Eli Lilly and Company (NYSE:LLY) Issues Quarterly Earnings Results

Key Points

• Eli Lilly beat quarterly expectations: EPS was $7.48 versus the $5.68 consensus, while revenue rose 38.6% year over year to $24.4 billion, exceeding estimates of $22.58 billion.
• Weight-loss and diabetes drugs drove growth: Mounjaro and Zepbound generated more than $16 billion in combined quarterly revenue, prompting Lilly to raise its 2026 revenue guidance to $91–$92 billion.
• Pricing pressure remains a key risk: U.S. realized prices declined 10% excluding a favorable rebate adjustment, and management warned that expanded coverage and the absence of roughly $2 billion in 2026 one-time benefits could weigh on 2027 results.

Eli Lilly and Company (NYSE:LLY - Get Free Report) posted its quarterly earnings results on Thursday. The company reported $7.48 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $5.68 by $1.80, FiscalAI reports. The firm had revenue of $24.40 billion during the quarter, compared to the consensus estimate of $22.58 billion. Eli Lilly and Company had a return on equity of 97.83% and a net margin of 33.53%. The firm's quarterly revenue was up 38.6% compared to the same quarter last year. During the same quarter in the previous year, the business earned $7.02 earnings per share.

Here are the key takeaways from Eli Lilly and Company's conference call:

• Q3 revenue rose 39% to approximately $24 billion, driven by Mounjaro, Zepbound, and broad strength across oncology, immunology, and neuroscience. Lilly raised its 2026 guidance to $91–$92 billion in revenue and $35–$36 in non-GAAP EPS.
• The incretin franchise continued to accelerate, with Mounjaro and Zepbound generating more than $16 billion in combined quarterly revenue. The Medicare GLP-1 Bridge Program has served more than 500,000 prescriptions, with seven in 10 new bridge patients choosing a Lilly obesity medicine.
• Lilly reported encouraging pipeline and regulatory progress, including strong retatrutide results versus semaglutide, positive data for the eloralintide/tirzepatide combination, and U.S. approvals for weekly basal insulin Onswik, expanded pirtobrutinib use, and new tirzepatide and imlunestrant indications.
• Pricing remains a significant headwind, with U.S. realized price declining 10% excluding a favorable rebate adjustment, while expanded Medicare and Medicaid access and self-pay growth are expected to pressure net price per prescription in 2027. Management also cautioned that roughly $2 billion of 2026 one-time benefits will not recur next year.
• Lilly is investing heavily for long-term growth, breaking ground on $11.5 billion of new U.S. manufacturing capacity and adding pipeline assets through the AtaiBeckley and Merida acquisitions, while maintaining a broad set of late-stage programs across oncology, neuroscience, and immunology.

Eli Lilly and Company Price Performance

Eli Lilly and Company stock traded up $84.70 during midday trading on Thursday, hitting $1,373.00. 3,220,795 shares of the company's stock were exchanged, compared to its average volume of 2,927,350. Eli Lilly and Company has a 52-week low of $812.25 and a 52-week high of $1,408.38. The company has a market cap of $1.29 trillion, a P/E ratio of 45.95, a PEG ratio of 1.71 and a beta of 0.46. The stock has a 50-day moving average price of $1,192.52 and a two-hundred day moving average price of $1,089.35. The company has a debt-to-equity ratio of 1.41, a quick ratio of 1.00 and a current ratio of 1.35.

Eli Lilly and Company Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Shareholders of record on Friday, November 13th will be paid a $1.73 dividend. The ex-dividend date is Friday, November 13th. This represents a $6.92 annualized dividend and a yield of 0.5%. Eli Lilly and Company's dividend payout ratio (DPR) is currently 23.22%.

