Eli Lilly raised its 2026 revenue forecast to between $91 billion and $92 billion on Thursday after reporting third-quarter earnings and revenue that surpassed Wall Street estimates, driven by strong demand for its weight loss and diabetes medications.
Adjusted earnings per share reached $7.48, compared with the $6.26 expected by Wall Street. The pharmaceutical giant reported third-quarter revenue of $24.40 billion, topping analyst projections of $22.61 billion compiled by LSEG. The performance prompted the company to hike its 2026 sales outlook from a previous guidance range of $85 billion to $87 billion.
According to the firm, $4.57 per share in expenses from newly completed purchases overshadowed a $4.07 per share boost to the midpoint of core profit forecasts. These charges, taken in the third quarter, are primarily related to the acquisitions of AtaiBeckley and Curevo, according to Eli Lilly. During an April appearance at the Semafor World Economy summit in Washington, DC, CEO David Ricks discussed these matters as the company pursued various acquisitions, most recently agreeing to purchase Merida Biosciences to develop a new class of treatments for serious autoimmune and allergic diseases.
For the third quarter, Eli Lilly posted a net income of $6.45 billion, or $7.22 per share, a figure that factors in the $4.57 per share worth of deal-related expenses. That compares with net income of $5.58 billion, or $6.21 per share, a year earlier. Jefferies analyst Akash Tewari noted in a note to investors that a specific business change is expected to be a major boon to the company’s operations, potentially bringing in $4 billion by the end of the year.
Mounjaro and Zepbound Drive Quarterly Revenue Growth
Mounjaro, approved for Type 2 diabetes, posted worldwide sales of $10.72 billion, topping Wall Street expectations of $10.10 billion according to StreetAccount data. Blockbuster treatments Mounjaro and Zepbound fueled the quarterly beat, offsetting lower realized prices in the U.S. and abroad. Mounjaro notably saw strength internationally, with sales outside the U.S. jumping 93%. Across all products, the company saw a 41% increase in volume, representing the number of prescriptions or units sold, primarily driven by Mounjaro and Zepbound. Revenue included about $900 million of benefits, primarily consisting of $410 million of milestone payments tied to diabetes drug Jardiance, which Lilly stated are the last it expects to receive, alongside favorable adjustments to rebate and discount estimates.
Zepbound, the company’s obesity injection that entered the market roughly three years ago, brought in $5.35 billion globally during the third quarter. That figure marks a 49% increase from the $3.6 billion reported in the same three months of last year, sailing past FactSet and StreetAccount estimates of $5.0 billion to $5.09 billion, which included $4.99 billion expected from the U.S. alone. Zepbound and Mounjaro combined make up 66% of Lilly’s total revenue. Domestically, pricing decreased by 7%, which Lilly tied largely to Zepbound while noting the drop was partially cushioned by revisions to rebate and discount calculations. Outside the U.S., prices fell 29%, driven mainly by Mounjaro’s inclusion on China’s national reimbursement drug list.
Oral Pill Rollout Drives Expansion
Foundayo won U.S. approval in April and generated $184 million in sales during the third quarter, sitting alongside the company’s injectable portfolio. That total fell under analyst forecasts of around $229 million in sales, according to StreetAccount estimates. This represents the second quarterly financial update to incorporate sales from the GLP-1 pill, which goes toe-to-toe against a competing oral medication introduced by Novo in January. Investors are closely tracking the Foundayo rollout as a key test of whether Lilly can blunt its Danish rival’s first-mover edge with oral Wegovy. Although initial prescriptions for Foundayo have lagged behind its competitor, some investors have minimized this early shortfall, anticipating that the Lilly medication will become a major growth engine as its availability expands to additional international markets.
Following the earnings announcement, Lilly shares (LLY) jumped 4.6% in premarket trade on Thursday.
Lilly previously forecast 2026 revenue of $85.0 billion to $87.0 billion and earnings of $35.50 to $36.50 per share, before raising its outlook for the third time this year to the current $91 billion to $92 billion range.
Editing by Bill Berkrot and Mark Potter. Reporting by Patrick Wingrove.