10-KPeriod: FY2025

ELI LILLY & Co Annual Report, Year Ended Dec 31, 2025

Filed February 12, 2026For Securities:LLY

Summary

Eli Lilly and Company reported robust financial performance for the fiscal year 2025, driven by significant revenue growth, primarily from its cardiometabolic products, Mounjaro and Zepbound. Total revenue reached $65.18 billion, a 45% increase year-over-year, with net income soaring by 95% to $20.64 billion. This strong performance underscores the market's demand for Lilly's innovative treatments, particularly in the areas of diabetes and obesity. The company continues to invest heavily in research and development, with a substantial pipeline including promising candidates in neuroscience and oncology. However, investors should note the increasing impact of governmental pricing regulations, such as the Inflation Reduction Act, which will influence future revenue streams for key products like Jardiance, Trulicity, and Verzenio. While the company is expanding its manufacturing capacity to meet demand, potential supply chain disruptions and evolving international trade policies remain areas to monitor.

Financial Highlights

46 data points
Beta

Revenue

$65.18B

83.0% Gross Margin

Net Income

$20.64B

31.7% Net Margin

EPS (Diluted)

$22.95

Total Assets

$112.48B

Cash & Equivalents

$7.27B

Free Cash Flow

$16.81B

Financial Statements
Beta
Revenue$65.18B
Cost of Revenue$11.05B
Gross Profit$54.13B
SG&A Expenses$11.09B
Net Income$20.64B
EPS (Basic)$23.00
EPS (Diluted)$22.95
Shares Outstanding (Basic)897.30M
Shares Outstanding (Diluted)899.30M

Key Highlights

  • 1Total revenue increased by 45% to $65.18 billion in 2025, driven by strong sales of Mounjaro and Zepbound.
  • 2Net income grew by 95% to $20.64 billion, with diluted earnings per share reaching $22.95.
  • 3Mounjaro and Zepbound combined accounted for 56% of total revenues in 2025, demonstrating their critical role in the company's financial performance.
  • 4Research and development expenses increased by 21% to $13.34 billion, reflecting continued investment in the company's pipeline.
  • 5Marketing, selling, and administrative expenses increased by 29% to $11.09 billion, primarily due to promotional efforts for new product launches.
  • 6The company is expanding manufacturing capacity with significant capital expenditures, including new sites in the U.S. and internationally, to meet projected demand.
  • 7Key products such as Jardiance, Trulicity, and Verzenio have been selected for government-set prices under the Inflation Reduction Act, which will take effect in 2026 and 2028 respectively, impacting future revenue.

Frequently Asked Questions

The primary drivers of Lilly's revenue growth in 2025 were increased sales volumes of its cardiometabolic products, particularly Mounjaro and Zepbound, which saw substantial demand. While overall volume increased, realized prices saw a slight decrease, primarily due to pricing strategies and market dynamics for these key drugs.

The IRA is expected to impact Lilly's business by requiring government-set prices for certain high-spend Medicare drugs. Jardiance has been selected for price setting effective in 2026, and Trulicity and Verzenio are set for 2028. This is expected to accelerate revenue erosion for these products prior to patent expiry and will influence future business strategies and investment decisions.

Lilly's long-term success depends on its ability to discover, develop, and commercialize innovative medicines. Key therapeutic areas for research and development include cardiometabolic health, immunology, neuroscience, and oncology. The company is also actively pursuing business development activities, including acquisitions and collaborations, to enhance its product pipeline.

Key risks include the high cost and uncertainty of pharmaceutical research and development, intense competition from other pharmaceutical companies and generic/biosimilar products, government price controls and regulations (like the IRA), potential loss of intellectual property protection, manufacturing and supply chain disruptions, cybersecurity threats, and the success of business development activities. The heavy reliance on a few key products, like Mounjaro and Zepbound, also presents a concentration risk.