Eli Lilly and Company (LLY) Q3 2026: Revenue Surge and Guidance Raise — Strongly Positive

Eli Lilly and Company (NYSE: LLY) reported a remarkable third quarter for 2026, with revenue soaring to $24.4 billion, an increase of $6.8 billion or +39% compared to $17.6 billion in Q3 2025. This impressive growth was primarily driven by strong demand for its key products, Mounjaro and Zepbound.

This quarter is undoubtedly a positive outcome for shareholders. The significant revenue growth, coupled with an increase in earnings per share (EPS), reflects the company's robust operational performance and strategic positioning in the pharmaceutical market.

Key Financial Metrics

• Revenue: $24.4 billion, up $6.8 billion or +39% YoY
• Net Income (Reported): $6.5 billion, up $868 million or +16% YoY
• Earnings Per Share (Reported): $7.22, up $1.01 or +16% YoY
• Earnings Per Share (Non-GAAP): $7.48, up $0.46 or +7% YoY
• Gross Margin: $20.5 billion, representing 83.9% of revenue, up from 82.9% YoY

Highlights and Changes

• The quarter included approximately $900 million in benefits, primarily from $410 million in Jardiance milestones and favorable adjustments to rebate and discount estimates.
• The company raised its full-year revenue guidance by $5.5 billion, now projecting a range of $91.0 to $92.0 billion.
• Non-GAAP EPS guidance for the full year was adjusted upward by $4.07 at the midpoint, resulting in an updated range of $35.00 to $36.00.
• Regulatory progress included multiple FDA approvals for key products, enhancing the company's market position.

Operational Insights

Eli Lilly's revenue growth was driven by a 53% increase in volume, although this was partially offset by a 15% decrease in realized prices. Notably, revenue from key products surged to $17.1 billion, with the Immunology, Oncology, and Neuroscience therapeutic areas experiencing a remarkable 100% growth compared to Q3 2025.

• Mounjaro Revenue: Increased 65% to $10.7 billion, with U.S. revenue at $5.0 billion (up 41%).
• Zepbound Revenue: U.S. revenue rose 48% to $5.3 billion.

Expenses and Charges

• Research and development expenses rose 23% to $4.2 billion, reflecting continued investment in the company's portfolio.
• Marketing, selling, and administrative expenses increased 14% to $3.1 billion, driven by promotional efforts for ongoing and planned launches.
• Acquired in-process research and development (IPR&D) charges were significant at $4.2 billion, compared to $656 million in Q3 2025.

Forward-Looking Catalysts

Investors should keep an eye on the upcoming quarters for further developments in Eli Lilly's pipeline, particularly the initiation of Phase 3 trials for several promising treatments, including EloraTZP for obesity and type 2 diabetes. Additionally, the company's ongoing regulatory approvals and business development activities, including recent acquisitions, will be crucial for sustaining growth and expanding its therapeutic offerings.

In summary, Eli Lilly's Q3 2026 results reflect a strong operational performance, with significant revenue growth and an optimistic outlook for the remainder of the year. The company's strategic investments and regulatory advancements position it well for continued success in the competitive pharmaceutical landscape.

Income Statement

CONDENSED CONSOLIDATED STATEMENTS OF INCOME
Amounts in millions

$ in millions, except per share data	Third-Quarter 2026	Third-Quarter 2025	% Change
Revenue	$24,397	$17,601	39%
Net income – Reported	$6,451	$5,583	16%
Earnings per share – Reported	$7.22	$6.21	16%
Net income – Non-GAAP	$6,679	$6,312	6%
Earnings per share – Non-GAAP	$7.48	$7.02	7%

Balance Sheet

CONDENSED CONSOLIDATED BALANCE SHEETS
Amounts in millions

	September 30, 2026	September 30, 2025
Assets
Total current assets	$XX,XXX	$XX,XXX
Long-term financing receivables	$XX,XXX	$XX,XXX
Other assets	$XX,XXX	$XX,XXX
Total assets	$XX,XXX	$XX,XXX
Liabilities
Total current liabilities	$XX,XXX	$XX,XXX
Long-term liabilities	$XX,XXX	$XX,XXX
Total liabilities	$XX,XXX	$XX,XXX
Equity
Common stock and additional paid-in capital	$XX,XXX	$XX,XXX
Retained earnings	$XX,XXX	$XX,XXX
Total equity	$XX,XXX	$XX,XXX

(Note: Actual dollar amounts for assets, liabilities, and equity were not included in the press release and are represented with XX placeholders.)

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