Eli Lilly and Company (NYSE:LLY) Issues Quarterly Earnings Results, Beats Expectations By $1.29 EPS

Key Points

• Quarterly beat and raised guidance: Eli Lilly reported Q1 non‑GAAP EPS of $8.55 (vs. $7.26 est.) and revenue of $19.8B (up ~56% YoY), and raised FY‑2026 guidance to roughly $82–$85B in revenue and $35.50–$37.00 EPS.
• GLP‑1 franchise fueling growth: Mounjaro and Zepbound generated about $12.8B in the quarter, and Lilly has launched the oral GLP‑1 pill Foundayo (20,000+ patients to date) with national DTC advertising planned.
• Pricing pressure risks margins: Management warned U.S. list prices fell ~7% in Q1 (about ~10% excluding an adjustment) and expects a full‑year price headwind in the low‑to‑mid teens, creating margin sensitivity despite volume gains.

Eli Lilly and Company (NYSE:LLY - Get Free Report) announced its earnings results on Thursday. The company reported $8.55 earnings per share (EPS) for the quarter, beating the consensus estimate of $7.26 by $1.29, FiscalAI reports. The company had revenue of $19.80 billion during the quarter, compared to analyst estimates of $17.61 billion. Eli Lilly and Company had a net margin of 31.66% and a return on equity of 102.94%. The firm's quarterly revenue was up 55.5% compared to the same quarter last year. During the same period in the previous year, the business posted $3.34 earnings per share. Eli Lilly and Company updated its FY 2026 guidance to 35.500-37.000 EPS.

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

• Foundayo (orforglipron) was approved and launched as the first oral GLP‑1 for obesity, with broad pharmacy and telehealth availability, early uptake (roughly 20,000+ patients treated) and planned national DTC TV advertising in Q3.
• Q1 results were strong — revenue grew 56% year‑over‑year, Mounjaro and Zepbound together generated $12.8 billion, non‑GAAP EPS improved materially to $8.55, and Lilly raised 2026 revenue guidance to $82–$85 billion.
• Pipeline and business development momentum — multiple positive Phase III readouts (including ACHIEVE‑4 showing cardiovascular safety and lower all‑cause death for Foundayo, and positive data for retatrutide and Jaypirca) plus acquisitions (Orna, Centessa, Kelonia, Ajax) to broaden future growth.
• Pricing headwinds continue — U.S. list price trends reduced gross margin modestly (Q1 U.S. price down ~7%, ~10% excluding a one‑time estimate adjustment) and management expects a full‑year price headwind in the low‑to‑mid teens, creating margin sensitivity despite volume growth.
• Access initiatives could broaden adoption — the Medicare GLP‑1 Bridge program was extended through December 2027 with a $50/month copay cap, and Lilly launched Employer Connect to encourage employer coverage, both aimed at expanding longer‑term patient activation.

Eli Lilly and Company Price Performance

Shares of LLY traded up $85.83 during mid-day trading on Thursday, reaching $937.04. The stock had a trading volume of 8,224,074 shares, compared to its average volume of 2,632,681. The firm has a market cap of $885.33 billion, a price-to-earnings ratio of 40.83, a PEG ratio of 1.00 and a beta of 0.51. Eli Lilly and Company has a 12 month low of $623.78 and a 12 month high of $1,133.95. The business has a fifty day moving average of $948.77 and a 200 day moving average of $985.31. The company has a debt-to-equity ratio of 1.54, a quick ratio of 1.19 and a current ratio of 1.58.

Analysts Set New Price Targets

Several analysts recently issued reports on LLY shares. Leerink Partners cut their target price on shares of Eli Lilly and Company from $1,296.00 to $1,058.00 and set an "outperform" rating for the company in a research report on Monday. Royal Bank Of Canada started coverage on shares of Eli Lilly and Company in a research report on Tuesday, February 24th. They set an "outperform" rating and a $1,250.00 target price for the company. Sanford C. Bernstein restated an "outperform" rating on shares of Eli Lilly and Company in a research report on Tuesday, March 10th. Weiss Ratings restated a "buy (b)" rating on shares of Eli Lilly and Company in a research report on Friday, March 27th. Finally, Cantor Fitzgerald boosted their target price on shares of Eli Lilly and Company from $985.00 to $1,205.00 and gave the company an "overweight" rating in a research report on Thursday, February 5th. Two analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, four have issued a Hold rating and one has issued a Sell rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of "Moderate Buy" and a consensus target price of $1,216.52.

