Eli Lilly delivered quarterly results that exceeded Wall Street expectations across the board. The pharmaceutical powerhouse outperformed on both revenue and earnings while simultaneously upgrading its annual outlook — a trifecta that pleased investors.
The Indianapolis-based company announced adjusted earnings of $8.55 per share for the first quarter of 2026, comfortably surpassing the Street’s $6.97 expectation by $1.58. Top-line performance reached $19.8 billion, crushing the $17.6 billion forecast and marking a substantial 56% climb from the $12.7 billion reported in the year-ago quarter.
The impressive revenue expansion stemmed primarily from volume increases — which jumped 65% — although pricing concessions on key products Mounjaro and Zepbound created a 13 percentage point headwind.
Mounjaro, the company’s diabetes treatment, generated $8.7 billion in sales, reflecting a remarkable 125% increase. Meanwhile, Zepbound, positioned for weight management, delivered $4.2 billion in revenue with an 80% uptick.
Domestic sales expanded 43% to reach $12.1 billion. Markets outside the United States contributed $7.7 billion, up 81%, demonstrating the global appetite for GLP-1 therapies.
Adjusted gross margin registered at 82.6%, declining modestly from the previous year as pricing dynamics on leading products created margin pressure.
Chief Executive David Ricks highlighted the momentum. “We delivered 56% revenue growth in the first quarter and raised our full-year revenue guidance by $2 billion,” he stated.
Lilly increased its 2026 revenue forecast to $82.0–$85.0 billion from the earlier $80.0–$83.0 billion range. The midpoint of $83.5 billion exceeds Wall Street’s consensus estimate of $81.67 billion.
The company also elevated its adjusted EPS guidance to $35.50–$37.00, up from $33.50–$35.00 previously, with the revised midpoint of $36.25 beating the consensus of $34.53.
The company’s recently introduced oral GLP-1 medication Foundayo launched in early April, attracting significant attention as a competitive response to Novo Nordisk, which has established an early presence in the oral weight-loss medication category.
Foundayo captured 3,707 prescriptions across the United States during the week that concluded April 17 — approximately half the ~8,000 prescriptions Wall Street anticipated. This underwhelming initial performance represents a potential concern for market observers.
Ricks characterized the medication as one that will “meaningfully expand the number of people who can benefit from GLP-1s,” emphasizing its convenience: patients can take it at any point during the day, without dietary or hydration restrictions — differentiating it from competing oral GLP-1 treatments.
Shares climbed more than 5% during premarket trading following the earnings announcement, though gains moderated somewhat as regular trading commenced.
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