Eli Lilly and Company (LLY) Q2 2026: Revenue Soars 48%, Guidance Raised — Strongly Positive

Eli Lilly and Company (NYSE: LLY) reported a remarkable second quarter for 2026, with revenue increasing by $7.4 billion or +48% year-over-year, reaching $23.0 billion. This growth was primarily driven by strong sales of Mounjaro and Zepbound, showcasing the company's robust product pipeline and market demand.

This quarter is undoubtedly a positive outcome for shareholders. The significant revenue growth, coupled with an increase in earnings per share (EPS) and an upward revision of full-year guidance, reflects Lilly's strong operational performance and strategic positioning in the pharmaceutical market.

Key Financial Metrics

• Revenue: $23.0 billion in Q2 2026, up from $15.6 billion in Q2 2025 (+48% YoY).
• Net Income (Reported): $7.1 billion, compared to $5.7 billion in Q2 2025 (+25% YoY).
• Earnings Per Share (EPS):
  • Reported: $7.94, up from $6.29 in Q2 2025 (+26% YoY).
  • Non-GAAP: $8.38, compared to $6.31 in Q2 2025 (+33% YoY).
• Gross Margin: Increased to $19.7 billion, representing 85.8% of revenue, up from 84.3% in Q2 2025.
• Research and Development Expenses: Increased by 14% to $3.8 billion, or 17% of revenue.
• Marketing, Selling, and Administrative Expenses: Increased by 25% to $3.4 billion.

Dividend and Share Buyback

While the earnings report did not mention any changes to dividends or share buyback programs, the strong financial performance may lead to future considerations in these areas.

Guidance Update

Lilly raised its full-year revenue guidance to a range of $85.0 billion to $87.0 billion, up from the previous range of $82.0 billion to $85.0 billion. The underlying non-GAAP EPS guidance was also adjusted, now projected to be between $35.50 and $36.50, reflecting an increase of $2.78 at the midpoint, although this was offset by $3.03 of acquired IPR&D charges.

Pipeline Progress and Regulatory Approvals

Lilly's pipeline continues to show promise with several key developments:

• Regulatory Approvals: The U.S. FDA approved Ebglyss for atopic dermatitis, and the European Commission approved Jaypirca for chronic lymphocytic leukemia.
• Pipeline Highlights: Positive data from Phase 3 trials of retatrutide in obesity, with plans to submit a Biologics License Application to the U.S. FDA in Q1 2027.
• Business Development: Completed acquisitions of multiple companies to enhance its portfolio, including Orna Therapeutics and Ajax Therapeutics.

Forward Catalysts

Investors should closely monitor the upcoming developments in Lilly's pipeline, particularly the anticipated Biologics License Application for retatrutide and the integration of newly acquired companies into its operations. Additionally, the company's commitment of $4.5 billion to expand manufacturing capabilities in Indiana signals a strong focus on scaling production to meet growing demand.

In conclusion, Eli Lilly's Q2 2026 results reflect a robust performance that not only exceeded expectations but also set a positive tone for the remainder of the year. With a strong pipeline and strategic investments, Lilly is well-positioned for continued growth, making this quarter a significant win for shareholders.

Here are the extracted tables from the provided press release:

Condensed Consolidated Statements of Income (Income Statement)

Amounts in millions

$ in millions, except per share data	Second-Quarter	2026	2025	%
Revenue	$22,974	$15,558	48%
Net income – Reported	7,095	5,661	25%
Earnings per share – Reported(1)	7.94	6.29	26%
Net income – Non-GAAP	7,493	5,680	32%
Earnings per share – Non-GAAP(1)	8.38	6.31	33%

(1)Q2 2026 reported and non-GAAP EPS included $3.03 of acquired IPR&D charges compared to $0.14 in Q2 2025

Condensed Consolidated Balance Sheets (Balance Sheet)

Amounts in millions

	June 30, 2026	December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$9,641	$8,278
Accounts receivable	8,197	5,586
Inventories	4,831	2,855
Other current assets	1,872	1,315
Total current assets	24,541	18,034
Noncurrent assets:
Property, plant and equipment	7,506	7,064
Goodwill	5,218	3,567
Other noncurrent assets	5,020	3,940
Total assets	$42,285	$32,605
Liabilities and stockholders' equity
Current liabilities:
Accounts payable	$7,057	$5,129
Other current liabilities	4,513	3,274
Total current liabilities	11,570	8,403
Noncurrent liabilities:
Long-term debt	10,205	6,927
Other noncurrent liabilities	3,009	2,413
Total liabilities	24,784	17,743
Stockholders' equity
Common stock and additional paid-in capital	4,579	4,313
Retained earnings	12,084	10,549
Accumulated other comprehensive loss	.358	(1)
Total stockholders' equity	16,458	14,861
Total liabilities and stockholders' equity	$42,285	$32,605

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