Next week on the stock market

Novo Nordisk looks to its weight loss pill to revive fortunes

Novo Nordisk’s first-quarter results will provide a critical lens through which to assess whether bold strategic actions have managed to revive volume growth. Price cuts, higher-dose approvals and distribution partnerships for its weight-loss jab Wegovy have been key initiatives so far this year. The launch of Wegovy in pill form has also been a particular success, and we’ll be keen to see if that momentum’s continued following the launch of a rival oral medicine by Eli Lilly.

Nonetheless, first-quarter revenue is still forecast to have fallen by about 3.2bn Danish kroner (DKK) to DKK 75bn. And achieving its modest full-year guidance, which currently pre-empts a revenue drop of between 5-13% this year, will likely be a key driver of sentiment. Clinical progress is another point of focus, and recent success in a clinical trial for sickle cell disease provided a timely reminder of Novo Nordisk’s rare disease capabilities, so keep an eye out for launch plans.

Palantir looks to build on a strong end to last year

Palantir reports next week with expectations already high following a strong run of execution and a well‑established track record of outperforming both its own guidance and broader analyst consensus. Investors will be watching closely for continued momentum in US commercial growth, further progress on remaining performance obligations and sustained margin strength, all of which have underpinned recent results.

Based on that growing pattern of outperformance, solid forward revenue visibility, and what may have been a period of heightened demand across some of its government and defence-related operations, we see scope for Palantir to deliver another earnings beat. The combination of sentiment pressure this year, coupled with a strong earnings growth outlook, means the price-to-earnings multiple is back down to levels not seen for over a year, which we think helps ease a key investor concern – the valuation.

The author holds shares in Palantir.

Will IAG’s capacity plans get reined back?

International Consolidated Airlines Group (IAG) comes into first-quarter results on the back of a difficult period for the airline industry following the near-doubling of fuel prices. First-quarter numbers should hold up relatively well though, with underlying operating profits forecast to jump around 45% higher to £288mn in the historically quiet quarter. Much more important will be the outlook for the rest of the year, and while we do expect a cautious tone next week, IAG’s in a better position than most airlines to stomach the recent challenges thanks to its strong balance sheet and higher margins.

Higher fuel prices mean higher ticket prices, so we’re expecting to see some weakness in near-term bookings. The group had also planned to expand its capacity by about 3% in 2026. But historically, airlines can’t pass on the full cost of higher fuel prices to consumers, so capacity tends to get trimmed to help protect profitability. With no clear timeline for a resolution of the Middle East conflict, we’re keen to hear whether there’s been any changes to IAG’s capacity plans this year.

The author holds shares in IAG.