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, reported EPS surged 170% to $8.26, both including $0.52 per share in acquired IPR&D charges.

• FDA approved Foundayo (orforglipron) for obesity, marking a milestone as the first oral GLP-1 launched for this indication, with broad pharmacy and telehealth availability.

• Four acquisitions announced: Orna Therapeutics, Centessa Pharmaceuticals, Kelonia Therapeutics, Ajax Therapeutics; new manufacturing site production began.

• Employer Connect and Medicare GLP-1 Bridge program launched to expand obesity medication access, capping senior out-of-pocket costs at $50/month.

Financial highlights

• U.S. revenue grew 43% to $12.1 billion; international revenue rose 81% to $7.7 billion, with strong double-digit constant currency growth.

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

• Non-GAAP EPS was $8.55, up from $3.34 in Q1 2025; net income (reported) was $7.4 billion, up 168% year-over-year.

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

• $1.5 billion in dividends distributed and $2.3 billion in share repurchases executed in Q1.

Outlook and guidance

• 2026 full-year revenue guidance raised to $82–$85 billion, representing 28% growth at the midpoint.

• Non-GAAP EPS guidance increased to $35.50–$37.00; performance margin guidance updated to 47.0%–48.5%.

• Price expected to be a headwind in the low to mid-teens for the full year; IRA and U.S. government pricing agreements expected to impact future pricing and access strategies.