Refer to: Megan MacCauley; maccauley_megan@lilly.com (Media)
Mike Czapar; czapar_michael_c@lilly.com (Investors) Lilly reports third-quarter 2026 financial results, raises full-year guidance and highlights regulatory progress across the portfolio • Revenue in Q3 2026 increased 39% to $24.4 billion driven primarily by Mounjaro and Zepbound.
• Q3 revenue included approximately $900 million of benefits, primarily from $410 million of Jardiance milestones (no further milestones remain) and favorable adjustments to rebate and discount estimates.
• Q3 2026 EPS increased by 16% to $7.22 on a reported basis and increased by 7% to $7.48 on a non-GAAP basis. Q3 2026 reported and non-GAAP EPS included $4.57 of acquired IPR&D charges compared to $0.71 in Q3 2025.
• Increased the midpoint of our 2026 full-year revenue guidance by $5.5 billion to be in the range of $91.0 to $92.0 billion and raised underlying non-GAAP EPS guidance for the full year by $4.07 at the midpoint, which was more than offset by $4.57 of acquired IPR&D charges from Q3 business development activity, resulting in an updated range of $35.00 to $36.00.
• Regulatory progress included U.S. FDA approvals of Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes; Onswik, a once-weekly basal insulin for adults with type 2 diabetes; Inluriyo with Verzenio for adults with ER+, HER2-, ESR1-mutated advanced or metastatic breast cancer; and an expanded indication for Jaypirca in adults with untreated chronic lymphocytic leukemia or small lymphocytic lymphoma.
• Pipeline highlights included positive topline results from a head-to-head Phase 3 trial of retatrutide versus Ozempic 2 mg in adults with type 2 diabetes, Phase 3 results from Ebglyss in moderate-to-severe hand and foot atopic dermatitis and Phase 2 results from EloraTZP in adults with obesity and type 2 diabetes, with Phase 3 trials to start in Q4 2026.
• Business development activity in Q3 2026 included the completed acquisition of AtaiBeckley to advance therapies for treatment-resistant depression and other mental health conditions. Subsequent to quarter end, we completed the acquisition of Merida Biosciences, to advance treatments for serious autoimmune and allergic diseases.
INDIANAPOLIS, October 29, 2026 - Eli Lilly and Company (NYSE: LLY) today announced its financial results for the third quarter of 2026 and provided updated 2026 financial guidance.
“Lilly had another strong quarter, exceeding our prior expectations and allowing us to raise our full-year outlook,” said David A. Ricks, Lilly chair and CEO. “Revenue growth was driven by broad global consumer demand for Mounjaro and Zepbound, the global launches of Foundayo, expanded U.S. coverage for obesity care and a doubling in our newest products in oncology, immunology and neuroscience. To drive durable long-term growth, we continue to invest in our drug-making and technology capabilities, with
| Lilly Corporate Center | Indianapolis, Indiana 46285 | U.S.A. multiple business development deals and partnerships signed and closed, and with new manufacturing expansions in Texas and Virginia. Lilly is executing well across the value chain, and our potential for impact on human health continues to expand.”
A discussion of the non-GAAP financial measures is included below under "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)."
In Q3 2026, worldwide revenue was $24.4 billion, an increase of 39% compared with Q3 2025, driven by a 53% increase in volume, partially offset by a 15% decrease in realized prices. Key Products 1 revenue grew to $17.1 billion in Q3 2026, led by Mounjaro and Zepbound. Key Products revenue in the Immunology, Oncology, and Neuroscience therapeutic areas grew 100% in Q3 2026 compared to Q3 2025.
Revenue in the U.S. increased 34% to $15.1 billion, driven by a 41% increase in volume, partially offset by a 7% decrease in realized prices. The increase in U.S. volume was driven by Zepbound and Mounjaro. The decline in realized prices was primarily driven by Zepbound, partially offset by adjustments to estimates for rebates and discounts.
1 The Company currently defines Key Products as Ebglyss, Foundayo, Inluriyo, Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound.
Revenue outside the U.S. increased 47% to $9.3 billion, driven by a 76% increase in volume, partially offset by a 29% decrease in realized prices. The volume increase outside the U.S. was driven by Mounjaro. Jardiance revenue outside the U.S. included sales-based milestones of $410 million in Q3 2026 and $200 million in Q3 2025, associated with the company's collaboration with Boehringer Ingelheim. Additionally, Q3 2025 revenue included $180 million associated with the divestiture of the rights to Cialis in select markets outside of the U.S. Lower realized prices outside the U.S. were driven primarily by the inclusion of Mounjaro on the National Reimbursement Drug List (NRDL) in China.
Gross margin increased 40% to $20.5 billion in Q3 2026. Gross margin as a percent of revenue was 83.9%, an increase of 1.0 percentage points versus the same quarter last year. The increase was primarily driven by favorable product mix and improved cost of production, partially offset by lower realized prices.
In Q3 2026, research and development expenses increased 23% to $4.2 billion, or 17% of revenue, driven by continued investments in the company's early and late- stage portfolio.
Marketing, selling, and administrative expenses increased 14% to $3.1 billion in Q3 2026, primarily driven by promotional efforts supporting ongoing and planned launches.
In Q3 2026, the company recognized acquired in-process research and development (IPR&D) charges of
$4.2 billion compared with $656 million in Q3 2025. The Q3 2026 charges primarily related to the acquisitions of AtaiBeckley Inc. and Curevo Inc.
The effective tax rate was 23.3% in Q3 2026 compared with 22.8% in Q3 2025, primarily driven by the unfavorable tax impact of nondeductible acquired IPR&D charges, with a larger impact occurring in 2026. The Q3 2025 effective tax rate was also unfavorably impacted by U.S. tax law changes.
In Q3 2026, net income and earnings per share (EPS) were $6.5 billion and $7.22, respectively, compared with net income of $5.6 billion and EPS of $6.21 in Q3 2025. EPS in Q3 2026 and Q3 2025 included acquired IPR&D charges of $4.57 and $0.71, respectively.
