Eli Lilly raises 2026 revenue outlook to $91B–$92B
Mounjaro generated $10.7 billion in worldwide Q3 revenue; U.S. Zepbound revenue was $5.3 billion.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
Eli Lilly and Company (LLY) reported third-quarter 2026 revenue of $24.4 billion, up 39% year over year, as volume rose 53% and realized prices fell 15%; Mounjaro and Zepbound were primary drivers. Revenue included approximately $900 million of benefits, mainly $410 million of Jardiance milestones and favorable rebate and discount estimate adjustments; Lilly said no further Jardiance milestones remain.
Reported net income was $6.451 billion and diluted EPS was $7.22, both up 16%; non-GAAP net income was $6.679 billion, up 6%, and non-GAAP diluted EPS was $7.48, up 7%. Both EPS measures included $4.57 per share of acquired IPR&D charges, versus $0.71 a year earlier. Lilly raised 2026 revenue guidance to $91.0–$92.0 billion from $85–$87 billion, and updated non-GAAP EPS guidance to $35.00–$36.00 from $35.50–$36.50. The company said a $4.07 midpoint increase in underlying non-GAAP EPS guidance was more than offset by $4.57 associated with Q3 acquired IPR&D charges.
Lilly completed the AtaiBeckley acquisition during Q3 and completed the Merida Biosciences acquisition after quarter-end. Regulatory progress included U.S. FDA approval of Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes, approval of Onswik for adults with type 2 diabetes, and expanded Jaypirca use for adults with untreated CLL or SLL.
2 points · 1 major0 major · 1 point
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Hollow bars mark forward-looking points. How the balance works
Positive
- Major point. Forward-looking: it has not happened yet and may not happen.2026 revenue guidance increased to $91.0–$92.0 billion.
- Moderate pointQ3 revenue increased 39% to $24.4 billion.
Negative
- Moderate pointAcquired IPR&D charges of $4.57 per share offset underlying EPS guidance increases.
Insights
Analyzing...
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, or exhibit attachments filed with this report.
Key Figures
Revenue: $24.4 billion
Revenue growth: 39%
Reported net income: $6.451 billion
+5 more
8 metrics
Revenue
$24.4 billion
Third quarter 2026
Revenue growth
39%
Third quarter 2026 compared with third quarter 2025
Reported net income
$6.451 billion
Third quarter 2026
Reported diluted EPS
$7.22
Third quarter 2026
Non-GAAP diluted EPS
$7.48
Third quarter 2026
Acquired IPR&D charge per share
$4.57 per share
Included in third-quarter 2026 reported and non-GAAP EPS
2026 revenue guidance
$91.0 billion to $92.0 billion
Updated full-year guidance
2026 non-GAAP EPS guidance
$35.00 to $36.00
Updated full-year guidance; prior range was $35.50 to $36.50
Key Terms
acquired in-process research and development (IPR&D), performance margin, sales-based milestones, realized prices, +1 more
5 terms
acquired in-process research and development (IPR&D) financial
"acquired in-process research and development (IPR&D) charges"
performance margin financial
"defines performance margin as gross margin less research and development"
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.
sales-based milestones financial
"Jardiance revenue outside the U.S. included sales-based milestones"
realized prices financial
"partially offset by a 15% decrease in realized prices"
National Reimbursement Drug List (NRDL) regulatory
"inclusion of Mounjaro on the National Reimbursement Drug List (NRDL) in China"
Earnings Snapshot
Revenue: $24.4 billion · Guidance included
Third quarter 2026
Revenue
$24.4 billion
39%
Reported net income
$6.451 billion
16%
Reported diluted EPS
$7.22
16%
Non-GAAP diluted EPS
$7.48
7%
Guidance
2026 revenue: $91.0 billion to $92.0 billion; non-GAAP EPS: $35.00 to $36.00.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What was LLY's revenue in the third quarter of 2026?
LLY reported third-quarter 2026 revenue of $24.4 billion, up 39% from the third quarter of 2025.
What is LLY's 2026 financial guidance?
Lilly's updated full-year guidance is revenue of $91.0 billion to $92.0 billion and non-GAAP EPS of $35.00 to $36.00. The prior ranges were $85 billion to $87 billion for revenue and $35.50 to $36.50 for non-GAAP EPS.
Which U.S. FDA approvals did LLY report?
