$LLY · ELI LILLY & Co
Eli Lilly reported Q3 2026 results with revenue of $24.4B (+39% YoY), GAAP EPS of $7.22, and non-GAAP EPS of $7.48. Mounjaro and Zepbound drove the beat, contributing $10.7B and $5.4B respectively. The company raised full-year 2026 revenue guidance to $91–$92B (from $85–$87B) and set non-GAAP EPS guidance at $35.00–$36.00, with the underlying $4.07 raise offset by $4.57 in acquired IPR&D charges from Q3 business development.
- Q3 2026 revenue hit $24.4B, up 39% YoY, driven by Mounjaro ($10.7B, +65%) and Zepbound ($5.4B, +49%).
- Full-year 2026 revenue guidance raised to $91–$92B, a $5.5B midpoint increase from prior $85–$87B range.
- GAAP EPS of $7.22 included $4.57/share in acquired IPR&D charges from AtaiBeckley and Curevo acquisitions.
- Non-GAAP EPS was $7.48; full-year non-GAAP EPS guidance set at $35.00–$36.00, reflecting $4.07 underlying raise offset by IPR&D.
- Gross margin expanded to 83.9% (GAAP) and 84.4% (non-GAAP), up ~1 point YoY on favorable product mix and production costs.
Extended-hours trading pushed LLY to $1,329.00, up 3.12% from the regular close of $1,288.78, signaling strong investor approval of the $5.5B guidance raise and 39% revenue beat.
A $5.5B guidance raise from a $1.2T+ market-cap company is an exceptionally large absolute revision, confirming the GLP-1 franchise still has significant runway.
Lilly's 39% revenue growth and guidance raise reinforce its dominance in the GLP-1 obesity/diabetes category. Retatrutide's head-to-head win vs. Ozempic 2mg and EloraTZP Phase 2 results signal the next wave of incretin-based therapies, raising competitive pressure on Novo Nordisk.
$4.2B in acquired IPR&D charges in Q3 alone, primarily from AtaiBeckley and Curevo acquisitions, with guidance explicitly excluding any post-September IPR&D — further deal-related charges could pressure EPS. Realized prices fell 15% overall (7% U.S., 29% ex-U.S.), with China NRDL inclusion weighing on Mounjaro pricing.