Eli Lilly and Company (LLY) Financials

Eli Lilly (LLY) has delivered a notably strong multi-year trajectory across revenue, margins, and cash flow, while also expanding its balance sheet with higher intangibles and leverage tied to ongoing investments. Below is a concise, data-backed view of the most important trends from the last four years based on quarterly statements.

• Strong revenue growth: Operating revenue rose from about $7.30B in Q4 2022 to $19.29B in Q4 2025, illustrating a sustained top-line expansion across product lines and pipeline reliability.
• High and stable gross margins: Total gross profit margins stayed in the mid-to-upper 80s range (roughly 82–84%) across these years, indicating pricing power and efficient cost control.
• Solid net income and EPS gains: Net income attributable to common shareholders reached about $6.64B in Q4 2025 with Basic EPS of $7.41 and Diluted EPS of $7.39, marking meaningful profitability growth versus prior periods.
• Rising operating cash flow: Net cash from continuing operating activities climbed to about $3.22B in Q4 2025 (vs roughly $2.47B in Q4 2024), signaling stronger cash generation from core operations.
• Healthy liquidity tailwind: Cash and equivalents were around $9.8B on the latest pre-Q4 2025 period, highlighting ample liquidity to fund operations, dividends, and select investments.
• Growing intangibles and goodwill: Goodwill (~$5.9B) and Intangible Assets (~$6.4–$6.7B) have risen meaningfully, reflecting acquisitions/licensing activity and pipeline deals, which can be positive for future growth but carry impairment risk if projects underperform.
• Elevated leverage profile: Long-term debt sits around $40.9B with total liabilities near $91B, and equity around $23–24B in the latest periods, indicating a high but typical pharma leverage level that warrants watching debt maturities and interest costs.
• Working-capital intensity from other liabilities: Large other current liabilities (e.g., around $22–23B in several periods) suggest sizable accruals and working-capital timing effects, which can impact near-term liquidity timing.
• Debt load and leverage risk persists: Substantial long-term debt and overall high liabilities relative to equity raise watchpoints for balance-sheet risk if growth slows or pipeline opportunities derail.
• Aggressive investing and financing outflows: Significant investing activity and periodic financing outflows (e.g., net cash from investing around -$2.8B and net financing outflows in some quarters) reduce near-term free cash flow and liquidity headroom, even as earnings grow.