Lilly reported U.S. FDA approval of Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes and approval of Onswik, a once-weekly basal insulin for adults with type 2 diabetes. It also reported an expanded Jaypirca indication for adults with untreated CLL or SLL and approval of Inluriyo with Verzenio for adults with ER+, HER2-, ESR1-mutated advanced or metastatic breast cancer.
AI-generated analysis. How Rhea-AI works. Not financial advice.
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): October 29, 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 October 29, 2026, announcing the financial results of Eli Lilly and Company for the quarter ended September 30, 2026.
Item 9.01. Financial Statements and Exhibits.
| Exhibit No. | Description | ||||
99.1 | Press Release of Eli Lilly and Company, dated October 29, 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: | October 29, 2026 | |||||||
October 29, 2026
For release: Immediately
Refer to: Megan MacCauley; maccauley_megan@lilly.com (Media)
Mike Czapar; czapar_michael_c@lilly.com (Investors)
Lilly reports third-quarter 2026 financial results, raises full-year guidance and highlights regulatory progress across the portfolio
•Revenue in Q3 2026 increased 39% to $24.4 billion driven primarily by Mounjaro and Zepbound.
•Q3 revenue included approximately $900 million of benefits, primarily from $410 million of Jardiance milestones (no further milestones remain) and favorable adjustments to rebate and discount estimates.
•Q3 2026 EPS increased by 16% to $7.22 on a reported basis and increased by 7% to $7.48 on a non-GAAP basis. Q3 2026 reported and non-GAAP EPS included $4.57 of acquired IPR&D charges compared to $0.71 in Q3 2025.
•Increased the midpoint of our 2026 full-year revenue guidance by $5.5 billion to be in the range of $91.0 to $92.0 billion and raised underlying non-GAAP EPS guidance for the full year by $4.07 at the midpoint, which was more than offset by $4.57 of acquired IPR&D charges from Q3 business development activity, resulting in an updated range of $35.00 to $36.00.
•Regulatory progress included U.S. FDA approvals of Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes; Onswik, a once-weekly basal insulin for adults with type 2 diabetes; Inluriyo with Verzenio for adults with ER+, HER2-, ESR1-mutated advanced or metastatic breast cancer; and an expanded indication for Jaypirca in adults with untreated chronic lymphocytic leukemia or small lymphocytic lymphoma.
•Pipeline highlights included positive topline results from a head-to-head Phase 3 trial of retatrutide versus Ozempic 2 mg in adults with type 2 diabetes, Phase 3 results from Ebglyss in moderate-to-severe hand and foot atopic dermatitis and Phase 2 results from EloraTZP in adults with obesity and type 2 diabetes, with Phase 3 trials to start in Q4 2026.
•Business development activity in Q3 2026 included the completed acquisition of AtaiBeckley to advance therapies for treatment-resistant depression and other mental health conditions. Subsequent to quarter end, we completed the acquisition of Merida Biosciences, to advance treatments for serious autoimmune and allergic diseases.
INDIANAPOLIS, October 29, 2026 - Eli Lilly and Company (NYSE: LLY) today announced its financial results for the third quarter of 2026 and provided updated 2026 financial guidance.
“Lilly had another strong quarter, exceeding our prior expectations and allowing us to raise our full-year outlook,” said David A. Ricks, Lilly chair and CEO. “Revenue growth was driven by broad global consumer demand for Mounjaro and Zepbound, the global launches of Foundayo, expanded U.S. coverage for obesity care and a doubling in our newest products in oncology, immunology and neuroscience. To drive durable long-term growth, we continue to invest in our drug-making and technology capabilities, with
Eli Lilly and Company | Lilly Corporate Center | Indianapolis, Indiana 46285 | U.S.A.
multiple business development deals and partnerships signed and closed, and with new manufacturing expansions in Texas and Virginia. Lilly is executing well across the value chain, and our potential for impact on human health continues to expand.”
Financial Results
| $ in millions, except per share data | Third-Quarter | ||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Revenue | $ | 24,397 | $ | 17,601 | 39% | ||||||||||||
| Net income – Reported | 6,451 | 5,583 | 16% | ||||||||||||||
Earnings per share – Reported(1) | 7.22 | 6.21 | 16% | ||||||||||||||
| Net income – Non-GAAP | 6,679 | 6,312 | 6% | ||||||||||||||
Earnings per share – Non-GAAP(1) | 7.48 | 7.02 | 7% | ||||||||||||||
(1) Q3 2026 reported and non-GAAP EPS included $4.57 of acquired IPR&D charges compared to $0.71 in Q3 2025 | |||||||||||||||||
A discussion of the non-GAAP financial measures is included below under "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)."
