Eli Lilly reported a 39% increase in third-quarter revenue to $24.4 billion, led primarily by demand for Mounjaro and Zepbound. The company also raised its 2026 revenue outlook and reported regulatory and pipeline progress across several drug programs.
The quarter’s earnings included sizable research-and-development charges tied to business-development activity, while revenue also benefited from a milestone payment and adjustments to rebate and discount estimates.
Key details
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Revenue and earnings: Revenue rose 39% from a year earlier to $24.4 billion. Reported earnings per share increased 16% to $7.22, while non-GAAP earnings per share rose 7% to $7.48.
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One-time and estimate-related revenue benefits: Third-quarter revenue included about $900 million in benefits, mainly a $410 million Jardiance milestone payment and favorable updates to rebate and discount estimates. Lilly said no further Jardiance milestones remain.
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Acquisition-related charges: Both reported and non-GAAP EPS included $4.57 per share in acquired in-process research and development charges, compared with $0.71 a year earlier. Lilly attributed the current-quarter charges to business-development activity.
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Higher full-year outlook: Lilly raised its 2026 revenue guidance range to $91 billion–$92 billion, lifting the midpoint by $5.5 billion. It also raised its underlying full-year non-GAAP EPS outlook by $4.07 at the midpoint. After accounting for the $4.57 per-share acquired research charges from third-quarter deals, the updated EPS range is $35–$36.
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Drivers cited by management: Lilly pointed to global demand for Mounjaro and Zepbound, launches of Foundayo, expanded U.S. coverage for obesity care, and growth in newer oncology, immunology and neuroscience products. The company also cited investment in manufacturing and technology capabilities.
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Regulatory approvals: U.S. regulators approved Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes, Onswik as a once-weekly basal insulin for adults with type 2 diabetes, and Inluriyo in combination with Verzenio for certain adults with advanced or metastatic breast cancer. Jaypirca also received an expanded indication for adults with untreated chronic lymphocytic leukemia or small lymphocytic lymphoma.
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Pipeline updates: Lilly reported positive topline results from a Phase 3 comparison of retatrutide with Ozempic 2 mg in adults with type 2 diabetes. It also reported Phase 3 results for Ebglyss in moderate-to-severe hand and foot atopic dermatitis, and Phase 2 results for EloraTZP in adults with obesity and type 2 diabetes. Lilly plans to begin Phase 3 trials of EloraTZP in the fourth quarter of 2026.
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Acquisitions: Lilly completed its acquisition of AtaiBeckley during the quarter to advance potential treatments for treatment-resistant depression and other mental health conditions. After the quarter ended, it completed the acquisition of Merida Biosciences, which is focused on treatments for serious autoimmune and allergic diseases.
What changes for investors
The higher revenue outlook reflects Lilly’s stronger-than-expected quarter and commercial momentum, while the EPS range also reflects substantial charges associated with recent deals. The $410 million Jardiance milestone and favorable rebate and discount adjustments boosted quarterly revenue, but the company said no further Jardiance milestones are due. The regulatory approvals and pipeline results broaden Lilly’s portfolio progress beyond its leading growth medicines, though the release does not provide sales estimates for the newly approved products.