Lilly reports fourth-quarter 2025 financial results and provides 2026 guidance

Rhea-AI Summary

Eli Lilly (NYSE: LLY) reported Q4 2025 revenue of $19.3B, up 43%, and reported EPS of $7.39 (non-GAAP EPS $7.54). Full-year 2026 guidance targets $80–$83B revenue and non-GAAP EPS of $33.50–$35.00. Key drivers were strong volume growth for Mounjaro and Zepbound, regulatory progress on tirzepatide and Jaypirca, Phase 3 clinical wins, and a U.S. agreement to expand access to obesity medicines.

R&D and SG&A rose on pipeline and launches; gross margin was 82.5% in Q4 2025. 2026 performance margin guidance is 46.0%–47.5%.

Positive

• Revenue +43% Q4 to $19.3B driven by Mounjaro and Zepbound volume
• Mounjaro +110% Q4 to $7.4B, showing rapid uptake
• 2026 guidance of $80–$83B revenue and non-GAAP EPS $33.50–$35.00

Negative

• Lower realized prices reduced revenue growth by ~5% in Q4
• R&D +26% and SG&A +29% Q4, increasing expense pressure on margins

Market Reaction

+7.74% $1081.09

15m delay 18 alerts

+7.74% Since News

$1081.09 Last Price

$1065.55 $1103.87 Day Range

+$73.42B Valuation Impact

$1.02T Market Cap

0.7x Rel. Volume

Following this news, LLY has gained 7.74%, reflecting a notable positive market reaction. Our momentum scanner has triggered 18 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $1081.09. This price movement has added approximately $73.42B to the company's valuation.

Data tracked by StockTitan Argus (15 min delayed). Upgrade to Silver for real-time data.

Key Figures

Q4 2025 Revenue: $19.3 billion (+43%) Q4 2025 EPS (reported): $7.39 (+51%) Q4 2025 EPS (non-GAAP): $7.54 (+42%) +5 more

8 metrics

Q4 2025 Revenue $19.3 billion (+43%) Fourth-quarter 2025 vs Q4 2024

Q4 2025 EPS (reported) $7.39 (+51%) Fourth-quarter 2025 vs Q4 2024

Q4 2025 EPS (non-GAAP) $7.54 (+42%) Fourth-quarter 2025 vs Q4 2024

2026 Revenue Guidance $80–$83 billion Full-year 2026 outlook

2026 EPS Guidance (non-GAAP) $33.50–$35.00 Full-year 2026 outlook

Q4 2025 Mounjaro Revenue $7,409 million (+110%) Worldwide Q4 2025 vs Q4 2024

Q4 2025 Zepbound Revenue $4,261 million (+123%) Q4 2025 vs Q4 2024

2025 Total Revenue $65,179 million (+45%) Full-year 2025 vs 2024

Market Reality Check

Price: $1003.46 Vol: Volume 5,267,338 is 1.73x...

high vol

$1003.46 Last Close

Volume Volume 5,267,338 is 1.73x the 20-day average of 3,037,064, indicating elevated trading interest ahead of results. high

Technical Shares at 1003.46 trade above the 200-day MA of 855.99 and sit 11.51% below the 52-week high of 1133.95.

Peers on Argus

Peers show a mixed picture: NVO is down 13.8%, while ABBV, JNJ, and NVS are mode...

1 Down

Peers show a mixed picture: NVO is down 13.8%, while ABBV, JNJ, and NVS are modestly positive and AZN is negative. With limited peer downside and only NVO in momentum scans, LLY’s move appears more company-specific than broad sector rotation.

Previous Earnings Reports

5 past events · Latest: Oct 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Oct 30	Q3 2025 earnings	Positive	+3.8%	Q3 2025 revenue up 54% with EPS beat and raised 2025 guidance.
Aug 07	Q2 2025 earnings	Positive	-14.1%	Q2 2025 revenue up 38%, EPS up sharply and guidance raised again.
May 01	Q1 2025 earnings	Positive	-11.7%	Q1 2025 revenue up 45% with strong Mounjaro and Zepbound growth.
Feb 06	Q4 2024 earnings	Positive	+3.4%	Q4 2024 revenue up 45% and new 2025 guidance introduced.
Oct 30	Q3 2024 earnings	Positive	-6.3%	Q3 2024 revenue growth led by new products Mounjaro and Zepbound.