Third-Quarter Reported Results
In Q3 2026, worldwide revenue was $24.4 billion, an increase of 39% compared with Q3 2025, driven by a 53% increase in volume, partially offset by a 15% decrease in realized prices. Key Products1 revenue grew to $17.1 billion in Q3 2026, led by Mounjaro and Zepbound. Key Products revenue in the Immunology, Oncology, and Neuroscience therapeutic areas grew 100% in Q3 2026 compared to Q3 2025.
Revenue in the U.S. increased 34% to $15.1 billion, driven by a 41% increase in volume, partially offset by a 7% 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, partially offset by adjustments to estimates for rebates and discounts.
1 The Company currently defines Key Products as Ebglyss, Foundayo, Inluriyo, Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound.
2 | ||
Revenue outside the U.S. increased 47% to $9.3 billion, driven by a 76% increase in volume, partially offset by a 29% decrease in realized prices. The volume increase outside the U.S. was driven by Mounjaro. Jardiance revenue outside the U.S. included sales-based milestones of $410 million in Q3 2026 and $200 million in Q3 2025, associated with the company's collaboration with Boehringer Ingelheim. Additionally, Q3 2025 revenue included $180 million associated with the divestiture of the rights to Cialis in select markets outside of the U.S. Lower realized prices outside the U.S. were driven primarily by the inclusion of Mounjaro on the National Reimbursement Drug List (NRDL) in China.
Gross margin increased 40% to $20.5 billion in Q3 2026. Gross margin as a percent of revenue was 83.9%, an increase of 1.0 percentage points versus the same quarter last year. The increase was primarily driven by favorable product mix and improved cost of production, partially offset by lower realized prices.
In Q3 2026, research and development expenses increased 23% to $4.2 billion, or 17% of revenue, driven by continued investments in the company's early and late-stage portfolio.
Marketing, selling, and administrative expenses increased 14% to $3.1 billion in Q3 2026, primarily driven by promotional efforts supporting ongoing and planned launches.
In Q3 2026, the company recognized acquired in-process research and development (IPR&D) charges of
$4.2 billion compared with $656 million in Q3 2025. The Q3 2026 charges primarily related to the acquisitions of AtaiBeckley Inc. and Curevo Inc.
The effective tax rate was 23.3% in Q3 2026 compared with 22.8% in Q3 2025, primarily driven by the unfavorable tax impact of nondeductible acquired IPR&D charges, with a larger impact occurring in 2026. The Q3 2025 effective tax rate was also unfavorably impacted by U.S. tax law changes.
In Q3 2026, net income and earnings per share (EPS) were $6.5 billion and $7.22, respectively, compared with net income of $5.6 billion and EPS of $6.21 in Q3 2025. EPS in Q3 2026 and Q3 2025 included acquired IPR&D charges of $4.57 and $0.71, respectively.
Third-Quarter Non-GAAP Measures
On a non-GAAP basis, Q3 2026 gross margin increased 40% to $20.6 billion. Gross margin as a percent of revenue was 84.4%, an increase of 0.8 percentage points versus the same quarter last year. The
3 | ||
increase was primarily driven by favorable product mix and improved cost of production, partially offset by lower realized prices.
The non-GAAP effective tax rate was 24.0% in Q3 2026 compared with 17.7% in Q3 2025, primarily driven by the unfavorable tax impact of nondeductible acquired IPR&D charges, with a larger impact occurring in 2026.
On a non-GAAP basis, Q3 2026 net income and EPS were $6.7 billion and $7.48, respectively, compared with net income of $6.3 billion and EPS of $7.02 in Q3 2025. Non-GAAP EPS in Q3 2026 and Q3 2025 included acquired IPR&D charges of $4.57 and $0.71, 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.
