Eli Lilly (NYSE: LLY) posts 56% Q1 revenue jump and lifts 2026 EPS outlook
Filing Impact
Filing Sentiment
Form Type
8-K
Rhea-AI Filing Summary
Eli Lilly (LLY) reported very strong first-quarter 2026 results and raised its full-year outlook. Q1 2026 revenue rose 56% to $19.8 billion, driven by a 65% increase in volume, partially offset by lower realized prices, especially for Mounjaro and Zepbound. Reported EPS increased 170% to $8.26, while non-GAAP EPS rose 156% to $8.55, helped by lower acquired IPR&D charges versus last year.
Key obesity and diabetes medicines continued to power growth: Mounjaro revenue jumped 125% to $8.7 billion, and Zepbound revenue grew 80% to $4.2 billion. Lilly also reported rapid growth across newer immunology, oncology, and neuroscience products. U.S. revenue grew 43% to $12.1 billion, while revenue outside the U.S. rose 81% to $7.7 billion.
The company raised 2026 guidance, now expecting full-year revenue of $82–$85 billion and non-GAAP EPS of $35.50–$37.00. Gross margin stayed above 80% on both a reported and non-GAAP basis, even as the company increased spending on research, development, and launches. Lilly highlighted the U.S. FDA approval and launch of Foundayo, its once-daily oral GLP-1 pill for weight loss, plus multiple positive Phase 3 results and several announced acquisitions to expand its pipeline.
Positive
- Q1 2026 results far exceeded prior-year levels, with revenue up 56% to $19.8 billion and reported EPS up 170% to $8.26, demonstrating powerful operating leverage from strong product demand.
- Guidance was raised meaningfully: 2026 revenue outlook increased from $80–$83 billion to $82–$85 billion and non-GAAP EPS from $33.50–$35.00 to $35.50–$37.00, signaling management confidence.
- Obesity and diabetes portfolio is scaling rapidly, as Mounjaro revenue grew 125% to $8.7 billion and Zepbound 80% to $4.2 billion, reinforcing Lilly’s leadership in GLP-1–based therapies.
- Pipeline and regulatory momentum strengthened, including U.S. FDA approval and launch of Foundayo (orforglipron) for obesity and multiple positive Phase 3 results across cardiometabolic, oncology, immunology, and dermatology programs.
Negative
- None.
Insights
Lilly posted exceptional growth, boosted guidance, and showcased a strengthening obesity and cardiometabolic franchise.
Eli Lilly delivered Q1 2026 revenue of $19.8 billion, up 56%, with volume up 65% and pricing down 13%. Reported EPS reached $8.26 and non-GAAP EPS $8.55, driven largely by Mounjaro and Zepbound, which together contributed more than half of sales.
Key obesity and diabetes assets are scaling rapidly: Mounjaro revenue rose 125% to $8.7 billion, and Zepbound climbed 80% to $4.2 billion. Despite increased R&D and launch spending, non-GAAP gross margin remained high at 82.6%, and the non-GAAP tax rate improved to 16.5%, supporting strong earnings expansion.
The company raised 2026 revenue guidance to $82–$85 billion and non-GAAP EPS to $35.50–$37.00, reflecting confidence after a strong quarter. Additional positives include FDA approval and U.S. availability of Foundayo, multiple positive phase 3 readouts across obesity, diabetes, dermatology, oncology, and immunology, and announced acquisitions such as Orna Therapeutics and Centessa Pharmaceuticals to deepen the pipeline. Future filings covering subsequent quarters and regulatory milestones in 2026 will further clarify the durability of this growth trajectory.
8-K Event Classification
2 items: 2.02, 9.01
2 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, and exhibit attachments filed with this report.
