Lilly's $24.4 Billion Quarter Forces a Third Guidance Raise

Lilly's $24.4 Billion Quarter Forces a Third Guidance Raise

Revenue beats by almost 8% on volume surge

Mounjaro and Zepbound now two-thirds of sales

Adjusted earnings beat despite $4.57 deal charge

Net income was $6.5 billion and reported earnings per share were $7.22, up 16% from $6.21. On a non-GAAP basis, earnings per share were $7.48, up from $7.02 and beating consensus near $5.60 to $5.68 by roughly $1.88. Both figures included $4.57 of acquired in-process research and development charges, versus $0.71 a year earlier. Gross margin expanded 1.0 percentage point to 83.9% of revenue.

Full-year sales outlook raised for third time

Price erosion concentrated in U.S. and China

U.S. realized prices fell 7%, attributed mainly to Zepbound and partly offset by rebate adjustments. Prices outside the U.S. fell 29%, driven by Mounjaro's addition to China's National Reimbursement Drug List in the first quarter of 2026. Key Products revenue reached $17.1 billion, led by Mounjaro and Zepbound, while revenue in immunology, oncology and neuroscience doubled year over year.

Four FDA actions broaden the portfolio

Regulatory progress included U.S. Food and Drug Administration approval of Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes; Onswik, a once-weekly basal insulin for type 2 diabetes; Inluriyo with Verzenio for ER-positive, HER2-negative, ESR1-mutated advanced or metastatic breast cancer; and an expanded Jaypirca indication for previously untreated chronic lymphocytic leukemia or small lymphocytic lymphoma. Jaypirca third-quarter revenue rose 59% to $228 million, and Kisunla rose 175% to $193 million.

Retatrutide beats Ozempic head to head

Shares jump as GLP-1 lead widens

Shares rose more than 4% premarket after the beat. The results underscore Lilly's expanding lead over Novo Nordisk in the GLP-1 market and a market valuation around $1.2 trillion. Chair and CEO David A. Ricks said growth reflected broad global demand for Mounjaro and Zepbound, global Foundayo launches, expanded U.S. obesity coverage and a doubling in newer oncology, immunology and neuroscience products, with continued investment in manufacturing and technology capabilities.