Lilly reports second-quarter 2026 financial results, raises full-year guidance, and highlights continued growth and pipeline progress

Rhea-AI Summary

Lilly (NYSE: LLY) reported Q2 2026 revenue of $23.0 billion, up 48% year over year, driven mainly by surging volumes of Mounjaro and Zepbound. Reported EPS rose 26% to $7.94, while non-GAAP EPS increased 33% to $8.38, despite $3.03 per share of acquired IPR&D charges.

Gross margin reached 85.8% of revenue, and key products generated $15.7 billion, with strong growth in immunology, oncology, and neuroscience. Lilly raised 2026 revenue guidance to $85–$87 billion and increased non-GAAP performance margin guidance to 49.0%–50.5%, while updating non-GAAP EPS guidance to $35.50–$36.50.

Regulatory and pipeline progress included U.S. FDA approval of Ebglyss, European Commission approval of Jaypirca for CLL, positive Phase 3 data for retatrutide in obesity, and completion of a clinical package supporting global registrations starting with a planned U.S. BLA submission in Q1 2027. Business development featured completed acquisitions of Orna, Ajax, Centessa, and Kelonia, plus additional infectious disease deals and an agreement to acquire AtaiBeckley. Lilly also committed an extra $4.5 billion to expand Indiana manufacturing.

Positive

• Revenue +48% YoY to $22.97 billion in Q2 2026
• Non-GAAP EPS +33% to $8.38 despite $3.03 IPR&D charge
• Mounjaro revenue +91% to $9.9 billion; Zepbound +46% to $4.9 billion
• 2026 revenue guidance raised from $82–$85 billion to $85–$87 billion
• Performance margin guidance increased to 49.0%–50.5% for full-year 2026
• $4.5 billion additional investment in Indiana manufacturing capacity

Negative

• Realized prices fell 13% globally; 3% in U.S., 36% outside U.S.
• Acquired IPR&D charges rose to $2.8 billion, or $3.03 per share
• Effective tax rate increased to 23.3% from 16.5% year over year
• Marketing, selling and administrative expenses +25% to $3.4 billion in Q2 2026

Market Reaction – LLY

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Following this news, LLY has gained 2.55%, reflecting a moderate positive market reaction. Argus tracked a peak move of +1.3% during the session. Our momentum scanner has triggered 14 alerts so far, indicating notable trading interest and price volatility. The stock is currently trading at $1144.15.

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Market Context

LLY's current short-interest signal is low, adding limited short-positioning context to the earnings...

Analysis

LLY's current short-interest signal is low, adding limited short-positioning context to the earnings update. The platform record also shows Net Selling insider activity, a risk factor to monitor alongside guidance and pipeline execution.

Key Figures

Q2 revenue: $23.0 billion (+48%) Reported EPS: $7.94 (+26%) Non-GAAP EPS: $8.38 (+33%) +5 more

8 metrics

Q2 revenue $23.0 billion (+48%) Q2 2026 versus Q2 2025

Reported EPS $7.94 (+26%) Q2 2026 versus Q2 2025

Non-GAAP EPS $8.38 (+33%) Q2 2026 versus Q2 2025

Acquired IPR&D per EPS $3.03 Included in Q2 2026 reported and non-GAAP EPS

Full-year revenue guidance $85.0 billion to $87.0 billion Updated 2026 guidance

Full-year EPS guidance $35.50 to $36.50 Updated 2026 non-GAAP guidance

Performance margin guidance 49.0% to 50.5% Updated 2026 guidance

Manufacturing investment $4.5 billion Additional commitment for Indiana manufacturing sites

Previous Earnings Reports

5 past events · Latest: Apr 30 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Apr 30	First-quarter earnings	Positive	+9.8%	Revenue growth and raised full-year guidance accompanied strong medicine and pipeline momentum.
Feb 04	Fourth-quarter earnings	Positive	+10.3%	Quarterly results and 2026 guidance reflected strong Mounjaro and Zepbound volume growth.
Oct 30	Third-quarter earnings	Positive	+3.8%	Revenue growth, raised guidance, pipeline progress, and manufacturing investments supported the release.
Aug 07	Second-quarter earnings	Positive	-14.1%	Revenue growth, raised guidance, clinical progress, acquisitions, and manufacturing expansion preceded a decline.
May 01	First-quarter earnings	Positive	-11.7%	Revenue and EPS growth with reaffirmed guidance and positive Phase 3 data preceded a decline.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Lilly's earnings announcements aligned with positive price reactions in three of five tag-specific events, while two strong earnings releases produced negative divergences.

