Eli Lilly reported third-quarter results that surpassed analyst estimates and prompted the company to elevate its financial guidance for the year. The company now projects 2026 revenue between $91 billion and $92 billion, a substantial increase from its prior range of $85 billion to $87 billion. Adjusted earnings guidance was set at $35 to $36 per share, though the company noted this reflects a $4.07 per share increase at the midpoint offset by $4.57 per share in charges related to quarterly transactions. The pharmaceutical company’s stock price rose approximately 7% following the announcement.
The company’s dominant position in the GLP-1 market remained evident in its results. Mounjaro, its diabetes treatment, generated $10.72 billion in worldwide revenue for the quarter, representing 65% growth and exceeding analyst expectations of $10.10 billion. Zepbound, its obesity medication, posted $5.35 billion in quarterly revenue, up 49% year-over-year and surpassing the $5.09 billion forecast. International markets demonstrated particular strength, with Mounjaro sales outside the U.S. jumping 93%. Eli Lilly held 63% of the U.S. obesity and diabetes drug market during the quarter, compared to competitor Novo’s 36.6% share.
Foundayo, the company’s newly launched oral obesity pill approved in April, generated $184 million in third-quarter sales but fell short of analyst expectations around $229 million. Despite this shortfall, the company reported that total U.S. prescriptions and new patient starts for the medication doubled from the previous quarter, with approximately 4 in 10 patients beginning oral obesity treatment selecting Foundayo. The company anticipates winning approval for Foundayo in Type 2 diabetes treatment during the fourth quarter.
CEO Dave Ricks stated during media appearances that current obesity treatment access affects only 3% to 10% of eligible U.S. patients, indicating substantial room for market expansion. U.S. revenue climbed 34% to $15.1 billion, driven by a 41% increase in prescription volume across the company’s products, partially offset by a 7% decrease in realized prices. International revenue jumped 47% to $9.3 billion, supported by a 76% surge in volume despite a 29% decline in realized prices. Net income for the quarter reached $6.45 billion, or $7.22 per share, compared with $5.58 billion, or $6.21 per share, in the year-earlier period.
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