Second-quarter revenue rose 48% to $23.0bn ($20.7bn expected), driven by Mounjaro and Zepbound sales increasing 91% and 46%, respectively. A 60% increase in volume more than offset a 13% fall in prices,
Adjusted operating profit increased 40% to $9.8bn, driven by strong top-line growth.
Full-year revenue guidance has been upgraded to $85-87bn ($85.4bn expected). Performance margin guidance was also upgraded.
So far in 2026 Eli Lilly has allocated $7.1bn to dividends and share buybacks.
The shares were up 4.4% in early trading.
Our view
Eli Lilly has delivered another set of quarterly results well ahead of forecasts. Lower pricing weighed on margins, but with revenue growing at this pace, profits still have scope to move higher. The launch of the company’s anti-obesity pill Foundayo appears to have fallen short of expectations, but the improved outlook has helped reassure investors.
The global pharmaceutical company is one of the trailblazers helping to revolutionise treatments for hormone deficiencies such as diabetes. But sales of GLP-1 treatments have also been grabbing attention for their effectiveness as a weight management tool. Its injectable medications stack up well against the competition, which has helped the group gain a dominant market share.
The boom in demand led to pressure on the firm’s manufacturing facilities, but this now looks to be resolved, with the addition of new US facilities a positive when it comes to staying on the right side of tariffs. Launches in new markets and approvals for use in other disease areas are significant opportunities for Lilly’s lead GLP-1 compound. But both of these growth levers carry a high level of execution risk.
Lilly’s weight-loss pill, Foundayo, which launched in April 2026 hasn’t started as well as some might have hoped. Sales momentum is starting to pick up but there is some evidence to suggest that the patient appeal of Lilly’s oral product doesn’t match up to its rival Novo Nordisk’s alternative.
The company’s generous Research & Development budget has helped to create a robust pipeline, not only in cardiometabolic health, on which GLP-1s focus, but also in cancer, neuroscience and auto-immune conditions. While research success is never guaranteed, it does provide a route to mitigate the industry-wide pressure of patent expirations, where manufacturers eventually lose exclusivity over medicines.
Eli Lilly’s impressive earnings growth record has earned it a valuation premium relative peers, and we think continued earnings momentum could still provide upside. Further out, forecasts look more conservative, but continued success in a market with significant growth potential could see estimates move higher. However, established and emerging competition, alongside regulatory risk, remain obstacles to watch.
Environmental, social and governance (ESG) risk
The pharmaceuticals sector is relatively high-risk in terms of ESG. Product governance, particularly with safety and marketing, and affordable access to treatment are the key risk drivers. Labour relations, business ethics and bribery and corruption are also contributors to ESG risk.
According to Sustainalytics, Eli Lilly’s management of ESG risks is strong. Executive pay is linked to climate-related targets, but the exact mechanism is unclear. Similarly, there are no targets or deadlines set for improving employee diversity and engagement. Its initiatives related to value-based healthcare, as well as ensuring access to its medicine in developing countries, are considered adequate. Disclosure of clinical trial data is strong, but information about quality control in medical manufacturing could be clearer. The company is the subject of several lawsuits alleging anti-competitive practices in the pricing of insulin.
Eli Lilly key facts
All ratios are sourced from LSEG Datastream, based on previous day’s closing values. Please remember yields are variable and not a reliable indicator of future income. Keep in mind key figures shouldn’t be looked at on their own – it’s important to understand the big picture.
This article is original Hargreaves Lansdown content, published by Hargreaves Lansdown. It was correct as at the date of publication, and our views may have changed since then. Unless otherwise stated estimates, including prospective yields, are a consensus of analyst forecasts provided by LSEG. These estimates are not a reliable indicator of future performance. Yields are variable and not guaranteed. Investments rise and fall in value so investors could make a loss.
This article is not advice or a recommendation to buy, sell or hold any investment. No view is given on the present or future value or price of any investment, and investors should form their own view on any proposed investment.