Novo Nordisk's quarterly beat and guidance increase did little to resolve Wall Street's biggest concern: whether the Ozempic maker has a convincing path back to sustainable growth as competition from Eli Lilly intensifies.

Analysts said the better-than-expected quarter benefited from rebate adjustments and other temporary factors, obesity drug sales were broadly in line with expectations, and oral Wegovy slightly missed forecasts.

At the same time, Novo reported another mixed clinical result for next-generation weight-loss drug CagriSema, reinforcing investor questions about the company's longer-term pipeline.

"Overall nothing to inspire," Citi analysts wrote, while Jefferies said the guidance increase left little room for consensus sales estimates to move higher.

The Danish drugmaker hiked its full-year guidance and said it now expects adjusted sales and operating profit to be down 6% to flat at constant exchange rates, an improvement from previous guidance of a decline of between 4% and 12% for both metrics.

Novo is racing to restore investor confidence in its pipeline and ability to execute, especially in the challenging U.S. market, amid intense pressure from Eli Lilly's rival medicines Zepbound and Mounjaro, which have rapidly gained market share despite being launched years after Novo's.

Coming into Wednesday trading, the company's Danish shares had fallen about 5% year-to-date and were down nearly 70% from their mid-2024 peak, even if they have recovered some ground this year following the successful launch of the Wegovy pill.

Novo said the improved outlook was driven by increased expectations for GLP-1 product sales.

"The Wegovy product portfolio remains a key growth driver for Novo Nordisk in 2026, led by the continued rapid adoption of Wegovy pill in the US, which has reached more than 5 million prescriptions since its launch, alongside encouraging early uptake in markets outside the US and the rollout of Wegovy [high dose]," said CEO Mike Doustdar in a statement.

Novo's American depositary receipts fell 6% in after-hours trading Tuesday after the quarterly report was published one day earlier than expected.