Pattern Detected

Earnings releases often feature strong growth and raised guidance, but price reactions have skewed negative, with more divergences than alignments.

Recent Company History

Over the last five earnings cycles, Lilly has consistently reported strong volume‑driven growth from Mounjaro and Zepbound, alongside recurring guidance raises. Q3 and Q2 2025 highlighted double‑digit revenue and EPS gains and higher full‑year outlooks, while Q1 2025 and Q4 2024 also showed robust expansion. Despite this, three of five earnings days saw negative price reactions, indicating that strong fundamentals have not always translated into immediate share gains. Today’s Q4 2025 report and 2026 guidance continue this growth narrative.

Historical Comparison

earnings

-5.0 %

Average Historical Move

Historical Analysis

Across five recent earnings releases, LLY’s average next‑day move was -4.98%, despite consistently strong growth and frequent guidance raises.

Typical Pattern

Earnings updates from Q3, Q2, and Q1 2025 through Q4 2024 trace a steady ramp in revenue and EPS powered by Mounjaro and Zepbound, with multiple upward revisions to annual guidance. The latest Q4 2025 release and 2026 outlook extend this trajectory, emphasizing continued topline expansion, margin focus, and a deepening pipeline rather than a shift in strategic direction.

Market Pulse Summary

The stock is up +7.7% following this news. A strong positive reaction aligns with the earnings track...

Analysis

The stock is up +7.7% following this news. A strong positive reaction aligns with the earnings track record of rapid revenue and EPS growth driven by Mounjaro and Zepbound. Historically, however, average next‑day moves around earnings have been -4.98%, showing that prior strength did not always sustain initial spikes. Investors would have weighed ambitious 2026 guidance of $80–$83B revenue and $33.50–$35.00 EPS against execution risks and ongoing investment needs.

Key Terms

non-gaap, breakthrough therapy designation, progression-free survival, phase 3, +3 more

7 terms

non-gaap financial

"Q4 2025 EPS increased by 51% to $7.39 on a reported basis and increased by 42% to $7.54 on a non-GAAP basis"

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

breakthrough therapy designation regulatory

"Lilly's sofetabart mipitecan receives U.S. FDA's Breakthrough Therapy designation for the treatment"

A breakthrough therapy designation is a regulatory fast-track given to a drug or treatment that shows early signs of providing a major improvement over existing options for a serious condition. Think of it as a VIP lane that can speed up development and more intensive guidance from regulators, which matters to investors because it can shorten time to market, reduce development risk and potentially increase a company’s value — though it does not guarantee approval.

progression-free survival medical

"Lilly's Jaypirca (pirtobrutinib) significantly improved progression-free survival, reducing the risk"

Progression-free survival is the length of time during and after a treatment that a patient's disease does not get worse, measured from the start of treatment until the disease shows measurable signs of progression or the patient dies. Investors care because longer progression-free survival in clinical trials often signals that a drug is effective, improving chances of regulatory approval, market adoption, and revenue potential—think of it as a stopwatch showing how long a therapy can keep the illness at bay.

phase 3 medical

"retatrutide, delivered weight loss of up to an average of 71.2 lbs ... in first successful Phase 3 trial"

Phase 3 is the late-stage clinical testing step for a new drug or medical treatment, where the product is given to large groups of patients to confirm effectiveness, monitor side effects, and compare it to standard care. Successful Phase 3 results are often the final scientific hurdle before regulators decide on approval and market launch—like passing a final exam before graduation—and can sharply change a company's valuation and future revenue prospects.

phase 2 medical

"eloralintide, demonstrated meaningful weight loss and favorable tolerability in a Phase 2 study"

