health
We're increasing our Eli Lilly price target after another beat-and-raise quarter
The strength of its GLP-1 business suggests the stock still has more room to run.
TL;DR
- Eli Lilly's quarterly revenue surged 48% to $22.97 billion, exceeding analyst expectations.
- Adjusted earnings per share (EPS) rose 33% year-over-year to $8.38, also surpassing consensus estimates.
- The company raised its full-year 2026 revenue guidance to $85-$87 billion.
- GLP-1 drugs, including Zepbound and Mounjaro, continue to be major growth drivers, with strong volume increases offsetting price declines.
- The launch of the Medicare GLP-1 Bridge program is expected to expand access and demand for obesity treatments.
- Lilly's new oral GLP-1 drug, Foundayo, showed initial lower-than-expected revenue but is experiencing rapid adoption and increasing consumer awareness.
- Sales in immunology (Ebglyss), oncology (Jaypirca), and neuroscience (Kisunla) also showed substantial year-over-year growth.
- The company is advancing its pipeline with next-generation obesity drug retatrutide, targeting FDA submission in Q1 2027, and seeking expanded label for orforglipron (Foundayo) in type 2 diabetes.