Key Terms

non-gaap, ipr&d, phase 3, biologics license application

4 terms

non-gaap financial

"increased by 33% to $8.38 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.

View in glossary

ipr&d financial

"included $3.03 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.

phase 3 medical

"positive data from three additional Phase 3 trials"

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.

biologics license application regulatory

"plans to submit a Biologics License Application to the U.S. FDA"

A biologics license application is a formal request submitted to regulatory authorities seeking approval to market a new biological medicine, such as vaccines or treatments made from living organisms. It is a comprehensive review process that evaluates the safety, effectiveness, and manufacturing quality of the product. For investors, receiving approval signals that a biological therapy can be sold to the public, potentially leading to revenue growth and market success.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Revenue in Q2 2026 increased 48% to $23.0 billion driven primarily by Mounjaro and Zepbound volume.
• Q2 2026 EPS increased by 26% to $7.94 on a reported basis and increased by 33% to $8.38 on a non-GAAP basis. Q2 2026 reported and non-GAAP EPS included $3.03 of acquired IPR&D charges compared to $0.14 in Q2 2025.
• Increased 2026 full-year revenue guidance to be in the range of $85.0 billion to $87.0 billion and raised underlying non-GAAP EPS guidance for the full year by $2.78 at the midpoint, which was more than offset by $3.03 of acquired IPR&D charges from Q2 business development activity, resulting in an updated range of $35.50 to $36.50. 
• Regulatory progress included U.S. FDA approval of Ebglyss for one maintenance dose every eight weeks in moderate-to-severe atopic dermatitis, European Commission approval of Jaypirca as monotherapy for adults with chronic lymphocytic leukemia across all lines of therapy, and the submission for orforglipron for type 2 diabetes in the U.S.
• Pipeline highlights included positive data from three additional Phase 3 trials of retatrutide in obesity. The clinical data package is now complete to support global registrations for obesity, obstructive sleep apnea, and knee osteoarthritis pain, with plans to submit a Biologics License Application to the U.S. FDA in the first quarter of 2027.
• Business development activity in Q2 2026 included the completed acquisitions of Orna Therapeutics, Inc., Ajax Therapeutics, Inc., Centessa Pharmaceuticals plc. and Kelonia Therapeutics, Inc. Subsequent to quarter end, we completed three acquisitions to build an infectious disease portfolio and entered into an agreement to acquire AtaiBeckley, Inc.
• Committed an additional $4.5 billion to expand Indiana manufacturing sites.

INDIANAPOLIS, Aug. 5, 2026 /PRNewswire/ -- Eli Lilly and Company (NYSE: LLY) today announced its financial results for the second quarter of 2026 and provided updated 2026 financial guidance.

"Lilly's momentum continues, as we delivered 48% revenue growth and raised our full-year guidance," said David A. Ricks, Lilly chair and CEO. "At the same time, Lilly is building for the future. With our next-generation weight-loss medicine retatrutide and its complete clinical data package in hand, new manufacturing capacity coming online, and exciting new assets entering our pipeline through business development, Lilly's future, after 150 years, has never been brighter."

Financial Results

$ in millions, except per share data	Second-Quarter
	2026		2025		% Change
Revenue	$   22,974		$   15,558		48 %
Net income – Reported	7,095		5,661		25 %
Earnings per share – Reported(1)	7.94		6.29		26 %
Net income – Non-GAAP	7,493		5,680		32 %
Earnings per share – Non-GAAP(1)	8.38		6.31		33 %
(1) Q2 2026 reported and non-GAAP EPS included $3.03 of acquired IPR&D charges compared to $0.14 in Q2 2025

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

Second-Quarter Reported Results
In Q2 2026, worldwide revenue was $23.0 billion, an increase of 48% compared with Q2 2025, driven by a 60% increase in volume, partially offset by a 13% decrease in realized prices. Key Products¹ revenue grew to $15.7 billion in Q2 2026, led by Mounjaro and Zepbound. Key Products revenue in the Immunology, Oncology, and Neuroscience therapeutic areas grew 121% in Q2 2026 compared to Q2 2025.

