Lilly revenue jumps 39% to $24.397 billion as 2026 outlook is raised
Key Facts
Eli Lilly reported revenue of $24.397 billion in the third quarter of 2026, up 39% from $17.601 billion a year earlier, according to company results released on October 29. The increase came as global sales volume grew 53%, partially offsetting a 15% decline in realized prices. Chief Executive David Ricks said growth was underpinned by global demand for Mounjaro and Zepbound and the launch of Foundayo in international markets. He added that expanded U.S. coverage for obesity care helped drive the business, alongside a doubling of revenue from the company’s newer products in key therapeutic areas. The results highlight the expansion of sales alongside pricing pressure, which was clearly reflected in the differing performances of the United States and international markets.
Revenue from key products totaled $17.1 billion during the quarter, with Mounjaro and Zepbound the two largest reported growth drivers. Mounjaro generated global revenue of $10.723 billion, up 65% from $6.515 billion in the third quarter of 2025. Zepbound generated $5.352 billion, up 49% from $3.588 billion a year earlier. The company said revenue from key products in immunology, oncology and neuroscience grew 100% year over year, an increase referring, according to the statement’s wording, to the combined revenue of key products in those areas. The figures reflect a broadening growth base alongside the two drugs associated with obesity and diabetes treatment.
In the United States, revenue rose 34% to $15.1 billion, driven by sales volume growth of 41%, despite a 7% decline in realized prices. Lilly said Mounjaro and Zepbound led volume growth in the U.S. market, and that Zepbound was the main factor behind the decline in prices there. Outside the United States, revenue increased 47% to $9.3 billion, with volume up 76% and realized prices down 29%. The company attributed a substantial part of international pricing pressure to Mounjaro’s inclusion on China’s national reimbursement list. The contrast shows that international markets recorded faster volume growth, while their price declines were steeper than in the U.S. market.
Quarterly revenue included about $900 million in benefits, most notably $410 million in milestone payments related to Jardiance, and the company said no further milestone payments remained. Gross margin was 83.9% of revenue, up one percentage point from the same period a year earlier. Lilly attributed the improvement to a favorable product mix and lower production costs, partly offset by lower realized prices. Reported net income was $6.451 billion, compared with $5.583 billion a year earlier, an increase of 16%. Reported earnings per share also rose 16% to $7.22 from $6.21, while non-GAAP earnings per share were $7.48, up 7% from $7.02.
Acquired in-process research and development charges rose to $4.2 billion in the quarter, from $656 million in the same period of 2025. Lilly said the charges were primarily related to the AtaiBeckley and Curevo acquisitions. The company lowered its full-year non-GAAP earnings per share outlook to a range of $35–36, from $35.50–36.50 previously. The revision reflects the inclusion of $4.57 per share related to acquired in-process research and development charges in the quarter. The lower earnings outlook alongside a higher annual revenue outlook highlights the effect of acquisition costs on financial estimates.
The company said Phase 3 trials of EloraTZP will begin in the fourth quarter of 2026; the treatment combines eloralintide and tirzepatide. Lilly shares closed at $1,288.3 on October 28, according to EL7 data. The company scheduled its third-quarter results call for October 29 at 10 a.m. Eastern time. The results announcement therefore included an update to financial guidance and indications of upcoming clinical developments.