Third-Quarter | |||||||||||||||||
| 2026 | 2025 | % Change | |||||||||||||||
| Earnings per share (reported) | $ | 7.22 | $ | 6.21 | 16% | ||||||||||||
| Amortization of intangible assets | .11 | .11 | |||||||||||||||
| Asset impairment, restructuring and other special charges | .18 | .36 | |||||||||||||||
| Net gains on investments in equity securities | (.04) | (.04) | |||||||||||||||
| U.S. Tax Law Change | — | .39 | |||||||||||||||
| Earnings per share (non-GAAP) | $ | 7.48 | $ | 7.02 | 7% | ||||||||||||
| Acquired IPR&D | 4.57 | .71 | NM | ||||||||||||||
| Numbers may not add due to rounding | |||||||||||||||||
| NM - not meaningful | |||||||||||||||||
4 | ||
Selected Revenue Highlights
(Dollars in millions) | Third-Quarter | Year-to-Date | |||||||||||||||||||||||||||||||||
| Selected Products | 2026 | 2025 | % Change | 2026 | 2025 | % Change | |||||||||||||||||||||||||||||
| Mounjaro | $ | 10,723 | $ | 6,515 | 65% | $ | 29,328 | $ | 15,556 | 89% | |||||||||||||||||||||||||
Zepbound(1) | 5,352 | 3,588 | 49% | 14,440 | 9,281 | 56% | |||||||||||||||||||||||||||||
Jaypirca | 228 | 143 | 59% | 585 | 358 | 63% | |||||||||||||||||||||||||||||
Ebglyss | 202 | 127 | 59% | 548 | 274 | 100% | |||||||||||||||||||||||||||||
Kisunla | 193 | 70 | 175% | 484 | 141 | NM | |||||||||||||||||||||||||||||
Omvoh | 114 | 65 | 76% | 296 | 177 | 67% | |||||||||||||||||||||||||||||
| Foundayo | 184 | — | NM | 281 | — | NM | |||||||||||||||||||||||||||||
Inluriyo | 73 | — | NM | 183 | — | NM | |||||||||||||||||||||||||||||
| Total Revenue | 24,397 | 17,601 | 39% | 67,170 | 45,887 | 46% | |||||||||||||||||||||||||||||
(1) Tirzepatide is marketed for obesity under the brand name Zepbound in Canada, Japan, and the United States. | |||||||||||||||||||||||||||||||||||
| NM - not meaningful | |||||||||||||||||||||||||||||||||||
Mounjaro
For Q3 2026, worldwide Mounjaro revenue increased 65% to $10.7 billion. U.S. revenue was $5.0 billion, an increase of 41%, reflecting strong demand. Revenue outside the U.S. increased 93% to $5.7 billion primarily driven by volume growth, partially offset by lower realized prices driven by the addition of Mounjaro on the NRDL in Q1 2026.
Zepbound
For Q3 2026, U.S. Zepbound revenue increased 48% to $5.3 billion, primarily driven by strong demand, partially offset by lower realized prices.
5 | ||
Lilly shared numerous updates recently on key regulatory, clinical, business development, and other events, including:
| Regulatory | Lilly's Jaypirca (pirtobrutinib), the first-and-only approved non-covalent BTK inhibitor, receives expanded indication from U.S. FDA for certain patients with previously untreated CLL/SLL (announcement) | ||||
| FDA approves Lilly's Olumiant (baricitinib) for pediatric patients 12 years of age and older with severe alopecia areata (announcement) | |||||
| U.S. Food and Drug Administration (FDA) approves Lilly's Onswik™ (insulin efsitora alfa-gobe), a once-weekly basal insulin injection treatment for adults living with type 2 diabetes (announcement) | |||||
| U.S. FDA approves Inluriyo (imlunestrant) in combination with Verzenio (abemaciclib) for adults with ER+, HER2-, ESR1-mutated advanced or metastatic breast cancer (announcement) | |||||
| FDA approves Lilly's Mounjaro (tirzepatide) to reduce cardiovascular risk in adults with type 2 diabetes (announcement) | |||||
| Clinical | Lilly's retatrutide delivered greater A1C reduction and more than double the weight loss of Ozempic's highest approved dose in head-to-head trial (announcement) | ||||
| New data on Lilly's investigational treatment olomorasib at ESMO 2026 show durable first-line activity in KRAS G12C-mutant non-small cell lung cancer (announcement) | |||||
| Lilly presents first clinical data in platinum-sensitive ovarian cancer for its investigational, next-generation, FRα-targeting ADC at ESMO 2026 (announcement) | |||||
| Lilly's Omvoh (mirikizumab-mrkz) meets primary endpoint of clinical remission and is the first IL-23p19 inhibitor to report one-year Phase 3 results in pediatric ulcerative colitis (announcement) | |||||
