Novo Nordisk’s strong earnings missed market confidence due to weak guidance, FDA warning, and safety concerns, spiking stock drop despite growth initiatives.

Novo Nordisk reported strong Q4 earnings, beating estimates with $1.01 EPS and $12.43 billion in revenue, but its stock fell due to weak FY2026 guidance, a U.S. FDA warning letter over unreported adverse events for semaglutide products—including two deaths—and growing regulatory and legal concerns. Despite a $506 million Ireland manufacturing expansion, a new telehealth deal with Hims & Hers, and ongoing share buybacks, analysts downgraded the stock citing competition and pipeline concerns, leading to a "Hold" consensus rating and a $49.93 average price target.