On a non-GAAP basis, Q3 2026 gross margin increased 40% to $20.6 billion. Gross margin as a percent of revenue was 84.4%, an increase of 0.8 percentage points versus the same quarter last year. The
increase was primarily driven by favorable product mix and improved cost of production, partially offset by lower realized prices.
The non-GAAP effective tax rate was 24.0% in Q3 2026 compared with 17.7% in Q3 2025, primarily driven by the unfavorable tax impact of nondeductible acquired IPR&D charges, with a larger impact occurring in 2026.
On a non-GAAP basis, Q3 2026 net income and EPS were $6.7 billion and $7.48, respectively, compared with net income of $6.3 billion and EPS of $7.02 in Q3 2025. Non-GAAP EPS in Q3 2026 and Q3 2025 included acquired IPR&D charges of $4.57 and $0.71, respectively.
For further detail on non-GAAP measures, see the reconciliation below as well as the "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)" table later in this press release.
Third-Quarter 2026 2025 ────────────────────────────────────────────────────────────────────────────── Earnings per share (reported) $ 7.22 $ 6.21 16% Amortization of intangible assets .11 .11 Asset impairment, restructuring and .18 .36 other special charges Net gains on investments in equity -.04 -.04 securities U.S. Tax Law Change — .39 Earnings per share (non-GAAP) $ 7.48 $ 7.02 7% Acquired IPR&D 4.57 .71 NM Numbers may not add due to rounding NM - not meaningful
For Q3 2026, worldwide Mounjaro revenue increased 65% to $10.7 billion. U.S. revenue was $5.0 billion, an increase of 41%, reflecting strong demand. Revenue outside the U.S. increased 93% to $5.7 billion primarily driven by volume growth, partially offset by lower realized prices driven by the addition of Mounjaro on the NRDL in Q1 2026.
For Q3 2026, U.S. Zepbound revenue increased 48% to $5.3 billion, primarily driven by strong demand, partially offset by lower realized prices.
Lilly shared numerous updates recently on key regulatory, clinical, business development, and other events, including:
Lilly's Jaypirca (pirtobrutinib), the first-and-only approved Regulatory non-covalent BTK inhibitor, receives expanded indication from U.S. FDA for certain patients with previously untreated CLL/SLL (announcement) FDA approves Lilly's Olumiant (baricitinib) for pediatric patients 12 years of age and older with severe alopecia areata (announcement) U.S. Food and Drug Administration (FDA) approves Lilly's Onswik™ (insulin efsitora alfa-gobe), a once-weekly basal insulin injection treatment for adults living with type 2 diabetes (announcement) U.S. FDA approves Inluriyo (imlunestrant) in combination with Verzenio (abemaciclib) for adults with ER+, HER2-, ESR1-mutated advanced or metastatic breast cancer (announcement) FDA approves Lilly's Mounjaro (tirzepatide) to reduce cardiovascular risk in adults with type 2 diabetes (announcement) Lilly's retatrutide delivered greater A1C reduction and more than Clinical double the weight loss of Ozempic's highest approved dose in head-to-head trial (announcement) New data on Lilly's investigational treatment olomorasib at ESMO 2026 show durable first-line activity in KRAS G12C-mutant non-small cell lung cancer (announcement) Lilly presents first clinical data in platinum-sensitive ovarian cancer for its investigational, next-generation, FRα-targeting ADC at ESMO 2026 (announcement) Lilly's Omvoh (mirikizumab-mrkz) meets primary endpoint of clinical remission and is the first IL-23p19 inhibitor to report one-year Phase 3 results in pediatric ulcerative colitis (announcement) New composite outcomes data show patients treated with Lilly's Omvoh (mirikizumab-mrkz) achieved comprehensive corticosteroid-free disease control in ulcerative colitis and corticosteroid-free deep remission in Crohn's disease at one year (announcement) New Phase 3b data on Lilly's Taltz (ixekizumab) and Zepbound (tirzepatide) advance understanding of the interconnected immune and metabolic biology in adults with psoriasis and obesity (announcement) Lilly's oral GLP-1, Foundayo (orforglipron), demonstrated cardiovascular safety alongside sustained A1C reduction and weight loss in its largest and longest type 2 diabetes study (announcement) Lilly's EloraTZP (combination of eloralintide and tirzepatide) delivered greater weight loss and A1C reduction vs. tirzepatide 15 mg in adults with obesity and type 2 diabetes (announcement) New Phase 3b data show Lilly's EBGLYSS (lebrikizumab-lbkz) delivered significant and rapid improvements in skin clearance, itch, pain, and patient satisfaction in people with moderate-to-severe hand and foot atopic dermatitis (announcement) Lilly's triple agonist, retatrutide, delivered substantial weight loss and A1C reduction, underscoring its potential promise for people with obesity and type 2 diabetes (announcement) New Phase 3b data on Lilly's Taltz (ixekizumab) and Zepbound (tirzepatide) used together showed improved and durable efficacy at one year in adults with psoriatic disease and obesity (announcement) Patrik Jonsson to retire after 36 Other years; Ilya Yuffa named president, Lilly Global Markets (announcement) Lilly breaks ground in Richmond to expand American manufacturing of next-generation cancer medicines, advancing its build-out of 10 new U.S. sites since 2020 (announcement) Lilly launches the Lilly Change the Course Commitment, aiming to address treatment gaps in diabetes and obesity in LMICs (announcement) Lilly breaks ground in Houston, one of ten U.S. manufacturing sites announced since 2020 (announcement) Lilly completes acquisition of AtaiBeckley to advance therapies for treatment-resistant depression and other mental health conditions (announcement) Lilly to acquire Merida Biosciences to advance treatments for serious autoimmune and allergic diseases (announcement) Zepbound linked to lower healthcare costs in adults over age 55 with obesity according to a real-world study (announcement) Lilly calls on online platforms, payment companies and regulators to shut down the illegal retatrutide black market (announcement)
For information on important public announcements, visit the news section of Lilly's website.
In addition to providing guidance for GAAP revenue, Lilly provides guidance for certain non-GAAP measures.
