Eli Lilly reported third-quarter earnings and revenue that topped Wall Street expectations and raised its full-year sales outlook, driven by surging demand for its weight loss drug Zepbound and diabetes treatment Mounjaro, though sales of its new obesity pill Foundayo fell short of forecasts.
The pharmaceutical giant posted adjusted earnings of $7.48 per share for the quarter, well above the $6.26 analysts had expected, according to LSEG. Revenue came in at $24.40 billion, compared with the $22.61 billion consensus estimate.
The strong results were fueled by the blockbuster GLP-1 drugs Zepbound and Mounjaro, which treat obesity and type 2 diabetes. Lilly now expects 2026 revenue between $91 billion and $92 billion, up from its prior guidance of $85 billion to $87 billion, though it narrowed its adjusted earnings forecast to $35–$36 per share from $35.50–$36.50, with an underlying profit guidance increase of $4.07 per share at the midpoint offset by $4.57 per share in deal-related charges.
Mounjaro's worldwide revenue jumped 65% to $10.72 billion, beating the $10.10 billion analysts had forecast. International sales surged 93% for the drug. Zepbound posted $5.35 billion in revenue, up 49% from a year ago, also exceeding expectations. The vast majority of Zepbound sales were in the U.S.
Lilly's newly launched obesity pill Foundayo, which won U.S. approval in April, generated $184 million in third-quarter sales, below the around $229 million analysts had anticipated. The pill competes with a rival oral GLP-1 drug from Novo that launched in January.
Lilly held 63% of the U.S. obesity and diabetes drug market in the quarter, while Novo held 36.6%. Internationally, Lilly's share was 58.4% to Novo's 41.6%.
U.S. revenue climbed 34% to $15.1 billion, driven by a 41% increase in volume, partially offset by a 7% decline in realized prices. The pricing drop followed a drug pricing deal with the Trump administration last year. International revenue rose 47% to $9.3 billion, with volume up 76% but realized prices down 29%.
Net income for the quarter was $6.45 billion, or $7.22 per share, up from $5.58 billion, or $6.21 per share, a year earlier. Excluding one-time items, adjusted earnings were $7.48 per share. Shares rose about 4% in premarket trading.
Lilly pointed to expanded U.S. coverage for obesity care, including Medicare's decision to begin covering GLP-1s for weight loss in July under a temporary pilot program. The company is also converting its profits into dealmaking, most recently agreeing to buy Merida Biosciences to develop treatments for autoimmune and allergic diseases.
Analysis
Why This Matters
- Lilly's results underscore the scale and momentum of the GLP-1 drug market, which continues to drive blockbuster revenue for the company and its rivals.
- The raised guidance signals confidence in sustained demand, even as lower net prices in the U.S. and competition from Novo Nordisk's oral drug shape the landscape.
- The Medicare pilot program covering GLP-1s for weight loss could expand patient access and further boost sales, with implications for healthcare costs and public health.
Background
GLP-1 receptor agonists, originally developed for type 2 diabetes, have become blockbuster treatments for obesity. Eli Lilly and Novo Nordisk dominate the market, with Lilly's injectable drugs Zepbound (weight loss) and Mounjaro (diabetes) leading sales. In April 2026, Lilly launched Foundayo, its first oral GLP-1 obesity pill, directly competing with Novo's oral drug. The U.S. market has been shaped by a drug pricing agreement between the Trump administration and pharmaceutical companies, and by Medicare's recent decision to cover GLP-1s for weight loss under a pilot program.
What to Watch
- How Foundayo's sales trend in coming quarters as it competes with Novo's oral drug and as manufacturing capacity expands.
- The impact of Medicare's GLP-1 coverage pilot on overall market growth and patient uptake.
- Any further dealmaking by Lilly, which has been using its cash flow to acquire biotech assets such as Merida Biosciences.
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12 claims in this story checked against 1 source: 12 supported.
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- SupportedEli Lilly beat third-quarter earnings and revenue estimates and raised its full-year sales outlook.US Top News and Analysis: “Eli Lilly on Thursday reported third-quarter earnings and revenue that blew past estimates and hiked its full-year sales outlook”
- SupportedDemand for Zepbound and Mounjaro surged.US Top News and Analysis: “as demand for its blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro soared again.”
- SupportedFoundayo sales fell short of forecasts despite strong overall demand.US Top News and Analysis: “Despite that strength, sales of its new GLP-1 obesity pill Foundayo, which launched in the U.S. in April, were under Wall Street's expectations for the quarter.”
- SupportedAdjusted earnings were $7.48 per share, versus analysts’ $6.26 estimate, and revenue was $24.40 billion, versus $22.61 billion expected.US Top News and Analysis: “Earnings per share: $7.48 adjusted vs. $6.26 expected Revenue: $24.40 billion vs. $22.61 billion expected”
- SupportedLilly raised its 2026 revenue outlook to $91 billion–$92 billion from $85 billion–$87 billion.US Top News and Analysis: “The pharmaceutical giant now expects 2026 revenue to come in between $91 billion and $92 billion, up from a previous guidance of $85 billion to $87 billion.”
- SupportedLilly narrowed its adjusted earnings forecast to $35–$36 per share from $35.50–$36.50.US Top News and Analysis: “Lilly projects its full-year adjusted earnings will be between $35 and $36 per share, which compares with a previous outlook of $35.50 to $36.50 per share.”
- SupportedLilly said it increased underlying profit guidance by $4.07 per share at the midpoint, offset by $4.57 per share in deal-related charges.US Top News and Analysis: “The company said it raised the underlying profit guidance by $4.07 per share at the midpoint, but noted that it is offset by $4.57 per share in charges tied to deals in the quarter.”
- SupportedMounjaro worldwide revenue rose 65% to $10.72 billion and exceeded the $10.10 billion analyst forecast.US Top News and Analysis: “Mounjaro's worldwide revenue rose 65% to $10.72 billion for the quarter ... That surpassed the $10.10 billion in worldwide sales ... analysts were expecting”
- SupportedMounjaro sales outside the U.S. rose 93%.US Top News and Analysis: “Mounjaro notably saw strength internationally, with sales outside the U.S. jumping 93%.”
- SupportedZepbound revenue was $5.35 billion, up 49% year over year, and exceeded expectations.US Top News and Analysis: “Zepbound ... posted $5.35 billion in revenue for the third quarter. That's up 49% from the year-earlier period”
- SupportedFoundayo generated $184 million in third-quarter sales, below analysts’ forecast of around $229 million.US Top News and Analysis: “Foundayo ... took in $184 million in sales for the third quarter. That fell under analyst forecasts of around $229 million in sales”
- SupportedLilly agreed to buy Merida Biosciences to develop treatments for autoimmune and allergic diseases.US Top News and Analysis: “most recently striking an agreement to buy Merida Biosciences to develop a new class of treatments for serious autoimmune and allergic diseases.”