| New composite outcomes data show patients treated with Lilly's Omvoh (mirikizumab-mrkz) achieved comprehensive corticosteroid-free disease control in ulcerative colitis and corticosteroid-free deep remission in Crohn's disease at one year (announcement) | |||||
| New Phase 3b data on Lilly's Taltz (ixekizumab) and Zepbound (tirzepatide) advance understanding of the interconnected immune and metabolic biology in adults with psoriasis and obesity (announcement) | |||||
| Lilly's oral GLP-1, Foundayo (orforglipron), demonstrated cardiovascular safety alongside sustained A1C reduction and weight loss in its largest and longest type 2 diabetes study (announcement) | |||||
| Lilly's EloraTZP (combination of eloralintide and tirzepatide) delivered greater weight loss and A1C reduction vs. tirzepatide 15 mg in adults with obesity and type 2 diabetes (announcement) | |||||
| New Phase 3b data show Lilly's EBGLYSS (lebrikizumab-lbkz) delivered significant and rapid improvements in skin clearance, itch, pain, and patient satisfaction in people with moderate-to-severe hand and foot atopic dermatitis (announcement) | |||||
| Lilly's triple agonist, retatrutide, delivered substantial weight loss and A1C reduction, underscoring its potential promise for people with obesity and type 2 diabetes (announcement) | |||||
| New Phase 3b data on Lilly's Taltz (ixekizumab) and Zepbound (tirzepatide) used together showed improved and durable efficacy at one year in adults with psoriatic disease and obesity (announcement) | |||||
| Other | Patrik Jonsson to retire after 36 years; Ilya Yuffa named president, Lilly Global Markets (announcement) | ||||
| Lilly breaks ground in Richmond to expand American manufacturing of next-generation cancer medicines, advancing its build-out of 10 new U.S. sites since 2020 (announcement) | |||||
| Lilly launches the Lilly Change the Course Commitment, aiming to address treatment gaps in diabetes and obesity in LMICs (announcement) | |||||
| Lilly breaks ground in Houston, one of ten U.S. manufacturing sites announced since 2020 (announcement) | |||||
| Lilly completes acquisition of AtaiBeckley to advance therapies for treatment-resistant depression and other mental health conditions (announcement) | |||||
| Lilly to acquire Merida Biosciences to advance treatments for serious autoimmune and allergic diseases (announcement) | |||||
| Zepbound linked to lower healthcare costs in adults over age 55 with obesity according to a real-world study (announcement) | |||||
| Lilly calls on online platforms, payment companies and regulators to shut down the illegal retatrutide black market (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 strong underlying performance across our portfolio. The first three quarters of 2026 also benefited from sales-based milestones and adjustments to estimates for rebates and discounts.
In addition to updates to Revenue and Performance Margin guidance, EPS guidance has been adjusted to reflect an increase of $4.07 (at the midpoint of the range), offset by $4.57 associated with the Q3 acquired IPR&D charges from recent business development activity:
| Prior | Updated | |||||||||||||
| Revenue | $85 to $87 billion | $91 to $92 billion | ||||||||||||
Performance Margin(1)(2) | 49.0% to 50.5% | 52.0% to 52.5% | ||||||||||||
Tax Rate(1)(3) | 18% to 19% | 19% to 20% | ||||||||||||
Earnings per Share(1)(3)(4) | $35.50 to $36.50 | $35.00 to $36.00 | ||||||||||||
(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, 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 September 30, 2026. | ||||||||||||||
(4) Assumes shares outstanding of approximately 894 million and foreign currency exchange rate assumptions of 1.13 (Euro), 157 (Yen) and 6.7 (Yuan) | ||||||||||||||
6 | ||
Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the Q3 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
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 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.