Revenue in the U.S. increased 33% to $14.4 billion, driven by a 37% increase in volume, partially offset by a 3% decrease in realized prices. The increase in U.S. volume was driven by Zepbound and Mounjaro. The decline in realized prices was primarily driven by Zepbound and Mounjaro, partially offset by adjustments to estimates for rebates and discounts primarily driven by Trulicity, Zepbound, and Mounjaro. Excluding these adjustments, U.S. price would have declined by approximately 9%.

Revenue outside the U.S. increased 80% to $8.6 billion, driven by a 113% increase in volume, partially offset by a 36% decrease in realized prices. The lower realized prices outside the U.S. were driven primarily by the addition of Mounjaro to the National Reimbursement Drug List (NRDL) in China. The volume increase outside the U.S. was driven by Mounjaro. Jardiance revenue outside the U.S. included a sales-based milestone of $250 million in Q2 2026, associated with the company's collaboration with Boehringer Ingelheim.

1	The Company currently defines Key Products as Ebglyss, Foundayo (added Q2 2026), Inluriyo, Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound.

Gross margin increased 50% to $19.7 billion in Q2 2026. Gross margin as a percent of revenue was 85.8%, an increase of 1.5 percentage points versus the same quarter last year. The increase was primarily driven by improved cost of production and favorable product mix, partially offset by lower realized prices.

In Q2 2026, research and development expenses increased 14% to $3.8 billion, or 17% of revenue, driven by continued investments in the company's early and late-stage portfolio.

Marketing, selling, and administrative expenses increased 25% to $3.4 billion in Q2 2026, primarily driven by promotional efforts supporting ongoing and planned launches.

In Q2 2026, the company recognized acquired in-process research and development (IPR&D) charges of $2.8 billion compared with $154 million in Q2 2025. The Q2 2026 charges primarily related to the acquisitions of Orna Therapeutics, Inc. and Ajax Therapeutics, Inc.

Asset impairment, restructuring and other special charges of $703 million in Q2 2026 were primarily related to the accelerated vesting of employee equity awards and other acquisition and integration costs associated with the closing of our acquisitions of Kelonia Therapeutics, Inc. and Centessa Pharmaceuticals plc. In Q2 2025, there were no asset impairment, restructuring and other special charges.

The effective tax rate was 23.3% in Q2 2026 compared with 16.5% in Q2 2025, primarily driven by the unfavorable tax impact of non-deductible acquired IPR&D charges in Q2 2026.

In Q2 2026, net income and earnings per share (EPS) were $7.1 billion and $7.94, respectively, compared with net income of $5.7 billion and EPS of $6.29 in Q2 2025. EPS in Q2 2026 and Q2 2025 included acquired IPR&D charges of $3.03 and $0.14, respectively.

Second-Quarter Non-GAAP Measures
On a non-GAAP basis, Q2 2026 gross margin increased 50% to $19.8 billion. Gross margin as a percent of revenue was 86.3%, an increase of 1.3 percentage points versus the same quarter last year. The increase was primarily driven by improved cost of production and favorable product mix, partially offset by lower realized prices.

The non-GAAP effective tax rate was 22.2% in Q2 2026 compared with 16.5% in Q2 2025, primarily driven by the unfavorable tax impact of non-deductible acquired IPR&D charges in Q2 2026.

On a non-GAAP basis, Q2 2026 net income and EPS were $7.5 billion and $8.38, respectively, compared with net income of $5.7 billion and EPS of $6.31 in Q2 2025. Non-GAAP EPS in Q2 2026 and Q2 2025 included acquired IPR&D charges of $3.03 and $0.14, 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.

