10-QPeriod: Q2 FY2026

ELI LILLY & Co Quarterly Report for Q2 Ended Jun 30, 2026

Filed August 5, 2026For Securities:LLY

Summary

Eli Lilly and Company (LLY) reported a strong financial performance for the six months ended June 30, 2026, with revenue soaring by 51% to $42.8 billion and net income increasing by 72% to $14.5 billion, driven by significant growth in its cardiometabolic health portfolio, particularly Mounjaro and Zepbound. Diluted earnings per share (EPS) also saw a substantial jump of 73% to $16.19. The company's strategic investments in research and development, alongside significant acquisitions, are fueling future growth, although these also contribute to increased expenses. The substantial increase in acquired in-process research and development (IPR&D) and asset impairment, restructuring, and other special charges highlight the active business development strategy. Despite these investments and higher operating expenses, Lilly demonstrated robust profitability and expanding gross margins. Financially, Lilly maintained a strong liquidity position, with cash and cash equivalents growing to $9.0 billion. The company also strategically managed its debt, issuing $9.0 billion in long-term debt to fund acquisitions and general corporate purposes. Shareholder returns remain a focus, with $3.1 billion in dividends paid and $4.0 billion in share repurchases during the period.

Key Highlights

  • 1Revenue surged 51% year-over-year to $42.8 billion for the six months ended June 30, 2026, primarily driven by Mounjaro and Zepbound.
  • 2Net income increased by 72% to $14.5 billion for the same period, reflecting strong revenue growth and improved gross margins.
  • 3Diluted EPS rose 73% to $16.19 for the six months ended June 30, 2026, indicating enhanced profitability on a per-share basis.
  • 4The company completed significant acquisitions in the first half of 2026, including Kelonia, Centessa, and Ventyx, totaling $13.3 billion in business development activity, which are expected to bolster the product pipeline.
  • 5Acquired in-process R&D (IPR&D) expenses saw a substantial increase, reaching $3.4 billion for the six months ended June 30, 2026, reflecting investments in new drug development.
  • 6Total debt increased by $12.4 billion to $54.9 billion as of June 30, 2026, largely due to new long-term debt issuances to fund acquisitions.
  • 7The company continues to return capital to shareholders, paying $3.1 billion in dividends and repurchasing $4.0 billion in stock during the first six months of 2026.

Frequently Asked Questions

The primary drivers of Eli Lilly's substantial revenue growth in the first half of 2026 are the strong performance and increased volume of its cardiometabolic health products, specifically Mounjaro and Zepbound. These products accounted for 65% of total revenue for the six months ended June 30, 2026, highlighting their critical role in the company's financial success. The company also saw growth in collaboration and other revenue, including milestones related to Jardiance.

Eli Lilly has made significant investments in business development through acquisitions, including Kelonia, Centessa, and Ventyx in the first half of 2026, totaling $13.3 billion. These acquisitions are reflected in a substantial increase in acquired in-process research and development (IPR&D) charges, which rose to $3.4 billion for the six months ended June 30, 2026. Additionally, asset impairment, restructuring, and other special charges increased due to acquisition and integration costs. While these increase short-term expenses, they are strategically aimed at enhancing the company's product pipeline and driving long-term growth.

Eli Lilly's financial position remains robust. Cash and cash equivalents increased to $9.0 billion as of June 30, 2026, up from $7.3 billion at the end of 2025. The company issued $9.0 billion in long-term debt in May 2026, primarily to fund acquisitions and for general corporate purposes, which increased its total debt to $54.9 billion. Despite the increase in debt, the company has ample liquidity with significant credit facilities available, and its operating cash flow generation is strong, indicating it can meet its financial obligations and capital requirements.

Eli Lilly is actively advancing its clinical development pipeline, with several promising updates. Key developments include the FDA approval of orforglipron (Foundayo) for obesity and submission for type 2 diabetes, a positive opinion for insulin efsitora alfa in the EU for type 2 diabetes, and initiation of Phase 3 trials for baricitinib (type 1 diabetes), eloralintide (obesity, OSA, OA pain), and brenipatide (major depressive disorder). Retatrutide's Phase 3 trials for obesity and type 2 diabetes met their primary endpoints. These advancements are crucial for future revenue streams, although they also contribute to increased R&D expenses, which grew by 21% for the first six months of 2026.