The following table summarizes the company's updated full-year 2026 non-GAAP financial guidance, reflecting strong underlying performance across our portfolio. The first three quarters of 2026 also benefited from sales-based milestones and adjustments to estimates for rebates and discounts.
In addition to updates to Revenue and Performance Margin guidance, EPS guidance has been adjusted to reflect an increase of $4.07 (at the midpoint of the range), offset by $4.57 associated with the Q3 acquired IPR&D charges from recent business development activity:
Prior Updated Revenue $85 to $87 billion $91 to $92 billion Performance Margin(1)(2) 49.0% to 50.5% 52.0% to 52.5% Tax Rate(1)(3) 18% to 19% 19% to 20% Earnings per Share(1)(3)(4) $35.50 to $36.50 $35.00 to $36.00 (1)Lilly does not provide reconciliations of forward-looking non-GAAP measures to the most directly comparable GAAP measures because comparable GAAP measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for a reconciliation. In particular, Lilly cannot reasonably predict certain items including net gains and losses on equity securities, asset impairment, acquisition or divestiture-related items, or restructuring and other adjustments, without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on Lilly's reported results in accordance with GAAP. See Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited) table below for additional Non-GAAP information. (2)The company defines performance margin as gross margin less research and development and marketing, selling, and administrative expenses divided by revenue. (3)Guidance does not include acquired in-process research and development (IPR&D) incurred after September 30, 2026. (4)Assumes shares outstanding of approximately 894 million and foreign currency exchange rate assumptions of 1.13 (Euro), 157 (Yen) and 6.7 (Yuan)
As previously announced, investors and the general public can access a live webcast of the Q3 2026 financial results conference call through a link on Lilly's website at investor.lilly.com/webcasts-and-presentations. The conference call will begin at 10 a.m. Eastern time today and will be available for replay via the website.
Certain financial information is presented on both a reported and a non-GAAP basis. Some numbers in this press release may not add due to rounding. Reported results were prepared in accordance with U.S. generally accepted accounting principles (GAAP) and include all revenue and expenses recognized during the periods. Historical non-GAAP measures reflect adjustments for the items described in the reconciliation tables later in the release. Related materials provide certain GAAP and non-GAAP figures excluding the impact of foreign exchange rates. Lilly recalculates current period figures on a constant currency basis by keeping constant the exchange rates from the base period. The company's 2026 financial guidance (other than revenue) is provided on a non-GAAP basis, as described in "2026 Financial Guidance" above. Non-GAAP measures are presented to provide additional insights into the underlying trends in the company's business.
Lilly is a medicine company turning science into healing to make life better for people around the world. We've been pioneering life-changing discoveries for 150 years, and today our medicines help tens of millions of people across the globe. Harnessing the power of biotechnology, chemistry and genetic medicine, our scientists are urgently advancing new discoveries to solve some of the world's most significant health challenges: redefining diabetes care; treating obesity and curtailing its most devastating long-term effects; advancing the fight against Alzheimer's disease; providing solutions to some of the most debilitating immune system disorders; and transforming the most difficult-to- treat cancers into manageable diseases. With each step toward a healthier world, we're motivated by one thing: making life better for millions more people. That includes delivering innovative clinical trials that reflect the diversity of our world and working to en sure our medicines are accessible and affordable. To learn more, visit Lilly.com and Lilly.com/news. F-LLY
This press release and the related attachments contain management's intentions and expectations for the future, all of which are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. The words "estimate", "project", "intend", "expect", "believe", "target", "plan", "anticipate", "may", "could", "aim", "seek", "will", "continue", and similar expressions are intended to identify forward-looking statements. Actual results may differ materially due to various factors. The following include some but not all of the factors that could cause actual results or events to differ from those anticipated, including the significant costs and uncertainties in the pharmaceutical research and development process, including with respect to the timing and process of obtaining regulatory approvals and the ability of the company's clinical trials to meet expectations; the impact and uncertain outcome of acquisitions and business development transactions and related costs; intense competition affecting the company's products, pipeline, or industry; market uptake of launched products and indications; continued pricing pressures and the impact of actions of governmental and private actors affecting pricing of, reimbursement for, and patient access to pharmaceuticals, or reporting obligations related thereto; the implementation of the company's voluntary agreement with the U.S. government related to drug pricing and access; developments or uncertainties related to the company's or competitive products, including as may relate to safety or efficacy concerns; dependence on relatively few products or product classes for a significant percentage of the company's total revenue and a consolidated supply chain; the expiration of intellectual property protection for certain of the company's products and competition from generic and biosimilar products; the company's ability to protect and enforce patents and other intellectual property and changes in patent law or regulations related to data package exclusivity; information technology system inadequacies, inadequate controls or procedures, security breaches, or operating failures; unauthorized access, disclosure, misappropriation, or compromise of confidential information or other data stored in the company's information technology systems, networks, and facilities, or those of third parties with whom the company shares its data and violations of data protection laws or regulations; issues with product supply, regulatory approvals, or other negative outcomes stemming from manufacturing difficulties, disruptions, or shortages, including as a result of unpredictability and variability in demand, labor shortages, third-party performance, quality, cyber-attacks, or regulatory actions related to the company's and third-party facilities; reliance on third-party relationships and outsourcing arrangements; the use of artificial intelligence or other emerging technologies in various facets of the company's operations, including partnerships related to the use of, or the sharing of such technologies with third parties, which may exacerbate competitive, regulatory, litigation, cybersecurity, and other risks; the impact of global macroeconomic conditions, including uneven economic growth or downturns or uncertainty, trade and other global disputes and interruptions, including related to tariffs, trade protection measures, and similar restrictions, international tension, conflicts, regional dependencies, or other costs, uncertainties, and risks related to engaging in business globally; fluctuations in foreign currency exchange rates, changes in interest rates and inflation or deflation; significant and sudden declines or volatility in the trading price of the company's common stock and market capitalization; litigation, investigations, or other similar proceedings involving past, current, or future products, activities, or intellectual property; changes in tax law and regulations, tax rates, or events that differ from the company's assumptions related to tax positions; regulatory changes, developments, and uncertainty; regulatory oversight and actions regarding the company's operations and products; regulatory compliance problems or government investigations; risks from the proliferation of counterfeit, misbranded, adulterated, or illegally compounded products; actual or perceived deviation from environmental-, social-, or governance-related requirements or expectations; asset impairments and restructuring charges; and changes in accounting and reporting standards. For additional information about the factors that could cause actual results or events to differ materially from forward- looking statements, please see the company's latest Form 10-K and subsequent Forms 8-K and 10-Q filed with the Securities and Exchange Commission. You should not place undue reliance on forward-looking statements contained in this press release and the related attachments, which, except as otherwise noted, speak only as of the date of this release. Except as is required by law, the company expressly disclaims any obligation to publicly release any revisions to forward- looking statements contained in this press release and the related attachments to reflect events or circumstances after the date of this release.
