Lilly (LLY) Q4 2025 Financial Results Summary

Eli Lilly and Company (LLY) Q4 2025 Financial Results Summary

Eli Lilly and Company (NYSE: LLY) released its financial results for the fourth quarter of 2025 on February 4, 2026. Here’s a summary of the key highlights from the report:

Financial Highlights

• Revenue: Increased by 43% to $19.3 billion from $13.5 billion in Q4 2024.
• Net Income (Reported): Grew by 50%, reaching $6.6 billion compared to $4.4 billion in Q4 2024.
• Earnings Per Share (EPS):
• Reported EPS increased by 51% to $7.39 from $4.88 a year earlier.
• Non-GAAP EPS rose 42% to $7.54 from $5.32 in Q4 2024.
• Gross Margin: Increased by 43% to $15.9 billion, with a gross margin percentage of 82.5%, up 0.3 percentage points compared to Q4 2024.

Segment Performance

• U.S. Revenue: Up 43% to $12.9 billion, driven by a 50% increase in sales volume, despite a 7% decrease due to lower realized prices.
• International Revenue: Rose 43% to $6.4 billion, with a 38% volume increase and a 4% favorable impact from foreign exchange rates.

Product Performance

• Mounjaro:
• Q4 2025 revenue increased by 110% to $7.4 billion, with U.S. revenue climbing 57% to $4.1 billion.
• Zepbound:
• U.S. revenue surged by 122% to $4.2 billion, up from $1.9 billion in Q4 2024.
• Verzenio:
• Worldwide revenue grew by 3% to $1.6 billion, with U.S. revenue declining by 4% but international sales increased by 18%.

Costs and Expenses

• Research and Development (R&D): Increased by 26% to $3.8 billion, accounting for 20% of revenue.
• Marketing, Selling, and Administrative Expenses: Rose by 29% to $3.1 billion, reflecting increased promotional efforts.

Tax and Effective Tax Rate

• Effective Tax Rate: Increased to 19.7% compared to 12.5% in Q4 2024, largely due to a less favorable jurisdictional mix of earnings and changes in U.S. tax laws.

Guidance for 2026

• Revenue Guidance: Expected between $80 billion to $83 billion.
• Non-GAAP EPS Guidance: Expected in the range of $33.50 to $35.00.

Dividends and Share Repurchase

• Quarterly Dividend: Declared at $1.50 per share, representing a 15% increase from $1.30 per share in Q4 2024.

Regulatory and Pipeline Updates

• Regulatory Advances:
• FDA approval of Kwikpen for tirzepatide and expanded indication for Jaypirca.

• Submissions for orforglipron for obesity to regulatory authorities in the U.S., Japan, and in the EU for both obesity and type 2 diabetes.

• Pipeline Developments:

• Positive Phase 3 results for multiple products and partnerships aimed at expanding access to obesity medicines.

Summary of Financial Results in Bullets

• Q4 2025 Revenue: $19.3 billion (Up 43%)
• Net Income (Reported): $6.6 billion (Up 50%)
• Reported EPS: $7.39 (Up 51%)
• Non-GAAP EPS: $7.54 (Up 42%)
• Gross Margin: $15.9 billion (Up 43%); Margin %: 82.5% (Up 0.3%)
• U.S. Revenue: $12.9 billion (Up 43%)
• International Revenue: $6.4 billion (Up 43%)
• Research and Development Expenses: $3.8 billion (Up 26%)
• Marketing and Administrative Expenses: $3.1 billion (Up 29%)
• Effective Tax Rate: 19.7% (vs 12.5% in Q4 2024)
• 2026 Revenue Guidance: $80 – $83 billion
• 2026 Non-GAAP EPS Guidance: $33.50 – $35.00
• Q4 2025 Dividend: $1.50 per share (Up 15%)

Eli Lilly continues to demonstrate robust growth and operational advancements, positioning itself favorably for the upcoming year.

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

CONDENSED CONSOLIDATED BALANCE SHEETS