Phase 2 is the mid-stage clinical trial where a new drug or treatment is tested in a larger group of patients to see if it works and to keep checking safety after initial human testing. Think of it as a field test that proves whether a product actually delivers its promised benefit. Investors watch Phase 2 closely because its results strongly influence a medicine’s chances of reaching the market, the size of its potential sales, and the company’s valuation.

glp-1 medical

"orforglipron for people who switched from injectable incretins to oral GLP-1 therapy"

GLP-1 (glucagon-like peptide-1) is a natural hormone in the body that helps regulate blood sugar levels and appetite. Its significance to investors lies in its role as the basis for a class of medications that address conditions like type 2 diabetes and obesity, which are large and growing markets. Advances or investments in GLP-1-based treatments can signal opportunities in healthcare innovation and potentially impact pharmaceutical companies’ growth.

ipr&d financial

"both inclusive of $0.52 of acquired IPR&D charges"

In-process research and development (IPR&D) is the value a buyer assigns to ongoing drug, product, or technology projects acquired before they are finished. It matters to investors because this intangible asset represents potential future revenue and carries high uncertainty—like purchasing a half-built house that could become a valuable home or require expensive work—and it affects a buyer’s reported assets, future write-downs, and earnings when projects fail or succeed.

AI-generated analysis. Not financial advice.

• Revenue in Q4 2025 increased 43% to $19.3 billion driven by volume growth from Mounjaro and Zepbound.
• Q4 2025 EPS increased by 51% to $7.39 on a reported basis and increased by 42% to $7.54 on a non-GAAP basis, both inclusive of $0.52 of acquired IPR&D charges.
• Regulatory progress included FDA approval of Kwikpen for tirzepatide and an expanded indication for Jaypirca, and submissions for orforglipron for obesity to regulatory authorities in the U.S. and Japan and for obesity and type 2 diabetes in the EU.
• Pipeline progress included positive Phase 3 results from Taltz and Zepbound used together for adults with active psoriatic arthritis and obesity, orforglipron for people who switched from injectable incretins to oral GLP-1 therapy, and retatrutide for people with obesity and knee osteoarthritis.
• Announced an agreement with the U.S. government to expand access to obesity medicines for millions of Americans.
• 2026 guidance issued with revenue in the range of $80 billion to $83 billion and non-GAAP EPS in the range of $33.50 to $35.00.

INDIANAPOLIS, Feb. 4, 2026 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) today announced its financial results for the fourth-quarter of 2025 and provided 2026 financial guidance.

"2025 was an important year for Lilly," said David A. Ricks, Lilly's chair and CEO. "We reached millions more patients—launching Inluriyo, expanding Mounjaro and Kisunla globally, and submitting orforglipron for approval. We expanded our manufacturing capacity, and through our U.S. government agreement, opened new access to obesity medicines. Entering our 150th year with a deep pipeline and platforms like LillyDirect, we're positioned to reach more patients than ever and expand our global health impact."

Financial Results

$ in millions, except per share data	Fourth-Quarter
	2025		2024		% Change
Revenue	$    19,292		$    13,533		43 %
Net income – Reported	6,636		4,410		50 %
Earnings per share – Reported	7.39		4.88		51 %
Net income – Non-GAAP	6,771		4,806		41 %
Earnings per share – Non-GAAP	7.54		5.32		42 %

A discussion of the non-GAAP financial measures is included below under "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)."

Fourth-Quarter Reported Results
In Q4 2025, worldwide revenue was $19.3 billion, an increase of 43% compared with Q4 2024, driven by a 46% increase in volume, partially offset by a 5% decrease due to lower realized prices. Key Products[1] revenue grew to $13.8 billion in Q4 2025, led by Mounjaro and Zepbound.

Revenue in the U.S. increased 43% to $12.9 billion, driven by a 50% increase in volume, partially offset by a 7% decrease due to lower realized prices. The increase in U.S. volume and decline in realized prices were driven by Zepbound and Mounjaro.