	Second-Quarter
	2026		2025		% Change
Earnings per share (reported)	$      7.94		$      6.29		26 %
Amortization of intangible assets	.11		.11
Asset impairment, restructuring and other special charges	.72		—
Net gains on investments in equity securities	(.39)		(.09)
Earnings per share (non-GAAP)	$      8.38		$      6.31		33 %
Acquired IPR&D	3.03		.14		NM
Numbers may not add due to rounding
NM - not meaningful

Selected Revenue Highlights

(Dollars in millions)	Second-Quarter						Year-to-Date
Selected Products	2026		2025		% Change		2026		2025		% Change
Mounjaro	$     9,943		$     5,199		91 %		$   18,605		$     9,041		106 %
Zepbound(1)	4,928		3,381		46 %		9,088		5,693		60 %
Jaypirca	192		123		56 %		357		215		66 %
Ebglyss	201		87		131 %		346		147		135 %
Kisunla	167		49		NM		291		70		NM
Omvoh	102		75		36 %		182		112		62 %
Inluriyo	75		—		NM		110		—		NM
Foundayo	98		—		NM		98		—		NM
Total Revenue	22,974		15,558		48 %		42,773		28,286		51 %
(1) Tirzepatide is marketed for obesity under the brand name Zepbound in Canada, Japan, and the United States.
NM - not meaningful

Mounjaro
For Q2 2026, worldwide Mounjaro revenue increased 91% to $9.9 billion. U.S. revenue was $4.8 billion, an increase of 45%, reflecting strong demand, partially offset by lower realized prices. Lower realized prices were partially offset by adjustments to estimates for rebates and discounts. Revenue outside the U.S. increased 172% to $5.2 billion primarily driven by volume growth, partially offset by lower realized prices driven by the addition of Mounjaro to the NRDL in Q1 2026.

Zepbound
For Q2 2026, U.S. Zepbound revenue increased 44% to $4.9 billion, primarily driven by strong demand, partially offset by lower realized prices, including previously announced reductions in cash-pay prices. Lower realized prices were partially offset by adjustments to estimates for rebates and discounts.

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

Regulatory	Lilly's Jaypirca (pirtobrutinib) recommended by CHMP for approval in the European Union for adults with chronic lymphocytic leukemia (CLL) across all lines of therapy (announcement)
	FDA approves Lilly's EBGLYSS® (lebrikizumab-lbkz) for one maintenance dose every eight weeks in patients with moderate-to-severe atopic dermatitis (announcement)
Clinical	Lilly's olomorasib receives U.S. FDA's Breakthrough Therapy designation for the treatment of previously treated KRAS G12C-mutant advanced pancreatic cancer (announcement)
	Lilly's triple agonist, retatrutide, successful in two additional Phase 3 obesity trials, delivering significant improvements in weight and A1C (announcement)
	Lilly's Jaypirca (pirtobrutinib) significantly reduced the risk of disease progression or death by 45% when added to a venetoclax time-limited regimen in people with previously treated CLL/SLL (announcement)
	Lilly's oral GLP-1 Foundayo (orforglipron) delivered superior A1C control and weight loss in three pivotal type 2 diabetes trials (announcement)
	Lilly's Foundayo (orforglipron), the only oral GLP-1 taken without food or water restrictions, was associated with significant weight loss in women at every stage of menopause (announcement)
	Lilly's triple agonist, retatrutide, drove substantial improvements in weight, A1C, knee osteoarthritis pain, and obstructive sleep apnea, demonstrating its remarkable potential to treat obesity and its complications (announcement)
	Lilly's Retevmo (selpercatinib) demonstrated an 83% reduction in the risk of disease recurrence or death as adjuvant therapy for people with early-stage RET fusion-positive lung cancer (announcement)
	A single dose of Lilly's PCSK9 base editor, VERVE-102, reduced PCSK9 by up to 88% and LDL-C by up to 62%, with durable effects supporting its potential as a one-time treatment for hypercholesterolemia (announcement)
	Lilly's triple agonist, retatrutide, delivered powerful weight loss in pivotal Phase 3 obesity trial (announcement)
	Lilly's Foundayo and lower-dose Zepbound helped people maintain weight loss after switching from higher doses of injectable incretin therapy in two late-phase trials (announcement)
	Lilly's Omvoh (mirikizumab-mrkz) is the first and only IL-23p19 to demonstrate durable disease clearance in ulcerative colitis through four years (announcement)
Other	Lilly to acquire AtaiBeckley to advance therapies for treatment-resistant depression and other mental health conditions (announcement)
	What Medicare Part D patients need to know about accessing Foundayo (orforglipron) and Zepbound (tirzepatide) for weight management (announcement)
	Lilly completes acquisition of Centessa Pharmaceuticals to advance treatments for sleep-wake disorders (announcement)
	Foundayo and Zepbound now covered for millions of Americans (announcement)
	Lilly announces three acquisitions to build infectious disease portfolio (announcement)
	Lilly commits additional $4.5 billion across Indiana manufacturing sites, opens first dedicated genetic medicine facility (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.

