Driven by surging demand for weight loss and diabetes drugs, Eli Lilly reported a significant quarterly revenue increase that exceeded market expectations, while also raising its full-year revenue guidance. Key progress was also made on the next-generation GLP-1 products the market is watching, with Eli Lilly accelerating the construction of a long-term growth curve spanning weight loss, metabolic diseases, and innovative therapies.

On August 5, Eli Lilly released its second-quarter 2026 financial results. The company recorded quarterly revenue of $22.97 billion, a 48% increase year-over-year, surpassing the market's forecast of $20.59 billion. Adjusted earnings per share (Non-GAAP EPS) reached $8.38, up 33% year-over-year, significantly exceeding analysts' expectations of $6.31.

The company's net profit was $7.1 billion, compared to $5.66 billion in the same period last year. Impacted by acquisition-related expenses, GAAP earnings per share for the reporting period were $7.94, including $3.03 per share in transaction-related costs. After excluding one-time factors such as intangible asset valuation adjustments, adjusted earnings per share reached $8.38.

Boosted by the strong performance, Eli Lilly's shares rose 5% in pre-market trading, reflecting continued investor confidence in the growth of the company's weight loss drug business.

The company further raised its full-year performance outlook, projecting 2026 full-year revenue between $85 billion and $87 billion, up from the previous forecast of $82 billion to $85 billion. The company expects full-year adjusted earnings per share to be between $35.50 and $36.50.

Eli Lilly stated that although transaction-related costs will weigh on full-year profits by approximately $3.03 per share, the company has raised its underlying profit forecast by about $2.78 per share, reflecting the strong momentum of its core business growth.

Mounjaro and Zepbound Continue to Lead, GLP-1 Business Contributes Nearly $15 Billion in Revenue

The core driving force behind Eli Lilly's growth remains its GLP-1 drug portfolio.

In the second quarter, the diabetes drug Mounjaro and the weight loss drug Zepbound together contributed nearly $15 billion in revenue, becoming the main source of the company's performance growth.

Among them, Mounjaro's global sales reached $9.9 billion, a 91% increase year-over-year. In the first half of this year, the product's cumulative revenue had already surpassed $18.6 billion, up 106% year-over-year, making it a market consensus that annual sales will exceed $30 billion.

By region, U.S. market revenue grew 45% year-over-year to $4.8 billion, while overseas market revenue surged 172% year-over-year to $5.2 billion. The Chinese market made a significant contribution. After Mounjaro was included in the national medical insurance catalog in the first quarter of 2026, sales volume increased rapidly. Although prices fell year-over-year, the scale of growth clearly outweighed pricing pressure.

Regarding Zepbound, U.S. market revenue reached $4.9 billion, a 44% increase year-over-year, maintaining rapid expansion.

However, the market has also begun to focus on trends in weight loss drug prices. Eli Lilly previously proactively lowered cash payment prices to expand access beyond insurance coverage. Combined with the impact of rebates and discount adjustments, Zepbound's pricing faced pressure. Excluding related accounting adjustments, the actual price decline in the U.S. market was approximately 9%.

Gross Margin Rises to 86%, Scale Effects Drive Profitability Improvement

As high-margin GLP-1 products continue to grow in volume, Eli Lilly's profitability has further improved.

In the second quarter, the company's reported gross margin was 85.8%, an increase of 1.5 percentage points year-over-year. The non-GAAP gross margin reached 86.3%, an increase of 1.3 percentage points year-over-year. Eli Lilly stated that the gross margin improvement was mainly due to cost optimization from expanded production scale and a continued shift in product mix towards higher-margin products.

Expenses also reflected operating leverage: R&D expenses increased 14% year-over-year to $3.8 billion, with the proportion of revenue falling to 17%. Selling and administrative expenses rose 25% year-over-year to $3.4 billion, primarily used to support the commercialization of new products, including the oral GLP-1 drug Foundayo.

