Eli Lilly (LLY) Delivers Strong Q2 2026 Results with Revenue Up +48% and Raised Guidance
Key Takeaways
- Revenue surged 48% year-over-year to $22.97 billion, crushing the consensus estimate of approximately $20.26 billion by a wide margin.
- Non-GAAP earnings per share (EPS) reached $8.38, up 33% from the prior-year period and far exceeding analyst expectations of roughly $6.01, with reported (GAAP) EPS coming in at $7.94.
- Mounjaro and Zepbound delivered a combined $14.9 billion in quarterly revenue, with Mounjaro alone soaring 91% year-over-year to $9.94 billion and Zepbound climbing 46% to $4.93 billion.
- Full-year 2026 revenue guidance was raised to a range of $85 billion to $87 billion, up from the prior outlook of $82 billion to $85 billion, while non-GAAP EPS guidance was narrowed to $35.50–$36.50.
- The quarter included $3.03 per share in acquired in-process research and development (IPR&D) charges tied to multiple acquisitions, which weighed on reported profitability but underscored the company's aggressive investment in its pipeline.
- Shares jumped more than 5% in premarket trading and maintained gains through the regular session, reflecting broad investor enthusiasm for the magnitude of the revenue beat.
Earnings Context and Why It Matters
Eli Lilly's second-quarter 2026 earnings report, released on August 5 before the market opened, represents a pivotal moment for one of the world's most valuable pharmaceutical companies. With a market capitalization hovering near $1 trillion, LLY has become the defining name in the global obesity and diabetes treatment market. This quarter was particularly significant because it marked the first full quarter of sales for Foundayo (orforglipron), the company's newly launched oral GLP-1 (glucagon-like peptide-1) pill, and arrived during a period of aggressive dealmaking that saw Lilly complete four major acquisitions. Coming off a strong Q1 2026 in which the company also beat expectations handily, investors were watching closely to see whether the momentum in the company's incretin franchise — the drug class that includes Mounjaro and Zepbound — could be sustained amid growing competition and pricing pressure.
Reported Results
Eli Lilly reported second-quarter worldwide revenue of $22.97 billion, a 48% increase compared with $15.56 billion in the same period last year. The result sailed past the Zacks Consensus Estimate of $20.26 billion and other analyst projections that clustered near $20.7 billion. Volume growth of 60% was the primary driver, more than offsetting a 13% decline in net realized prices globally. I also checked this using Tickeron’s AI Screener to see how the stock compares to others in the industry.
On the bottom line, GAAP net income rose 25% to $7.10 billion, producing reported EPS of $7.94. On a non-GAAP basis, which excludes items such as amortization of intangible assets and certain acquisition-related costs, EPS came in at $8.38 — a 33% year-over-year increase that comprehensively beat the consensus forecast of roughly $6.01. Both reported and adjusted figures included $3.03 per share in acquired IPR&D charges stemming from the quarter's business development activity, compared with just $0.14 in Q2 2025.
Mounjaro, Lilly's diabetes treatment, was the standout performer, generating $9.94 billion in global revenue — a 91% surge from the prior-year quarter. U.S. Mounjaro sales reached $4.8 billion, while international sales hit $5.2 billion, boosted by the drug's inclusion on China's National Reimbursement Drug List. Zepbound, the obesity-focused counterpart, delivered $4.93 billion in U.S. revenue, up 46% year-over-year. Foundayo contributed $98 million in its first partial quarter on the market following its April launch.
Gross margin as a percentage of revenue expanded to 86.3% on a non-GAAP basis (85.8% on a reported basis), up 1.3 percentage points from the prior year, driven by improved production costs and favorable product mix. Operating expenses rose, with R&D spending increasing 14% to $3.8 billion as Lilly funded more than 40 active Phase 3 programs.
Among other products, Jardiance revenue rose 79% to $1.23 billion, benefiting from a $250 million sales-based milestone payment. Trulicity grew 12% to $1.22 billion, while Verzenio slipped 1% to $1.47 billion. Newer drugs — including Jaypirca (up 56%), Ebglyss (up 131%), Omvoh (up 36%), and Kisunla at $167 million — demonstrated broadening portfolio strength.
Market Reaction and Investor Sentiment
Eli Lilly shares rose more than 5% in premarket trading on August 5 and maintained solid gains throughout the regular session, closing up approximately 2.4% to 2.6% near $1,147. Some intraday readings showed the stock climbing as much as 8% to roughly $1,209, pushing Lilly's market capitalization back above $1.1 trillion. The positive reaction reflected investor relief and enthusiasm that the company not only delivered a substantial top-line beat but also raised full-year guidance for the second time in 2026. The revenue beat of more than $2.5 billion relative to consensus overshadowed any concern about the acquired IPR&D charges that trimmed reported EPS. The stock's move also broke a five-day losing streak and reclaimed the 50-day moving average, signaling that the market viewed the print as a reaffirmation of Lilly's dominant competitive positioning in the cardiometabolic space.
Forward Outlook and Key Factors to Monitor
Following this strong quarter, several forward-looking themes will shape how investors assess Eli Lilly over the remainder of 2026 and into 2027.
