$LLY · ELI LILLY & Co
Eli Lilly filed its 10-Q for the quarter ended September 30, 2026. Revenue reached $24.397B (+39% YoY), net income was $6.451B (+16%), and diluted EPS came in at $7.22. Acquired IPR&D expense ballooned to $4.181B from $656M a year ago. Nine-month revenue hit $67.170B with net income of $20.942B.
- Q3 revenue hit $24.397B, up 39% YoY from $17.601B, driven by volume growth partially offset by lower realized prices.
- Q3 diluted EPS of $7.22, up 16% from $6.21 a year ago.
- Nine-month net income reached $20.942B, up 50% from $14.002B in the same period of 2025.
- Acquired IPR&D expense surged to $4.181B in Q3 vs. $656M last year, reflecting heavy pipeline investment.
- Cash and equivalents fell to $4.885B from $7.268B at year-end 2025, with $10.692B spent on acquisitions net of cash.
LLY shares rose 6.33% to $1,369.82 in the regular session, adding $81.52. The market is rewarding the 39% revenue beat trajectory and 50% nine-month net income growth despite the sharp IPR&D expense ramp.
Lilly's 39% revenue growth and 50% nine-month net income surge confirm the GLP-1 franchise is still accelerating, but the $4.2B quarterly IPR&D spend raises the stakes on pipeline execution.
Lilly's 39% revenue growth far outpaces the large-cap pharma peer group, with Mounjaro anchoring the cardiometabolic franchise. The $4.2B quarterly IPR&D spend underscores an industry-wide arms race in obesity and metabolic pipeline assets.
Acquired IPR&D charges of $4.181B in Q3 alone (vs. $656M last year) signal aggressive deal-making that could pressure near-term earnings if pipeline bets fail. Lower realized prices partially offset volume gains, reflecting ongoing pricing pressure.