Key Figures
Q1 2026 Revenue: $19,799 million
Q1 2026 EPS (reported): $8.26
Q1 2026 EPS (non-GAAP): $8.55
+5 more
8 metrics
Q1 2026 Revenue
$19,799 million
Quarter ended March 31, 2026; up 56% vs Q1 2025
Q1 2026 EPS (reported)
$8.26
Diluted EPS, up 170% vs $3.06 in Q1 2025
Q1 2026 EPS (non-GAAP)
$8.55
Diluted EPS, up 156% vs $3.34 in Q1 2025
Mounjaro Q1 2026 Revenue
$8,662 million
Global sales, up 125% vs Q1 2025
Zepbound Q1 2026 Revenue
$4,160 million
Global sales, up 80% vs Q1 2025
2026 Revenue Guidance
$82–$85 billion
Updated full-year 2026 non-GAAP revenue outlook
2026 Non-GAAP EPS Guidance
$35.50–$37.00
Updated full-year 2026 diluted EPS range
Q1 2026 Gross Margin (non-GAAP)
82.6%
Gross margin as percent of revenue, non-GAAP basis
Key Terms
non-GAAP, acquired IPR&D, performance margin, GLP-1, +2 more
6 terms
non-GAAP financial
"A discussion of the non-GAAP financial measures is included below under "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited).""
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.
acquired IPR&D financial
"The Q1 2026 reported and non-GAAP EPS included $0.52 of acquired IPR&D charges compared to $1.72 in Q1 2025."
performance margin financial
"The company defines performance margin as gross margin less research and development and marketing, selling, and administrative expenses divided by revenue."
Performance margin is the cushion between how well a business, product, or project actually performs and the minimum level required or the target set by management. It shows how much room there is before performance falls short—like how much extra speed a car has beyond the slowest safe speed—and matters to investors because a larger margin reduces the risk of missed targets, earnings surprises, or sudden cuts to forecasts.
GLP-1 medical
"Foundayo™ (orforglipron), the only GLP-1 pill for weight loss that can be taken any time of day without food or water restrictions"
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.
Phase 3 medical
"Pipeline progress included positive Phase 3 results from Foundayo (orforglipron) in adults with type 2 diabetes and obesity or overweight at increased cardiovascular risk"
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.
NRDL financial
"The lower realized prices outside the U.S. were driven primarily by the addition of Mounjaro to the National Reimbursed Drug List (NRDL) in China."
A national reimbursement drug list is an official roster of medicines that a country’s public health insurance will pay for, either fully or partially. For investors, inclusion means a drug can reach many more patients at lower out‑of‑pocket cost, often boosting sales and predictability—think of it as a product being accepted by a large wholesale buyer, which can make revenue more reliable and impact a company’s valuation.
Earnings Snapshot
Revenue: $19,799 million · Guidance included
Q1 2026
Revenue
$19,799 million
+56% vs Q1 2025
Net income (reported)
$7,396 million
+168% vs Q1 2025
EPS (reported)
$8.26
+170% vs Q1 2025
EPS (non-GAAP)
$8.55
+156% vs Q1 2025
Gross margin (non-GAAP)
82.6%
-0.9 pts vs Q1 2025
Guidance
For full-year 2026, Eli Lilly now expects revenue of $82–$85 billion and non-GAAP diluted EPS of $35.50–$37.00, with a non-GAAP tax rate of 18% to 19% and performance margin of 47.0% to 48.5%.
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 | ||||||||
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d)
of the Securities Exchange Act of 1934
Date of Report (Date of Earliest Event Reported): April 30, 2026
(Exact Name of Registrant as Specified in its Charter)
| (State or Other Jurisdiction of Incorporation) | (Commission File Number) | (I.R.S. Employer Identification No.) | ||||||||||||
| (Address of Principal Executive Offices) | (Zip Code) | |||||||||||||
Registrant’s Telephone Number, Including Area Code: (317 ) 276-2000
Not Applicable
(Former Name or Former Address, if Changed Since Last Report.)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2.):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | ||||||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | ||||||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | ||||||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | ||||||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||||||||
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (17 CFR §230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (17 CFR §240.12b-2).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Item 2.02. Results of Operations and Financial Condition.
The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934 (the “Exchange Act”), or otherwise subject to the liabilities of that Section and shall not be incorporated by reference into any registration statement or other document filed pursuant to the Securities Act of 1933 or the Exchange Act, except as otherwise expressly stated in such filing.
