Eli Lilly reported robust third-quarter earnings and revenue that significantly exceeded market expectations, driven by strong demand for its weight loss drug Zepbound and diabetes treatment Mounjaro. For 2026, the pharmaceutical company raised its revenue forecast to between $91 billion and $92 billion, a notable increase from a previous estimate of $85 billion to $87 billion. While adjusted earnings per share are now projected at $35 to $36, slightly revised downward from a prior forecast, the company emphasized its solid profits despite $4.57 per share in charges due to various deals in the quarter. Following the announcement, Eli Lilly’s shares rose approximately 4% in premarket trading.
Despite the successes, sales of Lilly’s new GLP-1 obesity drug Foundayo, launched in April, fell short of expectations, generating $184 million against analyst projections of $229 million. Mounjaro saw a remarkable 65% increase in worldwide revenue, reaching $10.72 billion, with U.S. sales around $5 billion, both figures surpassing estimates. Zepbound continued to show strong growth, with third-quarter revenue hitting $5.35 billion, a 49% rise from the previous year. Lilly maintains a significant market share in the GLP-1 segment, holding 63% in the U.S. and 58.4% internationally, compared to its chief competitor, Novo.
Eli Lilly’s revenue in the U.S. surged 34% to $15.1 billion, driven by increased prescription volumes despite a decrease in realized prices. The company reported net income of $6.45 billion or $7.22 per share for the quarter, reflecting overall financial strength and strategic growth initiatives moving forward.
Why this story matters:
- Highlights Eli Lilly’s dominance in the diabetes and obesity medication markets.
Key takeaway:
- Strong demand for key products has led to improved financial forecasts despite challenges with new drug sales.
Opposing viewpoint:
- Competition in the GLP-1 market, particularly from Novo, poses potential risks to Lilly’s future growth.