Revenue outside the U.S. increased 43% to $6.4 billion, driven by a 38% increase in volume and to a lesser extent a 4% favorable impact on foreign exchange rates. The volume increase outside the U.S. was driven primarily by Mounjaro, partially offset by Jardiance. Volume growth was negatively impacted by a one-time benefit of $300 million related to Jardiance, associated with an amendment to the company's collaboration with Boehringer Ingelheim, in Q4 2024.

1 The Company defines Key Products as Ebglyss, Inluriyo (effective Q4 2025), Jaypirca, Kisunla, Mounjaro, Omvoh, Verzenio and Zepbound.

Gross margin increased 43% to $15.9 billion in Q4 2025. Gross margin as a percent of revenue was 82.5%, an increase of 0.3 percentage points. The increase in gross margin percent was primarily driven by favorable product mix and improved cost of production, partially offset by lower realized prices.

In Q4 2025, research and development expenses increased 26% to $3.8 billion, or 20% of revenue, driven by continued investments in the company's early and late-stage portfolio.

Marketing, selling and administrative expenses increased 29% to $3.1 billion in Q4 2025, primarily driven by promotional efforts supporting ongoing and planned launches.

The effective tax rate was 19.7% in Q4 2025 compared with 12.5% in Q4 2024 primarily driven by a less favorable jurisdictional mix of earnings in Q4 2025 relative to Q4 2024. Additionally, the effective tax rate for Q4 2025 was unfavorably impacted by U.S. tax law changes enacted earlier in 2025.

In Q4 2025, net income and earnings per share (EPS) were $6.6 billion and $7.39, respectively, compared with net income of $4.4 billion and EPS of $4.88 in Q4 2024. EPS in Q4 2025 and Q4 2024 included acquired IPR&D charges of $0.52 and $0.19, respectively.

Fourth-Quarter Non-GAAP Measures
On a non-GAAP basis, Q4 2025 gross margin increased 42% to $16.0 billion. Gross margin as a percent of revenue was 83.2%, consistent with Q4 2024. Favorable product mix and improved cost of production were offset by lower realized prices.

The non-GAAP effective tax rate was 19.7% in Q4 2025 compared with 13.2% in Q4 2024 primarily driven by a less favorable jurisdictional mix of earnings in Q4 2025 relative to Q4 2024. Additionally, the effective tax rate for Q4 2025 was unfavorably impacted by U.S. tax law changes enacted earlier in 2025.

On a non-GAAP basis, Q4 2025 net income and EPS were $6.8 billion and $7.54, respectively, compared with net income of $4.8 billion and EPS of $5.32 in Q4 2024. Non-GAAP EPS in Q4 2025 and Q4 2024 included acquired IPR&D charges of $0.52 and $0.19, respectively.

For further detail on non-GAAP measures, see the reconciliation below as well as the "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)" table later in this press release.

	Fourth-Quarter
	2025		2024		% Change
Earnings per share (reported)	$        7.39		$        4.88		51 %
Amortization of intangible assets	.11		.12
Asset impairment, restructuring and other special charges	.07		.30
Net losses (gains) on investments in equity securities	(.03)		.02
Earnings per share (non-GAAP)	$        7.54		$        5.32		42 %
Acquired IPR&D	.52		.19		174 %
Numbers may not add due to rounding

Selected Revenue Highlights

(Dollars in millions)	Fourth-Quarter						Full Year
Selected Products	2025		2024		% Change		2025		2024		% Change
Mounjaro	$     7,409		$     3,530		110 %		$   22,965		$   11,540		99 %
Zepbound(1)	4,261		1,907		123 %		13,542		4,926		175 %
Verzenio	1,604		1,555		3 %		5,723		5,307		8 %
Total Revenue	19,292		13,533		43 %		65,179		45,043		45 %
(1) Tirzepatide is marketed for obesity under the brand name Zepbound in Canada, Japan, and the United States.

Mounjaro
For Q4 2025, worldwide Mounjaro revenue increased 110% to $7.4 billion. U.S. revenue was $4.1 billion, an increase of 57%, reflecting strong demand, partially offset by lower realized prices. Revenue outside the U.S. increased to $3.3 billion compared with $899 million in Q4 2024, primarily driven by volume growth.