Attached hereto as Exhibit 99.1 and incorporated by reference into this Item 2.02 is a copy of the press release, dated April 30, 2026, announcing the financial results of Eli Lilly and Company for the quarter ended March 31, 2026.
Item 9.01. Financial Statements and Exhibits.
| Exhibit No. | Description | ||||
99.1 | Press Release of Eli Lilly and Company, dated April 30, 2026. | ||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | ||||
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.
| ELI LILLY AND COMPANY | ||||||||
| (Registrant) | ||||||||
| By: | /s/ Donald A. Zakrowski | |||||||
| Name: | Donald A. Zakrowski | |||||||
| Title: | Senior Vice President, Finance, and Chief Accounting Officer | |||||||
| Date: | April 30, 2026 | |||||||
April 30, 2026
For release: Immediately
Refer to: Ashley Hennessey; gentry_ashley_jo@lilly.com; (317) 416-4363 (Media)
Mike Czapar; czapar_michael_c@lilly.com; (317) 617-0983 (Investors)
Lilly reports first-quarter 2026 financial results, raises full year guidance, and highlights momentum of new medicines
•Revenue in Q1 2026 increased 56% to $19.8 billion primarily driven by volume growth, partially offset by lower realized prices from Mounjaro and Zepbound.
•Q1 2026 EPS increased by 170% to $8.26 on a reported basis and increased by 156% to $8.55 on a non-GAAP basis. The Q1 2026 reported and non-GAAP EPS included $0.52 of acquired IPR&D charges compared to $1.72 in Q1 2025.
•Increased 2026 full-year revenue guidance to be in the range of $82.0 billion to $85.0 billion and non-GAAP EPS guidance to be in the range of $35.50 to $37.00.
•Regulatory progress included U.S. FDA approval of Foundayo (orforglipron) for adults with obesity, or overweight with weight-related medical problems.
•Pipeline progress included positive Phase 3 results from Foundayo (orforglipron) in adults with type 2 diabetes and obesity or overweight at increased cardiovascular risk, Jaypirca in combination with venetoclax and rituximab in relapsed or refractory CLL or SLL, Taltz and Zepbound used together for adults with psoriasis and obesity or overweight, and retatrutide in type 2 diabetes.
•Business development activity included the agreements to acquire Orna Therapeutics, Centessa Pharmaceuticals plc., Kelonia Therapeutics, and Ajax Therapeutics.
•Company announces planned Investment Community Meeting for December 7, 2026
INDIANAPOLIS, April 30, 2026 - Eli Lilly and Company (NYSE: LLY) today announced its financial results for the first quarter of 2026 and provided updated 2026 financial guidance.
"2026 is off to a strong start, we delivered 56% revenue growth in the first quarter and raised our full-year revenue guidance by $2 billion," said David A. Ricks, Lilly chair and CEO. “A key milestone was the U.S. FDA approval of Foundayo—the only approved GLP-1 pill that can be taken any time of day, without food and water restrictions. Foundayo will meaningfully expand the number of people who can benefit from GLP-1s. We also delivered pipeline progress across all four therapeutic areas and continued investing in Lilly's future growth through four acquisitions.”
Eli Lilly and Company | Lilly Corporate Center | Indianapolis, Indiana 46285 | U.S.A.
Financial Results
| $ in millions, except per share data | First-Quarter | ||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Revenue | $ | 19,799 | $ | 12,729 | 56% | ||||||||||||
| Net income – Reported | 7,396 | 2,759 | 168% | ||||||||||||||
| Earnings per share – Reported | 8.26 | 3.06 | 170% | ||||||||||||||
| Net income – Non-GAAP | 7,663 | 3,004 | 155% | ||||||||||||||
| Earnings per share – Non-GAAP | 8.55 | 3.34 | 156% | ||||||||||||||
A discussion of the non-GAAP financial measures is included below under "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)."
