Eli Lilly and Company (LLY) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue rose 56% year-over-year to $19.8 billion, driven by strong volume growth in Mounjaro and Zepbound, partially offset by lower realized prices.

• Non-GAAP EPS increased 156% to $8.55, with reported EPS up 170% to $8.26; net income rose 168% to $7.4 billion.

• Key product revenue grew 110%, now representing 68% of total revenue, led by cardiometabolic, immunology, oncology, and neuroscience segments.

• Foundayo (oral GLP-1 for obesity) launched in the U.S. with FDA approval, broad retail and telehealth availability, and regulatory reviews ongoing in over 40 countries.

• Four acquisitions announced: Orna Therapeutics, Centessa Pharmaceuticals, Kelonia Therapeutics, Ajax Therapeutics; new manufacturing sites and Employer Connect platform launched.

Financial highlights

• Total revenue: $19.8 billion, up 56% year-over-year; U.S. revenue grew 43% to $12.1 billion, international revenue up 81% to $7.7 billion.

• Non-GAAP EPS: $8.55, up 156% year-over-year; reported EPS: $8.26, up 170%.

• Gross margin: 82.6% (non-GAAP), 81.9% (reported), both slightly down year-over-year due to lower realized prices.

• Operating income: $9.3 billion (non-GAAP), up 142%; $8.9 billion (reported), up 141%.

• R&D expenses rose 28% to $3.5 billion; marketing, selling, and administrative expenses increased 19% to $2.9 billion.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $82–$85 billion, representing 28% growth over 2025.

• Non-GAAP EPS guidance increased to $35.50–$37.00.

• Performance margin guidance updated to 47.0%–48.5%; tax rate guidance unchanged at 18%–19%.

• Price expected to be a headwind in the low to mid-teens for the full year.

• Near-term performance influenced by regulatory approvals, new product uptake, and manufacturing expansion.