Lilly Raises 2026 Revenue Outlook to $91–92 Billion After 39% Quarterly Growth
Key Facts
On October 29, Lilly reported revenue of $24.397 billion for the third quarter ended September 30, up 39% from $17.601 billion in the same period last year. Reported net income was $6.451 billion, while reported earnings per share reached $7.22. The company raised its full-year revenue outlook to a range of $91–92 billion, an increase of $5.5 billion at the midpoint of its previous range. But adjusted, non-GAAP earnings-per-share guidance came in at $35–36. Lilly said the higher revenue outlook reflects strong underlying performance, while acquired in-process research and development charges related to business development activity affected its earnings outlook.
Sales growth came as global volume increased 53%, partly offset by a 15% decline in realized prices, and revenue from key products rose to $17.1 billion. CEO David Ricks said growth reflected “broad global consumer demand for Mounjaro and Zepbound,” alongside the global launch of Foundayo. He added that expanded U.S. obesity-care coverage contributed to performance, and that newer products in oncology, immunology and neuroscience more than doubled their combined sales. Foundayo revenue was $184 million in the quarter, while Jaypirca recorded about $228 million, Ebglyss about $202 million and Kisunla about $193 million. These results broaden the group of products contributing to growth alongside the leading treatments.
In the United States, revenue rose 34% to $15.1 billion, while revenue outside the country increased 47% to $9.3 billion. The company attributed U.S. market growth to Mounjaro and Zepbound, and said the decline in realized prices there was driven mainly by Zepbound, partly offset by adjustments to estimates for rebates and discounts. Outside the United States, Lilly said lower realized prices were linked mainly to Mounjaro’s inclusion on China’s national reimbursement list. Globally, the company recorded a 15% decline in realized prices alongside an increase in sales volume. Quarterly revenue included about $900 million in benefits, including $410 million in sales-based milestone payments related to Jardiance, and Lilly said no further milestone payments remain.
Adjusted, non-GAAP earnings per share rose 7% to $7.48, compared with $7.02 a year earlier, while research and development expenses increased 23% to $4.2 billion. Both reported and adjusted earnings per share included acquired in-process research and development charges of $4.57 per share, compared with $0.71 in the third quarter of 2025. The company said these charges related to business development activity exceeded the $4.07 improvement in its underlying earnings-per-share outlook at the midpoint. Accordingly, Lilly raised its annual revenue outlook but set adjusted earnings-per-share guidance at $35–36. The comparison between the two outlooks shows the effect of quarterly charges on the earnings estimate despite strong sales.
Portfolio developments during the quarter included U.S. Food and Drug Administration approval of Mounjaro to reduce the risk of major adverse cardiovascular events in adults with type 2 diabetes who are at elevated risk. Lilly also completed its acquisition of AtaiBeckley to develop treatments for treatment-resistant depression and other psychiatric conditions. After the quarter ended, it completed the acquisition of Merida Biosciences, which focuses on developing treatments for autoimmune and allergic diseases. The company also announced positive topline results from a Phase 3 trial comparing retatrutide with Ozempic at a 2 mg dose in people with type 2 diabetes. It said Phase 3 trials of EloraTZP are scheduled to begin in the fourth quarter of 2026.
The announcement was reflected in trading on the day results were released: Lilly shares reached a record $1,408.34 in early trading and were up 7.5% at $1,389 at the time of a Reuters update. Another Reuters report said the shares rose more than 6% in afternoon trading after briefly reaching a record $1,408. The company’s third-quarter earnings call was scheduled for October 29 at 10 a.m. Eastern time, with a replay available on its website. The higher annual revenue outlook follows quarterly growth led by key products and newer launches. The adjusted earnings-per-share outlook remains affected by the acquired in-process research and development charges recorded in the quarter.