10-Q · April 30, 2026
Eli Lilly posted a robust Q1 2026 with revenues of $19.8 billion, a 56% increase from $12.7 billion in Q1 2025, and diluted EPS of $8.26, soaring 170% year-over-year. This strong performance was driven by significant…
Earnings analysis · 10-Q
LLY earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Lilly delivered strong year-over-year operating performance in the third quarter, with revenue up 39% to $24.397 billion, EPS up 16% to $7.22, and gross margin expanding to 83.9%. Growth was led by Mounjaro and…
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Lilly delivered strong year-over-year operating performance in the third quarter, with revenue up 39% to $24.397 billion, EPS up 16% to $7.22, and gross margin expanding to 83.9%. Growth was led by Mounjaro and Zepbound, although lower realized prices, sequential EPS and gross-margin declines, and concentration in incretin products remain important offsets. Liquidity weakened as cash fell to $4.9 billion and debt rose to $49.5 billion after $18.2 billion of business-development spending; the 10-Q provides no new quantitative guidance and reports no material risk-factor changes.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
Where revenue came from
The business segments reported by the company.
Shares of the segments disclosed in this filing, largest first.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $7.22
- Gross margin
- 83.9%
What stood out
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Revenue accelerated on incretin demand
Third-quarter revenue was $24.397 billion, up 39% from $17.601 billion a year ago and approximately 6.2% above the prior-quarter revenue of $22.97 billion.
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Mounjaro and Zepbound drove growth
Mounjaro revenue increased 65% year over year to $10.723 billion and Zepbound revenue increased 49% to $5.352 billion. Together, the products generated $16.075 billion, or approximately 66% of quarterly revenue.
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Gross margin expanded year over year
Gross margin increased to 83.9% from 82.9% in the prior year, a 1.0 percentage-point improvement, driven by improved production costs and favorable product mix despite lower realized prices.
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Earnings growth remained strong
Diluted EPS rose 16% year over year to $7.22 from $6.21, while net income increased 16% to $6.451 billion from $5.583 billion.
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International growth outpaced U.S.
International revenue increased 47% to $9.261 billion, led by Mounjaro, whose outside-U.S. revenue increased 93% year over year. U.S. revenue increased 34% to $15.136 billion.
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Pipeline and regulatory progress advanced
The pipeline advanced during the quarter: the FDA approved orforglipron for obesity and insulin efsitora alfa for type 2 diabetes, while Phase 3 trials for retatrutide met primary endpoints in obesity and type 2 diabetes.
What to watch
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Leverage increased as cash declined
Cash and cash equivalents declined to $4.9 billion from $7.3 billion at December 31, 2025, while total debt increased to $49.5 billion from $42.5 billion. The company issued $9.0 billion of long-term debt in May 2026.
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Revenue concentration in incretins
Mounjaro, Zepbound, and Foundayo represented 66% of total revenue for the nine months ended September 30, 2026. Management warns that incretin volume fluctuations from channel dynamics or demand can have a disproportionate impact on results.
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Pricing pressure offsets volume gains
Revenue growth was partly offset by lower realized prices: consolidated price effects reduced the year-over-year growth rate by 15 percentage points in the quarter, including a 29-point price impact outside the U.S. Mounjaro also faced lower pricing after inclusion on China's NRDL.
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Acquisition spending raises execution risk
Lilly paid $18.2 billion for business-development activity during the first nine months, primarily for acquisitions including Centessa and Kelonia, and acquired Merida in October for up to $2.9 billion.
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Reimbursement and access remain uncertain
The company states that Medicare beneficiaries received access to discounted Lilly obesity medicines through the Medicare GLP-1 Bridge program from July 1, 2026 through December 31, 2027, but continued uptake is unknown and could affect pricing, demand, and access.
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No material risk-factor changes disclosed
The filing states that there were no material changes to the risk factors disclosed in the 2025 Form 10-K. Existing risks nevertheless include counterfeit, misbranded, adulterated, and mass-compounded incretins, for which Lilly states the FDA requires compounding pharmacies to cease mass production.
Management's outlook
The 10-Q does not provide explicit quantitative revenue or EPS guidance. Management expects additional manufacturing capacity to become operational over the next several years and states that near-term performance will be affected by regulatory approvals for orforglipron and uptake in new incretin channels, including U.S. Medicare.
Earlier filings 4
10-K · February 12, 2026
The 2025 Form 10-K reiterates Lilly’s single-segment, R&D-driven strategy to discover, develop, and commercialize innovative human pharmaceuticals globally (products sold in approximately 90 countries). The filing…
10-Q · October 30, 2025
Eli Lilly reported a strong Q3 with revenue of $17,600.8 million and diluted EPS of $6.21, both well above last year's quarter and consensus. Growth was driven by cardiometabolic products (Mounjaro and Zepbound) while…
10-Q · May 1, 2025
Eli Lilly reported strong Q1 results with revenue of $12,728.5 million (up from $8,768.0 million a year ago) and diluted EPS of $3.06 (vs. $2.48 in Q1 2024). Growth was concentrated in the cardiometabolic franchise…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.