Eli Lilly is raising its financial expectations for the year as the pharmaceutical giant continues to see massive demand for its blockbuster weight loss and diabetes medications. The company reported a significant earnings beat for the third quarter, with top-line revenue climbing to $24.40 billion, comfortably surpassing the $22.61 billion projected by analysts. This performance underscores the company’s aggressive expansion in the global market for GLP-1 treatments, a sector where leadership remains confident there is still substantial room for growth.
The company now projects its 2026 revenue to land between $91 billion and $92 billion, a notable increase from its previous guidance of $85 billion to $87 billion. While Lilly faces some pressure from lower net pricing in the U.S. market—a consequence of industry-wide drug pricing agreements—the sheer volume of prescriptions for Zepbound and Mounjaro has more than compensated for these shifts. Shares of the company rose approximately 7% on Thursday following the announcement.
Market Dominance and Product Performance
Lilly’s core portfolio remains the engine of its growth. Mounjaro, the company’s diabetes treatment, saw worldwide revenue surge 65% to $10.72 billion during the quarter. This figure outpaced analyst expectations, bolstered by a 93% jump in international sales. Similarly, the obesity drug Zepbound posted $5.35 billion in revenue, reflecting a 49% increase compared to the same period last year. According to the company’s third-quarter financial results, Lilly held a 63% share of the U.S. obesity and diabetes drug market during the period.
$LLY | Eli Lilly Q1 Earnings Highlights🔹 Revenue: $19.80B (Est. $17.77B) 🟢; +56% YoY🔹 Adj. EPS: $8.55 (Est. $7.06) 🟢; +156% YoY🔹 Mounjaro: $8.66B (Est. $7.21B) 🟢; +125% YoY🔹 Zepbound: $4.16B (Est. $4.03B) 🟢; +80% YoY🔹 FDA Approval: Foundayo, Lilly’s oral GLP-1 pill… pic.twitter.com/UQ1FuNmPuF
While the injectable medications are driving massive volume, the company’s newer oral GLP-1 pill, Foundayo, showed a more measured start. The drug, which launched in the U.S. in April, generated $184 million in sales for the quarter, falling short of the $229 million forecast by Wall Street. Lucas Montarces, the company’s CFO, noted that the number of new patients starting on Foundayo doubled in the third quarter compared to the previous period, and approximately 4 out of 10 patients choosing an oral obesity medication are opting for the Lilly product.
Strategic Expansion and Future Outlook
Dave Ricks emphasized that the current market penetration for obesity care in the U.S. remains relatively low, estimated at between 3% and 10% of eligible patients. “This is a program that’s really working,” Ricks said during an appearance on CNBC’s Squawk on the Street, referring to the broader expansion of access to GLP-1 therapies, including Medicare’s recent pilot program for weight loss coverage. Ricks added that he believes the “room for expansion here of this market is dramatic.”
Beyond its core obesity and diabetes business, Lilly is actively reinvesting its profits into strategic acquisitions. The company recently entered into an agreement to acquire Merida Biosciences to develop a new class of treatments for serious autoimmune and allergic diseases. This deal-making spree is part of a broader effort to diversify the company’s pipeline while maintaining its lead in the competitive GLP-1 space.
Financial Breakdown
The company’s quarterly performance reflects a complex balance of high volume and shifting price structures. While volume for products like Mounjaro and Zepbound increased by 41%, this was partially offset by a 7% decrease in realized prices within the U.S. market. The following table summarizes the key financial metrics for the third quarter compared to market expectations:
| Metric | Reported | Expected |
|---|---|---|
| Adjusted EPS | $7.48 | $6.26 |
| Total Revenue | $24.40 billion | $22.61 billion |
| Zepbound Global Revenue | $5.35 billion | $5.09 billion |
Looking ahead, the company continues to focus on regulatory milestones, including the anticipated U.S. approval for Foundayo to treat Type 2 diabetes, which is expected to occur in the fourth quarter. As the pharmaceutical giant navigates the evolving landscape of obesity care, stakeholders will be watching to see how international markets respond to the continued rollout of its injectable therapies and whether the oral pill can gain more significant traction in the coming year.
