Lilly tops Q3 profit estimates and raises revenue forecast

Eli Lilly and Company (LLY) said on Oct. 29 that third-quarter revenue rose 39% to $24.4 billion, and it raised its 2026 revenue forecast. Non-GAAP earnings of $7.48 per share topped the $6.61 consensus estimate compiled by Finnhub, and revenue topped the $22.84 billion estimate.

The company said in its earnings release that the revenue gain was driven primarily by Mounjaro and Zepbound. Revenue also included about $900 million of benefits, including $410 million of Jardiance milestones that the company said will not recur because no further milestones remain.

"Lilly had another strong quarter, exceeding our prior expectations and allowing us to raise our full-year outlook," said David A. Ricks, Lilly chair and CEO.

Here's how the company did:

• Revenue: $24.4 billion vs. $22.84 billion expected, according to Finnhub, and $17.6 billion a year earlier
• Non-GAAP EPS: $7.48 vs. $6.61 expected, according to Finnhub, and $7.02 a year earlier
• Reported EPS: $7.22 vs. $6.21 a year earlier

Reported EPS included $4.57 per share of acquired in-process research and development charges, compared with $0.71 a year earlier. The company said the Q3 2026 charges primarily related to its acquisitions of AtaiBeckley Inc. and Curevo Inc.

Revenue in the U.S. rose 34% to $15.1 billion, and revenue outside the U.S. rose 47% to $9.3 billion. Volume grew 53%, partly offset by a 15% decline in realized prices.

Revenue has risen in each of the last three quarters, from $17.60 billion in the third quarter of 2025 to $22.97 billion in the second quarter of 2026, according to its SEC filings.

2026 guidance

The company raised its 2026 revenue forecast to $91 billion to $92 billion, from $85 billion to $87 billion.

Its non-GAAP earnings per share forecast is now $35.00 to $36.00, from $35.50 to $36.50. The company said it raised underlying non-GAAP EPS guidance by $4.07 at the midpoint, which was more than offset by $4.57 of acquired IPR&D charges from third-quarter business development activity.

Guidance does not include acquired IPR&D incurred after Sept. 30, 2026.

Product sales

Mounjaro revenue rose 65% to $10.7 billion. U.S. Mounjaro revenue was $5.0 billion, up 41%.

U.S. Zepbound revenue increased 48% to $5.3 billion, driven by strong demand, partly offset by lower realized prices.

Costs and charges

Research and development expenses rose 23% to $4.2 billion. Marketing, selling and administrative expenses rose 14% to $3.1 billion, driven by promotional efforts supporting ongoing and planned launches.

Acquired IPR&D charges were $4.2 billion, compared with $656 million a year earlier. The effective tax rate was 23.3%, compared with 22.8% a year earlier.

Pipeline and deals

The company said it completed its acquisition of AtaiBeckley to advance therapies for treatment-resistant depression. After the quarter ended, it completed its acquisition of Merida Biosciences, to advance treatments for serious autoimmune and allergic diseases.

The company also said the FDA approved Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes, and approved Onswik, a once-weekly basal insulin, for adults with type 2 diabetes.

Lilly is a medicine company that says its medicines help tens of millions of people across the globe.