Eli Lilly’s third‑quarter results topped analysts’ forecasts and prompted a $6 bn upgrade to its 2026 revenue target.
Key points
- Eli Lilly’s Q3 revenue and EPS both beat analyst expectations, prompting an upgrade to its 2026 revenue outlook.
- Zepbound and Mounjaro continue to drive growth, delivering double‑digit revenue gains despite lower realized prices.
- Foundayo’s first‑quarter sales missed forecasts, highlighting competitive pressure from Novo Nordisk’s oral GLP‑1.
- Lilly retains a dominant share of the U.S. and global obesity‑diabetes market while pursuing acquisitions to broaden its pipeline.
On Thursday, Eli Lilly announced third‑quarter 2026 revenue of $24.40 billion, well above the $22.61 billion analysts expected, and adjusted earnings per share of $7.48 versus the $6.26 consensus. The company lifted its full‑year revenue guidance to $91‑$92 billion, up from the prior $85‑$87 billion range, and now projects adjusted earnings of $35‑$36 per share.
The boost came largely from its blockbuster obesity drug Zepbound and diabetes treatment Mounjaro. Zepbound generated $5.35 billion in Q3 sales, a 49% year‑over‑year increase, while Mounjaro’s worldwide revenue rose 65% to $10.72 billion, with international sales jumping 93% and U.S. sales around $5 billion.
Revenue and earnings beat expectations
By contrast, Lilly’s newly launched oral GLP‑1 obesity pill Foundayo, approved in April, recorded $184 million in sales for the quarter, falling short of StreetAccount’s forecast of roughly $229 million. The drug is competing directly with Novo Nordisk’s oral GLP‑1 product that entered the market in January.
The earnings release highlighted a 41% rise in prescription volume for Lilly’s key products, offset by a 7% decline in realized prices, primarily for Zepbound. Net income reached $6.45 billion, or $7.22 per share, after accounting for $4.57 per share in deal‑related charges. The stock rose about 4% in pre‑market trading.
Obesity and diabetes drugs power growth
Lilly now commands 63% of the U.S. obesity‑and‑diabetes market and 58.4% internationally, according to its earnings presentation. The company also noted Medicare’s temporary pilot covering GLP‑1s for weight loss and disclosed a pending acquisition of Merida Biosciences to expand its autoimmune‑and‑allergy pipeline.
Reader questions
What factors lifted Eli Lilly’s 2026 revenue outlook?
Strong demand for Zepbound and Mounjaro generated revenue well above expectations, allowing the company to raise its full‑year revenue target to $91‑$92 billion.
How did the newly launched obesity pill Foundayo perform?
Foundayo posted $184 million in Q3 sales, which was below analysts’ estimate of about $229 million.
What market share does Eli Lilly hold in obesity and diabetes drugs?
Lilly reported a 63% share of the U.S. market and 58.4% internationally for obesity and diabetes medications in the third quarter.
Source: cnbc.com
