Eli Lilly Earnings Top Estimates on GLP Demand
Eli Lilly earnings show Mounjaro and Zepbound drove a better-than-expected quarter and lifted guidance, pushing traders to reweight GLP exposure.
KEY TAKEAWAYS
- Q4 revenue rose to $19.3 billion, driven by volume gains in Mounjaro and Zepbound.
- Mounjaro sales totaled $7.4 billion and U.S. Zepbound sales reached $4.2 billion.
- 2026 guidance calls for $80 billion to $83 billion revenue and non-GAAP EPS of $33.50 to $35.00.
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Eli Lilly earnings beat expectations when the company reported fourth-quarter 2025 results on Feb. 4, 2026, as surging demand for weight-loss drug Zepbound and diabetes medicine Mounjaro lifted profit and prompted stronger 2026 guidance.
Product Revenue and Margins
Eli Lilly reported fourth-quarter 2025 worldwide revenue of $19.3 billion, a 43% increase from a year earlier, driven by 46% volume growth partly offset by a 5% decline in realized prices, the company said in a press release on Feb. 4, 2026. U.S. sales rose 43% to $12.9 billion, with volume up 50% and prices down 7%, reflecting strong demand for Mounjaro and Zepbound. Non-U.S. revenue also increased 43% to $6.4 billion, supported by 38% volume growth.
Mounjaro revenue totaled $7.4 billion worldwide, up 110% year over year, including $4.1 billion in the U.S. and $3.3 billion internationally. Zepbound sales in the U.S. reached $4.2 billion, a 122% increase from the prior year. Together with Verzenio, these key products accounted for $13.8 billion of quarterly sales.
Gross profit was $15.9 billion, equal to 82.5% of revenue and up 0.3 percentage point from a year earlier. The company also highlighted several product and regulatory developments, including the launch of Inluriyo, FDA approval of a KwikPen for tirzepatide, expanded indications for Jaypirca, regulatory filings for orforglipron in obesity in key markets, and a U.S. government agreement to broaden access to obesity medicines.
2026 Guidance and Outlook
Reported net income for the quarter was $6.64 billion, producing reported earnings per share of $7.39 and non-GAAP EPS of $7.54, which included $0.52 of acquired in-process research and development (IPR&D) charges. Full-year 2025 revenue totaled $65.2 billion, a 45% increase from 2024.
The company issued 2026 guidance calling for revenue between $80 billion and $83 billion and non-GAAP EPS of $33.50 to $35.00. It expects a performance margin of 46.0% to 47.5% and a tax rate of 18% to 19%. The guidance assumes sustained demand for Mounjaro and Zepbound that will offset U.S. pricing pressure while supporting pipeline investments, including acquired IPR&D, implying roughly 23% to 27% growth compared with 2025.
"2025 was an important year for Lilly," David A. Ricks, Lilly chair and chief executive officer, said in the company release.
