Eli Lilly & Co (LLY) Earnings Date & Reports

Key Takeaways

• Second-quarter 2026 revenue surged 48% year over year to $22.97 billion, topping consensus estimates of roughly $20.8 billion.
• Non-GAAP earnings per share (EPS, a company's profit divided by its outstanding shares) reached $8.38, up 33% and well above the roughly $6.40 analyst consensus.
• Mounjaro sales jumped 91% to $9.9 billion, while Zepbound climbed 46% to $4.9 billion, driven by strong demand for the company's incretin medicines.
• Lilly raised full-year 2026 revenue guidance to $85.0–$87.0 billion and non-GAAP EPS guidance to $35.50–$36.50.
• Reported results absorbed $2.8 billion in acquired in-process research and development (IPR&D) charges tied to recent acquisitions.

Earnings Context and Why It Matters

Eli Lilly's second-quarter report carries outsized weight for investors because it tests whether the company can sustain the explosive growth of its GLP-1 (glucagon-like peptide-1) franchise. Mounjaro and Zepbound have reshaped Lilly's revenue mix, making each quarterly earnings release a key signal on demand, pricing, and manufacturing capacity in the obesity and diabetes markets. The quarter also offered an early read on Foundayo, the company's newly launched oral GLP-1 pill, and on how rising competition and price concessions—especially in international markets—are affecting profitability. With guidance raised, this report reinforced Lilly's position at the center of one of healthcare's fastest-growing therapeutic categories.

Reported Results

Lilly reported worldwide revenue of $22.97 billion for the second quarter of 2026, an increase of 48% from $15.56 billion a year earlier, driven by a 60% rise in volume that was partially offset by a 13% decline in realized prices. Total revenue beat the consensus estimate of about $20.8 billion. U.S. revenue rose 33% to $14.4 billion, while revenue outside the U.S. climbed 80% to $8.6 billion.

On a reported basis, net income increased 25% to $7.1 billion, and diluted EPS rose 26% to $7.94. On a non-GAAP basis—which excludes certain items such as acquired IPR&D charges and restructuring costs—net income rose 32% to $7.5 billion, and EPS came in at $8.38, up 33% from $6.31 in the prior-year quarter and comfortably above consensus of roughly $6.40. Both reported and non-GAAP EPS included $3.03 per share of acquired IPR&D charges, compared with just $0.14 a year earlier.

Product performance was led by Mounjaro, which grew 91% to $9.9 billion, and Zepbound, which rose 46% to $4.9 billion. Foundayo, Lilly's once-daily oral GLP-1 pill, generated $98 million in its first full quarter following its April launch. Management raised full-year 2026 revenue guidance to a range of $85.0–$87.0 billion and lifted non-GAAP EPS guidance to $35.50–$36.50.

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Market Reaction and Investor Sentiment

Shares of Eli Lilly moved higher following the August 5, 2026 release, with the stock rising roughly 5% in the immediate post-earnings session as investors absorbed the top-and-bottom-line beat and the raised full-year guidance. Sentiment was supported by the durability of Mounjaro and Zepbound demand, the early traction of Foundayo, and a larger-than-expected profitability gain. At the same time, the report highlighted the double-digit decline in realized prices and the sizable acquired IPR&D charges from business development activity, factors that tempered some of the enthusiasm. Overall, the market read the quarter as confirmation that Lilly's growth engine remains intact despite intensifying competition and pricing pressure.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will be watching several catalysts tied directly to Lilly's growth narrative. The most prominent is the clinical and regulatory progress of retatrutide, the company's next-generation weight-loss medicine, which recently delivered positive data across additional Phase 3 obesity trials. Management plans to submit a Biologics License Application to the U.S. FDA (Food and Drug Administration) in the first quarter of 2027.

Manufacturing capacity remains a central theme. Lilly committed an additional $4.5 billion to expand Indiana sites and continues to bring new capacity online, which will be essential to meeting demand for its incretin medicines and supporting a broader international launch of Foundayo in 2027.

Pricing dynamics also deserve close attention. The addition of Mounjaro to China's National Reimbursement Drug List drove a meaningful decline in realized prices outside the U.S., and ongoing rebate and discount adjustments could continue to pressure net pricing even as volumes grow. Finally, competition from Novo Nordisk's oral obesity treatment and other pipeline entrants will shape how much of the category's growth Lilly can capture in the quarters ahead.

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