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.
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LLY in upward trend: price rose above 50-day moving average on August 05, 2026
LLY moved above its 50-day moving average on August 05, 2026 date and that indicates a change from a downward trend to an upward trend. In of 43 similar past instances, the stock price increased further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on August 12, 2026. You may want to consider a long position or call options on LLY as a result. In of 81 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for LLY just turned positive on August 10, 2026. Looking at past instances where LLY's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LLY advanced for three days, in of 371 cases, the price rose further within the following month. The odds of a continued upward trend are .
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In of 60 cases where LLY's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are .
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 of 62 cases within the following month. The odds of a continued downward trend are .
LLY broke above its upper Bollinger Band on August 19, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Aroon Indicator for LLY entered a downward trend on August 12, 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.
Fundamental Analysis (Ratings)
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 61, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating outstanding 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 SMR rating for this company is (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 Valuation Rating of (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 (32.468) is normal, around the industry mean (19.459). P/E Ratio (41.412) is within average values for comparable stocks, (33.779). Projected Growth (PEG Ratio) (1.552) is also within normal values, averaging (11.395). LLY has a moderately low Dividend Yield (0.005) as compared to the industry average of (0.027). LLY's P/S Ratio (13.889) is very high in comparison to the industry average of (4.306).
The Tickeron PE Growth Rating for this company is (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.
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