Eli Lilly (LLY) Stock Trades Up, Here Is Why

What Happened?

Shares of global pharmaceutical company Eli Lilly (NYSE:LLY) jumped 10% in the afternoon session after the company reported fourth-quarter 2025 results that beat Wall Street expectations and issued an upbeat forecast for 2026, driven by high demand for its weight-loss drugs. 

The pharmaceutical company's revenue grew 42.6% year-over-year to $19.29 billion, surpassing analysts' estimates. Adjusted earnings per share came in at $7.54, which was also well above expectations. This strong performance was fueled by soaring sales of its popular weight-loss and diabetes drugs, Zepbound and Mounjaro. Looking ahead, Eli Lilly provided a positive outlook for 2026, forecasting revenue of $81.5 billion at the midpoint and adjusted earnings per share of $34.25 at the midpoint. Both projections were higher than what analysts had predicted.

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What Is The Market Telling Us

Eli Lilly’s shares are not very volatile and have only had 9 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

The previous big move we wrote about was 14 days ago when the stock gained 3.5% on the news that the U.S. Food and Drug Administration (FDA) granted a Breakthrough Therapy designation for its drug, sofetabart mipitecan, intended to treat a specific type of ovarian cancer. 

This designation aimed to speed up the development and review process for drugs designed to treat serious conditions. It was granted when initial clinical evidence indicated that a drug might offer a significant improvement over available therapies. The treatment targeted adult patients with platinum-resistant epithelial ovarian, fallopian tube, or primary peritoneal cancer. For investors, this news was positive as it signaled a potentially faster path to market for a promising new treatment, suggesting confidence from regulators in the drug's early results.

Eli Lilly is up 1.1% since the beginning of the year, and at $1,092 per share, it is trading close to its 52-week high of $1,110 from November 2025. Investors who bought $1,000 worth of Eli Lilly’s shares 5 years ago would now be looking at an investment worth $5,417.

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