Eli Lilly Q3 Revenue Surges 39% on Mounjaro, Zepbound Demand

Eli Lilly’s third-quarter revenue surged 39% to $24.397 billion, fueled by robust global demand for its diabetes and obesity drugs, Mounjaro and Zepbound. The substantial revenue increase signals continued strong performance despite broader headwinds impacting the pharmaceutical sector.

The reported revenue growth was partially offset by a 15% decrease in realized prices, primarily attributable to Zepbound, and adjustments to estimates for rebates and discounts. U.S. revenue increased 34% to $15.1 billion driven by volume increases from the two key drugs. Outside the U.S., revenue grew 47% to $9.3 billion, boosted by Mounjaro sales and sales-based milestones associated with the company’s collaboration with Boehringer Ingelheim.

Net income rose 16% to $6.451 billion, or $7.22 per share, compared to $5.583 billion, or $6.21 per share, in the same quarter last year. The company also recognized $4.2 billion in acquired in-process research and development (IPR&D) charges, primarily related to the acquisitions of AtaiBeckley Inc. and Curevo Inc. These charges impacted both reported and non-GAAP earnings per share.

Eli Lilly has raised its full-year 2026 revenue guidance, reflecting the continued positive momentum. Gross margin improved to 83.9%, driven by favorable product mix and improved cost of production, despite the impact of lower realized prices. The company continues to invest heavily in research and development, with R&D expenses increasing 23% to $4.2 billion.

The strong revenue growth and increased profitability reflect Eli Lilly’s success in capitalizing on the growing demand for its innovative therapies, particularly in the cardiometabolic space. The results also highlight the company's ability to navigate pricing pressures and maintain a strong financial position within a dynamic pharmaceutical landscape.