Lilly raises 2026 guidance as Mounjaro, Zepbound drive 48% revenue jump

Eli Lilly reported second-quarter revenue of $23.0 billion, up 48% from a year earlier, driven by Mounjaro and Zepbound volume.

"Lilly's momentum continues, as we delivered 48% revenue growth and raised our full-year guidance," David A. Ricks, chair and chief executive officer, said.

Non-GAAP earnings per share rose 33% to $8.38, including $3.03 of acquired in-process research and development charges tied to recent deals. Mounjaro revenue jumped 91% to $9.9 billion, while Zepbound climbed 46% to $4.9 billion. U.S. revenue increased 33% to $14.4 billion, and revenue outside the U.S. rose 80% to $8.6 billion.

The company raised full-year revenue guidance to $85 billion to $87 billion, from $82 billion to $85 billion, and now expects EPS of $35.50 to $36.50. The underlying EPS outlook rose $2.78 at the midpoint on strong business growth, offset by the $3.03 of acquired IPR&D charges. Lilly plans to submit a Biologics License Application for retatrutide, its next-generation obesity medicine, to the U.S. Food and Drug Administration in the first quarter of 2027.

Reported net income rose 25% to $7.1 billion, with reported EPS of $7.94. Gross margin as a percent of revenue widened 1.5 percentage points to 85.8%, helped by improved production costs and favorable product mix. Research and development spending increased 14% to $3.8 billion.

The company recognized $2.8 billion of acquired IPR&D charges in the quarter, primarily from the acquisitions of Orna Therapeutics and Ajax Therapeutics. Asset impairment, restructuring and other special charges totaled $703 million, largely tied to closing the Kelonia Therapeutics and Centessa Pharmaceuticals deals.

Lilly completed four acquisitions in the quarter and, after the period, agreed to buy AtaiBeckley to advance therapies for treatment-resistant depression. It also committed an additional $4.5 billion to expand Indiana manufacturing sites. Regulatory wins included U.S. Food and Drug Administration approval of Ebglyss (lebrikizumab-lbkz) for an eight-week maintenance dose in atopic dermatitis and European Commission approval of Jaypirca (pirtobrutinib) for chronic lymphocytic leukemia.

The guidance raise points to management's expectation that demand for its incretin franchise will keep accelerating. Investors will watch the FDA's review of retatrutide and the launch of oral GLP-1 Foundayo (orforglipron), which posted $98 million in sales after its U.S. debut.

This article is for informational purposes only and does not constitute investment advice.