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Lilly Stock Jumps After Q4 Earnings Beat and Strong 2026 Guidance
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Key Takeaways
LLY topped Q4 estimates as adjusted EPS touched $7.54 and revenues rose 43% to $19.3 billion.
LLY saw GLP-1 demand surge, with Mounjaro and Zepbound sales jumping 110% and 123%, respectively.
Eli Lilly guided 2026 revenues of $80-$83B and EPS of $33.50-$35.00.
Eli Lilly and Company (LLY - Free Report) reported fourth-quarter 2025 adjusted earnings per share (“EPS”) of $7.54, which beat the Zacks Consensus Estimate of $6.99 per share. Earnings rose 42% year over year.
Revenues of $19.3 billion rose 43% year over year, driven by robust uptake of Lilly’s popular GLP-1 drugs, Mounjaro for type II diabetes and Zepbound for obesity. Total revenues beat the Zacks Consensus Estimate of $17.87 billion.
Mounjaro and Zepbound Drive LLY’s Top Line
Mounjaro recorded sales of $7.41 billion during the quarter, up 110% year over year. The reported sales figure beat the Zacks Consensus Estimate of $6.65 billion.
Mounjaro sales rose 57% to $4.1 billion in the United States, driven by increased demand, partially offset by lower pricing. International sales were $3.3 billion compared with $899.0 million in the year-ago quarter, benefiting from launches in new markets.
Zepbound recorded sales of $4.26 billion in the quarter, up 123% year over year, driven by increased demand, partially offset by lower pricing. Zepbound revenues beat the Zacks Consensus Estimate of $3.87 billion.
Mounjaro and Zepbound face strong competition from Novo Nordisk’s (NVO - Free Report) semaglutide medicines, Ozempic for diabetes and Wegovy for obesity. NVO announced its fourth-quarter results on Feb. 3. While the Danish drugmaker beat estimates for both earnings and sales, its stock declined sharply as the company gave a weak outlook for 2026. Novo Nordisk expects 2026 adjusted sales and operating profit to decline 5%-13% at a constant exchange rate. In the fourth quarter, sales in its Diabetes and Obesity Care segment declined 2% due to rising competitive pressure from Lilly’s products. While Ozempic’s sales rose 1%, Wegovy’s sales rose 17%.
LLY’s Key Drugs’ Sales Numbers
Trulicity generated revenues worth $1.04 billion, down 17% year over year. Sales of Trulicity beat the Zacks Consensus Estimate of $1.0 billion.
Sales of Trulicity are being hurt due to competitive dynamics, including patient switches to Mounjaro and lower realized prices.
Jardiance sales declined 36% to $768 million. Jardiance missed the Zacks Consensus Estimate of $776.0 million.
Taltz brought in sales of $1.05 billion, up 10% year over year. Taltz beat the Zacks Consensus Estimate of $955.0 million.
Verzenio generated sales of $1.60 billion in the reported quarter, up 3% year over year, as higher sales in outside United States markets were partially offset by a decline in the United States. Verzenio sales missed the Zacks Consensus Estimate of $1.62 billion.
Emgality generated revenues of $246.0 million in the quarter, down 1% year over year. Olumiant (baricitinib) generated sales of $267.0 million, up 2% on a year-over-year basis.
Among the newer drugs, Jaypirca recorded $148.0 million in sales, up 30% year over year. Omvoh and Ebglyss recorded sales of $88.0 million and $134.0 million, respectively, in the quarter, compared with $64.9 million and $127.1 million in the previous quarter.
Sales of the new Alzheimer’s drug Kisunla were $109.0 million in the fourth quarter compared with $70.4 million in the previous quarter, as the new drug continues to increase market share versus competition. Kisunla was approved in Europe in September last year.
LLY's Full-Year 2025 Results
Full-year 2025 sales rose 45% to $65.2 billion, which significantly beat the Zacks Consensus Estimate of $63.54 billion as well as the guided range of $63.0 billion to $63.5 billion.
Adjusted earnings for 2025 were $24.21 per share, up 86% year over year. Earnings beat the Zacks Consensus Estimate of $23.74 per share as well as the guided range of $23.00 to $23.70 per share.
LLY’s Better-Than-Expected Outlook for 2026
Lilly issued its financial guidance for 2026.
In 2026, Lilly expects to record revenues in the range of $80 billion to $83 billion. The guided range is much higher than the Zacks Consensus Estimate of $77.5 billion.
Earnings per share are expected to be in the range of $33.50 to $35.00. The Zacks Consensus Estimate is pegged at $33.24 per share.
Our Take on LLY’s Q4 Results
Lilly’s fourth-quarter results were strong as the company quashed estimates for both earnings and sales. Sales of Lilly’s key drugs, Mounjaro, Zepbound, Taltz and Trulicity beat estimates while those of Verzenio and Jardiance missed expectations. Lilly’s new products also contributed to sales growth.
