has initiated dosing patients in its late-stage ACCOMPLISHprogram to evaluate aleniglipron for obesity.
NVO Expands Footprint in Rare Diseases and Liver Care
Beyond its GLP-1 portfolio, Novo Nordisk is broadening its presence in rare diseases. The company has submitted a regulatory filing seeking approval for Mim8 in hemophilia A in the United States. NVO has also secured both EU and U.S. approvals for Alhemo to treat hemophilia A and B, with or without inhibitors.
The FDA has also granted accelerated approval to Wegovy as the first GLP-1 therapy to treat noncirrhotic metabolic dysfunction-associated steatohepatitis with moderate-to-advanced liver fibrosis. This marked a significant milestone in liver care by offering patients a treatment that can both halt disease activity and reverse liver damage.
NVO Focuses on Next-Generation Drugs
Novo Nordisk is also developing several next-generation obesity candidates in its pipeline, especially targeting the lucrative U.S. market. NVO has submitted a regulatory filing seeking approval of CagriSema injection, a follow-up drug to Wegovy, for obesity. A decision is expected in the fourth quarter. It is also gearing up to launch a dedicated late-stage program evaluating cagrilintide as a monotherapy for obesity.
Another key candidate for T2D and obesity is zenagamtide (formerly known as amycretin), a novel long-acting GLP-1 and amylin receptor agonist, in phase III. The company has also bolstered its pipeline through several major collaborations and acquisition deals.
NVO also received FDA approval for Awiqli, the first once-weekly long-acting basal insulin (icodec) for adults with T2D, to be used alongside diet and exercise for glycemic control. Already approved in several global markets, the drug’s U.S. clearance further strengthens its diabetes portfolio and reinforces its position in the treatment landscape.
NVO’s Stock Price, Valuation & Estimates
Year to date, Novo Nordisk shares have lost 7.3% against the industry’s 13.5% growth. The company has also underperformed the sector and the S&P 500 during the same time frame, as seen in the chart below.
NVO Stock Underperforms the Industry, Sector & the S&P 500
Novo Nordisk is trading at a discount to the industry, as seen in the chart below. Going by the price/earnings ratio, the company’s shares currently trade at 14.08 forward earnings, which is lower than 18.91 for the industry. The stock is trading much below its five-year mean of 29.20.
NVO Stock Valuation
Earnings estimates for 2026 have remained constant at $3.39 per share over the past week. During the same time frame, Novo Nordisk’s 2027 earnings estimates have improved from $3.28 to $3.31.
NVO Estimate Movement
Here’s How to Play NVO Stock
Novo Nordisk, currently carrying a Zacks Rank #3 (Hold), faces a challenging near-term setup despite its strong position in diabetes and obesity care. The second-quarter earnings beat and raised 2026 outlook were overshadowed by flat injectable Wegovy sales, lower realized prices and intensifying competition from Eli Lilly. The revised outlook still allows for declines in sales and operating profit, while the failed ZEUS cardiovascular outcomes study and disappointing CagriSema data have weakened the near-term catalyst profile. Given these headwinds, short-term investors may want to stay clear of the stock until clearer signs of stabilization emerge. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
For long-term investors, Novo Nordisk’s broad cardiometabolic pipeline, strong semaglutide franchise and significant global obesity opportunity continue to support the investment case. However, the company must demonstrate that it can defend market share, manage pricing pressure and successfully advance next-generation therapies. Despite the stock’s attractive valuation, existing investors may prefer to hold their positions for now, as it is not yet time to increase exposure. Improving Wegovy momentum, earnings visibility and pipeline execution could provide a stronger case for adding to positions later.
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