01—Abstract
Summary
Summary of the 10-Q filed October 30, 2025. Cited figures are marked; the original filing is the authoritative source.
Eli Lilly and Company (LLY) reported a robust third quarter of 2025, showcasing significant growth across key financial metrics.
Revenue for the quarter surged by 54% year-over-year to $17.6 billiona, driven by strong volume increases from Mounjaro and Zepbound, which experienced substantial growth both in the U.S. and internationally. This top-line performance translated into impressive profitability, with net income soaring by over 470% to $5.6 billion, and diluted earnings per share reaching $6.21, up from $1.07 in the prior year period. The company's gross margin improved to 82.9%, reflecting favorable product mix and cost efficiencies.
Looking at the nine-month period, the positive trends continued, with revenue up 46% to $45.9 billion and net income more than doubling to $14.0 billionb. These strong results highlight the company's successful execution in bringing novel therapies to market and expanding their reach.
Lilly's ongoing investment in research and development remains substantial, underscoring its commitment to future innovation, while marketing and administrative expenses also increased to support commercial launches. The balance sheet remains strong, with a significant increase in cash and cash equivalents, providing flexibility for continued investment and strategic initiatives.
02—Key points
Key Highlights
- Revenue for Q3 2025 reached $17.6 billion, a 54% increase year-over-year, driven by Mounjaro and Zepbound volume growth.
- Net income for Q3 2025 surged to $5.6 billion, a 473% increase from $0.97 billion in Q3 2024.
- Diluted EPS for Q3 2025 was $6.21, a significant increase from $1.07 in the prior year quarter.
- Gross margin improved to 82.9% in Q3 2025, up from 81.0% in Q3 2024, indicating enhanced profitability.
- Research and Development expenses increased by 27% year-over-year for the quarter, demonstrating continued investment in innovation.
- Marketing, selling, and administrative expenses rose by 31% for the quarter, supporting commercial efforts for key products.
- Cash and cash equivalents increased significantly to $9.79 billion as of September 30, 2025, up from $3.27 billion at the end of 2024.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2025filed October 30, 2025Financial Statements
Q3 FY2025 against Q3 FY2024
| Line item | Q3 FY2025Q3 FY2024 | Change |
|---|---|---|
| Revenue | $17.60B$11.44B | +53.9% |
| Cost of Revenue | $3.01B$2.17B | +38.6% |
| Gross Profit | $14.59B$9.27B | +57.4% |
| SG&A Expenses | $2.74B$2.10B | +30.5% |
| Net Income | $5.58B$970.30M | +475.3% |
| EPS (Basic) | $6.22$1.08 | +475.9% |
| EPS (Diluted) | $6.21$1.07 | +480.4% |
| Shares Outstanding (Basic) | 896.90M901.00M | −0.5% |
| Shares Outstanding (Diluted) | 898.80M905.00M | −0.7% |
05—Questions
Frequently Asked Questions
What drove the significant revenue increase in Q3 2025?
The substantial revenue increase of 54% year-over-year to $17.6 billion was primarily driven by strong volume growth in Mounjaro and Zepbound. These key products showed significant demand both in the U.S. and internationally, contributing the most to the top-line performance.
Why did net income and EPS increase so dramatically in Q3 2025?
The remarkable increase in net income and diluted EPS is attributable to several factors. Higher gross margins, stemming from a favorable product mix and improved cost of production, played a crucial role. This was coupled with the substantial revenue growth, which more than offset increased investments in research and development and marketing, selling, and administrative expenses.
What are the key clinical development updates for the company?
Eli Lilly reported several key updates in its clinical development pipeline. This includes submissions for tirzepatide for pediatric/adolescent type 2 diabetes, positive Phase 3 results for tirzepatide in cardiovascular outcomes for type 2 diabetes, and initiation of a Phase 3 trial for tirzepatide in type 1 diabetes. Additionally, Phase 3 trials for orforglipron for obesity and type 2 diabetes met their primary endpoints, and the company received regulatory approvals for mirikizumab (Omvoh) in Japan for Crohn's disease and donanemab (Kisunla) in the EU for early symptomatic Alzheimer's disease.
How has the company's financial position evolved based on the balance sheet?
The balance sheet shows a strong improvement in liquidity. Cash and cash equivalents grew substantially to $9.79 billion as of September 30, 2025, from $3.27 billion at the end of 2024. This increase, along with continued operating cash flow generation, provides ample resources for ongoing investments in R&D, manufacturing capacity expansion, and strategic acquisitions.
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