First-Quarter Reported Results
In Q1 2026, worldwide revenue was $19.8 billion, an increase of 56% compared with Q1 2025, driven by a 65% increase in volume, partially offset by a 13% decrease due to lower realized prices. Key Products1 revenue grew to $13.4 billion in Q1 2026, led by Mounjaro and Zepbound. Key Products revenue in the Immunology, Oncology, and Neuroscience therapeutic areas grew 160% in Q1 2026 compared to Q1 2025.
Revenue in the U.S. increased 43% to $12.1 billion, driven by a 49% increase in volume, partially offset by a 7% decrease due to lower realized prices. The increase in U.S. volume was driven by Zepbound and Mounjaro and the decline in realized prices was primarily driven by Zepbound and Taltz.
Revenue outside the U.S. increased 81% to $7.7 billion, driven by a 95% increase in volume, partially offset by a 25% decrease due to lower realized prices. The lower realized prices outside the U.S. were driven primarily by the addition of Mounjaro to the National Reimbursed Drug List (NRDL) in China. The volume increase outside the U.S. was driven by Mounjaro. Jardiance revenue outside the U.S. included one-time benefits of $250 million in Q1 2026 compared to $370 million in Q1 2025, associated with the company's collaboration with Boehringer Ingelheim.
1 The Company currently defines Key Products as Ebglyss, Inluriyo, Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound. Effective Q1 2026, Verzenio is excluded from Key Products.
2 | ||
Gross margin increased 54% to $16.2 billion in Q1 2026. Gross margin as a percent of revenue was 81.9%, a decrease of 0.6 percentage points versus the same quarter last year. The change was primarily driven by lower realized prices.
In Q1 2026, research and development expenses increased 28% to $3.5 billion, or 18% of revenue, driven by continued investments in the company's early and late-stage portfolio.
Marketing, selling, and administrative expenses increased 19% to $2.9 billion in Q1 2026, primarily driven by promotional efforts supporting ongoing and planned launches.
In Q1 2026, the company recognized acquired in-process research and development (IPR&D) charges of
$584 million compared with $1.6 billion in Q1 2025. The Q1 2025 charges primarily related to the acquisition of Scorpion Therapeutics, Inc.'s PI3Kα inhibitor program STX-478.
Asset impairment, restructuring and other special charges of $279 million in Q1 2026 were primarily related to litigation matters. In Q1 2025, there was a charge of $35 million related to intangible asset impairments.
The effective tax rate was 16.4% in Q1 2026 compared with 20.2% in Q1 2025, primarily driven by the unfavorable tax impact of a non-deductible acquired IPR&D charge in Q1 2025. The 2026 and 2025 effective tax rates were impacted by net discrete tax benefits in each period.
In Q1 2026, net income and earnings per share (EPS) were $7.4 billion and $8.26, respectively, compared with net income of $2.8 billion and EPS of $3.06 in Q1 2025. EPS in Q1 2026 and Q1 2025 included acquired IPR&D charges of $0.52 and $1.72, respectively.
First-Quarter Non-GAAP Measures
On a non-GAAP basis, Q1 2026 gross margin increased 54% to $16.4 billion. Gross margin as a percent of revenue was 82.6%, a decrease of 0.9 percentage points versus the same quarter last year. The change was primarily driven by lower realized prices.
The non-GAAP effective tax rate was 16.5% in Q1 2026 compared with 20.2% in Q1 2025, primarily driven by the unfavorable tax impact of a non-deductible acquired IPR&D charge in Q1 2025. The 2026 and 2025 effective tax rates were impacted by net discrete tax benefits in each period.
3 | ||
On a non-GAAP basis, Q1 2026 net income and EPS were $7.7 billion and $8.55, respectively, compared with net income of $3.0 billion and EPS of $3.34 in Q1 2025. Non-GAAP EPS in Q1 2026 and Q1 2025 included acquired IPR&D charges of $0.52 and $1.72, 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.
