Eli Lilly (LLY) earnings Q2 2026

Eli Lilly on Wednesday reported second-quarter earnings and revenue that blew past estimates and hiked its full-year sales outlook, as demand for its blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro surged again.

The pharmaceutical giant now expects 2026 revenue to come in between $85 billion and $87 billion, up from a previous guidance of $82 billion to $85 billion.

Lilly projects its full-year adjusted profit to be between $35.50 and $36.50 per share, which compares with a previous outlook of $35.50 to $37 per share. The company said it raised the underlying profit guidance by $2.78 per share at the midpoint, but noted that it is offset by $3.03 per share in charges tied to deals in the quarter.

Fueled by a massive financial windfall from its obesity and diabetes drugs, Lilly is executing a historic M&A spending spree. The company most recently struck a deal to buy a psychedelics drugmaker in July, and also announced plans to buy three vaccine makers in May.

Shares of Lilly rose more than 5% in premarket trading Wednesday.

“It’s a really strong start to the year for Lilly … it’s hard to think of a time that we’ve been in a better position than this,” Lilly CEO Dave Ricks said in an interview on CNBC’s “Squawk Box.” 

Here’s what Eli Lilly reported for the second quarter compared with what Wall Street was expecting, based on a survey of analysts by LSEG: 

• Earnings per share: $8.38 adjusted vs. $6.01 expected
• Revenue: $22.97 billion vs. $20.73 billion expected

Lilly is working to maintain its dominance in the booming market for GLP-1 drugs, with the company holding 60.9% share of the U.S. obesity and diabetes drug market in the second quarter, according to an earnings presentation on Wednesday. Novo Nordisk’s market share in the quarter was 38.8%.

Resilient demand for Zepbound and Mounjaro has helped fuel several strong quarters for Lilly despite lower prices for the medications in the U.S.

Mounjaro’s worldwide revenue rose 91% to $9.94 billion for the quarter, including U.S. sales of $4.8 billion. That surpassed the $8.99 billion in worldwide sales and $4.44 billion in U.S. revenue that analysts were expecting for the quarter, according to StreetAccount.

Mounjaro notably saw strength internationally, with sales outside the U.S. jumping 172%.

“I think an upside beat in a pretty big way our own expectations, but also the Street’s with Mounjaro global adoption,” Ricks said. He said most people are paying out of pocket for Mounjaro in big middle-income countries such as Brazil, China and India, where Lilly is “seeing very strong and durable demand.”

Zepbound, which entered the market roughly three years ago, posted $4.93 billion in U.S. revenue for the second quarter. That’s up 44% from the year-earlier period, as demand for the drug also rose while realized prices dropped, in part due to previously announced cash-pay discounts. Analysts were expecting $4.69 billion in U.S. sales for Zepbound, according to StreetAccount.

Lilly’s newly launched obesity pill, Foundayo, which won U.S. approval in April, took in $98 million in sales for the second quarter. Analyst estimates compiled by FactSet as of Wednesday forecasted nearly $103 million in sales.

“We’re really pleased with the start; it’s accelerating as we speak,” Ricks said, adding that the company had to build physician and consumer awareness as well as access on formularies.

“Just in a month we’ve doubled consumer awareness, and prescriptions have doubled in a month for Foundayo, so we’re pleased,” he said, noting that about a quarter of new patients on oral medications are starting on Lilly’s pill.

It marks the first earnings report that includes revenue from the GLP-1 pill, which is competing head-to-head with a rival oral drug from Novo Nordisk that rolled out a few months ahead. Ricks emphasized that the oral space of the market is “expansionary, it’s not cannibalizing Zepbound” demand.

Revenue in the U.S. climbed 33% to $14.4 billion. Lilly said it saw a 37% increase in volume — or the number of prescriptions or units sold — for its products, primarily for Mounjaro and Zepbound. That was partially offset by lower realized prices of those same medications.

Notably, revenue outside the U.S. jumped 80% to $8.6 billion, propelled by a 113% surge in volume and partly offset by a 36% drop in realized prices. Lower prices largely came from Mounjaro’s addition to China’s state-run health insurance coverage for Type 2 diabetes.

The pharmaceutical giant booked net income of $7.10 billion, or $7.94 per share, for the second quarter, which includes the $3.03 per share deal charges. That compares with net income of $5.66 billion, or $6.29 per share, a year earlier. 

Excluding one-time items associated with the value of intangible assets and other adjustments, Eli Lilly posted earnings of $8.38 per share for the second quarter.

Ricks said in an interview in late April that he expects lower prices to accelerate prescription volumes in the U.S. He estimated that global GLP-1 use will rise from approximately 20 million patients at the end of last year to 30 million at the end of 2026.

Both Lilly and Novo are expected to benefit from Medicare’s new coverage of obesity drugs, which launched in early July, in the back half of the year. That allows eligible seniors to access branded GLP-1s for a monthly copay of $50.

On Wednesday, Ricks said the rollout of that new coverage is “off to a strong start.”

“I’m convinced that move by the Trump administration is going to make a huge difference in Medicare costs but also longevity of seniors,” he added.