Eli Lilly Raises 2026 Sales Forecast After Third-Quarter Results Top Expectations

Eli Lilly reported third-quarter earnings and revenue that comfortably beat Wall Street estimates and raised its full-year sales outlook, driven by continued demand for its weight loss drug Zepbound and its diabetes treatment Mounjaro. The company's shares rose about 5% in premarket trading.

The drugmaker now expects 2026 revenue of between $91 billion and $92 billion, up from earlier guidance of $85 billion to $87 billion. It projects full-year adjusted earnings of $35 to $36 per share, compared with a prior range of $35.50 to $36.50. Lilly said it lifted its underlying profit guidance by $4.07 per share at the midpoint, but that increase was offset by $4.57 per share in charges tied to deals struck during the quarter.

For the quarter, Lilly posted adjusted earnings of $7.48 per share on revenue of $24.40 billion. Analysts surveyed by LSEG had expected $6.26 per share and $22.61 billion in revenue. Net income was $6.45 billion, or $7.22 per share, which includes the deal charges. A year earlier, net income was $5.58 billion, or $6.21 per share.

Mounjaro's worldwide revenue rose 65% to $10.72 billion, including about $5 billion in U.S. sales. Analysts, according to StreetAccount, had forecast $10.10 billion globally and $4.79 billion in the U.S. Sales outside the U.S. jumped 93%.

Zepbound, which reached the market roughly three years ago, brought in $5.35 billion, up 49% from the same period last year. Demand grew even as realized prices fell, and most of the sales came from the U.S. Analysts had expected $5.09 billion globally, including $4.99 billion from the U.S.

The picture was less rosy for Foundayo, Lilly's new GLP-1 obesity pill, which won U.S. approval in April. It generated $184 million in sales, below the roughly $229 million analysts anticipated. This was the second earnings report to include revenue from the pill, which competes directly with an oral drug from rival Novo that launched in January.

U.S. revenue climbed 34% to $15.1 billion, as a 41% increase in volume, mainly for Mounjaro and Zepbound, was partly offset by a 7% decline in realized prices. Revenue outside the U.S. rose 47% to $9.3 billion, helped by a 76% surge in volume and partly offset by a 29% drop in realized prices.

The lower U.S. prices followed a drug pricing agreement with the Trump administration last year. In its release, Lilly also pointed to expanded U.S. coverage for obesity care, citing Medicare's decision in July to begin covering GLP-1 drugs for weight loss under a temporary pilot program.

Lilly's lead over Novo in the market shows little sign of narrowing, and the company is putting its profits to work on acquisitions. Its most recent move is an agreement to buy Merida Biosciences to develop a new class of treatments for serious autoimmune and allergic diseases. CEO David Ricks was scheduled to discuss the results on CNBC TV at 9 a.m. ET.