First-Quarter | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Earnings per share (reported) | $ | 8.26 | $ | 3.06 | 170% | ||||||||||||
| Amortization of intangible assets | .11 | .11 | |||||||||||||||
| Asset impairment, restructuring and other special charges | .25 | .03 | |||||||||||||||
| Net losses (gains) on investments in equity securities | (.07) | .13 | |||||||||||||||
| Earnings per share (non-GAAP) | $ | 8.55 | $ | 3.34 | 156% | ||||||||||||
| Acquired IPR&D | .52 | 1.72 | (70)% | ||||||||||||||
| Numbers may not add due to rounding | |||||||||||||||||
4 | ||
Selected Revenue Highlights
(Dollars in millions) | First-Quarter | ||||||||||||||||
| Selected Products | 2026 | 2025 | % Change | ||||||||||||||
| Mounjaro | $ | 8,662 | $ | 3,842 | 125% | ||||||||||||
Zepbound(1) | 4,160 | 2,312 | 80% | ||||||||||||||
Jaypirca | 165 | 92 | 79% | ||||||||||||||
Ebglyss | 145 | 60 | 141% | ||||||||||||||
Kisunla | 124 | 22 | NM | ||||||||||||||
Omvoh | 80 | 37 | 115% | ||||||||||||||
Inluriyo | 35 | — | NM | ||||||||||||||
| Total Revenue | 19,799 | 12,729 | 56% | ||||||||||||||
(1) Tirzepatide is marketed for obesity under the brand name Zepbound in Canada, Japan, and the United States. | |||||||||||||||||
| NM - not meaningful | |||||||||||||||||
Mounjaro
For Q1 2026, worldwide Mounjaro revenue increased 125% to $8.7 billion. U.S. revenue was $4.2 billion, an increase of 59%, reflecting strong demand, partially offset by lower realized prices. Lower realized prices were partially offset by a favorable one-time adjustment to estimates for rebates and discounts in Q1 2026. Revenue outside the U.S. increased to $4.4 billion compared with $1.2 billion in Q1 2025, primarily driven by volume growth, partially offset by lower realized prices driven by the addition of Mounjaro to the NRDL within the China market.
Zepbound
For Q1 2026, U.S. Zepbound revenue increased 79% to $4.1 billion, compared with $2.3 billion in Q1 2025, 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 a favorable one-time adjustment to estimates for rebates and discounts in Q1 2026.
5 | ||
Lilly shared numerous updates recently on key regulatory, clinical, business development and other events, including:
| Regulatory | FDA approves Lilly's Foundayo™ (orforglipron), the only GLP-1 pill for weight loss that can be taken any time of day without food or water restrictions (announcement) | ||||
| Lilly's Olumiant (baricitinib) recommended by CHMP for approval of expanded use in the European Union for adolescents with severe alopecia areata (announcement) | |||||
| Zepbound (tirzepatide), the most prescribed weight management medication in 2025, now available in multi-dose KwikPen (announcement) | |||||
| Clinical | ACHIEVE-4, the longest Phase 3 study of Lilly's Foundayo (orforglipron) to date, reaffirmed its cardiovascular and overall safety profile as well as consistent improvements across key measures of cardiometabolic health (announcement) | ||||
| Lilly's Jaypirca (pirtobrutinib) significantly extended progression-free survival when added to a venetoclax time-limited regimen in patients with previously treated CLL/SLL (announcement) | |||||
| Phase 3b data presented at AAD Annual Meeting show Lilly's Taltz (ixekizumab) plus Zepbound (tirzepatide) delivered superior efficacy for adults with psoriatic arthritis and obesity (announcement) | |||||
| Lilly's EBGLYSS (lebrikizumab-lbkz) delivered up to four years of durable disease control for patients with moderate-to-severe atopic dermatitis (announcement) | |||||
| Lilly's triple agonist, retatrutide, demonstrated significant reductions in A1C and weight in first Phase 3 trial for treatment of type 2 diabetes (announcement) | |||||
| Lilly's EBGLYSS (lebrikizumab-lbkz) is the first and only selective IL-13 inhibitor to deliver positive Phase 3 outcomes in patients aged six months to 18 years with moderate-to-severe atopic dermatitis (announcement) | |||||
| Lilly's oral GLP-1, orforglipron, delivered superior blood sugar control and weight loss compared to oral semaglutide in head-to-head type 2 diabetes trial published in The Lancet (announcement) | |||||
| Patients with Crohn's disease maintained steroid-free remission for three years with Lilly's Omvoh (mirikizumab-mrkz) (announcement) | |||||