Insider Buying and Selling

In other news, CAO Donald Zakrowski sold 2,000 shares of Eli Lilly and Company stock in a transaction dated Monday, August 10th. The shares were sold at an average price of $1,185.01, for a total transaction of $2,370,020.00. Following the sale, the chief accounting officer owned 1,526 shares of the company's stock, valued at approximately $1,808,325.26. The trade was a 56.72% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Patrik Jonsson sold 6,500 shares of Eli Lilly and Company stock in a transaction on Monday, August 17th. The stock was sold at an average price of $1,175.10, for a total value of $7,638,150.00. Following the completion of the sale, the executive vice president directly owned 54,147 shares of the company's stock, valued at approximately $63,628,139.70. The trade was a 10.72% decrease in their position. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Insiders have sold 13,500 shares of company stock valued at $15,958,170 over the last ninety days. 0.14% of the stock is owned by insiders.

Key Headlines Impacting Eli Lilly and Company

Here are the key news stories impacting Eli Lilly and Company this week:

• Positive Sentiment: Strong earnings and revenue beat: Third-quarter revenue rose 39% year over year to $24.4 billion, above the roughly $22.6 billion analyst estimate. Adjusted EPS was $7.48, well ahead of the $5.68 consensus and up from $7.02 a year earlier. Reuters earnings and outlook article
• Positive Sentiment: Higher full-year outlook: Lilly raised its 2026 revenue forecast to $91 billion-$92 billion from $85 billion-$87 billion, lifting the midpoint by $5.5 billion. The increase signals that demand for its metabolic-care portfolio is exceeding prior expectations. Lilly third-quarter results and guidance
• Positive Sentiment: Mounjaro and Zepbound remain major growth engines: Mounjaro sales jumped 65% to $10.7 billion, while Zepbound revenue increased 49% to $5.35 billion. The results reinforced investor confidence in Lilly’s leadership of the diabetes and obesity-drug market. New York Post weight-loss drug demand article
• Positive Sentiment: Pipeline momentum improved: Phase 3 data showed experimental drug retatrutide produced greater A1C reduction and more than twice the weight loss of Ozempic 2 mg in adults with type 2 diabetes. The data strengthen Lilly’s competitive position against Novo Nordisk and support longer-term growth expectations. Lilly retatrutide trial results
• Neutral Sentiment: Investors should watch earnings quality: Quarterly revenue benefited from approximately $900 million in Jardiance milestones and rebate-related adjustments. Lilly also recorded substantial acquired in-process research and development charges, while reports noted a trimmed profit view tied to deal-related costs.
• Negative Sentiment: Insider selling is a secondary risk signal: Four Lilly executives sold shares during the past six months, with no reported open-market purchases. These transactions have not outweighed the earnings-driven optimism but may draw attention given the stock’s elevated valuation.

Wall Street Analyst Weigh In

A number of research analysts have commented on the company. Wells Fargo & Company increased their target price on Eli Lilly and Company from $1,280.00 to $1,330.00 and gave the stock an "overweight" rating in a report on Thursday, August 6th. JPMorgan Chase & Co. raised their price target on Eli Lilly and Company from $1,400.00 to $1,500.00 and gave the stock an "overweight" rating in a research note on Monday, September 28th. Leerink Partners lifted their price objective on Eli Lilly and Company from $1,309.00 to $1,316.00 and gave the stock an "outperform" rating in a research note on Wednesday, October 21st. Sanford C. Bernstein reaffirmed an "outperform" rating and set a $1,450.00 price objective on shares of Eli Lilly and Company in a report on Monday. Finally, Citigroup raised their price target on Eli Lilly and Company from $1,500.00 to $1,600.00 and gave the company a "buy" rating in a report on Wednesday, July 15th. One research analyst has rated the stock with a Strong Buy rating, twenty-four have issued a Buy rating, three have issued a Hold rating and one has issued a Sell rating to the company's stock. According to data from MarketBeat, the company presently has an average rating of "Moderate Buy" and a consensus price target of $1,320.25.

Eli Lilly and Company Company Profile

Eli Lilly and Company NYSE: LLY is a global pharmaceutical company that discovers, develops, manufactures and markets medicines for a range of medical conditions. Its major therapeutic areas include diabetes and obesity, oncology, immunology, neuroscience and cardiovascular health.

The company's portfolio includes Mounjaro and Trulicity for diabetes, Zepbound for chronic weight management, Humalog insulin, Taltz for inflammatory diseases, Verzenio for certain breast cancers and Kisunla for early symptomatic Alzheimer's disease.

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