8 | ||
| 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 | Nine Months Ended | ||||||||||||||||||||||||||||||||||||||||
| September 30, | September 30, | ||||||||||||||||||||||||||||||||||||||||
| 2026 | 2025 | % Chg. | 2026 | 2025 | % Chg. | ||||||||||||||||||||||||||||||||||||
| Revenue | $ | 24,397 | $ | 17,601 | 39% | $ | 67,170 | $ | 45,887 | 46% | |||||||||||||||||||||||||||||||
| Cost of sales | 3,933 | 3,008 | 31% | 10,778 | 7,680 | 40% | |||||||||||||||||||||||||||||||||||
| Research and development | 4,247 | 3,466 | 23% | 11,576 | 9,536 | 21% | |||||||||||||||||||||||||||||||||||
| Marketing, selling, and administrative | 3,125 | 2,741 | 14% | 9,489 | 7,963 | 19% | |||||||||||||||||||||||||||||||||||
| Acquired IPR&D | 4,181 | 656 | NM | 7,541 | 2,381 | NM | |||||||||||||||||||||||||||||||||||
| Asset impairment, restructuring and other special charges | 303 | 365 | (17)% | 1,285 | 400 | NM | |||||||||||||||||||||||||||||||||||
| Operating income | 8,608 | 7,365 | 17% | 26,501 | 17,927 | 48% | |||||||||||||||||||||||||||||||||||
| Net interest income (expense) | (316) | (114) | (843) | (519) | |||||||||||||||||||||||||||||||||||||
| Net other income (expense) | 114 | (18) | 845 | 57 | |||||||||||||||||||||||||||||||||||||
| Other income (expense) | (202) | (132) | 53% | 2 | (462) | (100)% | |||||||||||||||||||||||||||||||||||
| Income before income taxes | 8,406 | 7,233 | 16% | 26,503 | 17,465 | 52% | |||||||||||||||||||||||||||||||||||
| Income tax expense | 1,955 | 1,650 | 18% | 5,561 | 3,463 | 61% | |||||||||||||||||||||||||||||||||||
| Net income | $ | 6,451 | $ | 5,583 | 16% | $ | 20,942 | $ | 14,002 | 50% | |||||||||||||||||||||||||||||||
| Earnings per share - diluted | $ | 7.22 | $ | 6.21 | 16% | $ | 23.42 | $ | 15.56 | 51% | |||||||||||||||||||||||||||||||
| Dividends paid per share | $ | 1.73 | $ | 1.50 | 15% | $ | 5.19 | $ | 4.50 | 15% | |||||||||||||||||||||||||||||||
| Weighted-average shares outstanding (thousand) - diluted | 893,439 | 898,804 | 894,371 | 899,734 | |||||||||||||||||||||||||||||||||||||
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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Gross Margin - As Reported | $ | 20,464 | $ | 14,593 | $ | 56,392 | $ | 38,207 | ||||||||||||
| Increase for excluded items: | ||||||||||||||||||||
Amortization of intangible assets (Cost of sales)(1) | 128 | 119 | 381 | 364 | ||||||||||||||||
| Gross Margin - Non-GAAP | $ | 20,592 | $ | 14,712 | $ | 56,773 | $ | 38,571 | ||||||||||||
| Gross Margin as a percent of revenue - As Reported | 83.9 | % | 82.9 | % | 84.0 | % | 83.3 | % | ||||||||||||
Gross Margin as a percent of revenue - Non-GAAP(2) | 84.4 | % | 83.6 | % | 84.5 | % | 84.1 | % | ||||||||||||
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 September 30, | Nine Months Ended September 30, | |||||||||||||||||||
| 2026 | 2025 | 2026 | 2025 | |||||||||||||||||
| Net income - Reported | $ | 6,451 | $ | 5,583 | $ | 20,942 | $ | 14,002 | ||||||||||||
| Increase (decrease) for excluded items: | ||||||||||||||||||||
Amortization of intangible assets (Cost of sales)(1) | 128 | 119 | 381 | 364 | ||||||||||||||||
Asset impairment, restructuring and other special charges(2) | 303 | 365 | 1,285 | 400 | ||||||||||||||||
| Net (gains) losses on investments in equity securities (Other income/expense) | (47) | (48) | (571) | 6 | ||||||||||||||||
U.S. Tax Law Change (Income taxes)(3) | — | 350 | — | 350 | ||||||||||||||||
| Corresponding tax effects (Income taxes) | (156) | (57) | (202) | (126) | ||||||||||||||||
| Net income - Non-GAAP | $ | 6,679 | $ | 6,312 | $ | 21,835 | $ | 14,996 | ||||||||||||
| Effective tax rate - Reported | 23.3 | % | 22.8 | % | 21.0 | % | 19.8 | % | ||||||||||||
Effective tax rate - Non-GAAP(4) | 24.0 | % | 17.7 | % | 20.9 | % | 17.8 | % | ||||||||||||
| Earnings per share (diluted) - Reported | $ | 7.22 | $ | 6.21 | $ | 23.42 | $ | 15.56 | ||||||||||||
| Earnings per share (diluted) - Non-GAAP | $ | 7.48 | $ | 7.02 | $ | 24.41 | $ | 16.67 | ||||||||||||
1.Excludes amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
2. For the three and nine months ended September 30, 2026, excludes a charge primarily related to a partial impairment of an intangible asset associated with a molecule in development. For the nine months ended September 30, 2026 and the three and nine months ended September 30, 2025, excludes charges related to acquisition and integration costs associated with the closing of our acquisitions and charges related to litigation matters.
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.
11 | ||