| Lilly's Taltz (ixekizumab) and Zepbound (tirzepatide) used together delivered superior efficacy in first-of-its-kind Phase 3b trial for adults with psoriasis and obesity or overweight (announcement) | |||||
| Lilly's Retevmo (selpercatinib) delivers substantial event-free survival benefit as an adjuvant therapy in early-stage RET fusion-positive lung cancer (announcement) | |||||
| Other | Lilly to acquire Ajax Therapeutics to advance outcomes for patients with myelofibrosis and polycythemia vera (announcement) | ||||
| Lilly to acquire Kelonia Therapeutics to advance in vivo CAR-T cell therapies (announcement) | |||||
| Foundayo™ (orforglipron), Lilly's new oral GLP-1 pill for weight loss, now available in the U.S. (announcement) | |||||
| Lilly to acquire Centessa Pharmaceuticals to advance treatments for sleep-wake disorders (announcement) | |||||
| Lilly Employer Connect platform launches with over fifteen independent program administrators offering tailored obesity coverage options to expand access to patients (announcement) | |||||
| Lilly to acquire Orna Therapeutics to advance cell therapies (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 strong revenue performance in Q1:
| Prior | Updated | |||||||||||||
| Revenue | $80 to $83 billion | $82 to $85 billion | ||||||||||||
Performance Margin(1)(2) | 46.0% to 47.5% | 47.0% to 48.5% | ||||||||||||
Tax Rate(1)(3) | 18% to 19% | Unchanged | ||||||||||||
Earnings per Share(1)(3)(4) | $33.50 to $35.00 | $35.50 to $37.00 | ||||||||||||
(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, 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 March 31, 2026. | ||||||||||||||
(4) 2026 assumes shares outstanding of approximately 895 million and foreign currency exchange rate assumptions of 1.16 (Euro), 153 (Yen) and 7.1 (Yuan) | ||||||||||||||
6 | ||
Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the Q1 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 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
7 | ||
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 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, 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.
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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.
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| 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 | ||||||||||||||||||||
| March 31, | ||||||||||||||||||||
| 2026 | 2025 | % Chg. | ||||||||||||||||||
| Revenue | $ | 19,799 | $ | 12,729 | 56% | |||||||||||||||
| Cost of sales | 3,577 | 2,225 | 61% | |||||||||||||||||
| Research and development | 3,510 | 2,734 | 28% | |||||||||||||||||
| Marketing, selling, and administrative | 2,934 | 2,468 | 19% | |||||||||||||||||
| Acquired IPR&D | 584 | 1,572 | (63)% | |||||||||||||||||
| Asset impairment, restructuring and other special charges | 279 | 35 | NM | |||||||||||||||||
| Operating income | 8,915 | 3,695 | 141% | |||||||||||||||||
| Net interest income (expense) | (253) | (195) | ||||||||||||||||||
| Net other income (expense) | 188 | (44) | ||||||||||||||||||
| Other income (expense) | (65) | (239) | (73)% | |||||||||||||||||
| Income before income taxes | 8,850 | 3,456 | 156% | |||||||||||||||||
| Income tax expense | 1,454 | 697 | 109% | |||||||||||||||||
| Net income | $ | 7,396 | $ | 2,759 | 168% | |||||||||||||||
| Earnings per share - diluted | $ | 8.26 | $ | 3.06 | 170% | |||||||||||||||
| Dividends paid per share | $ | 1.73 | $ | 1.50 | 15% | |||||||||||||||
| Weighted-average shares outstanding (thousand) - diluted | 895,918 | 900,604 | ||||||||||||||||||
NM – not meaningful
9 | ||
| 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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Gross Margin - As Reported | $ | 16,222 | $ | 10,504 | |||||||
| Increase for excluded items: | |||||||||||
Amortization of intangible assets (Cost of sales)(1) | 128 | 123 | |||||||||
| Gross Margin - Non-GAAP | $ | 16,350 | $ | 10,627 | |||||||
| Gross Margin as a percent of revenue - As Reported | 81.9 | % | 82.5 | % | |||||||
Gross Margin as a percent of revenue - Non-GAAP(2) | 82.6 | % | 83.5 | % | |||||||
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.