The company recognized $2.8 billion in acquired in-process research and development (IPR&D) expenses in the second quarter, mainly related to acquisitions such as Orna Therapeutics and Ajax Therapeutics, which had a short-term drag on profits.

Excluding these related impacts, Eli Lilly's profit improvement was even more pronounced. The company also raised its full-year "Performance Margin" target from 47%-48.5% to 49%-50.5%.

Foundayo Launch Exceeds Expectations, Retatrutide Nears Filing

Beyond its existing GLP-1 products, Eli Lilly is advancing its next-generation weight loss drug pipeline.

The company stated that the initial performance of its oral GLP-1 drug, Foundayo (orforglipron), has been strong since its launch. The drug received approval in April and has already submitted an application for the type 2 diabetes indication, demonstrating superior blood sugar control and weight loss effects compared to the control group in key clinical trials. Compared to injectable GLP-1 drugs, Foundayo's biggest advantage is its oral convenience, which is expected to further expand the patient population covered by GLP-1 drugs.

The financial results show that Foundayo achieved second-quarter sales revenue of $98 million, slightly below market expectations of approximately $103 million. This is also the first time Eli Lilly has disclosed revenue for this oral GLP-1 drug in its earnings report, as the product competes with an oral GLP-1 drug previously launched by Novo Nordisk.

Generating more market interest is the triple-target drug retatrutide (GLP-1/GIP/GCG agonist).

Eli Lilly disclosed that the Phase 3 clinical data package for three indications—obesity, obstructive sleep apnea (OSA), and knee osteoarthritis pain—has been completed. The company plans to submit a Biologics License Application (BLA) to the U.S. FDA in the first quarter of 2027.

If approved, retatrutide could further strengthen Eli Lilly's leading position in the global weight loss drug market.

Pipeline Continues to Expand, M&A Intensifies in Gene Therapy and Emerging Fields

Alongside the rapid growth of its GLP-1 business, Eli Lilly is expanding its future growth sources through acquisitions.

In the second quarter, the company completed acquisitions of Orna Therapeutics (circular RNA therapy), Ajax Therapeutics (JAK inhibitor), Centessa Pharmaceuticals (sleep-wake disorders), and Kelonia Therapeutics (genetic medicine).

Additionally, after the quarter's end, the company further positioned itself in the infectious disease field and announced the acquisition of AtaiBeckley, entering the treatment of treatment-resistant depression.

Eli Lilly's strategic intent is clear: to leverage the cash flow generated by its GLP-1 business to accelerate investment in next-generation innovation areas such as genetic medicine, RNA therapy, and central nervous system science.

However, large-scale acquisitions also bring short-term cost pressures. In this quarter, Eli Lilly recognized $2.8 billion in IPR&D expenses related to acquisitions and recorded asset impairment and restructuring-related charges, pushing its effective tax rate to 23.3%, up from 16.5% in the same period last year.

A Second Growth Curve is Gradually Forming

Beyond the GLP-1 "twin engines," Eli Lilly's other core products are also beginning to contribute to growth.

Revenue from the company's core products in immunology, oncology, and neuroscience grew by 121% year-over-year. The Alzheimer's drug Kisunla, the ulcerative colitis drug Omvoh, the oncology drug Jaypirca, and the neuroscience product Inluriyo all demonstrated growth potential.

Among them, Jaypirca has received EU approval for all lines of treatment for chronic lymphocytic leukemia (CLL), with Phase 3 data showing that the combination therapy regimen can reduce the risk of disease progression or death by 45%.

Furthermore, early data from the gene-editing therapy VERVE-102 showed a maximum reduction of 88% in PCSK9 levels and a maximum reduction of 62% in LDL-C after a single dose, opening new possibilities for the treatment of cardiovascular diseases.

With the continued volume growth of its GLP-1 business, the advancing commercialization of oral weight loss drugs, and the expanding innovative pipeline, Eli Lilly is gradually transforming from a pharmaceutical company reliant on a single blockbuster drug into a multi-field, innovative platform-based pharmaceutical company.