10-QPeriod: Q3 FY2025

ELI LILLY & Co Quarterly Report for Q3 Ended Sep 30, 2025

Filed October 30, 2025For Securities:LLY

Summary

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 billion, 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 billion. 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.

Financial Highlights

49 data points
Beta

Revenue

$17.60B

82.9% Gross Margin

Net Income

$5.58B

31.7% Net Margin

EPS (Diluted)

$6.21

Total Assets

$114.94B

Cash & Equivalents

$9.79B

Free Cash Flow

$8.84B

Financial Statements
Beta
Revenue$17.60B
Cost of Revenue$3.01B
Gross Profit$14.59B
SG&A Expenses$2.74B
Net Income$5.58B
EPS (Basic)$6.22
EPS (Diluted)$6.21
Shares Outstanding (Basic)896.90M
Shares Outstanding (Diluted)898.80M

Key Highlights

  • 1Revenue for Q3 2025 reached $17.6 billion, a 54% increase year-over-year, driven by Mounjaro and Zepbound volume growth.
  • 2Net income for Q3 2025 surged to $5.6 billion, a 473% increase from $0.97 billion in Q3 2024.
  • 3Diluted EPS for Q3 2025 was $6.21, a significant increase from $1.07 in the prior year quarter.
  • 4Gross margin improved to 82.9% in Q3 2025, up from 81.0% in Q3 2024, indicating enhanced profitability.
  • 5Research and Development expenses increased by 27% year-over-year for the quarter, demonstrating continued investment in innovation.
  • 6Marketing, selling, and administrative expenses rose by 31% for the quarter, supporting commercial efforts for key products.
  • 7Cash and cash equivalents increased significantly to $9.79 billion as of September 30, 2025, up from $3.27 billion at the end of 2024.

Frequently Asked Questions

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.

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.

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.

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.