Zepbound
For Q4 2025, U.S. Zepbound revenue increased 122% to $4.2 billion, compared with $1.9 billion in Q4 2024, primarily driven by increased demand, partially offset by lower realized prices.

Verzenio
For Q4 2025, worldwide Verzenio revenue increased 3% to $1.6 billion. U.S. revenue was $997 million, a decrease of 4%. Revenue outside the U.S. was $608 million, an increase of 18%, primarily driven by volume growth.

Lilly shared numerous updates recently on key regulatory, clinical, business development and other events, including:

Regulatory	Lilly's sofetabart mipitecan receives U.S. FDA's Breakthrough Therapy designation for the treatment of certain patients with platinum-resistant ovarian cancer (announcement)
	U.S. FDA approves expanded indication for Lilly's Jaypirca (pirtobrutinib), the first and only non-covalent (reversible) BTK inhibitor, for adults with relapsed or refractory CLL/SLL previously treated with a covalent BTK inhibitor (announcement)
Clinical	Lilly's Taltz (ixekizumab) and Zepbound (tirzepatide) used together delivered superior efficacy in first-of-its-kind Phase 3b trial for adults with active psoriatic arthritis and obesity or overweight (announcement)
	Lilly's orforglipron helped people maintain weight loss after switching from injectable incretins to oral GLP-1 therapy in first-of-its-kind Phase 3 trial (announcement)
	Updated data for Lilly's Inluriyo™ (imlunestrant) reinforce efficacy results as monotherapy and in combination with Verzenio® (abemaciclib) in ER+, HER2- advanced breast cancer (announcement)
	Lilly's triple agonist, retatrutide, delivered weight loss of up to an average of 71.2 lbs along with substantial relief from osteoarthritis pain in first successful Phase 3 trial (announcement)
	Lilly's Jaypirca (pirtobrutinib) significantly improved progression-free survival, reducing the risk of progression or death by 80%, versus chemoimmunotherapy in patients with treatment-naïve CLL/SLL (announcement)
	Lilly's Jaypirca (pirtobrutinib) met its primary endpoint in first-of-its-kind, head-to-head Phase 3 study versus Imbruvica (ibrutinib) (announcement)
	Lilly's selective amylin agonist, eloralintide, demonstrated meaningful weight loss and favorable tolerability in a Phase 2 study of adults with obesity or overweight (announcement)
Other	Lilly selects Pennsylvania as home for its newest injectable medicine and device manufacturing facility (announcement)
	NVIDIA and Lilly Announce Co-Innovation AI Lab to Reinvent Drug Discovery In the Age of AI (announcement)
	Lilly to acquire Ventyx Biosciences to advance oral therapies targeting inflammatory-mediated diseases (announcement)
	Lilly to build $6 billion facility to manufacture active pharmaceutical ingredients in Alabama (announcement)
	Lilly and Adverum announce expiration and completion of Adverum tender offer and acquisition (announcement)
	Carolyn Bertozzi returns to Lilly board of directors (announcement)
	Lilly announces plans to open Lilly Gateway Labs site in Philadelphia (announcement)
	Lilly announces two new Executive Committee members and expansion of leadership roles to prepare for next wave of growth (announcement)
	Lilly and U.S. government agree to expand access to obesity medicines to millions of Americans (announcement)
	Lilly plans to build a new $3 billion facility to boost oral medicine manufacturing capacity in Europe for patients worldwide (announcement)

For information on important public announcements, visit the news section of Lilly's website.

2026 Financial Guidance
In addition to providing guidance for GAAP revenue, Lilly provides guidance for certain non-GAAP measures. Lilly does not provide reconciliations of forward-looking non-GAAP measures to the most directly comparable GAAP measures because comparable GAAP measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for a reconciliation. In particular, Lilly cannot reasonably predict certain items including net gains and losses on equity securities, asset impairment, acquisition or divestiture-related items, restructuring and other adjustments, without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on Lilly's reported results in accordance with GAAP.

