Eli Lilly Raises 2026 Revenue Guidance After Third-Quarter Earnings Beat Wall Street Estimates
Eli Lilly reported third-quarter financial results that surpassed Wall Street projections, driven by surging demand for its diabetes and obesity medications. The pharmaceutical company announced its latest financial figures on Thursday, accompanied by an upward revision to its long-term sales outlook.
According to financial data compiled by LSEG and reported by CNBC, Eli Lilly posted adjusted earnings per share of $7.48 on total revenue of $24.40 billion for the quarter. Wall Street analysts had anticipated adjusted earnings of $6.26 per share and revenue of $22.61 billion.
Following the performance, the company raised its financial projections for 2026. Eli Lilly now expects full-year revenue for 2026 to land between $91 billion and $92 billion, an increase from its previous guidance range of $85 billion to $87 billion.
Mounjaro and Zepbound Lead Global Sales Growth
Sales for the company’s leading GLP-1 receptor agonists continued to expand across international and domestic markets. Mounjaro, approved for Type 2 diabetes, generated worldwide revenue of $10.72 billion during the quarter, marking a 65% increase compared to the same period in the previous year and beating analyst projections of $10.10 billion, as tracked by StreetAccount. International sales for Mounjaro jumped 93%, while U.S. revenue reached approximately $5 billion.
According to its Oct. 2 motion to dismiss, Legendary Peptides is arguing that $LLY has not adequately connected Legendary's conduct to an injury to Lilly.> Lilly's complaint alleges lost sales of Mounjaro, Zepbound and Foundayo, alongside harm to its future retatrutide…
Zepbound brought in $5.35 billion in global revenue for the third quarter. This figure represents a 49% increase from the prior-year period, exceeding the $5.09 billion consensus estimate compiled by StreetAccount. The majority of Zepbound sales originated in the United States.
Despite lower realized net prices in the U.S. resulting from a drug pricing agreement struck with the Trump administration last year, overall sales volumes climbed significantly. Eli Lilly reported a 41% increase in product volume, primarily driven by Mounjaro and Zepbound. That volume growth was partially offset by a 7% decrease in realized prices in the U.S. and a 29% drop in international markets.
Foundayo Sales Trail Early Analyst Forecasts
Sales for the company’s newly launched oral obesity medication, Foundayo, came in below expectations. Foundayo, which received U.S. approval in April, recorded $184 million in sales for the third quarter. That total fell short of analyst forecasts gathered by StreetAccount, which had projected around $229 million.
The oral treatment competes directly in the U.S. market against a rival oral drug from Novo that launched in January. Eli Lilly maintained a market position, holding a 63% share of the U.S. obesity and diabetes drug market during the third quarter, according to corporate presentation data. Novo held 36.6% of the U.S. market during the same period.
Profit Adjustments and Ongoing Corporate Dealmaking
Eli Lilly reported net income of $6.45 billion, or $7.22 per share, for the third quarter, compared to $5.58 billion, or $6.21 per share, in the prior-year period. The latest quarterly net income includes $4.57 per share in charges related to recent corporate transactions.
The pharmaceutical manufacturer is deploying its capital into targeted acquisitions. Most recently, Eli Lilly reached an agreement to buy Merida Biosciences to develop treatments targeting serious autoimmune and allergic diseases. Additionally, the company’s third-quarter results received a financial boost from a $410 million sales-based milestone payout for the Type 2 diabetes medication Jardiance, stemming from its ongoing collaboration with Boehringer Ingelheim.
Frequently Asked Questions
What drove Eli Lilly’s revenue beat for the third quarter?
The revenue beat was primarily driven by higher-than-expected sales volumes for Mounjaro and Zepbound. Mounjaro generated $10.72 billion globally, while Zepbound brought in $5.35 billion.
How do Eli Lilly’s market share figures compare to its chief competitor?
Eli Lilly held a 63% share of the U.S. obesity and diabetes drug market during the third quarter, while Novo held 36.6%. Internationally, Eli Lilly held 58.4% of the market compared to Novo’s 41.6%.
What factors influenced the pricing trends for Lilly’s medications in the U.S.?
Realized prices for products like Zepbound decreased by 7% in the U.S. due to lower net prices following a drug pricing agreement struck with the Trump administration last year.
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