Overview

Eli Lilly & Company reported its second‑quarter 2026 results on 5 August 2026 and concurrently raised its full‑year outlook. The announcement sent the stock up more than 6 % at market open (LLY +6.56 %).

Guidance Update

The company increased its 2026 revenue guidance to a range of $85 billion‑$87 billion, up from the prior $82 billion‑$85 billion and ahead of the consensus estimate of $85.4 billion. Underlying adjusted earnings‑per‑share (EPS) guidance was lifted to a range of $35.50‑$36.50, reflecting a $2.78 midpoint increase but offset by $3.03 billion of acquired in‑process research and development (IPR&D) charges arising from second‑quarter business‑development activity. Performance‑margin guidance was also raised to 49.0 %‑50.5 %, versus the earlier 47.0 %‑48.5 % range.

Second‑Quarter Financial Highlights

Revenue for the quarter rose 48 % year‑over‑year to $22.97 billion, comfortably beating the consensus forecast of $20.56 billion. Adjusted earnings per share came in at $8.38, missing analyst expectations of $8.84. Key product revenue reached $15.7 billion, led by the incretin drugs Mounjaro and Zepbound. Mounjaro generated $9.94 billion, up 91 % from the prior year, while Zepbound contributed $4.93 billion, up 56 % YoY, both exceeding market expectations.

Margin and Expense Profile

Adjusted gross margin increased 50 % to $19.8 billion, with gross‑margin percentage climbing 1.3 percentage points to 86.3 % of revenue, driven by lower production costs and a favorable product mix despite some price pressure. Research and development expenses rose 14 % to $3.8 billion, representing 17 % of revenue, reflecting continued investment across early‑ and late‑stage pipelines. Marketing, selling and administrative expenses grew 25 % to $3.4 billion, primarily due to promotional spending for ongoing and upcoming drug launches.

Acquisitions and Pipeline

The quarter saw $2.8 billion of acquired in‑process R&D charges, a sharp increase from $154 million a year earlier, primarily linked to the acquisitions of Orna Therapeutics and Ajax Therapeutics. CEO David Ricks highlighted the company’s momentum, noting the 48 % revenue growth, the raised guidance, and the upcoming launch of next‑generation weight‑loss medicine retatrutide, new manufacturing capacity, and additional pipeline assets acquired through business development.