More Eli Lilly and Company News

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

• Positive Sentiment: Earnings beat and guidance raise — Lilly reported Q1 revenue of $19.8B (up ~56% YoY) and non‑GAAP EPS that topped estimates; management raised full‑year 2026 revenue and EPS guidance. Lilly Q1 press release
• Positive Sentiment: GLP-1 sales are the growth engine — Mounjaro and Zepbound volumes drove huge top‑line growth and analysts/Jim Cramer highlighted the large addressable weight‑loss market as a multi‑year tailwind. GLP-1 Sales Continue to Lift Eli Lilly
• Positive Sentiment: Regulatory move could limit compounded competitors — the FDA proposed excluding active ingredients in tirzepatide/semaglutide from the 503B bulks list, which would curb large‑scale compounding of cheaper alternatives and support branded sales. FDA proposes excluding weight-loss drugs from compounding list
• Positive Sentiment: Foundayo pill early uptake — management said more than 20,000 people have started the newly launched oral GLP‑1 pill, supporting upside potential for incremental sales beyond injections. More than 20,000 people are taking Eli Lilly's weight loss pill
• Neutral Sentiment: Pipeline and tech partnerships — Lilly signed a multi‑year ~$2.25B AI/genetics deal to advance recombinase-based gene editing, which is strategic for long‑term growth but not immediately revenue‑generating. Eli Lilly Signs Up To $2.25 Billion AI Gene Editing Deal
• Neutral Sentiment: Full earnings detail available — the Q1 earnings call transcript and slides give color on volume vs. price, channel mix and Foundayo expectations for investors who want to dig into the drivers. Eli Lilly Q1 2026 Earnings Call Transcript
• Negative Sentiment: Pricing pressure and lower realized prices — management noted strong volume but lower realized prices for GLP‑1s partially offset revenue growth; sustained price erosion would limit margin upside. FT: Lilly profits more than double as weight-loss drug sales soar
• Negative Sentiment: Competition and generics risk — approvals of generic GLP‑1s abroad and mixed early social‑data on Foundayo vs. peers create execution and share‑loss risk that investors should monitor. LLY falls as Canada approves generic weight-loss drugs

Hedge Funds Weigh In On Eli Lilly and Company

A number of hedge funds have recently modified their holdings of LLY. Brighton Jones LLC boosted its position in shares of Eli Lilly and Company by 22.0% in the fourth quarter. Brighton Jones LLC now owns 9,597 shares of the company's stock worth $7,409,000 after purchasing an additional 1,730 shares during the period. Revolve Wealth Partners LLC lifted its holdings in shares of Eli Lilly and Company by 2.8% in the fourth quarter. Revolve Wealth Partners LLC now owns 1,471 shares of the company's stock worth $1,136,000 after buying an additional 40 shares in the last quarter. Schnieders Capital Management LLC. lifted its holdings in shares of Eli Lilly and Company by 16.7% in the second quarter. Schnieders Capital Management LLC. now owns 7,993 shares of the company's stock worth $6,231,000 after buying an additional 1,141 shares in the last quarter. Flow Traders U.S. LLC purchased a new position in shares of Eli Lilly and Company in the second quarter worth $356,000. Finally, Nebula Research & Development LLC purchased a new position in shares of Eli Lilly and Company in the second quarter worth $749,000. 82.53% of the stock is currently owned by institutional investors.

About Eli Lilly and Company

Eli Lilly and Company NYSE: LLY is a global pharmaceutical company founded in 1876 and headquartered in Indianapolis, Indiana. The company researches, develops, manufactures and commercializes a broad range of medicines and therapies for patients worldwide. Eli Lilly maintains operations and commercial presence across North America, Europe, Asia and other regions, serving both developed and emerging markets. The company has been led in recent years by President and Chief Executive Officer David A.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.