| Factor | Score | Distribution | Value | Avg | Rank |
|---|---|---|---|---|---|
Valuation | 17 | 37.4x | 17.8x | Bottom tier | |
Growth | 94 | 49.6% | 7.1% | Top tier | |
Quality | 93 | 37.6% | 4.5% | Top tier | |
Safety | 78 | 0.8x | 2.6x | Top tier | |
Capital Return | 37 | 0.55% | 2.12% | Bottom tier | |
Momentum | 79 | 61.7% | 2.9% | Top tier | |
Sentiment | 61 | 16 | 3 | Around median |
Estimates — analyst targets and a simplified DCF, not investment advice.
Ten ratios that matter, each compared against its sector median and average — so you can see whether a number is rich or cheap relative to peers in the same sector.
Eli Lilly and Company develops, manufactures, and markets pharmaceuticals, with its revenue drivers concentrated in cardiometabolic health alongside oncology, immunology, and neuroscience. The largest share of growth comes from diabetes and obesity treatments, particularly Mounjaro and Zepbound, while the company is expanding its growth sources through products such as Foundayo, Ebglyss, Jaypirca, Inluriyo, and Kisunla, in addition to more than 40 active phase 3 programs.
In Q2 FY2026, revenue rose 48% year over year to $23.0 billion, while gross profit according to EDGAR data reached approximately $19.7 billion, net income was $7.1 billion, and earnings per share were $7.94. According to the non-GAAP metrics presented on the earnings call, gross margin was 86.3%, up approximately 1.3 percentage points, operating margin increased nine percentage points to 54.8%, and earnings per share were $8.38 despite absorbing $3.03 in acquired research and development costs.
Mounjaro and Zepbound together generated $14.9 billion, or approximately 65% of Q2 FY2026 revenue, and added $6.3 billion in annual growth. At the same time, key oncology, immunology, and neuroscience medicines collectively grew 121%, global Jaypirca sales rose 56%, and global Ebglyss sales growth exceeded 100%, demonstrating the portfolio's expansion despite continued heavy reliance on incretin medicines.
The analyst consensus rates LLY as a Buy, with an average target of $1,341.63 and a wide range between $1,135 and $1,500. The average target is approximately 3.8% above the top of the 52-week range of $1,292.65, while the lower bound of $1,135 highlights differing estimates regarding the sustainability of obesity medicine growth, pricing pressures, and development pipeline execution. The data do not provide a usable price-to-earnings ratio, so the valuation here is based on the target range and the 52-week range rather than an unverified earnings multiple.
Figures in the text are as of 2026-08-26; the live price is shown at the top of the page.
Mounjaro and Zepbound were the largest drivers, together generating $14.9 billion in revenue and adding $6.3 billion in growth compared with Q2 FY2025. This represents approximately 65% of total quarterly revenue of $23.0 billion. Prescriptions in the U.S. obesity incretin market also grew 78%, and nearly six out of every ten total prescriptions were for Lilly medicines.
The company raised its revenue outlook to between $85 billion and $87 billion on the August 5, 2026 call, increasing the lower end by $3 billion and the upper end by $2 billion. It also raised the non-GAAP operating margin range to 49%–50.5%. The non-GAAP earnings-per-share range increased to $35.50–$36.50, up $2.78 at the midpoint before accounting for the impact of acquired research and development costs in the quarter.
The number of U.S. prescribers increased from 8,000 to 36,000 by the August 5, 2026 call, and management reported that prescription volume in the final week of July nearly doubled compared with the previous month. At that time, approximately one in every four new patients was starting treatment with Foundayo, following expanded commercial access and the start of a direct-to-consumer campaign. Outside the U.S., the medicine was launched in the UAE and received approvals in Saudi Arabia and Mexico, while it was under review in more than 40 additional countries.
Automated analysis for informational purposes only — not investment advice.
The program began on July 1, 2026, to provide approximately 20 million eligible Americans with coverage for GLP-1 obesity medicines at a monthly cost of $50. This increased the number of people covered for the company's obesity medicines by 35%. During the initial weeks, management estimated that 60%–70% of beneficiaries were new treatment users and that approximately 80% chose injectable medicines.
Lilly announced positive results from three phase 3 studies of retatrutide, covering obesity, type 2 diabetes, and comorbid cardiovascular disease, and plans to submit it in the U.S. in Q1 FY2027. The BRUIN CLL-322 study showed that adding pirtobrutinib reduced the risk of disease progression or death by 45%, with a 68% reduction among patients previously treated with a covalent BTK inhibitor. selpercatinib also reduced the risk of lung cancer recurrence or death by 83% in the LIBRETTO-432 study, while the VERVE-102 program showed an 88% reduction in PCSK9 and a 62% reduction in LDL cholesterol at the highest dose in the phase 1b study.
The first risk is that approximately 65% of Q2 FY2026 revenue depends on Mounjaro and Zepbound, increasing sensitivity to pricing, coverage, and competition. U.S. pricing declined 3% during the quarter, or 9% excluding adjustments to rebate and discount estimates, and management expects further Zepbound price declines as access expands. retatrutide also faces active litigation over the biologics license application pathway, while Novo products and generic versions of semaglutide compete with Lilly's portfolio in several markets.
