Eli Lilly and Co. (NYSE:LLY) stock is trading higher after the company released better-than-expected Q4 earnings and issued fiscal 2026 guidance.
Earnings Overview
Eli Lilly reported fourth-quarter adjusted earnings of $7.54 per share, beating the consensus of $6.67.
The company's sales reached $19.3 billion, beating the consensus of $17.96 billion.
Sales jumped 43% year over year, driven by a 46% increase in volume, partially offset by a 5% decrease due to lower realized prices.
Gross profit increased 43% to $15.9 billion. Gross margin was 82.5%, an increase of 0.3 percentage points. The increase in gross margin percent was primarily driven by a favorable product mix and improved cost of production, partially offset by lower realized prices.
Weight Loss Drugs
Key Products revenue grew to $13.8 billion in Q4 2025, led by Mounjaro and Zepbound.
Mounjaro's revenue increased 110% to $7.4 billion. U.S. revenue was $4.1 billion, an increase of 57%, reflecting strong demand, partially offset by lower realized prices. Revenue outside the U.S. increased to $3.3 billion compared with $899 million a year ago, primarily driven by volume growth.
U.S. Zepbound revenue increased 122% to $4.2 billion, primarily driven by increased demand, partially offset by lower realized prices.
Verzenio (a breast cancer drug) revenue increased 3% to $1.6 billion, driven by volume growth.
Last Friday, Eli Lilly said it plans to invest more than $3.5 billion in a new manufacturing facility in the Lehigh Valley, Pennsylvania.
The site will serve as Lilly's newest injectable medicine and device manufacturing facility that will produce next-generation weight-loss therapies, including retatrutide, an investigational GIP, GLP-1, and glucagon triple hormone receptor agonist.
Guidance
Eli Lilly sees fiscal 2026 adjusted earnings of $33.50-$35 per share compared to the consensus of $33.23.
The obesity drug maker expects sales between $80 billion-$83 billion compared to the Wall Street estimate of $77.62 billion.
LLY Price Action: Eli Lilly and Co shares were up 8.85% at $1092.23 during premarket trading on Wednesday. The stock is approaching its 52-week high of $1133.95, according to Benzinga Pro data.
