Eli Lilly and Company (LLY) Q4 2024 earnings summary

Executive summary

• Q4 2024 revenue rose 45% year-over-year to $13.53B, driven by strong uptake of Mounjaro and Zepbound, with non-incretin products growing 20%.

• Full-year 2024 revenue grew 32%, exceeding initial guidance by $4B, with significant pipeline progress including approvals for Kisunla, Ebglyss, Zepbound (OSA), and Omvoh (Crohn's).

• Strategic acquisitions and collaborations, such as Morphic Therapeutics, Scorpion Therapeutics' PI3Ka inhibitor program, and OpenAI, strengthened the pipeline.

• Announced $15B share repurchase program and a 15% dividend increase for the seventh consecutive year.

• Over $3B returned to shareholders via dividends and share repurchases in 2024, with $3B manufacturing expansion in Wisconsin and new innovation centers opened.

Financial highlights

• Q4 2024 revenue: $13.53B, up 45% year-over-year; FY 2024 revenue: $45.04B, up 32%.

• Q4 non-GAAP gross margin: 83.2%; operating income: $5.63B, up 118%; net income: $4.81B, up 114%; EPS: $5.32, up 114%.

• R&D expenses rose 18% and SG&A expenses increased 26% due to investments in launches and programs.

• U.S. revenue grew 40% in Q4, with 45% volume growth; Europe revenue up 82% in constant currency (61% excluding a one-time payment).

• Q4 2024 operating margin: 41.6% (non-GAAP); FY 2024: 31.8% (non-GAAP).

Outlook and guidance

• 2025 revenue guidance: $58–$61B, implying ~32% growth at midpoint; non-GAAP EPS: $22.50–$24.00; expected tax rate ~16%.

• Gross margin less OpEx/revenue expected between 41.5% and 43.5%, reflecting ~340 basis points of margin expansion.

• Growth expected from new launches (Zepbound, Mounjaro, Jaypirca, Ebglyss, Omvoh, Kisunla) and new indications.

• Manufacturing capacity to increase, with at least 1.6x more saleable incretin doses in H1 2025 vs. H1 2024.

• Net price expected to decline mid- to high-single digits; FX expected to be unfavorable.