01—Abstract
Summary
Summary of the 10-Q filed August 7, 2025. Cited figures are marked; the original filing is the authoritative source.
Eli Lilly and Company (LLY) reported robust financial performance for the quarter and six months ended June 30, 2025.
Revenue surged by 38%a and 41% year-over-year, respectively, driven by strong demand for key products like Mounjaro and Zepbound, particularly in the U.S. market. This top-line growth translated into a significant increase in net income, up 91% for the quarter and 62% for the six-month period, with diluted EPS also showing substantial gains. The company's gross margin improved due to better production costs and product mix, even with increased R&D and SG&A expenses supporting pipeline development and commercialization efforts.
Despite increased investments in research and development and marketing, Lilly demonstrated strong operational efficiency. The company also made strategic acquisitions, including Verve Therapeutics and SiteOne Therapeutics, to bolster its pipeline in cardiovascular disease and pain management, respectively.
Financially, Lilly maintained a healthy cash position, though total debt increased due to recent debt issuances primarily to fund acquisitions and general business purposes. The company also continued its share repurchase program and dividend payments, reflecting a commitment to shareholder returns.
02—Key points
Key Highlights
- Revenue increased by 38% to $15.6 billion for the three months ended June 30, 2025, and by 41% to $28.3 billion for the six months ended June 30, 2025, driven by strong volume growth from Mounjaro and Zepbound.
- Net income surged by 91% to $5.7 billion for the three months ended June 30, 2025, and by 62% to $8.4 billion for the six months ended June 30, 2025.
- Diluted Earnings Per Share (EPS) increased significantly, rising by 92% to $6.29 for the quarter and by 62% to $9.35 for the six-month period.
- Gross margin improved to 84.3% for the quarter and 83.5% for the six-month period, up from 80.8% in the prior year, attributed to improved production costs and product mix.
- Research and Development (R&D) expenses increased by 23% for the quarter and 16% for the six-month period, reflecting continued investment in the company's pipeline.
- Marketing, Selling, and Administrative (SG&A) expenses rose by 30% for the quarter and 28% for the six-month period, supporting promotional efforts for current and future product launches.
- The company made strategic acquisitions in July 2025, including Verve Therapeutics for approximately $1.0 billion (potentially up to $1.3 billion) and SiteOne Therapeutics for up to $1.0 billion, to enhance its pipeline in cardiovascular disease and pain management.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ2 FY2025filed August 7, 2025Financial Statements
Q2 FY2025 against Q2 FY2024
| Line item | Q2 FY2025Q2 FY2024 | Change |
|---|---|---|
| Revenue | $15.56B$11.30B | +37.6% |
| Cost of Revenue | $2.45B$2.17B | +12.8% |
| Gross Profit | $13.11B$9.13B | +43.6% |
| SG&A Expenses | $2.75B$2.12B | +30.0% |
| Net Income | $5.66B$2.97B | +90.8% |
| EPS (Basic) | $6.30$3.29 | +91.5% |
| EPS (Diluted) | $6.29$3.28 | +91.8% |
| Shares Outstanding (Basic) | 897.90M900.90M | −0.3% |
| Shares Outstanding (Diluted) | 899.80M904.20M | −0.5% |
05—Questions
Frequently Asked Questions
What were the main drivers of Eli Lilly's revenue growth in the second quarter of 2025?
Eli Lilly's revenue growth was primarily driven by strong volume increases for Mounjaro and Zepbound. The U.S. market was a significant contributor, with both products showing substantial revenue gains. Outside the U.S., Mounjaro also saw significant growth, and a one-time benefit related to an amendment of the Boehringer Ingelheim collaboration for Jardiance also contributed to revenue outside the U.S. during the six-month period.
How did Eli Lilly's profitability change compared to the previous year?
Profitability improved significantly. Net income more than doubled for the quarter, increasing by 91%, and grew by 62% for the six-month period. This was driven by a substantial increase in gross margin, which rose due to improved production costs and a favorable product mix, despite higher R&D and SG&A expenses related to pipeline expansion and commercialization efforts.
What significant acquisitions did Eli Lilly complete or announce subsequent to the reporting period?
Following the reporting period, Eli Lilly announced and completed the acquisitions of Verve Therapeutics, Inc. in July 2025 for approximately $1.0 billion (with potential for an additional $300 million in contingent value rights), focusing on cardiovascular genetic medicines. Additionally, in July 2025, the company acquired SiteOne Therapeutics, Inc., a pain therapeutics company, for up to $1.0 billion in cash, including upfront and milestone payments, to acquire its Nav1.8 inhibitor for pain.
How is Eli Lilly managing its debt and share repurchase programs?
Eli Lilly's total debt increased to $39.9 billion as of June 30, 2025, primarily due to the issuance of $6.5 billion in fixed-rate notes in February 2025, which were used to fund acquisitions and general business purposes. The company also maintained a robust share repurchase program, repurchasing $1.89 billion in shares during the first six months of 2025 under its $15.00 billion authorization, with $13.11 billion remaining as of June 30, 2025. The company also continued to pay dividends to shareholders.
06—Continue