The following table summarizes the company's updated full-year 2026 non-GAAP financial guidance, reflecting the continued strong revenue performance in Q2. The first half of 2026 also benefited from sales based milestones and adjustments for rebates and discounts. In addition to updates to Revenue and Performance Margin guidance, EPS guidance has been adjusted to reflect an increase of $2.78 (at the midpoint of the range) due to strong underlying business growth, offset by $3.03 associated with the Q2 acquired IPR&D charges from recent business development activity:

			Prior	Updated
Revenue			$82 to $85 billion	$85 to $87 billion
Performance Margin(1)(2)			47.0% to 48.5%	49.0% to 50.5%
Tax Rate(1)(3)			18% to 19%	unchanged
Earnings per Share(1)(3)(4)			$35.50 to $37.00	$35.50 to $36.50
(1) 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, or 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. See Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited) table below for additional Non-GAAP information.
(2) The company defines performance margin as gross margin less research and development and marketing, selling, and administrative expenses divided by revenue.
(3) Guidance does not include acquired in-process research and development (IPR&D) incurred after June 30, 2026.
(4) Assumes shares outstanding of approximately 894 million and foreign currency exchange rate assumptions of 1.14 (Euro), 153 (Yen) and 7.1 (Yuan)

Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the Q2 2026 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 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 implementation of the company's voluntary agreement with the U.S. government related to drug pricing and access; developments or uncertainties related to the company's 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 the company's 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, 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							Six Months Ended
		June 30,							June 30,
		2026		2025		% Chg.			2026		2025		% Chg.
Revenue	$	22,974	$	15,558		48 %		$	42,773	$	28,286		51 %
Cost of sales		3,268		2,448		33 %			6,845		4,672		47 %
Research and development		3,819		3,336		14 %			7,329		6,070		21 %
Marketing, selling, and administrative		3,430		2,753		25 %			6,364		5,221		22 %
Acquired IPR&D		2,776		154		NM			3,360		1,726		95 %
Asset impairment, restructuring and other special charges		703		—		NM			982		35		NM
Operating income		8,978		6,867		31 %			17,893		10,562		69 %
Net interest income (expense)		(274)		(209)					(527)		(405)
Net other income (expense)		543		119					731		76
Other income (expense)		269		(90)		NM			204		(329)		(162) %
Income before income taxes		9,247		6,777		36 %			18,097		10,233		77 %
Income tax expense		2,152		1,116		93 %			3,606		1,813		99 %
Net income	$	7,095	$	5,661		25 %		$	14,491	$	8,420		72 %
Earnings per share - diluted	$	7.94	$	6.29		26 %		$	16.19	$	9.35		73 %
Dividends paid per share	$	1.73	$	1.50		15 %		$	3.46	$	3.00		15 %
Weighted-average shares outstanding (thousand) - diluted		893,671		899,793					894,837		900,199

NM – not meaningful

 

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 June 30,			Six Months Ended June 30,
		2026	2025		2026	2025
Gross Margin - As Reported		$    19,706	$    13,110		$    35,928	$    23,614
Increase for excluded items:
Amortization of intangible assets (Cost of sales)(1)		125	122		253	245
Gross Margin - Non-GAAP		$    19,831	$    13,232		$    36,181	$    23,859
Gross Margin as a percent of revenue - As Reported		85.8 %	84.3 %		84.0 %	83.5 %
Gross Margin as a percent of revenue - Non- GAAP(2)		86.3 %	85.0 %		84.6 %	84.3 %