The following table summarizes the company's full-year 2026 financial guidance:

			2026 Guidance
Revenue			$80 to $83 billion
Performance Margin(1)(2)			46.0% to 47.5%
Tax Rate(2)(3)			18% to 19%
Earnings per Share(2)(3)(4)			$33.50 to $35.00
(1) The Company defines performance margin as gross margin less research and development and marketing, selling, and administrative expenses divided by revenue.
(2) Excludes the impact of intangible asset amortization.
(3) Guidance does not include acquired in-process research and development (IPR&D) either incurred or expected to be incurred, after December 31, 2025.
(4) 2026 assumes shares outstanding of approximately 894 million

Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the Q4 2025 financial results conference call through a link on Lilly's website at investor.lilly.com/webcasts-and-presentations. The conference call will begin at 10 a.m. Eastern time today and will be available for replay via the website.

Non-GAAP Financial Measures
Certain financial information is presented on both a reported and a non-GAAP basis. Some numbers in this press release may not add due to rounding. Reported results were prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include all revenue and expenses recognized during the periods. Historical non-GAAP measures reflect adjustments for the items described in the reconciliation tables later in the release. Related materials provide certain GAAP and non-GAAP figures excluding the impact of foreign exchange rates. Lilly recalculates current period figures on a constant currency basis by keeping constant the exchange rates from the base period. The company's 2026 financial guidance (other than revenue) is provided on a non-GAAP basis, as described in "2026 Financial Guidance" above. Non-GAAP measures are presented to provide additional insights into the underlying trends in the company's business.

About Lilly
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for nearly 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to-treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to ensure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news. F-LLY

Cautionary Statement Regarding Forward-Looking Statements

This press release and the related attachments contain management's intentions and expectations for the future, all of which are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "estimate", "project", "intend", "expect", "believe", "target", "plan", "anticipate", "may", "could", "aim", "seek", "will", "continue", and similar expressions are intended to identify forward-looking statements. Actual results may differ materially due to various factors. The following include some but not all of the factors that could cause actual results or events to differ from those anticipated, including the significant costs and uncertainties in the pharmaceutical research and development process, including with respect to the timing and process of obtaining regulatory approvals and the ability of the company's clinical trials to meet expectations; the impact and uncertain outcome of acquisitions and business development transactions and related costs; intense competition affecting the company's products, pipeline, or industry; market uptake of launched products and indications; continued pricing pressures and the impact of actions of governmental and private actors affecting pricing of, reimbursement for, and patient access to pharmaceuticals, or reporting obligations related thereto; the negotiation and implementation of our voluntary agreement with the U.S. government related to drug pricing and access; Developments or uncertainties related to our or competitive products, including as may relate to safety or efficacy concerns; dependence on relatively few products or product classes for a significant percentage of the company's total revenue and a consolidated supply chain; the expiration of intellectual property protection for certain of the company's products and competition from generic and biosimilar products; the company's ability to protect and enforce patents and other intellectual property and changes in patent law or regulations related to data package exclusivity; information technology system inadequacies, inadequate controls or procedures, security breaches, or operating failures; unauthorized access, disclosure, misappropriation, or compromise of confidential information or other data stored in the company's information technology systems, networks, and facilities, or those of third parties with whom the company shares its data and violations of data protection laws or regulations; issues with product supply, regulatory approvals, or other negative outcomes stemming from manufacturing difficulties, disruptions, or shortages, including as a result of unpredictability and variability in demand, labor shortages, third-party performance, quality, cyber-attacks, or regulatory actions related to the company's and third-party facilities; reliance on third-party relationships and outsourcing arrangements; the use of artificial intelligence or other emerging technologies in various facets of the company's operations, including partnerships related to the use of, or the sharing of such technologies with third parties, which may exacerbate competitive, regulatory, litigation, cybersecurity, and other risks; the impact of global macroeconomic conditions, including uneven economic growth or downturns or uncertainty, trade and other global disputes and interruptions, including related to tariffs, trade protection measures, and similar restrictions, international tension, conflicts, regional dependencies, or other costs, uncertainties, and risks related to engaging in business globally; fluctuations in foreign currency exchange rates, changes in interest rates and inflation or deflation; significant and sudden declines or volatility in the trading price of the company's common stock and market capitalization; litigation, investigations, or other similar proceedings involving past, current, or future products, activities, or intellectual property; changes in tax law and regulations, tax rates, or events that differ from our assumptions related to tax positions; regulatory changes, developments, and uncertainty; regulatory oversight and actions regarding the company's operations and products; regulatory compliance problems or government investigations; risks from the proliferation of counterfeit, misbranded, adulterated, diverted or illegally compounded products; actual or perceived deviation from environmental-, social-, or governance-related requirements or expectations; asset impairments and restructuring charges; and changes in accounting and reporting standards. For additional information about the factors that could cause actual results or events to differ materially from forward-looking statements, please see the company's latest Form 10-K and subsequent Forms 8-K and 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements contained in this press release and the related attachments, which, except as otherwise noted, speak only as of the date of this release. Except as is required by law, the company expressly disclaims any obligation to publicly release any revisions to forward-looking statements contained in this press release and the related attachments to reflect events or circumstances after the date of this release.

