TLDR
- Eli Lilly posted Q3 earnings of $7.02 per share, crushing analyst expectations of $5.69, with revenue hitting $17.60 billion versus $16.01 billion expected.
- The company increased its full-year 2025 revenue forecast to $63-63.5 billion and raised adjusted earnings guidance to $23-23.70 per share.
- Zepbound weight loss drug sales surged 184% to $3.57 billion while Mounjaro diabetes treatment revenue jumped 109% to $6.52 billion.
- Shares climbed 5% in premarket trading after the earnings release on Thursday morning.
- Eli Lilly announced a Walmart partnership for discounted Zepbound access and continues developing its obesity pill orforglipron.
Eli Lilly delivered a third-quarter earnings beat that sent shares higher in premarket trading. The pharmaceutical company reported adjusted earnings of $7.02 per share, crushing Wall Street’s $5.69 estimate.
Revenue reached $17.60 billion for the quarter. That topped analyst predictions of $16.01 billion and marked a 54% increase from last year.
The company’s GLP-1 drugs for weight loss and diabetes powered the results. Zepbound generated $3.57 billion in Q3 revenue, up 184% year-over-year.
Mounjaro brought in $6.52 billion, beating the $5.51 billion estimate. That represents a 109% jump from the same period in 2024.
Shares rose 5% in premarket trading following the announcement. Investors responded to both the earnings beat and raised guidance.
Full-Year Outlook Gets Major Boost
Eli Lilly increased its 2025 revenue forecast to $63-63.5 billion. The previous guidance range stood at $60-62 billion.
Adjusted earnings expectations also moved higher. The company now projects $23-23.70 per share for the full year, up from $21.75-23 per share.
U.S. sales climbed 45% to $11.30 billion in the quarter. Volume rose 60%, driven by strong prescription growth for Mounjaro and Zepbound.
Net income hit $5.58 billion, or $6.21 per share. That compares to $970.3 million, or $1.07 per share, in the year-ago period.
The company’s operating margin reached 42.97%. Net margin came in at 25.91% for the quarter.
Strategic Moves to Expand Access
Eli Lilly partnered with Walmart on Wednesday to offer in-store pickup of discounted Zepbound vials. The program targets cash-paying patients looking for lower-cost options.
The company is developing orforglipron, an experimental obesity pill. This oral medication could help Eli Lilly maintain its edge as competitors develop their own GLP-1 treatments.
Novo Nordisk made a bid for obesity biotech company Metsera on Thursday. The move intensifies competition in the GLP-1 market.
Eli Lilly has captured majority market share over the past year. Direct-to-consumer sales and strong drug profiles have boosted its position.
The updated guidance reflects current tariffs as of Thursday. It does not account for potential pharmaceutical import levies.
The company maintains a market cap of approximately $729.3 billion. Its debt-to-equity ratio stands at 2.18 with a current ratio of 1.28.
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