10 | ||
| 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 March 31, | |||||||||||
| 2026 | 2025 | ||||||||||
| Net income - Reported | $ | 7,396 | $ | 2,759 | |||||||
| Increase (decrease) for excluded items: | |||||||||||
Amortization of intangible assets (Cost of sales)(1) | 128 | 123 | |||||||||
Asset impairment, restructuring and other special charges(2) | 279 | 35 | |||||||||
| Net (gains) losses on investments in equity securities (Other income/expense) | (79) | 152 | |||||||||
| Corresponding tax effects (Income taxes) | (61) | (65) | |||||||||
| Net income - Non-GAAP | $ | 7,663 | $ | 3,004 | |||||||
| Effective tax rate - Reported | 16.4 | % | 20.2 | % | |||||||
Effective tax rate - Non-GAAP(3) | 16.5 | % | 20.2 | % | |||||||
| Earnings per share (diluted) - Reported | $ | 8.26 | $ | 3.06 | |||||||
| Earnings per share (diluted) - Non-GAAP | $ | 8.55 | $ | 3.34 | |||||||
1.Excludes amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
2. For the three months ended March 31, 2026, excluded charges primarily related to litigation matters. For the three months ended March 31, 2025, excluded charges related to intangible asset impairments.
3. Non-GAAP tax rate reflects the tax effects of the adjustments presented above.
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FAQ
How did Eli Lilly (LLY) perform financially in Q1 2026?
Eli Lilly delivered very strong Q1 2026 results, with revenue rising 56% to $19.8 billion. Reported EPS increased 170% to $8.26, and non-GAAP EPS rose 156% to $8.55, reflecting strong volume growth and lower acquired IPR&D charges.
What drove Eli Lilly’s revenue growth in Q1 2026?
Revenue growth in Q1 2026 was primarily driven by higher volumes, especially from Mounjaro and Zepbound. Overall revenue rose 56% to $19.8 billion, with volume up 65%, partially offset by a 13% decline from lower realized prices in key markets.
How important were Mounjaro and Zepbound to Eli Lilly’s Q1 2026 results?
Mounjaro and Zepbound were central to Q1 2026 performance. Mounjaro revenue increased 125% to $8.7 billion, while Zepbound revenue grew 80% to $4.2 billion. These obesity and diabetes treatments contributed a large share of total company revenue growth.
Did Eli Lilly (LLY) change its 2026 financial guidance?
Yes. Eli Lilly raised its 2026 outlook, now guiding for $82–$85 billion in revenue versus $80–$83 billion previously. The company also increased projected non-GAAP EPS to $35.50–$37.00, up from prior guidance of $33.50–$35.00.
What were Eli Lilly’s profit margins and expenses in Q1 2026?
In Q1 2026, reported gross margin was 81.9%, and non-GAAP gross margin was 82.6%. Research and development expenses rose 28% to $3.5 billion, while marketing, selling, and administrative expenses increased 19% to $2.9 billion, reflecting heavy investment in growth.
What recent regulatory and pipeline milestones did Eli Lilly highlight?
Lilly highlighted U.S. FDA approval of Foundayo (orforglipron), an oral GLP-1 pill for weight loss, plus positive Phase 3 results across multiple programs, including Foundayo, Jaypirca, Taltz plus Zepbound combinations, EBGLYSS, retatrutide, Omvoh, and Retevmo.
What strategic deals did Eli Lilly announce alongside Q1 2026 results?
Lilly noted agreements to acquire Orna Therapeutics, Centessa Pharmaceuticals, Kelonia Therapeutics, and Ajax Therapeutics. These transactions are intended to expand its capabilities in cell therapies, genetic medicine, and hematology and to strengthen its long-term pipeline.