The information contained on, or that may be accessed through, our website or any third-party website is not incorporated by reference into, and is not a part of, this earnings release.
All trademarks or trade names referred to in this press release are the property of the company, or, to the extent trademarks or trade names belonging to other companies are referenced in this press release, the property of their respective owners. Solely for convenience, the trademarks and trade names in this press release are referred to without the ® and ™ symbols, but such references should not be construed as any indicator that the company or, to the extent applicable, their respective owners will not assert, to the fullest extent under applicable law, the company's or their rights thereto. We do not intend the use or display of other companies’ trademarks and trade names to imply a relationship with, or endorsement or sponsorship of us by, any other companies.
Eli Lilly and Company Operating Results (Unaudited) – REPORTED (Dollars in millions, except per share data; numbers may not add due to rounding)
1. Excludes amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
2. Non-GAAP gross margin as a percent of revenue reflects the gross margin effects of the adjustments presented above.
1. Excludes amortization of intangibles primarily associated with costs of marketed products acquired or licensed from third parties.
2. For the three and nine months ended September 30, 2026, excludes a charge primarily related to a partial impairment of an intangible asset associated with a molecule in development. For the nine months ended September 30, 2026 and the three and nine months ended September 30, 2025, excludes charges related to acquisition and integration costs associated with the closing of our acquisitions and charges related to litigation matters.
3. Relates to adjusting our income tax provision for prior periods and remeasuring our deferred tax assets and liabilities.
4. Non-GAAP tax rate reflects the tax effects of the adjustments presented above.
Full text with the tables
October 29, 2026
For release: Immediately
Refer to: Megan MacCauley; maccauley_megan@lilly.com (Media)
Mike Czapar; czapar_michael_c@lilly.com (Investors)
Lilly reports third-quarter 2026 financial results, raises full-year guidance
and highlights regulatory progress across the portfolio
• Revenue in Q3 2026 increased 39% to $24.4 billion driven primarily by Mounjaro
and Zepbound.
• Q3 revenue included approximately $900 million of benefits, primarily from
$410 million of Jardiance milestones (no further milestones remain) and
favorable adjustments to rebate and discount estimates.
• Q3 2026 EPS increased by 16% to $7.22 on a reported basis and increased by 7%
to $7.48 on a non-GAAP basis. Q3 2026 reported and non-GAAP EPS included $4.57
of acquired IPR&D charges compared to $0.71 in Q3 2025.
• Increased the midpoint of our 2026 full-year revenue guidance by $5.5 billion
to be in the range of $91.0 to $92.0 billion and raised underlying non-GAAP EPS
guidance for the full year by $4.07 at the midpoint, which was more than offset
by $4.57 of acquired IPR&D charges from Q3 business development activity,
resulting in an updated range of $35.00 to $36.00.
• Regulatory progress included U.S. FDA approvals of Mounjaro to reduce
cardiovascular risk in adults with type 2 diabetes; Onswik, a once-weekly basal
insulin for adults with type 2 diabetes; Inluriyo with Verzenio for adults with
ER+, HER2-, ESR1-mutated advanced or metastatic breast cancer; and an expanded
indication for Jaypirca in adults with untreated chronic lymphocytic leukemia or
small lymphocytic lymphoma.
• Pipeline highlights included positive topline results from a head-to-head
Phase 3 trial of retatrutide versus Ozempic 2 mg in adults with type 2 diabetes,
Phase 3 results from Ebglyss in moderate-to-severe hand and foot atopic
dermatitis and Phase 2 results from EloraTZP in adults with obesity and type 2
diabetes, with Phase 3 trials to start in Q4 2026.
• Business development activity in Q3 2026 included the completed acquisition of
AtaiBeckley to advance therapies for treatment-resistant depression and other
mental health conditions. Subsequent to quarter end, we completed the
acquisition of Merida Biosciences, to advance treatments for serious autoimmune
and allergic diseases.
INDIANAPOLIS, October 29, 2026 - Eli Lilly and Company (NYSE: LLY) today
announced its financial results for the third quarter of 2026 and provided
updated 2026 financial guidance.
“Lilly had another strong quarter, exceeding our prior expectations and allowing
us to raise our full-year outlook,” said David A. Ricks, Lilly chair and CEO.
“Revenue growth was driven by broad global consumer demand for Mounjaro and
Zepbound, the global launches of Foundayo, expanded U.S. coverage for obesity
care and a doubling in our newest products in oncology, immunology and
neuroscience. To drive durable long-term growth, we continue to invest in our
drug-making and technology capabilities, with
Eli Lilly and Company
| Lilly Corporate Center | Indianapolis, Indiana 46285 | U.S.A.
multiple business development deals and partnerships signed and closed, and with
new manufacturing expansions in Texas and Virginia. Lilly is executing well
across the value chain, and our potential for impact on human health continues
to expand.”
Financial Results
$ in millions, except
per share data Third-Quarter 2026 2025
──────────────────────────────────────────────────────────────────────────────
Revenue $ 24,397 $ 17,601 39%
Net income – Reported 6,451 5,583 16%
Earnings per share – 7.22 6.21 16%
Reported(1)
Net income – Non-GAAP 6,679 6,312 6%
Earnings per share – 7.48 7.02 7%
Non-GAAP(1)
(1)Q3 2026 reported and
non-GAAP EPS
included $4.57 of acquired
IPR&D charges
compared to $0.71 in Q3 2025
A discussion of the non-GAAP financial measures is included below under
"Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information
(Unaudited)."