The company’s 2026 outlook beat expectations, in sharp contrast to NVO’s 2026 guidance, which fell short of expectations. Launches of Mounjaro and Zepbound in new international markets and improved supply from ramped-up production in the United States have led to strong sales growth in 2025. Mounjaro and Zepbound are expected to continue to see strong demand in 2026.
In response to the better-than-expected quarterly earnings and the upbeat outlook for 2026, Lilly’s shares rose around 9% in pre-market trading.
Lilly’s stock has risen 19.2% in the past year compared with an increase of 17.1% for the industry.
Image Source: Zacks Investment Research
Lilly has become a dominant player in the popular GLP-1 drug space. Last year, it became the first and only drugmaker to hit a $1 trillion market cap backed by robust demand for Mounjaro and Zepbound. It is investing broadly in obesity and has several new molecules currently in clinical development with a range of oral and injectable medications with different mechanisms of action.
A key drug in its obesity pipeline is a once-daily oral GLP-1 small molecule called orforglipron. Lilly has filed regulatory applications in the United States, the EU and Japan seeking approval for orforglipron in obesity, setting up the timeline for a potential launch this year. Last month, the FDA approved NVO’s oral version of the obesity drug Wegovy. It is the first oral GLP-1 drug to be approved in the United States. NVO launched the Wegovy pill last month.
Oral pills will be a more convenient alternative to the currently available once-weekly injectable obesity treatments like Zepbound and Wegovy. Though NVO has the lead in the oral obesity market, investors, in general, believe that Lilly may be able to close the gap fast once orforglipron is approved in 2026.
The company is also working to diversify beyond GLP-1 drugs by expanding into cardiovascular, oncology and neuroscience areas. In 2025, it announced several M&A deals, which included the acquisition of Adverum Biotechnologies. Last month, Lilly announced a definitive agreement to buy Ventyx Biosciences (VTYX - Free Report) for $1.2 billion to deepen its exposure in oral small-molecule therapies targeting inflammatory-mediated diseases. The deal will add Ventyx’s differentiated portfolio of clinical-stage oral therapies, particularly NLRP3 inhibitors, being developed across cardiometabolic, neurodegenerative and autoimmune indications.
Bayer’s shares have risen 140.7% in the past year. Estimates for its 2026 earnings per share have increased from $1.38 to $1.51 over the past 60 days. Bayer is scheduled to report fourth-quarter results on Feb. 25.
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Lilly Stock Jumps After Q4 Earnings Beat and Strong 2026 Guidance
Key Takeaways
Eli Lilly and Company (LLY - Free Report) reported fourth-quarter 2025 adjusted earnings per share (“EPS”) of $7.54, which beat the Zacks Consensus Estimate of $6.99 per share. Earnings rose 42% year over year.
Revenues of $19.3 billion rose 43% year over year, driven by robust uptake of Lilly’s popular GLP-1 drugs, Mounjaro for type II diabetes and Zepbound for obesity. Total revenues beat the Zacks Consensus Estimate of $17.87 billion.
Mounjaro and Zepbound Drive LLY’s Top Line
Mounjaro recorded sales of $7.41 billion during the quarter, up 110% year over year. The reported sales figure beat the Zacks Consensus Estimate of $6.65 billion.
Mounjaro sales rose 57% to $4.1 billion in the United States, driven by increased demand, partially offset by lower pricing. International sales were $3.3 billion compared with $899.0 million in the year-ago quarter, benefiting from launches in new markets.
Zepbound recorded sales of $4.26 billion in the quarter, up 123% year over year, driven by increased demand, partially offset by lower pricing. Zepbound revenues beat the Zacks Consensus Estimate of $3.87 billion.
Mounjaro and Zepbound face strong competition from Novo Nordisk’s (NVO - Free Report) semaglutide medicines, Ozempic for diabetes and Wegovy for obesity. NVO announced its fourth-quarter results on Feb. 3. While the Danish drugmaker beat estimates for both earnings and sales, its stock declined sharply as the company gave a weak outlook for 2026. Novo Nordisk expects 2026 adjusted sales and operating profit to decline 5%-13% at a constant exchange rate. In the fourth quarter, sales in its Diabetes and Obesity Care segment declined 2% due to rising competitive pressure from Lilly’s products. While Ozempic’s sales rose 1%, Wegovy’s sales rose 17%.
LLY’s Key Drugs’ Sales Numbers
Trulicity generated revenues worth $1.04 billion, down 17% year over year. Sales of Trulicity beat the Zacks Consensus Estimate of $1.0 billion.
Sales of Trulicity are being hurt due to competitive dynamics, including patient switches to Mounjaro and lower realized prices.
Jardiance sales declined 36% to $768 million. Jardiance missed the Zacks Consensus Estimate of $776.0 million.