The most important near-term catalyst is the commercial trajectory of Foundayo (orforglipron), Lilly's once-daily oral GLP-1 pill. With $98 million in first-quarter sales falling slightly short of some analyst expectations, the rate of prescription adoption in the coming quarters will be closely scrutinized — especially as rival Novo Nordisk ramps up its own oral Wegovy offering, which generated roughly $500 million in the same period. Lilly management has indicated plans to launch Foundayo in most international markets during 2027, setting up another potential growth wave.
Equally significant is the retatrutide program. With all Phase 3 clinical data now in hand for obesity, obstructive sleep apnea, and knee osteoarthritis pain, Lilly plans to submit a Biologics License Application (BLA) to the U.S. Food and Drug Administration (FDA) in the first quarter of 2027. Retatrutide, a triple-hormone receptor agonist, is widely viewed as Lilly's next-generation successor to tirzepatide (the active ingredient in Mounjaro and Zepbound), and positive regulatory momentum could meaningfully extend the company's leadership in metabolic medicine.
Investors should also monitor the pace of pricing pressure. Realized prices declined 13% globally and 36% in international markets during Q2, driven in part by Mounjaro's addition to China's reimbursement formulary. While volume growth has more than compensated so far, sustained price erosion in key markets could eventually pressure margins, particularly as competition intensifies and payers gain leverage.
Finally, Lilly's acquisition spree deserves continued attention. With more than $20 billion in deals announced this year — spanning oncology, neuroscience, gene editing, and infectious disease — the company is betting heavily that strategic M&A (mergers and acquisitions) will diversify its revenue base beyond incretin drugs. Integration risks, pipeline setbacks, and the cumulative drag of acquisition-related charges on reported earnings are all factors that could temper near-term enthusiasm even as the core business delivers exceptional growth.
Enhancing Analysis with Tickeron Tools
In my own research workflow, Tickeron’s AI Screener has become a go-to resource for quickly filtering stocks by industry, fundamentals, and technical signals. It helps surface comparable names and potential follow-on ideas after reviewing major earnings releases like this one, without requiring hours of manual screening. The platform’s AI-driven insights add useful context when evaluating sector momentum or identifying stocks with similar profiles.
Disclaimer
The information on this webpage is provided for general informational and educational purposes only and is not intended as investment advice, a recommendation to purchase or sell any security, or an offer or solicitation related to investments. It does not consider your personal financial situation, goals, or risk profile, and all investing carries inherent risks, including the possibility of losing your entire investment. For more details, please review our full disclaimer.
Contributor
Financial writer and active order flow futures trader with a focus on fundamental analysis, macroeconomic factors, and equity research. I make in-depth blogs on stocks and ETFs, bridging the gap between raw market data and real-world trading decisions.
LLY in downward trend: 10-day moving average crossed below 50-day moving average on September 04, 2026
The 10-day moving average for LLY crossed bearishly below the 50-day moving average on September 04, 2026. This indicates that the trend has shifted lower and could be considered a sell signal. In 10 of 13 past instances when the 10-day crossed below the 50-day, the stock continued to move higher over the following month. The odds of a continued downward trend are 77%.
Technical Analysis (Indicators)
Bearish Trend Analysis
The Momentum Indicator moved below the 0 level on October 01, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on LLY as a result. In 52 of 83 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 63%.
The Moving Average Convergence Divergence Histogram (MACD) for LLY turned negative on October 05, 2026. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 45 similar instances when the indicator turned negative. In 33 of the 45 cases the stock turned lower in the days that followed. This puts the odds of success at 73%.
LLY moved below its 50-day moving average on September 30, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LLY declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 55%.
The Aroon Indicator for LLY entered a downward trend on September 22, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Bullish Trend Analysis
The RSI Indicator points to a transition from a downward trend to an upward trend -- in cases where LLY's RSI Oscillator exited the oversold zone, 17 of 23 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 74%.
The Stochastic Oscillator demonstrated that the ticker has stayed in the oversold zone for 2 days, which means it's wise to expect a price bounce in the near future.
Following a +1.28% 3-day Advance, the price is estimated to grow further. Considering data from situations where LLY advanced for three days, in 263 of 376 cases, the price rose further within the following month. The odds of a continued upward trend are 70%.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is 11 (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 64, placing this stock better than average.
The Tickeron SMR rating for this company is 14 (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Seasonality Score of 31 (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. LLY’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Valuation Rating of 51 (best 1 - 100 worst) indicates that the company is fair valued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (31.153) is normal, around the industry mean (19.199). P/E Ratio (39.771) is within average values for comparable stocks, (34.793). Projected Growth (PEG Ratio) (1.170) is also within normal values, averaging (5.738). LLY has a moderately low Dividend Yield (0.006) as compared to the industry average of (0.025). LLY's P/S Ratio (12.804) is very high in comparison to the industry average of (4.033).
The Tickeron PE Growth Rating for this company is 58 (best 1 - 100 worst), pointing to average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
Notable companies
Industry description
Market Cap
High and low price notable news
Volume
Fundamental Analysis Ratings
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
Advertisement
General Information
a manufacturer of pharmaceutical products
Industry PharmaceuticalsMajor
What are realistic expectations for my portfolio performance?
What is the “Life with Period Certain” Option?
What Should I Do With a Lump-Sum Distribution From My Cash-Balance Plan?
What is 'buying on margin' and margin trading?
What is the scope of Interactive Brokers' recent expansion of after-hours trading options for U.S. stocks and ETFs?
Advertisement