ELI LILLY & Co Q2 FY26 Results

Summary

Eli Lilly and Company reported strong second-quarter 2026 financial results, with revenue surging 48% year-over-year to $23.0 billion, largely due to Mounjaro and Zepbound sales. The company raised its full-year 2026 guidance for both revenue and non-GAAP EPS, reflecting continued growth momentum. Despite increased R&D and acquired IPR&D charges, gross margin improved, and management expressed optimism about the company's future prospects.

Key Highlights

1. 1

   Revenue in Q2 2026 increased 48% to $23.0 billion, primarily driven by Mounjaro and Zepbound volume.

2. 2

   Q2 2026 reported EPS increased by 26% to $7.94, and non-GAAP EPS increased by 33% to $8.38.

3. 3

   Full-year 2026 revenue guidance was raised to a range of $85.0 billion to $87.0 billion.

4. 4

   Non-GAAP EPS guidance for the full year was raised by $2.78 at the midpoint, offset by $3.03 of acquired IPR&D charges, resulting in an updated range of $35.50 to $36.50.

5. 5

   Gross margin as a percent of revenue increased to 85.8% on a reported basis and 86.3% on a non-GAAP basis.

6. 6

   Research and development expenses increased 14% to $3.8 billion, representing 17% of revenue.

7. 7

   Significant business development activity included the acquisition of Orna Therapeutics, Inc., Ajax Therapeutics, Inc., Centessa Pharmaceuticals plc, and Kelonia Therapeutics, Inc.