Third-Quarter Reported Results
In Q3 2026, worldwide revenue was $24.4 billion, an increase of 39% compared
with Q3 2025, driven by a 53% increase in volume, partially offset by a 15%
decrease in realized prices. Key Products 1 revenue grew to $17.1 billion in Q3
2026, led by Mounjaro and Zepbound. Key Products revenue in the Immunology,
Oncology, and Neuroscience therapeutic areas grew 100% in Q3 2026 compared to Q3
2025.
Revenue in the U.S. increased 34% to $15.1 billion, driven by a 41% increase in
volume, partially offset by a 7% decrease in realized prices. The increase in
U.S. volume was driven by Zepbound and Mounjaro. The decline in realized prices
was primarily driven by Zepbound, partially offset by adjustments to estimates
for rebates and discounts.
1 The Company currently defines Key Products as Ebglyss, Foundayo, Inluriyo,
Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound.
2
Revenue outside the U.S. increased 47% to $9.3 billion, driven by a 76% increase
in volume, partially offset by a 29% decrease in realized prices. The volume
increase outside the U.S. was driven by Mounjaro. Jardiance revenue outside the
U.S. included sales-based milestones of $410 million in Q3 2026 and $200 million
in Q3 2025, associated with the company's collaboration with Boehringer
Ingelheim. Additionally, Q3 2025 revenue included $180 million associated with
the divestiture of the rights to Cialis in select markets outside of the U.S.
Lower realized prices outside the U.S. were driven primarily by the inclusion of
Mounjaro on the National Reimbursement Drug List (NRDL) in China.
Gross margin increased 40% to $20.5 billion in Q3 2026. Gross margin as a
percent of revenue was 83.9%, an increase of 1.0 percentage points versus the
same quarter last year. The increase was primarily driven by favorable product
mix and improved cost of production, partially offset by lower realized prices.
In Q3 2026, research and development expenses increased 23% to $4.2 billion, or
17% of revenue, driven by continued investments in the company's early and late-
stage portfolio.
Marketing, selling, and administrative expenses increased 14% to $3.1 billion in
Q3 2026, primarily driven by promotional efforts supporting ongoing and planned
launches.
In Q3 2026, the company recognized acquired in-process research and development
(IPR&D) charges of
$4.2 billion compared with $656 million in Q3 2025. The Q3 2026 charges
primarily related to the acquisitions of AtaiBeckley Inc. and Curevo Inc.
The effective tax rate was 23.3% in Q3 2026 compared with 22.8% in Q3 2025,
primarily driven by the unfavorable tax impact of nondeductible acquired IPR&D
charges, with a larger impact occurring in 2026. The Q3 2025 effective tax rate
was also unfavorably impacted by U.S. tax law changes.
In Q3 2026, net income and earnings per share (EPS) were $6.5 billion and $7.22,
respectively, compared with net income of $5.6 billion and EPS of $6.21 in Q3
2025. EPS in Q3 2026 and Q3 2025 included acquired IPR&D charges of $4.57 and
$0.71, respectively.
Third-Quarter Non-GAAP Measures
On a non-GAAP basis, Q3 2026 gross margin increased 40% to $20.6 billion. Gross
margin as a percent of revenue was 84.4%, an increase of 0.8 percentage points
versus the same quarter last year. The
3
increase was primarily driven by favorable product mix and improved cost of
production, partially offset by lower realized prices.
The non-GAAP effective tax rate was 24.0% in Q3 2026 compared with 17.7% in Q3
2025, primarily driven by the unfavorable tax impact of nondeductible acquired
IPR&D charges, with a larger impact occurring in 2026.
On a non-GAAP basis, Q3 2026 net income and EPS were $6.7 billion and $7.48,
respectively, compared with net income of $6.3 billion and EPS of $7.02 in Q3
2025. Non-GAAP EPS in Q3 2026 and Q3 2025 included acquired IPR&D charges of
$4.57 and $0.71, respectively.
For further detail on non-GAAP measures, see the reconciliation below as well as
the "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information
(Unaudited)" table later in this press release.
Third-Quarter 2026 2025
──────────────────────────────────────────────────────────────────────────────
Earnings per share (reported) $ 7.22 $ 6.21 16%
Amortization of intangible assets .11 .11
Asset impairment, restructuring and .18 .36
other special charges
Net gains on investments in equity -.04 -.04
securities
U.S. Tax Law Change — .39
Earnings per share (non-GAAP) $ 7.48 $ 7.02 7%
Acquired IPR&D 4.57 .71 NM
Numbers may not add due to rounding
NM - not meaningful
4
Selected Revenue Highlights
(D…
in Sel… %
mi… Pro… Thi… 2026 2025 Cha… Yea… 2026 2025
──────────────────────────────────────────────────────────────────────────────
Mo… $ 10,… $ 6,5… 65% $ 29,… $ 15,… 89%
Ze… 5,3… 3,5… 49% 14,… 9,2… 56%
Ja… 228 143 59% 585 358 63%
Eb… 202 127 59% 548 274 10…
Ki… 193 70 175% 484 141 NM
Om… 114 65 76% 296 177 67%
Fo… 184 — NM 281 — NM
In… 73 — NM 183 — NM
To… 24,… 17,… 39% 67,… 45,… 46%
Re…
(1…
is
ma…
for
ob…
un…
the
br…
na…
Ze…
in
Ca…
Ja…
and
the
Un…
St…
NM
-
not
me…
Mounjaro
For Q3 2026, worldwide Mounjaro revenue increased 65% to $10.7 billion. U.S.
revenue was $5.0 billion, an increase of 41%, reflecting strong demand. Revenue
outside the U.S. increased 93% to $5.7 billion primarily driven by volume
growth, partially offset by lower realized prices driven by the addition of
Mounjaro on the NRDL in Q1 2026.
