Eli Lilly (NYSE:LLY) rose more than 5% in pre-market trading on Wednesday after the pharmaceutical company increased its full-year revenue guidance, supported by continued strong demand for its blockbuster diabetes and weight-loss treatments.
The revised outlook outweighed an earnings-per-share miss for the second quarter, as investors focused on accelerating sales growth and improved profitability expectations.
Company raises full-year forecasts
Eli Lilly increased its 2026 revenue guidance to between $85 billion and $87 billion, up from its previous range of $82 billion to $85 billion. The updated forecast is above the Wall Street consensus estimate of $85.4 billion.
The company also lifted its underlying adjusted earnings per share guidance by $2.78 at the midpoint. However, higher acquired in-process research and development (IPR&D) charges of $3.03 per share, linked to second-quarter business development activity, reduced the benefit, resulting in an updated adjusted EPS range of $35.50 to $36.50.
In addition, Lilly raised its performance margin outlook to between 49.0% and 50.5%, compared with its previous guidance of 47.0% to 48.5%.
Revenue surges despite earnings miss
For the second quarter, Eli Lilly reported earnings per share of $8.38, below analysts’ expectations of $8.84.
Revenue, however, climbed 48% year over year to $22.97 billion, comfortably exceeding the consensus estimate of $20.56 billion.
The strong top-line performance was primarily driven by robust demand for Mounjaro and Zepbound.
Weight-loss and diabetes portfolio continues to drive growth
Revenue from Lilly’s key products reached $15.7 billion during the quarter.
Mounjaro generated $9.94 billion in revenue, representing a 91% increase from a year earlier, while Zepbound sales climbed 56% to $4.93 billion.
The company’s Immunology, Oncology and Neuroscience businesses also delivered strong performance, with combined revenue rising 121% year over year.
Adjusted gross profit increased 50% to $19.8 billion, while gross margin improved to 86.3% of revenue, supported by lower manufacturing costs and a more favourable product mix.
CEO remains optimistic about long-term growth
Chief Executive Officer David Ricks said the company continues to benefit from strong commercial momentum while investing heavily in future growth opportunities.
“Lilly’s momentum continues, as we delivered 48% revenue growth and raised our full-year guidance,” said David Ricks, CEO of Eli Lilly. “At the same time, Lilly is building for the future. With our next-generation weight-loss medicine retatrutide and its complete clinical data package in hand, new manufacturing capacity coming online, and exciting new assets entering our pipeline through business development, Lilly’s future, after 150 years, has never been brighter.”
During the quarter, Eli Lilly recorded $2.8 billion in acquired IPR&D charges, largely related to the acquisitions of Orna Therapeutics and Ajax Therapeutics.
Research and development spending increased 14% to $3.8 billion, while marketing, selling and administrative expenses rose 25% to $3.4 billion as the company continued investing in product launches and pipeline expansion.
Eli Lilly stock price