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 June 30,			Six Months Ended June 30,
		2026	2025		2026	2025
Net income - Reported		$      7,095	$      5,661		$     14,491	$      8,420
Increase (decrease) for excluded items:
Amortization of intangible assets (Cost of sales)(1)		125	122		253	245
Asset impairment, restructuring and other special charges(2)		703	—		982	35
Net (gains) losses on investments in equity securities (Other income/expense)		(445)	(99)		(524)	53
Corresponding tax effects (Income taxes)		15	(4)		(46)	(69)
Net income - Non-GAAP		$      7,493	$      5,680		$     15,156	$      8,684
Effective tax rate - Reported		23.3 %	16.5 %		19.9 %	17.7 %
Effective tax rate - Non-GAAP(3)		22.2 %	16.5 %		19.4 %	17.8 %
Earnings per share (diluted) - Reported		$        7.94	$        6.29		$       16.19	$        9.35
Earnings per share (diluted) - Non-GAAP		$        8.38	$        6.31		$       16.94	$        9.65

1.	Excludes amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
2.	For the three months ended June 30, 2026, excluded charges primarily related to the accelerated vesting of employee equity awards and other acquisition and integration costs associated with the closing of the company's acquisitions of Kelonia Therapeutics, Inc. and Centessa Pharmaceuticals plc. For the six months ended June 30, 2026, also excluded charges related to litigation matters.
3.	Non-GAAP tax rate reflects the tax effects of the adjustments presented above.

 

Refer to:	Megan MacCauley; maccauley_megan@lilly.com (Media)
	Mike Czapar; czapar_michael_c@lilly.com (Investors)

 

 

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SOURCE Eli Lilly and Company

FAQ

How did Lilly (LLY) perform financially in Q2 2026?

Lilly delivered strong financial performance in Q2 2026, with revenue up 48% to $22.97 billion and reported EPS rising 26% to $7.94. According to Lilly, growth was driven mainly by Mounjaro and Zepbound volume, supported by expanding key products across multiple therapeutic areas.

What changes did Lilly (LLY) make to its 2026 financial guidance?

Lilly raised its 2026 revenue guidance to $85–$87 billion and increased performance margin guidance to 49.0%–50.5%. According to Lilly, updated non-GAAP EPS guidance is $35.50–$36.50, reflecting stronger underlying growth offset by $3.03 per share of acquired IPR&D charges.

What drove Mounjaro and Zepbound growth for Lilly (LLY) in Q2 2026?

Mounjaro and Zepbound growth was driven primarily by strong demand and higher volumes in the U.S. and internationally. According to Lilly, Mounjaro revenue rose 91% to $9.9 billion and Zepbound U.S. revenue increased 44% to $4.9 billion, partially offset by lower realized prices in key markets.

How did acquired IPR&D charges impact Lilly’s (LLY) Q2 2026 earnings?

Acquired IPR&D charges significantly affected earnings, totaling $2.8 billion, or $3.03 per share, in Q2 2026. According to Lilly, these charges were mainly linked to acquisitions of Orna and Ajax Therapeutics and contributed to a higher effective tax rate versus the prior year.

What are the key pipeline and regulatory milestones for Lilly (LLY) highlighted in Q2 2026?

Key milestones included U.S. FDA approval of Ebglyss, European Commission approval of Jaypirca for CLL, and positive Phase 3 results for retatrutide in obesity. According to Lilly, the retatrutide data package supports global registrations, with a planned U.S. BLA submission in Q1 2027.

What major acquisitions did Lilly (LLY) complete or announce around Q2 2026?

Lilly completed acquisitions of Orna Therapeutics, Ajax Therapeutics, Centessa Pharmaceuticals, and Kelonia Therapeutics during Q2 2026. According to Lilly, it also completed three infectious disease acquisitions after quarter-end and agreed to acquire AtaiBeckley to strengthen its mental health portfolio.

What does Lilly’s $4.5 billion Indiana manufacturing investment mean for LLY investors?

Lilly committed an additional $4.5 billion to expand manufacturing sites in Indiana, including genetic medicines capacity. According to Lilly, this investment supports future product supply and scale-up, particularly for high-demand therapies, potentially enabling sustained revenue growth aligned with the company’s updated long-term outlook.