Eli Lilly (NYSE: LLY) delivered a commanding third quarter, posting earnings and revenue that significantly exceeded expectations while raising full-year guidance. The stock traded at $854.08 following the pre-market release, reflecting investor confidence in the company’s accelerating momentum across its core portfolio.
Lilly’s incretin drugs drove the earnings beat. Mounjaro, the company’s diabetes treatment, generated $6.52 billion in quarterly revenue, up 109% year-over-year. Zepbound, its obesity medication, contributed $3.57 billion, surging 184% year-over-year. Combined, these two products accounted for the bulk of revenue growth and explain why the company’s top line expanded 54% to $17.60 billion against consensus expectations of $16.07 billion.
Volume increased 62% in the quarter, signaling sustained demand rather than pricing dynamics alone. Gross profit climbed 57% to $14.59 billion, while operating income jumped 62% to $7.37 billion. Net income surged 475% to $5.58 billion, a reflection of both revenue scale and operational leverage kicking in across the business.
Beyond current revenue drivers, Lilly advanced orforglipron through four additional Phase 3 trials this quarter. The company now targets global obesity submissions by year-end, positioning the next-generation incretin candidate as a potential catalyst heading into 2026. The FDA also approved Inluriyo for breast cancer, adding to the oncology portfolio momentum.
Manufacturing capacity expansion is underway. Lilly is building new facilities in Virginia and Texas while expanding its Puerto Rico site. This infrastructure push signals management confidence in sustained demand and removes a potential constraint on supply-driven growth.
-
Adjusted EPS: $7.02 vs. $6.02 expected; beat by $1.00 (19.2%)
-
Revenue: $17.60B vs. $16.01B expected; beat by $1.59B (9.5%)
-
Gross Margin: 82.9% (up from 81.0% in Q3 2024)
-
Operating Income: $7.37B, up 61.88% year-over-year
-
Net Income: $5.58B, up 475% year-over-year
-
Full-Year Revenue Guidance: $63.0B to $63.5B (raised)
-
Full-Year Non-GAAP EPS Guidance: $23.00 to $23.70 (raised)
The earnings beat marks the sixth positive surprise in the last nine quarters. More importantly, the company’s guidance raise signals confidence that demand for incretin therapies remains robust and that manufacturing constraints are being addressed.
CEO David A. Ricks said Lilly “delivered another strong quarter, with 54% revenue growth year-over-year driven by continued demand for our incretin portfolio.” He emphasized progress on orforglipron, noting the four Phase 3 trial completions and the path to global obesity submissions by year-end.
