Eli Lilly It reported third-quarter earnings and revenue on Thursday that blew away previous estimates and raised its full-year sales outlook, as demand for its blockbuster weight loss drug Zepbound and diabetes treatment Monjaro rebounded.
Despite that strength, sales of its new GLP-1 obesity pill Foundayo, which launched in the U.S. in April, were slightly below Wall Street expectations for the quarter.
The pharmaceutical giant now expects 2026 revenue to come in between $91 billion to $92 billion, up from previous guidance of $85 billion to $87 billion.
Lilly estimates its full-year adjusted earnings will be between $35 and $36 per share, compared with a previous outlook of $35.50 to $36.50 per share. The company said it raised underlying profit guidance to $4.07 per share at the midpoint, but noted that the quarter was offset by $4.57 per share in charges related to deals.
The company’s shares rose about 4% in premarket trading.
Tune in at 9 a.m. ET as Eli Lilly CEO David Ricks joins CNBC TV to discuss the company’s third quarter earnings. Watch in real time on CNBC+ or the CNBC Pro stream.
Lilly’s huge unexpected growth in diabetes and obesity — and market share lead over main rival Novo — shows no signs of slowing down, even as the company grapples with low net prices in the U.S. The pharma giant has recently been turning its huge profits into a dealmaking spree. make an agreement Purchasing Merida Biosciences to develop a new class of treatments for serious autoimmune and allergic diseases.
Based on a survey of LSEG analysts, Eli Lilly reported for the third quarter better than Wall Street expected:
- earnings per share: $7.48 adjusted vs. $6.26 expected
- Income: $24.40 billion vs. $22.61 billion expected
Resilient demand for Zepbound and Monjaro has helped fuel several strong quarters for Lilly despite lower drug prices in the U.S. that followed a drug pricing agreement with the Trump administration last year. In a release, Lilly also pointed to expanded U.S. coverage for obesity care, citing Medicare’s decision to begin covering GLP-1 for weight loss in July under a temporary pilot program.
Monjaro’s worldwide revenue grew 65% to $10.72 billion in the quarter, including nearly $5 billion in U.S. sales. That surpassed the $10.10 billion in worldwide sales and $4.79 billion in U.S. revenue that analysts were expecting for the quarter, according to StreetAccount.
Monjaro saw particular strength internationally, with sales outside the US increasing 93%.
Zepbound, which entered the market nearly three years ago, posted revenue of $5.35 billion in the third quarter. That’s up 49% from the year-ago period, as demand for the drug has also increased while real prices have fallen. The majority of those sales came from the US
According to StreetAccount, analysts were expecting $5.09 billion in global sales for Zepbound, including $4.99 billion from the US.
Lilly’s recently launched obesity pill, Foundaio, which won U.S. approval in April, generated sales of $184 million in the third quarter. StreetAccount estimates show the sale was under analyst forecasts of about $229 million.
This is the second earnings report to include revenue from the GLP-1 pill, which is competing head-to-head with Novo’s rival oral drug launched in January.
Eli Lilly’s revenue in the US rose 34% to $15.1 billion. Lilly said its products saw volume — or the number of drugs or units sold — increase by 41%, primarily for Monjaro and Zepbound. This was partially offset by a 7% decline in the actual prices of the same drugs.
Sales outside the US increased 47% to $9.3 billion, partially offset by a 76% increase in volume and a 29% decline in realized prices.
The pharmaceutical giant reported net income of $6.45 billion, or $7.22 per share, for the third quarter, which includes a $4.57 per share deal fee. That compares with net income of $5.58 billion, or $6.21 per share, a year earlier.
Excluding one-time items related to the value of intangible assets and other adjustments, Eli Lilly reported earnings of $7.48 per share for the third quarter.