10-QPeriod: Q1 FY2026

ELI LILLY & Co Quarterly Report for Q1 Ended Mar 31, 2026

Filed April 30, 2026For Securities:LLY

Summary

Eli Lilly and Company reported a substantial increase in financial performance for the first quarter of 2026 compared to the same period in 2025. Revenue surged by 56% to $19.8 billion, driven by strong volume growth, particularly from Mounjaro and Zepbound. This significant top-line growth, coupled with a higher gross margin and reduced acquired in-process R&D charges, led to a remarkable 168% increase in net income to $7.4 billion and a 170% rise in diluted earnings per share to $8.26. The company's strategic investments in research and development continue, with R&D expenses increasing by 28% to support its robust pipeline. Despite increased operational costs, Lilly demonstrated impressive operational efficiency and profitability. The company also continued its share repurchase program, buying back $2.3 billion in stock during the quarter, indicating confidence in its financial health and commitment to shareholder returns.

Financial Highlights

44 data points
Beta

Revenue

$19.80B

81.9% Gross Margin

Net Income

$7.40B

37.4% Net Margin

EPS (Diluted)

$8.26

Total Assets

$116.58B

Cash & Equivalents

$5.28B

Free Cash Flow

$5.33B

Financial Statements
Beta
Revenue$19.80B
Cost of Revenue$3.58B
Gross Profit$16.22B
SG&A Expenses$2.93B
Net Income$7.40B
EPS (Basic)$8.27
EPS (Diluted)$8.26
Shares Outstanding (Basic)894.50M
Shares Outstanding (Diluted)895.90M

Key Highlights

  • 1Revenue increased by 56% year-over-year to $19.8 billion, primarily driven by strong volume growth in Mounjaro and Zepbound.
  • 2Net income more than doubled, rising 168% to $7.4 billion, reflecting improved gross margins and lower R&D acquisition charges.
  • 3Diluted Earnings Per Share (EPS) saw a significant jump of 170% to $8.26.
  • 4Research and Development expenses increased by 28% to $3.5 billion, indicating continued investment in pipeline development.
  • 5The company repurchased $2.3 billion of its common stock during the quarter as part of its ongoing share repurchase program.
  • 6Acquired IPR&D charges decreased significantly by 63% to $584 million, positively impacting profitability.
  • 7The acquisition of Ventyx Biosciences for $1.1 billion was completed in March 2026, aimed at strengthening the inflammatory-mediated diseases portfolio.

Frequently Asked Questions

The primary drivers of Eli Lilly's revenue growth in the first quarter of 2026 were the increased volume of sales for Mounjaro and Zepbound. While overall volume increased significantly, realized prices saw a slight decrease, particularly for Zepbound and Taltz in the U.S. and for Mounjaro in China due to its addition to the National Reimbursed Drug List (NRDL).

The acquisition of Ventyx Biosciences for $1.1 billion in March 2026 contributed to 'Acquired in-process research and development' (IPR&D) costs, though these were significantly lower than the prior year's $1.6 billion charge related to the Scorpion Therapeutics acquisition. The Ventyx acquisition is expected to bolster Lilly's pipeline in inflammatory-mediated diseases. The preliminary fair value of assets acquired, including $977 million in IPR&D, is still being finalized.

Eli Lilly acknowledges ongoing global concerns regarding pharmaceutical pricing and access. The company has finalized voluntary agreements with the U.S. government, including discounted prices for certain drugs and Medicare access to obesity medicines via the Bridge Program. However, the company anticipates continued pressure from cost containment measures, potential changes in healthcare legislation like the Inflation Reduction Act (IRA), and various litigations and investigations related to pricing and market practices, which could impact future revenue and profitability.

The company reported significant progress in its clinical development pipeline. Key updates include FDA approval for orforglipron (Foundayo) for obesity, successful Phase 3 trial results for retatrutide for type 2 diabetes, and initiation of Phase 3 trials for baricitinib and eloralintide. These advancements highlight Lilly's commitment to innovation and its strategy to address significant unmet medical needs across various therapeutic areas.