Eli Lilly (LLY) raises its 2026 outlook after Mounjaro and Zepbound sales push quarterly results above expectations.
Stock Earnings Results
August 5, 2026
Table of Contents
August 5, 2026
Eli Lilly and Company (NYSE: LLY) reported second-quarter 2026 results above expectations, supported by rapid Mounjaro and Zepbound growth, higher revenue, stronger non-GAAP earnings, raised full-year guidance, and continued pipeline progress across obesity, diabetes, oncology, immunology, and neuroscience.
Eli Lilly is a global pharmaceutical company focused on medicines for diabetes, obesity, oncology, immunology, neuroscience, Alzheimer’s disease, genetic medicine, and other major therapeutic areas.
The company reported non-GAAP EPS of $8.38, above estimates of $6.01, representing a 39.4% earnings surprise. Revenue came in at $22.97 billion, above estimates of $20.26 billion, with revenue growth of 47.7%.
Revenue increased 48% year-over-year to $22.97 billion.
Reported net income increased 25% to $7.10 billion.
Reported EPS increased 26% to $7.94.
Non-GAAP net income increased 32% to $7.49 billion.
Non-GAAP EPS increased 33% to $8.38.
Both reported and non-GAAP EPS included $3.03 of acquired IPR&D charges, compared with $0.14 in the prior-year quarter.
Lilly said second-quarter revenue growth was driven primarily by Mounjaro and Zepbound volume.
Worldwide Mounjaro revenue increased 91% to $9.94 billion.
U.S. Mounjaro revenue increased 45% to $4.8 billion.
Mounjaro revenue outside the U.S. increased 172% to $5.2 billion.
Zepbound U.S. revenue increased 44% to $4.9 billion.
The results show that Lilly’s incretin franchise remains the company’s main growth engine, even with lower realized prices.
Worldwide revenue growth was driven by a 60% increase in volume.
That was partly offset by a 13% decrease in realized prices.
U.S. revenue increased 33% to $14.4 billion.
Revenue outside the U.S. increased 80% to $8.6 billion.
The lower realized prices outside the U.S. were driven mainly by the addition of Mounjaro to China’s National Reimbursement Drug List.
Key Products revenue reached $15.7 billion in the quarter.
Lilly said Key Products in immunology, oncology, and neuroscience grew 121% from the prior-year quarter.
Jaypirca revenue increased 56% to $192 million.
Ebglyss revenue increased 131% to $201 million.
Kisunla revenue increased to $167 million from $49 million.
Omvoh revenue increased 36% to $102 million.
Foundayo revenue was $98 million.
The broader product growth helps reduce the company’s dependence on Mounjaro and Zepbound over time, though those two products remain the largest drivers.
Reported gross margin increased 50% to $19.7 billion.
Reported gross margin as a percentage of revenue increased to 85.8%.
Non-GAAP gross margin increased 50% to $19.8 billion.
Non-GAAP gross margin as a percentage of revenue increased to 86.3%.
Research and development expenses increased 14% to $3.8 billion, driven by continued investment in early and late-stage programs.
Marketing, selling, and administrative expenses increased 25% to $3.4 billion, mainly due to promotional efforts supporting current and planned launches.
Lilly recorded acquired IPR&D charges of $2.8 billion during the quarter.
That compared with $154 million in the prior-year quarter.
The charges were mainly tied to the acquisitions of Orna Therapeutics and Ajax Therapeutics.
Asset impairment, restructuring, and other special charges totaled $703 million.
Those charges were mainly tied to accelerated employee equity vesting and other acquisition and integration costs related to Kelonia Therapeutics and Centessa Pharmaceuticals.
Lilly raised full-year 2026 revenue guidance.
The company now expects revenue of $85 billion to $87 billion.
That compares with the prior range of $82 billion to $85 billion.
Lilly also raised its performance margin outlook to 49.0% to 50.5%.
The company updated non-GAAP EPS guidance to $35.50 to $36.50.
Management said underlying non-GAAP EPS guidance increased by $2.78 at the midpoint, but that benefit was more than offset by $3.03 of acquired IPR&D charges from second-quarter business development activity.
Lilly highlighted positive data from three additional Phase 3 trials of retatrutide in obesity.
The company said the clinical data package is now complete to support global registrations for obesity, obstructive sleep apnea, and knee osteoarthritis pain.
Lilly plans to submit to the U.S. FDA in the first quarter of 2027.
Foundayo, also known as orforglipron, was submitted for type 2 diabetes in the U.S.
The company also highlighted data showing Foundayo delivered superior A1C control and weight loss in three pivotal type 2 diabetes trials.
Lilly reported several regulatory and clinical updates.
The FDA approved Ebglyss for one maintenance dose every eight weeks in moderate-to-severe atopic dermatitis.
The European Commission approved Jaypirca as monotherapy for adults with chronic lymphocytic leukemia across all lines of therapy.
Olomorasib received FDA Breakthrough Therapy designation for previously treated KRAS G12C-mutant advanced pancreatic cancer.
Retevmo showed an 83% reduction in the risk of disease recurrence or death as adjuvant therapy in early-stage RET fusion-positive lung cancer.
VERVE-102, a PCSK9 base editor, reduced PCSK9 by up to 88% and LDL-C by up to 62% in early data.
During the second quarter, Lilly completed the acquisitions of Orna Therapeutics, Ajax Therapeutics, Centessa Pharmaceuticals, and Kelonia Therapeutics.
After quarter-end, the company completed three acquisitions to build an infectious disease portfolio.
Lilly also entered an agreement to acquire AtaiBeckley to advance therapies for treatment-resistant depression and other mental health conditions.
The company committed an additional $4.5 billion to expand manufacturing sites in Indiana.
That manufacturing investment supports future demand across obesity, diabetes, genetic medicine, and other growth areas.
Eli Lilly delivered another strong quarter driven by its obesity and diabetes franchise.
Revenue beat expectations, non-GAAP EPS topped estimates by a wide margin, Mounjaro revenue nearly doubled, Zepbound continued to grow, and management raised full-year revenue guidance. The company also advanced retatrutide, Foundayo, and several oncology, immunology, and neuroscience programs.
The key question is whether Lilly can keep meeting demand, protect margins, manage pricing pressure, and convert its pipeline into the next wave of growth.
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