Eli Lilly reported stronger-than-expected first-quarter earnings and revenue on Thursday, driven by robust demand for its blockbuster weight-loss and diabetes drugs, prompting the company to raise its full-year guidance.
The pharmaceutical giant now expects 2026 revenue to range between $82 billion and $85 billion, up from its earlier forecast of $80 billion to $83 billion.
It also lifted its adjusted profit outlook, projecting full-year earnings between $35.50 and $37 per share, compared with a prior range of $33.50 to $35.
The share price of the company was up by over 6% during premarket hours.
Blockbuster drugs Zepbound, Mounjaro fuel growth
Demand for the company’s flagship drugs, Zepbound and Mounjaro, continued to underpin its performance, even as pricing pressures persist in the US market.
Mounjaro posted $8.66 billion in quarterly sales, marking a 125% increase from a year earlier and comfortably beating analyst expectations of $7.26 billion, according to StreetAccount.
Zepbound, launched about three years ago, generated $4.16 billion in US revenue during the quarter, up 80% year over year.
The figure also exceeded estimates of $4.04 billion, despite a decline in realised prices.
The continued momentum of these therapies has helped Eli Lilly deliver a string of strong quarters, as rising prescription volumes offset lower pricing.
Earnings and revenue beat expectations
The company reported adjusted earnings per share of $8.55, well ahead of analyst estimates of $6.66, according to LSEG data.
Revenue came in at $19.80 billion, surpassing expectations of $17.62 billion and representing a 56% increase from the same period last year.
US revenue rose 43% to $12.1 billion, driven by a 49% increase in volume, reflecting higher demand for Mounjaro and Zepbound.
However, this was partially offset by lower realised prices for Zepbound and some other treatments.
Net income for the quarter stood at $7.4 billion, or $8.26 per share, compared with $2.76 billion, or $3.06 per share, a year earlier.
Focus shifts to new obesity pill launch
While injectable therapies remain the company’s primary growth driver, attention is increasingly turning to its newly approved GLP-1 obesity pill, Foundayo, which launched in the second quarter and was not included in the latest results.
The rollout is expected to feature prominently in discussions with investors, particularly as the drug enters a competitive market alongside Novo Nordisk’s rival pill Wegovy, which had an earlier start in the US.
Early data suggests a measured start.
Leerink Partners analyst David Risinger last week said initial prescription trends for the pill have been “modest,” highlighting the challenges of scaling new treatments in a competitive landscape.
Long-term demand outlook remains strong
Despite near-term pricing pressures, Eli Lilly remains optimistic about the long-term growth trajectory of the GLP-1 category.
The company expects to benefit from broader insurance coverage, including potential Medicare support for obesity treatments later this year, as well as continued global demand for its existing therapies.
Chief Executive Dave Ricks has previously indicated that lower prices in the US could help expand access and drive higher prescription volumes.
He also expects the number of patients using GLP-1 drugs globally to increase from about 20 million at the end of last year to 30 million by the end of 2026.
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