Zepbound
For Q3 2026, U.S. Zepbound revenue increased 48% to $5.3 billion, primarily
driven by strong demand, partially offset by lower realized prices.
5
Lilly shared numerous updates recently on key regulatory, clinical, business
development, and other events, including:
Lilly's Jaypirca (pirtobrutinib),
the first-and-only approved
Regulatory non-covalent BTK inhibitor, receives
expanded indication from U.S. FDA
for certain patients with previously
untreated CLL/SLL (announcement)
FDA approves Lilly's Olumiant
(baricitinib) for pediatric patients
12
years of age and older with severe
alopecia areata (announcement)
U.S. Food and Drug Administration
(FDA)
approves Lilly's Onswik™ (insulin
efsitora alfa-gobe), a once-weekly
basal
insulin injection treatment for
adults
living with type 2 diabetes
(announcement)
U.S. FDA approves Inluriyo
(imlunestrant) in combination with
Verzenio (abemaciclib) for adults
with
ER+, HER2-, ESR1-mutated advanced or
metastatic breast cancer
(announcement)
FDA approves Lilly's Mounjaro
(tirzepatide) to reduce
cardiovascular
risk in adults with type 2 diabetes
(announcement)
Lilly's retatrutide delivered
greater A1C reduction and more than
Clinical double the weight loss of Ozempic's
highest approved dose in
head-to-head trial (announcement)
New data on Lilly's investigational
treatment olomorasib at ESMO 2026
show
durable first-line activity in KRAS
G12C-mutant non-small cell lung
cancer
(announcement)
Lilly presents first clinical data
in
platinum-sensitive ovarian cancer
for
its investigational,
next-generation,
FRα-targeting ADC at ESMO 2026
(announcement)
Lilly's Omvoh (mirikizumab-mrkz)
meets
primary endpoint of clinical
remission
and is the first IL-23p19 inhibitor
to
report one-year Phase 3 results in
pediatric ulcerative colitis
(announcement)
New composite outcomes data show
patients treated with Lilly's Omvoh
(mirikizumab-mrkz) achieved
comprehensive corticosteroid-free
disease control in ulcerative
colitis
and corticosteroid-free deep
remission
in Crohn's disease at one year
(announcement)
New Phase 3b data on Lilly's Taltz
(ixekizumab) and Zepbound
(tirzepatide)
advance understanding of the
interconnected immune and metabolic
biology in adults with psoriasis and
obesity (announcement)
Lilly's oral GLP-1, Foundayo
(orforglipron), demonstrated
cardiovascular safety alongside
sustained A1C reduction and weight
loss
in its largest and longest type 2
diabetes study (announcement)
Lilly's EloraTZP (combination of
eloralintide and tirzepatide)
delivered
greater weight loss and A1C
reduction
vs. tirzepatide 15 mg in adults with
obesity and type 2 diabetes
(announcement)
New Phase 3b data show Lilly's
EBGLYSS
(lebrikizumab-lbkz) delivered
significant and rapid improvements
in
skin clearance, itch, pain, and
patient
satisfaction in people with
moderate-to-severe hand and foot
atopic
dermatitis (announcement)
Lilly's triple agonist, retatrutide,
delivered substantial weight loss
and
A1C reduction, underscoring its
potential promise for people with
obesity and type 2 diabetes
(announcement)
New Phase 3b data on Lilly's Taltz
(ixekizumab) and Zepbound
(tirzepatide)
used together showed improved and
durable efficacy at one year in
adults
with psoriatic disease and obesity
(announcement)
Patrik Jonsson to retire after 36
Other years; Ilya Yuffa named president,
Lilly Global Markets (announcement)
Lilly breaks ground in Richmond to
expand American manufacturing of
next-generation cancer medicines,
advancing its build-out of 10 new
U.S.
sites since 2020 (announcement)
Lilly launches the Lilly Change the
Course Commitment, aiming to address
treatment gaps in diabetes and
obesity
in LMICs (announcement)
Lilly breaks ground in Houston, one
of
ten U.S. manufacturing sites
announced
since 2020 (announcement)
Lilly completes acquisition of
AtaiBeckley to advance therapies for
treatment-resistant depression and
other
mental health conditions
(announcement)
Lilly to acquire Merida Biosciences
to
advance treatments for serious
autoimmune and allergic diseases
(announcement)
Zepbound linked to lower healthcare
costs in adults over age 55 with
obesity
according to a real-world study
(announcement)
Lilly calls on online platforms,
payment
companies and regulators to shut
down
the illegal retatrutide black market
(announcement)
For information on important public announcements, visit the news section of
Lilly's website.
2026 Financial Guidance
In addition to providing guidance for GAAP revenue, Lilly provides guidance for
certain non-GAAP measures.
The following table summarizes the company's updated full-year 2026 non-GAAP
financial guidance, reflecting strong underlying performance across our
portfolio. The first three quarters of 2026 also benefited from sales-based
milestones and adjustments to estimates for rebates and discounts.
In addition to updates to Revenue and Performance Margin guidance, EPS guidance
has been adjusted to reflect an increase of $4.07 (at the midpoint of the
range), offset by $4.57 associated with the Q3 acquired IPR&D charges from
recent business development activity:
Prior Updated
Revenue $85 to $87 billion $91 to $92 billion
Performance Margin(1)(2) 49.0% to 50.5% 52.0% to 52.5%
Tax Rate(1)(3) 18% to 19% 19% to 20%
Earnings per Share(1)(3)(4) $35.50 to $36.50 $35.00 to $36.00
(1)Lilly does not provide
reconciliations of
forward-looking
non-GAAP measures to the most
directly
comparable GAAP measures because
comparable GAAP measures are not
reasonably accessible or
reliable due to
the inherent difficulty in
forecasting
and quantifying measures that
would be
necessary for a reconciliation.
In
particular, Lilly cannot
reasonably
predict certain items including
net
gains and losses on equity
securities,
asset impairment, acquisition or
divestiture-related items, or
restructuring and other
adjustments,
without unreasonable effort.
