What Eli Lilly and Company (LLY) Said on Its Q3 Earnings Call

Key Points

• Lilly raised its 2026 outlook to $91 billion–$92 billion in revenue and $35–$36 in non-GAAP EPS after third-quarter revenue rose 39% year over year.
• Mounjaro and Zepbound generated more than $16 billion in combined third-quarter revenue, while international incretin sales and enrollment in the Medicare GLP-1 Bridge Program continued to expand.
• Foundayo, Lilly’s oral obesity medicine, gained market share in the U.S., while pipeline advances—including retatrutide and EloraTZP—and planned $11.5 billion in new manufacturing facilities support longer-term growth.

Eli Lilly and Company NYSE: LLY raised its full-year outlook after reporting third-quarter revenue growth of 39% from the prior-year period, driven primarily by demand for its Mounjaro and Zepbound incretin medicines and continued growth across international markets.

Chair and CEO Dave Ricks said revenue increased by nearly $7 billion compared with the third quarter of 2025, while revenue from key products rose by more than $6 billion. The company also cited doubled revenue from its oncology, immunology and neuroscience portfolio.

Lilly increased its 2026 revenue guidance to $91 billion to $92 billion and projected non-GAAP earnings per share of $35 to $36. CFO Lucas Montarce said the outlook reflects strength in U.S. demand, including uptake of the Medicare GLP-1 Bridge Program, as well as international Mounjaro performance.

Incretin growth drives results

Mounjaro and Zepbound generated more than $16 billion in combined third-quarter revenue, representing $6 billion of growth from the year-earlier quarter, according to Montarce. U.S. revenue increased 34%, primarily on higher volumes for the two medicines, partially offset by a 7% decline in price. Excluding a favorable adjustment to rebate and discount estimates, U.S. price declined 10%, he said.

Outside the United States, Mounjaro drove growth in several markets. European revenue rose 29% in constant currency, aided by volume growth and a $410 million one-time Jardiance milestone payment. Revenue in Japan grew 26% in constant currency, China revenue increased 62%, and revenue in the rest of the world rose 87% in constant currency.

Montarce said Mounjaro became the first medicine in China to surpass $1 billion in revenue during its first full year. Lilly’s international incretin business increased 53% year over year based on IQVIA gross-sales measurements, and the company’s share reached approximately 58%, up nearly four percentage points from the second quarter.

The company said its Medicare GLP-1 Bridge Program had enrolled more than 500,000 prescription fills since its July 1 launch. Ricks said approximately 20 million seniors have access to obesity medicines through the program, and seven of 10 new Bridge patients are starting on a Lilly obesity medicine. Ilya Yuffa, president of Lilly USA and Global Customer Capabilities, said about 80% of people receiving treatment through the program are new to incretin therapy or had not used it previously.

Ricks said Lilly expects the program’s early uptake and potential cost effectiveness to support continued access beyond 2027, though he noted that future arrangements would involve discussions with the administration and Part D carriers.

Foundayo launch expands oral market

Lilly said Foundayo, its oral obesity medicine, is gaining traction in the U.S. and four international markets. In the U.S., approximately four in 10 patients beginning an oral obesity medicine selected Foundayo, while the number of new Foundayo patients doubled sequentially in the third quarter.

Yuffa said Foundayo accounted for 45% of sequential growth in oral prescriptions from the second quarter to the third quarter. About 25% of patients are at one of the medicine’s maintenance doses, according to the company.

Internationally, Lilly launched Foundayo in the United Arab Emirates, the United Kingdom, Saudi Arabia and Mexico. Patrik Jonsson, president of Lilly International, said early launches were tracking in line with expectations and that oral medicines were bringing new patients into incretin therapy. Lilly expects regulatory action on Foundayo in U.S. type 2 diabetes during the fourth quarter and said it anticipates a broader global rollout in major markets during 2027.

Margins, spending and 2027 considerations

Third-quarter gross margin rose 80 basis points to 84.4% of revenue, supported by product mix and lower production costs, partly offset by lower realized prices. Marketing, selling and administrative expenses rose 14%, while research and development spending increased 23% as Lilly invested in its pipeline and acquired programs.

Non-GAAP performance margin was 54.2%, up 5.9 percentage points from the third quarter of 2025. Non-GAAP earnings per share were $7.48, including $4.57 of acquired in-process research and development charges, compared with $7.02 a year earlier, which included $0.71 of such charges.

For 2027, Montarce said Lilly expects continued incretin volume growth, a full-year contribution from the Medicare Bridge Program and a potential U.S. type 2 diabetes launch for Foundayo. He also said 2026 benefited from about $2 billion of one-time items, principally milestone payments and changes in rebate and discount estimates, that are not expected to recur.

Yuffa said Lilly expects commercial obesity-drug access to remain relatively stable in 2027, with expanded Medicare and Medicaid access representing the main opportunity for coverage growth. He said a changing mix toward Medicare, Medicaid and self-pay channels could pressure average net price, while the company expects to maintain a “modest and disciplined” approach to commercial pricing and access.

Pipeline, approvals and manufacturing investment

Lilly highlighted new U.S. approvals for weekly basal insulin Onswik and for tirzepatide to reduce cardiovascular risk in adults with type 2 diabetes. The Food and Drug Administration also approved pirtobrutinib for certain previously untreated chronic lymphocytic leukemia or small lymphocytic lymphoma patients, and approved imlunestrant with abemaciclib for certain advanced breast cancer patients.

Chief Scientific and Product Officer Dan Skovronsky said retatrutide reduced A1C by 2.2% and produced 20% to 21% weight loss in the TRANSCEND-T2D-2 study, compared with a 1.8% A1C reduction and 9.4% weight loss for 2-milligram semaglutide. Lilly also reported phase II results for EloraTZP, a combination of eloralintide and tirzepatide, showing 23.3% weight loss at 48 weeks in people with type 2 diabetes and obesity.

The company acquired AtaiBeckley, adding neuroplastogen programs for depression and other mental-health conditions, and Merida Biosciences, which is developing a phase I precision-immunology therapy for Graves’ disease and thyroid eye disease.

Lilly also broke ground on a $6.5 billion manufacturing facility in Houston and a $5 billion facility in Richmond, Virginia. During the quarter, it paid $1.5 billion in dividends and repurchased $400 million of shares.

About Eli Lilly and Company (NYSE:LLY)

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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