Lilly reports second-quarter 2026 financial results, raise s full-year guidance, and highlights continued growth and pipeline progress
LLY revenue $23B
full-year guidance, and highlights continued growth and pipeline progress
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EX-99.1 2 q226lillysalesandearningsp.htm EX-99.1
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For release: Immediately Refer to: Megan MacCauley; maccauley_megan@lilly.com (Media) Mike Czapar; czapar_michael_c@lilly.com (Investors)
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Lilly reports second-quarter 2026 financial results, raise s full-year guidance, and highlights continued growth and pipeline progress
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• Revenue in Q2 2026 increased 48% to $23.0 billion driven primarily by Mounjaro and Zepbound volume.
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• Q2 2026 EPS increased by 26% to $7.94 on a reported basis and increased by 33% to $8.38 on a non-GAAP basis. Q2 2026 reported and non-GAAP EPS included $3.03 of acquired IPR&D charges compared to $0.14 in Q2 2025. • Increased 2026 full-year revenue guidance to be in the range of $85.0 billion to $87.0 billion and raised underlying non-GAAP EPS guidance for the full year by $2.78 at the midpoint, which was more than offset by $3.03 of acquired IPR&D charges from Q2 business development activity, resulting in an updated range of $35.50 to $36.50. • Regulatory progress included U.S. FDA approval of Ebglyss for one maintenance dose every eight weeks in moderate-to-severe atopic dermatitis, European Commission approval of Jaypirca as monotherapy for adults with chronic lymphocytic leukemia across all lines of therapy, and the submission for orforglipron for type 2 diabetes in the U.S. • Pipeline highlights included positive data from three additional Phase 3 trials of retatrutide in obesity. The clinical data package is now complete to support global registrations for obesity, obstructive sleep apnea, and knee osteoarthritis pain, with plans to submit a Biologics License Applicati…
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INDIANAPOLIS, August 5, 2026 - Eli Lilly and Company (NYSE: LLY) today announced its financial results for the second quarter of 2026 and provided updated 2026 financial guidance.
#7David A. Ricks · Lilly chair and CEO
Lilly's momentum continues, as we delivered 48% revenue growth and raised our full-year guidance,
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Eli Lilly and Company | Lilly Corporate Center | Indianapolis, Indiana 46285 | U.S.A.
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Financial Results | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | $ in millions, except per share data | Second-Quarter | | | | | 2026 | | 2025 | | % Change | | | | | | Revenue | $ | 22,974 | | | $ | 15,558 | | | 48% | | | | | | | | | | | | | | | | | Net income – Reported | 7,095 | | | 5,661 | | | 25% | | | | | | Earnings per share – Reported (1) | 7.94 | | | 6.29 | | | 26% | | | | | | | | | | | | | | | | | Net income – Non-GAAP | 7,493 | | | 5,680 | | | 32% | | | | | | Earnings per share – Non-GAAP (1) | 8.38 | | | 6.31 | | | 33% | | | | | | | | | | | | | | | | | | | | | | | | | | | | (1) Q2 2026 reported and non-GAAP EPS included $3.03 of acquired IPR&D charges compared to $0.14 in Q2 2025 | | | | | |
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Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited).
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Second-Quarter Reported Results In Q2 2026, worldwide revenue was $23.0 billion, an increase of 48% compared with Q2 2025, driven by a 60% increase in volume, partially offset by a 13% decrease in realized prices. Key Products 1 revenue grew to $15.7 billion in Q2 2026, led by Mounjaro and Zepbound. Key Products revenue in the Immunology, Oncology, and Neuroscience therapeutic areas grew 121% in Q2 2026 compared to Q2 2025.
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Revenue in the U.S. increased 33% to $14.4 billion, driven by a 37% increase in volume, partially offset by a 3% decrease in realized prices. The increase in U.S. volume was driven by Zepbound and Mounjaro. The decline in realized prices was primarily driven by Zepbound and Mounjaro, partially offset by adjustments to estimates for rebates and discounts primarily driven by Trulicity, Zepbound, and Mounjaro. Excluding these adjustments, U.S. price would have declined by approximately 9%.
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Revenue outside the U.S. increased 80% to $8.6 billion, driven by a 113% increase in volume, partially offset by a 36% decrease in realized prices. The lower realized prices outside the U.S. were driven primarily by the addition of Mounjaro to the National Reimbursement Drug List (NRDL) in China. The
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1 The Company currently defines Key Products as Ebglyss, Foundayo (added Q2 2026), Inluriyo, Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound. | | | 2 |
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volume increase outside the U.S. was driven by Mounjaro. Jardiance revenue outside the U.S. included a sales-based milestone of $250 million in Q2 2026, associated with the company's collaboration with Boehringer Ingelheim.
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Gross margin increased 50% to $19.7 billion in Q2 2026. Gross margin as a percent of revenue was 85.8%, an increase of 1.5 percentage points versus the same quarter last year. The increase was primarily driven by improved cost of production and favorable product mix, partially offset by lower realized prices.