These items
are uncertain, depend on various
factors, and could have a
material
impact on Lilly's reported
results in
accordance with GAAP. See
Reconciliation
of GAAP Reported to Selected
Non-GAAP
Adjusted Information (Unaudited)
table
below for additional Non-GAAP
information.
(2)The company defines
performance
margin as gross margin less
research and
development and marketing,
selling, and
administrative expenses divided
by
revenue.
(3)Guidance does not include
acquired
in-process research and
development
(IPR&D) incurred after September
30,
2026.
(4)Assumes shares outstanding of
approximately 894 million and
foreign
currency exchange rate
assumptions of
1.13 (Euro), 157 (Yen) and 6.7
(Yuan)
6
Webcast of Conference Call
As previously announced, investors and the general public can access a live
webcast of the Q3 2026 financial results conference call through a link on
Lilly's website at investor.lilly.com/webcasts-and-presentations. The conference
call will begin at 10 a.m. Eastern time today and will be available for replay
via the website.
Non-GAAP Financial Measures
Certain financial information is presented on both a reported and a non-GAAP
basis. Some numbers in this press release may not add due to rounding. Reported
results were prepared in accordance with U.S. generally accepted accounting
principles (GAAP) and include all revenue and expenses recognized during the
periods. Historical non-GAAP measures reflect adjustments for the items
described in the reconciliation tables later in the release. Related materials
provide certain GAAP and non-GAAP figures excluding the impact of foreign
exchange rates. Lilly recalculates current period figures on a constant currency
basis by keeping constant the exchange rates from the base period. The company's
2026 financial guidance (other than revenue) is provided on a non-GAAP basis, as
described in "2026 Financial Guidance" above. Non-GAAP measures are presented to
provide additional insights into the underlying trends in the company's
business.
About Lilly
Lilly is a medicine company turning science into healing to make life better for
people around the world. We've been pioneering life-changing discoveries for 150
years, and today our medicines help tens of millions of people across the globe.
Harnessing the power of biotechnology, chemistry and genetic medicine, our
scientists are urgently advancing new discoveries to solve some of the world's
most significant health challenges: redefining diabetes care; treating obesity
and curtailing its most devastating long-term effects; advancing the fight
against Alzheimer's disease; providing solutions to some of the most
debilitating immune system disorders; and transforming the most difficult-to-
treat cancers into manageable diseases. With each step toward a healthier world,
we're motivated by one thing: making life better for millions more people. That
includes delivering innovative clinical trials that reflect the diversity of our
world and working to en sure our medicines are accessible and affordable. To
learn more, visit Lilly.com and Lilly.com/news. F-LLY
7
Cautionary Statement Regarding Forward-Looking Statements
This press release and the related attachments contain management's intentions
and expectations for the future, all of which are forward-looking statements
within the meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. The words "estimate", "project",
"intend", "expect", "believe", "target", "plan", "anticipate", "may", "could",
"aim", "seek", "will", "continue", and similar expressions are intended to
identify forward-looking statements. Actual results may differ materially due to
various factors. The following include some but not all of the factors that
could cause actual results or events to differ from those anticipated, including
the significant costs and uncertainties in the pharmaceutical research and
development process, including with respect to the timing and process of
obtaining regulatory approvals and the ability of the company's clinical trials
to meet expectations; the impact and uncertain outcome of acquisitions and
business development transactions and related costs; intense competition
affecting the company's products, pipeline, or industry; market uptake of
launched products and indications; continued pricing pressures and the impact of
actions of governmental and private actors affecting pricing of, reimbursement
for, and patient access to pharmaceuticals, or reporting obligations related
thereto; the implementation of the company's voluntary agreement with the U.S.
government related to drug pricing and access; developments or uncertainties
related to the company's or competitive products, including as may relate to
safety or efficacy concerns; dependence on relatively few products or product
classes for a significant percentage of the company's total revenue and a
consolidated supply chain; the expiration of intellectual property protection
for certain of the company's products and competition from generic and
biosimilar products; the company's ability to protect and enforce patents and
other intellectual property and changes in patent law or regulations related to
data package exclusivity; information technology system inadequacies, inadequate
controls or procedures, security breaches, or operating failures; unauthorized
access, disclosure, misappropriation, or compromise of confidential information
or other data stored in the company's information technology systems, networks,
and facilities, or those of third parties with whom the company shares its data
and violations of data protection laws or regulations; issues with product
supply, regulatory approvals, or other negative outcomes stemming from
manufacturing difficulties, disruptions, or shortages, including as a result of
unpredictability and variability in demand, labor shortages, third-party
performance, quality, cyber-attacks, or regulatory actions related to the
company's and third-party facilities; reliance on third-party relationships and
outsourcing arrangements; the use of artificial intelligence or other emerging
technologies in various facets of the company's operations, including
partnerships related to the use of, or the sharing of such technologies with
third parties, which may exacerbate competitive, regulatory, litigation,
cybersecurity, and other risks; the impact of global macroeconomic conditions,
including uneven economic growth or downturns or uncertainty, trade and other
global disputes and interruptions, including related to tariffs, trade
protection measures, and similar restrictions, international tension, conflicts,
regional dependencies, or other costs, uncertainties, and risks related to
engaging in business globally; fluctuations in foreign currency exchange rates,
changes in interest rates and inflation or deflation; significant and sudden
declines or volatility in the trading price of the company's common stock and
market capitalization; litigation, investigations, or other similar proceedings
involving past, current, or future products, activities, or intellectual
property; changes in tax law and regulations, tax rates, or events that differ
from the company's assumptions related to tax positions; regulatory changes,
developments, and uncertainty; regulatory oversight and actions regarding the
company's operations and products; regulatory compliance problems or government
investigations; risks from the proliferation of counterfeit, misbranded,
adulterated, or illegally compounded products; actual or perceived deviation
from environmental-, social-, or governance-related requirements or
expectations; asset impairments and restructuring charges; and changes in
accounting and reporting standards. For additional information about the factors
that could cause actual results or events to differ materially from forward-
looking statements, please see the company's latest Form 10-K and subsequent
Forms 8-K and 10-Q filed with the Securities and Exchange Commission. You should
not place undue reliance on forward-looking statements contained in this press
release and the related attachments, which, except as otherwise noted, speak
only as of the date of this release. Except as is required by law, the company
expressly disclaims any obligation to publicly release any revisions to forward-
looking statements contained in this press release and the related attachments
to reflect events or circumstances after the date of this release.
