Eli Lilly reported a 39% increase in third-quarter revenue, powered mainly by demand for Mounjaro and Zepbound, and raised its 2026 revenue outlook. The quarter also brought several U.S. drug approvals, new clinical-trial results and acquisitions in mental health and autoimmune disease.
Key details
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Revenue reached $24.4 billion, up 39% from a year earlier. Lilly attributed the growth primarily to Mounjaro and Zepbound. The company also cited global launches of Foundayo, broader U.S. coverage for obesity care and stronger sales of newer products in oncology, immunology and neuroscience.
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About $900 million of the quarter’s revenue came from benefits that may not recur at the same level. These included a $410 million Jardiance milestone payment, with no further milestones remaining, and favorable adjustments to estimates for rebates and discounts.
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Earnings per share rose on both reported and adjusted bases. Reported EPS increased 16% to $7.22, while non-GAAP EPS rose 7% to $7.48. Both measures included $4.57 per share of acquired in-process research and development charges, compared with $0.71 a year earlier.
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Lilly raised its 2026 revenue forecast by $5.5 billion at the midpoint, to a range of $91 billion to $92 billion. It also raised its underlying non-GAAP EPS outlook by $4.07 at the midpoint. However, the company said $4.57 per share of acquired research and development charges from third-quarter business development activity more than offset that increase, leaving its updated EPS guidance at $35 to $36.
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Several U.S. regulatory approvals advanced Lilly’s portfolio:
- Mounjaro was approved to reduce cardiovascular risk in adults with type 2 diabetes.
- Onswik, a once-weekly basal insulin, was approved for adults with type 2 diabetes.
- Inluriyo was approved for use with Verzenio in adults with advanced or metastatic ER-positive, HER2-negative, ESR1-mutated breast cancer.
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Jaypirca received an expanded indication for adults with untreated chronic lymphocytic leukemia or small lymphocytic lymphoma.
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Pipeline updates included results across several programs. Lilly reported positive top-line results from a Phase 3 head-to-head trial comparing 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. Phase 3 trials of EloraTZP are scheduled to begin in the fourth quarter of 2026.
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Lilly completed two acquisitions. It acquired AtaiBeckley during the third quarter to advance potential treatments for treatment-resistant depression and other mental health conditions. After the quarter ended, it completed its acquisition of Merida Biosciences, which is focused on treatments for serious autoimmune and allergic diseases.
Plain-English implications
The higher revenue outlook reflects Lilly’s strong sales momentum, though the quarter’s revenue included substantial benefits from a milestone payment and favorable rebate and discount adjustments. The new approvals broaden the uses and reach of existing medicines, while the acquisitions add programs in mental health and autoimmune and allergic diseases.