Website Information

The information contained on, or that may be accessed through, our website or any third-party website is not incorporated by reference into, and is not a part of, this earnings release.

Trademarks and Trade Names

All trademarks or trade names referred to in this press release are the property of the company, or, to the extent trademarks or trade names belonging to other companies are referenced in this press release, the property of their respective owners. Solely for convenience, the trademarks and trade names in this press release are referred to without the ® and ™ symbols, but such references should not be construed as any indicator that the company or, to the extent applicable, their respective owners will not assert, to the fullest extent under applicable law, the company's or their rights thereto. We do not intend the use or display of other companies' trademarks and trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.

 

Eli Lilly and Company Operating Results (Unaudited) – REPORTED (Dollars in millions, except per share data; numbers may not add due to rounding)
		Three Months Ended							Twelve Months Ended
		December 31,							December 31,
		2025		2024		% Chg.			2025		2024		% Chg.
Revenue	$	19,292	$	13,533		43 %		$	65,179	$	45,043		45 %
Cost of sales		3,372		2,404		40 %			11,052		8,418		31 %
Research and development		3,802		3,023		26 %			13,337		10,991		21 %
Marketing, selling and administrative		3,132		2,424		29 %			11,094		8,594		29 %
Acquired IPR&D		529		189		180 %			2,910		3,280		(11) %
Asset impairment, restructuring and other special charges		84		344		(76) %			484		861		(44) %
Operating income		8,373		5,149		63 %			26,302		12,899		104 %
Net interest income (expense)		(123)		(181)					(642)		(606)
Net other income (expense)		15		71					71		387
Other income (expense)		(108)		(110)		(2) %			(571)		(219)		161 %
Income before income taxes		8,265		5,039		64 %			25,731		12,680		103 %
Income tax expense		1,629		629		159 %			5,091		2,090		144 %
Net income	$	6,636	$	4,410		50 %		$	20,640	$	10,590		95 %
Earnings per share - diluted	$	7.39	$	4.88		51 %		$	22.95	$	11.71		96 %
Dividends paid per share	$	1.50	$	1.30		15 %		$	6.00	$	5.20		15 %
Weighted-average shares outstanding (thousand) - diluted		898,002		903,158					899,301		904,059

 

Eli Lilly and Company
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)
(Dollars in millions, except per share data; numbers may not add due to rounding)
		Three Months Ended December  31,			Twelve Months Ended, December 31,
		2025	2024		2025	2024
Gross Margin - As Reported		$       15,920	$       11,129		$       54,127	$       36,625
Increase for excluded items:
Amortization of intangible assets (Cost of sales)(1)		124	136		488	553
Gross Margin - Non-GAAP		$       16,044	$       11,265		$       54,615	$       37,178
Gross Margin as a percent of revenue - As Reported		82.5 %	82.2 %		83.0 %	81.3 %
Gross Margin as a percent of revenue - Non-GAAP(2)		83.2 %	83.2 %		83.8 %	82.5 %

1.	Excludes amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
2.	Non-GAAP gross margin as a percent of revenue reflects the gross margin effects of the adjustments presented above.