# # #
Website Information
The information contained on, or that may be accessed through, our website or
any third-party website is not incorporated by reference into, and is not a part
of, this earnings release.
Trademarks and Trade Names
All trademarks or trade names referred to in this press release are the property
of the company, or, to the extent trademarks or trade names belonging to other
companies are referenced in this press release, the property of their respective
owners. Solely for convenience, the trademarks and trade names in this press
release are referred to without the ® and ™ symbols, but such references should
not be construed as any indicator that the company or, to the extent applicable,
their respective owners will not assert, to the fullest extent under applicable
law, the company's or their rights thereto. We do not intend the use or display
of other companies’ trademarks and trade names to imply a relationship with, or
endorsement or sponsorship of us by, any other companies.
8
Eli Lilly and Company
Operating Results (Unaudited) – REPORTED
(Dollars in millions, except per share data;
numbers may not add due to rounding)
Th… Ni…
Mo… Mo…
En… Se… % En… Se… %
20… 30, 20… Ch… 20… 30, 20… Ch…
──────────────────────────────────────────────────────────────────────────────
R… $ 24… $ 17… 39% $ 67… $ 45… 46%
C…
of 3,… 3,… 31% 10… 7,… 40%
s…
R…
a… 4,… 3,… 23% 11… 9,… 21%
d…
M…
s… 3,… 2,… 14% 9,… 7,… 19%
a…
a…
A… 4,… 656 NM 7,… 2,… NM
I…
A…
i…
r…
a… 303 365 (1… 1,… 400 NM
o…
s…
c…
O… 8,… 7,… 17% 26… 17… 48%
i…
N…
i… -3… -1… -8… -5…
i…
(…
N…
o… 114 -18 845 57
i…
(…
O…
i… -2… -1… 53% 2 -4… (1…
(…
I…
b… 8,… 7,… 16% 26… 17… 52%
i…
t…
I…
t… 1,… 1,… 18% 5,… 3,… 61%
e…
N… $ 6,… $ 5,… 16% $ 20… $ 14… 50%
i…
E…
p…
s… $ 7.… $ 6.… 16% $ 23… $ 15… 51%
-
d…
D…
p… $ 1.… $ 1.… 15% $ 5.… $ 4.… 15%
p…
s…
W…
s…
o… 89… 89… 89… 89…
(…
-
d…
NM – not meaningful
9
Eli
Lil…
and
Com…
Rec…
of
GAAP
Rep…
to
Sel…
Non…
Adj…
Inf…
(Un…
(Do…
in
mil…
exc…
per
sha…
dat…
num…
may
not
add
due
to
rou…
Three Nine
Mont… Mont…
Ended Ended
Sept… Sept…
30, 30,
2026 2025 2026 2025
Gro…
Mar… $ 20,4… $ 14,593 $ 56,392 $ 38,2…
- As
Rep…
Inc…
for
exc…
ite…
Amo…
of
int…
ass… 128 119 381 364
(Co…
of
sal…
Gro…
Mar… $ 20,5… $ 14,712 $ 56,773 $ 38,5…
-
Non…
Gro…
Mar…
as a
per…
of 83.9 % 82.9 % 84.0 % 83.3 %
rev…
-
As
Rep…
Gro…
Mar…
as a
per… 84.4 % 83.6 % 84.5 % 84.1 %
of
rev…
-
Non…
1. Excludes amortization of intangibles primarily associated with costs of
marketed products acquired or licensed from third parties.
2. Non-GAAP gross margin as a percent of revenue reflects the gross margin
effects of the adjustments presented above.
10
Rec…
of
GAAP
Rep…
to
Sel…
Non…
Adj…
Inf…
(Un…
(Do…
in
mil…
exc…
per
sha…
dat…
num…
may
not
add
due
to
rou…
Three Nine
Months Mont…
Ended Ended
Septe… Sept…
30, 30,
2026 2025 2026 2025
Net
inc… $ 6,451 $ 5,583 $ 20,942 $ 14,0…
-
Rep…
Inc…
(de…
for
exc…
ite…
Amo…
of
int…
ass… 128 119 381 364
(Co…
of
sal…
Ass…
imp…
res…
and 303 365 1,285 400
oth…
spe…
cha…
Net
(ga…
los…
on
inv… -47 -48 -571 6
in
equ…
sec…
(Ot…
inc…
U.S.
Tax
Law — 350 — 350
Cha…
(In…
tax…
Cor…
tax
eff… -156 -57 -202 -126
(In…
tax…
Net
inc… $ 6,679 $ 6,312 $ 21,835 $ 14,9…
-
Non…
Eff…
tax
rate 23.3 % 22.8 % 21.0 % 19.8 %
-
Rep…
Eff…
tax
rate 24.0 % 17.7 % 20.9 % 17.8 %
-
Non…
Ear…
per
sha… $ 7.22 $ 6.21 $ 23.42 $ 15.56
(di…
-
Rep…
Ear…
per
sha… $ 7.48 $ 7.02 $ 24.41 $ 16.67
(di…
-
Non…
1. Excludes amortization of intangibles primarily associated with costs of
marketed products acquired or licensed from third parties.
2. For the three and nine months ended September 30, 2026, excludes a charge
primarily related to a partial impairment of an intangible asset associated with
a molecule in development. For the nine months ended September 30, 2026 and the
three and nine months ended September 30, 2025, excludes charges related to
acquisition and integration costs associated with the closing of our
acquisitions and charges related to litigation matters.
3. Relates to adjusting our income tax provision for prior periods and
remeasuring our deferred tax assets and liabilities.
4. Non-GAAP tax rate reflects the tax effects of the adjustments presented
above.
11