Eli Lilly and Company (LLY) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 48% year-over-year to $23.0B, driven by strong volume growth in Mounjaro and Zepbound, with key product revenue in Immunology, Oncology, and Neuroscience portfolios also showing robust growth.

• Non-GAAP EPS increased 33% to $8.38, with reported EPS up 26% to $7.94, both including $3.03 per share in acquired IPR&D charges.

• Major regulatory milestones included FDA and European approvals, positive Phase 3 results for retatrutide, and launches for orforglipron (Foundayo).

• Expanded access to obesity medicines via the Medicare GLP-1 Bridge Program, reaching ~20 million eligible Americans and increasing U.S. covered lives by 35%.

• Multiple acquisitions completed, including AtaiBeckley, Curevo, LimmaTech, Orna, Ajax, Centessa, Kelonia, and Ventyx, expanding the pipeline and manufacturing capabilities.

Financial highlights

• Q2 2026 revenue: $22.97B–$23.0B (+48% YoY); gross margin at 85.8%–86.3% (+1.3–1.5pp YoY); non-GAAP EPS: $8.38 (+33% YoY); reported EPS: $7.94 (+26% YoY).

• U.S. revenue up 33% to $14.4B; international revenue up 80% to $8.6B, driven by 113% volume growth.

• Non-GAAP performance margin rose to 54.8% (+8.9pp YoY); non-GAAP operating income: $9.81B (+40% YoY).

• Acquired IPR&D charges totaled $2.8B in Q2 2026.

• $1.5B–$3.1B in dividends paid and $1.6B–$4.0B in share repurchases executed in Q2/H1 2026.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $85.0–$87.0B, with non-GAAP EPS guidance at $35.50–$36.50 and performance margin at 49.0%–50.5%.

• Anticipates continued strong growth, with global rollout of Foundayo in all major markets in 2027.

• Guidance reflects seasonality, prior period adjustments, and expected growth from market penetration, especially outside the U.S.

• Tax rate expected at approximately 18–19%.