 

Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)
(Dollars in millions, except per share data; numbers may not add due to rounding)
		Three Months Ended December  31,			Twelve Months Ended, December 31,
		2025	2024		2025	2024
Net income - Reported		$         6,636	$         4,410		$       20,640	$       10,590
Increase (decrease) for excluded items:
Amortization of intangible assets (Cost of sales)(1)		124	136		488	553
Asset impairment, restructuring and other special charges(2)		84	344		484	861
Net (gains) losses on investments in equity securities (Other income/expense)		(39)	17		(33)	39
U.S. Tax Law Change(3)		—	—		350	—
Corresponding tax effects (Income taxes)		(34)	(101)		(161)	(296)
Net income - Non-GAAP		$         6,771	$         4,806		$       21,768	$       11,747
Effective tax rate - Reported		19.7 %	12.5 %		19.8 %	16.5 %
Effective tax rate - Non-GAAP(4)		19.7 %	13.2 %		18.4 %	16.9 %
Earnings per share (diluted) - Reported		$           7.39	$           4.88		$         22.95	$         11.71
Earnings per share (diluted) - Non-GAAP		$           7.54	$           5.32		$         24.21	$         12.99

1.	Excludes amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
2.	For the three months ended December 31, 2025, excluded charges primarily related to an intangible asset impairment acquired through POINT BioPharma Global Inc.. For the twelve months ended December 31, 2025, also excluded charges primarily related to litigation, as well as acquisition and integration costs associated with Verve Therapeutics, Inc. For the three months ended December 31, 2024, excluded charges related to intangible asset impairment for Vitrakvi. For the twelve months ended December 31, 2024, also excluded charges related to litigation.
3.	Relates to adjusting our income tax provision for prior periods and remeasuring our deferred tax assets and liabilities.
4.	Non-GAAP tax rate reflects the tax effects of the adjustments presented above.

 

Refer to:	Ashley Hennessey; gentry_ashley_jo@lilly.com; (317) 416-4363 (Media)
	Mike Czapar; czapar_michael_c@lilly.com; (317) 617-0983 (Investors)

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SOURCE Eli Lilly and Company

FAQ

What were Eli Lilly's Q4 2025 revenue and EPS (LLY)?

Eli Lilly reported Q4 2025 revenue of $19.3 billion and reported EPS of $7.39. According to the company, non-GAAP EPS was $7.54, with results driven primarily by volume growth in Mounjaro and Zepbound.

What 2026 financial guidance did LLY provide on February 4, 2026?

Lilly guided 2026 revenue to $80–$83 billion and non-GAAP EPS to $33.50–$35.00. According to the company, performance margin is expected at 46.0%–47.5% and the tax rate at 18%–19%.

How did Mounjaro and Zepbound perform in Q4 2025 for LLY?

Mounjaro revenue rose 110% to $7.4 billion and Zepbound rose 123% to $4.26 billion in Q4 2025. According to the company, both products drove the volume increases that powered overall revenue growth.

What regulatory and clinical progress did Eli Lilly announce with the Q4 2025 results?

Lilly reported FDA approval for tirzepatide Kwikpen and an expanded Jaypirca indication, plus multiple positive Phase 3 readouts. According to the company, submissions for orforglipron were filed in the U.S., Japan and EU for obesity and diabetes.

How did expenses affect Lilly's Q4 2025 margins (LLY)?

Gross margin rose to 82.5%, but R&D increased 26% and SG&A increased 29% in Q4 2025. According to the company, higher spending reflects pipeline investment and promotional activity for new launches.

What is the investor impact of Lilly's U.S. agreement on obesity medicines?

The agreement aims to expand access to obesity medicines for millions of Americans, potentially supporting demand and uptake. According to the company, the deal complements commercial launches and public-health efforts, though no specific financial values were disclosed.