Taltz brought in sales of $1.05 billion, up 10% year over year. Taltz beat the Zacks Consensus Estimate of $955.0 million.
Verzenio generated sales of $1.60 billion in the reported quarter, up 3% year over year, as higher sales in outside United States markets were partially offset by a decline in the United States. Verzenio sales missed the Zacks Consensus Estimate of $1.62 billion.
Emgality generated revenues of $246.0 million in the quarter, down 1% year over year. Olumiant (baricitinib) generated sales of $267.0 million, up 2% on a year-over-year basis.
Among the newer drugs, Jaypirca recorded $148.0 million in sales, up 30% year over year. Omvoh and Ebglyss recorded sales of $88.0 million and $134.0 million, respectively, in the quarter, compared with $64.9 million and $127.1 million in the previous quarter.
Sales of the new Alzheimer’s drug Kisunla were $109.0 million in the fourth quarter compared with $70.4 million in the previous quarter, as the new drug continues to increase market share versus competition. Kisunla was approved in Europe in September last year.
LLY's Full-Year 2025 Results
Full-year 2025 sales rose 45% to $65.2 billion, which significantly beat the Zacks Consensus Estimate of $63.54 billion as well as the guided range of $63.0 billion to $63.5 billion.
Adjusted earnings for 2025 were $24.21 per share, up 86% year over year. Earnings beat the Zacks Consensus Estimate of $23.74 per share as well as the guided range of $23.00 to $23.70 per share.
LLY’s Better-Than-Expected Outlook for 2026
Lilly issued its financial guidance for 2026.
In 2026, Lilly expects to record revenues in the range of $80 billion to $83 billion. The guided range is much higher than the Zacks Consensus Estimate of $77.5 billion.
Earnings per share are expected to be in the range of $33.50 to $35.00. The Zacks Consensus Estimate is pegged at $33.24 per share.
Our Take on LLY’s Q4 Results
Lilly’s fourth-quarter results were strong as the company quashed estimates for both earnings and sales. Sales of Lilly’s key drugs, Mounjaro, Zepbound, Taltz and Trulicity beat estimates while those of Verzenio and Jardiance missed expectations. Lilly’s new products also contributed to sales growth.
The company’s 2026 outlook beat expectations, in sharp contrast to NVO’s 2026 guidance, which fell short of expectations. Launches of Mounjaro and Zepbound in new international markets and improved supply from ramped-up production in the United States have led to strong sales growth in 2025. Mounjaro and Zepbound are expected to continue to see strong demand in 2026.
In response to the better-than-expected quarterly earnings and the upbeat outlook for 2026, Lilly’s shares rose around 9% in pre-market trading.
Lilly’s stock has risen 19.2% in the past year compared with an increase of 17.1% for the industry.
Image Source: Zacks Investment Research
Lilly has become a dominant player in the popular GLP-1 drug space. Last year, it became the first and only drugmaker to hit a $1 trillion market cap backed by robust demand for Mounjaro and Zepbound. It is investing broadly in obesity and has several new molecules currently in clinical development with a range of oral and injectable medications with different mechanisms of action.
A key drug in its obesity pipeline is a once-daily oral GLP-1 small molecule called orforglipron. Lilly has filed regulatory applications in the United States, the EU and Japan seeking approval for orforglipron in obesity, setting up the timeline for a potential launch this year. Last month, the FDA approved NVO’s oral version of the obesity drug Wegovy. It is the first oral GLP-1 drug to be approved in the United States. NVO launched the Wegovy pill last month.
Oral pills will be a more convenient alternative to the currently available once-weekly injectable obesity treatments like Zepbound and Wegovy. Though NVO has the lead in the oral obesity market, investors, in general, believe that Lilly may be able to close the gap fast once orforglipron is approved in 2026.
The company is also working to diversify beyond GLP-1 drugs by expanding into cardiovascular, oncology and neuroscience areas. In 2025, it announced several M&A deals, which included the acquisition of Adverum Biotechnologies. Last month, Lilly announced a definitive agreement to buy Ventyx Biosciences (VTYX - Free Report) for $1.2 billion to deepen its exposure in oral small-molecule therapies targeting inflammatory-mediated diseases. The deal will add Ventyx’s differentiated portfolio of clinical-stage oral therapies, particularly NLRP3 inhibitors, being developed across cardiometabolic, neurodegenerative and autoimmune indications.
LLY’s Zacks Rank & A Stock to Consider
Eli Lilly currently has a Zacks Rank #3 (Hold).
A better-ranked large drugmaker is Bayer (BAYRY - Free Report) , which has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Bayer’s shares have risen 140.7% in the past year. Estimates for its 2026 earnings per share have increased from $1.38 to $1.51 over the past 60 days. Bayer is scheduled to report fourth-quarter results on Feb. 25.