Eli Lilly Reports Q3 2026 Results: Revenue Surges 39% to $24.4B, Raises FY26 Outlook

Executive Summary

Eli Lilly and Company (NYSE: LLY) filed Form 8-K under Item 2.02 furnishing its third-quarter 2026 financial results, which significantly exceeded expectations and prompted an upward revision to full-year 2026 guidance.

Key Financial Highlights

• Revenue: Q3 2026 worldwide revenue grew 39% year-over-year to $24.40 billion (up from $17.60 billion in Q3 2025). Growth was driven by a 53% increase in volume, partially offset by a 15% decrease in realized prices.
  • U.S. revenue increased 34% to $15.1 billion.
  • Non-U.S. revenue jumped 47% to $9.3 billion.
  • Key Products revenue (Mounjaro, Zepbound, Verzenio, Ebglyss, etc.) reached $17.1 billion.
• Profitability:
  • Reported Net Income: $6.45 billion (+16% YoY).
  • Reported Diluted EPS: $7.22 (+16% YoY), including $4.57 per share in acquired IPR&D charges.
  • Non-GAAP Net Income: $6.68 billion (+6% YoY).
  • Non-GAAP Diluted EPS: $7.48 (+7% YoY).
• Gross Margin: Increased 40% to $20.5 billion; gross margin percentage reached 83.9% (up 100 bps YoY).

Guidance Revisions

• Full-Year 2026 Revenue: Increased midpoint by $5.5 billion, setting updated guidance between $91.0 billion and $92.0 billion.
• Full-Year 2026 Non-GAAP EPS: Updated guidance range established at $35.00 to $36.00, reflecting an increase in underlying operational guidance of $4.07 per share at the midpoint, offset by $4.57 per share of acquired IPR&D charges incurred in Q3.

Strategic and Pipeline Highlights

• Completed acquisitions of AtaiBeckley Inc. and Curevo Inc. during Q3 2026, followed by the acquisition of Merida Biosciences post-quarter end.
• Secured U.S. FDA approval for Mounjaro for cardiovascular risk reduction in adults with type 2 diabetes.
• Reported positive Phase 3 results for retatrutide versus Ozempic 2 mg in adults with type 2 diabetes.