TLDR
- Q4 adjusted earnings of $7.54 per share crushed analyst estimates of $6.91
- Revenue hit $19.3 billion, beating forecasts by over $1 billion
- Mounjaro sales doubled to $7.4 billion while Zepbound jumped 123% to $4.3 billion
- 2026 revenue guidance of $80-83 billion exceeds Wall Street’s $77.6 billion estimate
- Shares rallied 8.3% in premarket trading following the earnings report
Eli Lilly knocked it out of the park with its Q4 earnings report. The pharmaceutical company delivered results that left Wall Street’s expectations in the dust.
The company reported adjusted earnings of $7.54 per share for the fourth quarter. That crushed the analyst consensus of $6.91 per share. It also marked a 42% increase from the $5.32 posted in the same quarter last year.
Revenue came in at $19.3 billion. That beat expectations of $17.9 billion and represented a 43% jump year-over-year. The company attributed the growth to strong volume increases from its weight-loss medications.
Weight-Loss Drugs Drive Growth
Mounjaro led the charge with revenue more than doubling to $7.4 billion from $3.5 billion. Zepbound revenue climbed 123% to $4.3 billion from $1.9 billion in the prior year period.
These drugs treat type 2 diabetes and chronic weight management. They’ve become the company’s biggest revenue drivers. The market for weight-loss medications continues expanding rapidly.
Shares jumped 8.3% in premarket trading Wednesday. This came after a 3.9% drop Tuesday when competitor Novo Nordisk issued weak guidance. Novo’s shares fell 14% that session.
Strong Guidance for 2026
Lilly provided optimistic projections for the full year. The company expects revenue between $80 billion and $83 billion. Analysts had only forecast $77.6 billion.
Adjusted earnings should range from $33.50 to $35 per share. Wall Street was looking for $33.04 per share. CEO David Ricks emphasized the company’s strong position entering its 150th year.
The company is developing orforglipron, an oral weight-loss pill. Recent regulatory submissions went to authorities in the U.S., Japan, and European Union. This represents the next phase of competition in the weight-loss market.
In November, Lilly struck a deal with the U.S. government. The agreement offers lower prices for cash-paying patients. Zepbound now costs $299 monthly for the lowest dose and $449 for higher doses.
Beyond Weight Loss
Verzenio, a breast cancer treatment, generated $1.6 billion in Q4 revenue. That’s a 3% increase from the prior year. International sales grew 18% while domestic sales slipped 4%.
The company also highlighted the launch of Inluriyo and global expansion of Kisunla. Manufacturing capabilities increased during the quarter to meet growing demand.
Performance margin guidance for 2026 sits at 46% to 47.5%. The expected tax rate ranges from 18% to 19%.
Before the report, LLY shares had fallen 6.6% in 2026. The S&P 500 gained 1.1% over the same period. Over the past 12 months, the stock was up 19.15%.
Wall Street maintains a Strong Buy rating on the stock. The consensus includes 17 Buy ratings and two Hold ratings. The average price target of $1,204.22 suggests 20% upside potential.
Orforglipron will cost $149 monthly for the lowest dose once approved. Higher doses will cost up to $399 for cash-paying customers.
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