Eli Lilly and Company (NYSE:LLY) reported third-quarter 2026 earnings and revenue above analysts’ expectations on Thursday, supported by increased sales of its diabetes and weight-loss treatments Mounjaro and Zepbound. The pharmaceutical company’s shares advanced more than 4% in premarket trading following the announcement.
Adjusted earnings per share reached $7.48, exceeding the consensus estimate of $5.60. Revenue increased 39% year over year to $24.4 billion from $17.6 billion, surpassing analysts’ expectations of $22.42 billion.
Mounjaro and Zepbound Drive Revenue Growth
Mounjaro generated quarterly revenue of $10.7 billion, representing a 65% increase compared with the previous year.
Revenue from Zepbound rose 48% to $5.4 billion, with both treatments benefiting from increased demand.
Third-quarter revenue included approximately $900 million in benefits, primarily comprising $410 million in Jardiance milestone payments and favorable adjustments to estimated rebates and discounts.
The company’s gross margin increased by 1.0 percentage point to 83.9% of revenue.
Chairman and Chief Executive Officer David A. Ricks commented:
“Lilly had another strong quarter, exceeding our prior expectations and allowing us to raise our full-year outlook.”
He added:
“Revenue growth was driven by broad global consumer demand for Mounjaro and Zepbound, the global launches of Foundayo, expanded U.S. coverage for obesity care and a doubling in our newest products in oncology, immunology and neuroscience.”
Full-Year Revenue Guidance Raised to $91 Billion–$92 Billion
Eli Lilly increased its 2026 revenue forecast to between $91 billion and $92 billion.
The midpoint of the revised range, $91.5 billion, exceeds analysts’ consensus estimate of $88.7 billion.
However, the company reduced its adjusted earnings per share guidance to $35.00–$36.00, compared with its previous forecast of $35.50–$36.50.
The midpoint of the updated earnings range, $35.50, remains above the consensus estimate of $34.46.
Research and Development Charges Affect Earnings Outlook
Eli Lilly said its revised earnings guidance reflected an improvement of $4.07 per share in underlying performance at the midpoint of its forecast.
That improvement was more than offset by $4.57 per share in acquired in-process research and development charges associated with third-quarter business development activities.
The charges contributed to the reduction in the company’s annual adjusted earnings forecast despite the increase in its revenue outlook.
The quarterly results reflected higher sales of Mounjaro and Zepbound, increased gross margin and revised financial expectations for the remainder of 2026.