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In Q2 2026, research and development expenses increased 14% to $3.8 billion, or 17% of revenue, driven by continued investments in the company's early and late-stage portfolio.
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Marketing, selling, and administrative expenses increased 25% to $3.4 billion in Q2 2026, primarily driven by promotional efforts supporting ongoing and planned launches.
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In Q2 2026, the company recognized acquired in-process research and development (IPR&D) charges of $2.8 billion compared with $154 million in Q2 2025. The Q2 2026 charges primarily related to the acquisitions of Orna Therapeutics, Inc. and Ajax Therapeutics, Inc.
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Asset impairment, restructuring and other special charges of $703 million in Q2 2026 were primarily related to the accelerated vesting of employee equity awards and other acquisition and integration costs associated with the closing of our acquisitions of Kelonia Therapeutics, Inc. and Centessa Pharmaceuticals plc. In Q2 2025, there were no asset impairment, restructuring and other special charges.
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The effective tax rate was 23.3% in Q2 2026 compared with 16.5% in Q2 2025, primarily driven by the unfavorable tax impact of non-deductible acquired IPR&D charges in Q2 2026.
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In Q2 2026, net income and earnings per share (EPS) were $7.1 billion and $7.94, respectively, compared with net income of $5.7 billion and EPS of $6.29 in Q2 2025. EPS in Q2 2026 and Q2 2025 included acquired IPR&D charges of $3.03 and $0.14, respectively.
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Second-Quarter Non-GAAP Measures On a non-GAAP basis, Q2 2026 gross margin increased 50% to $19.8 billion. Gross margin as a percent of revenue was 86.3%, an increase of 1.3 percentage points versus the same quarter last year. The
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increase was primarily driven by improved cost of production and favorable product mix, partially offset by lower realized prices.
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The non-GAAP effective tax rate was 22.2% in Q2 2026 compared with 16.5% in Q2 2025, primarily driven by the unfavorable tax impact of non-deductible acquired IPR&D charges in Q2 2026.
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On a non-GAAP basis, Q2 2026 net income and EPS were $7.5 billion and $8.38, respectively, compared with net income of $5.7 billion and EPS of $6.31 in Q2 2025. Non-GAAP EPS in Q2 2026 and Q2 2025 included acquired IPR&D charges of $3.03 and $0.14, respectively.
#27table later in this
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)
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| | | | | | | | | | | | | | | | | | | Second-Quarter | | 2026 | | 2025 | | % Change | Earnings per share (reported) | $ | 7.94 | | | $ | 6.29 | | | 26% | Amortization of intangible assets | .11 | | | .11 | | | | Asset impairment, restructuring and other special charges | .72 | | | — | | | | Net gains on investments in equity securities | (.39) | | | (.09) | | | | | | | | | | Earnings per share (non-GAAP) | $ | 8.38 | | | $ | 6.31 | | | 33% | | | | | | | Acquired IPR&D | 3.03 | | | .14 | | | NM | Numbers may not add due to rounding | | | | | | NM - not meaningful |
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Selected Revenue Highlights | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | (Dollars in millions) | Second-Quarter | | Year-to-Date | | Selected Products | 2026 | | 2025 | | % Change | | 2026 | | 2025 | | % Change | | | | | | Mounjaro | $ | 9,943 | | | $ | 5,199 | | | 91% | | $ | 18,605 | | | $ | 9,041 | | | 106% | | | | | | Zepbound (1) | 4,928 | | | 3,381 | | | 46% | | 9,088 | | | 5,693 | | | 60% | | | | | | | | | | | | | | | | | | | | | | | Jaypirca | 192 | | | 123 | | | 56% | | 357 | | | 215 | | | 66% | | | | | | Ebglyss | 201 | | | 87 | | | 131% | | 346 | | | 147 | | | 135% | | | | | | Kisunla | 167 | | | 49 | | | NM | | 291 | | | 70 | | | NM | | | | | | Omvoh | 102 | | | 75 | | | 36% | | 182 | | | 112 | | | 62% | | | | | | Inluriyo | 75 | | | — | | | NM | | 110 | | | — | | | NM | | | | | | Foundayo | 98 | | | — | | | NM | | 98 | | | — | | | NM | | | | | | | | | | | | | | | | | | | | | | | Total Revenue | 22,974 | | | 15,558 | | | 48% | | 42,773 | | | 28,286 | | | 51% | | | | | | | | | | | | | | | | | | | | | | | (1) Tirzepatide is marketed for obesity under the brand name Zepbound in C…
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Mounjaro For Q2 2026, worldwide Mounjaro revenue increased 91% to $9.9 billion. U.S. revenue was $4.8 billion, an increase of 45%, reflecting strong demand, partially offset by lower realized prices. Lower realized prices were partially offset by adjustments to estimates for rebates and discounts. Revenue outside the U.S. increased 172% to $5.2 billion primarily driven by volume growth, partially offset by lower realized prices driven by the addition of Mounjaro to the NRDL in Q1 2026.