01—Abstract
Summary
Summary of the 8-K filed February 4, 2026. Cited figures are marked; the original filing is the authoritative source.
Eli Lilly reported fourth-quarter 2025 revenue of $19.3 billiona, up 43% year over year, driven by a 46% increase in volume partially offset by a 5% decline in realized prices.
Growth was led by Mounjaro (Q4 revenue of $7.4 billionb, up 110%) and Zepbound (U.S. revenue of $4.2 billion, up 123%). Reported EPS rose 51% to $7.39 and non-GAAP EPS rose 42% to $7.54, both including a $0.52 acquired IPR&D charge. For full-year 2025, revenue reached $65.2 billion (up 45%) and reported EPS was $22.95 (up 96%), with non-GAAP EPS of $24.21.
Gross margin held at roughly 82.5% on a reported basis, while R&D rose 26% to $3.8 billionc and marketing, selling and administrative expenses rose 29% to $3.1 billion. The reported effective tax rate increased to 19.7% from 12.5%, partly reflecting unfavorable jurisdictional mix and U.S. tax law changes. Lilly guided 2026 revenue to $80 to $83 billion and non-GAAP EPS to $33.50 to $35.00, which implies substantial further growth relative to 2025.
The guidance excludes acquired IPR&D incurred after December 31, 2025, and assumes about 894 million shares outstanding. Management also guided to a performance margin of 46.0%d to 47.5% and a tax rate of 18% to 19%. The release highlights a broad pipeline and regulatory agenda, including FDA approval of Kwikpen for tirzepatide, an expanded Jaypirca indication, regulatory submissions for orforglipron for obesity, and positive Phase 3 retatrutide results in knee osteoarthritis, along with a U.S. government agreement to expand access to obesity medicines.
Investors should weigh the strong top-line momentum against several risks noted in the filing: continued pricing pressure, the effect of the U.S. government pricing agreement, competition in obesity, dependence on a small number of products, and rising R&D and commercial spending. The 2026 guidance is a non-GAAP estimate, and the company explicitly states that it cannot reconcile forward-looking non-GAAP measures to GAAP.
02—Key points
Key Highlights
- Q4 2025 revenue rose 43% to $19.3 billion, driven by a 46% volume increase, partly offset by a 5% decline in realized prices.
- Mounjaro Q4 revenue reached $7.4 billion (up 110%), and U.S. Zepbound revenue reached $4.2 billion (up 123%), underscoring the incretin franchise's dominance.
- Q4 reported EPS was $7.39 (up 51%) and non-GAAP EPS was $7.54 (up 42%), both including a $0.52 acquired IPR&D charge.
- Full-year 2025 revenue was $65.2 billion (up 45%), and reported EPS was $22.95 (up 96%) versus non-GAAP EPS of $24.21.
- 2026 guidance calls for revenue of $80 to $83 billion and non-GAAP EPS of $33.50 to $35.00, excluding future acquired IPR&D charges.
- Q4 R&D expense rose 26% to $3.8 billion (20% of revenue), and MS&A rose 29% to $3.1 billion, reflecting pipeline investment and launch promotion.
- The reported effective tax rate rose to 19.7% from 12.5%, pressured by jurisdictional earnings mix and U.S. tax law changes; 2026 guidance assumes 18% to 19%.
03—Questions
Frequently Asked Questions
How strong was Lilly's fourth-quarter 2025 growth?
Revenue grew 43% to $19.3 billion, with U.S. revenue up 43% to $12.9 billion and outside-U.S. revenue up 43% to $6.4 billion. Growth was driven primarily by volume, which rose 46%, while realized prices fell 5%.
What is the 2026 outlook?
Lilly guided to 2026 revenue of $80 to $83 billion, non-GAAP EPS of $33.50 to $35.00, a performance margin of 46.0% to 47.5%, and a tax rate of 18% to 19%. The guidance assumes approximately 894 million shares outstanding and excludes acquired IPR&D charges after December 31, 2025.
Why did reported EPS differ from non-GAAP EPS?
In Q4 2025, non-GAAP EPS ($7.54) exceeded reported EPS ($7.39) mainly because of intangible asset amortization of $0.11 and asset impairment, restructuring and other special charges of $0.07, partly offset by a $0.03 gain on equity securities. Both measures include the $0.52 acquired IPR&D charge.
What are the main risks flagged in the filing?
The filing cites pricing pressure and the implementation of the voluntary U.S. government drug pricing and access agreement, intense competition, reliance on a small number of products, the expiration of patents and competition from generics and biosimilars, manufacturing and supply chain issues, tax law changes, and macroeconomic and tariff-related uncertainty. The company also flags clinical and regulatory risk for its pipeline, including orforglipron and retatrutide.
What pipeline and regulatory developments matter most?
Key developments include FDA approval of Kwikpen for tirzepatide and an expanded Jaypirca indication, submissions for orforglipron for obesity in the U.S. and Japan and for obesity and type 2 diabetes in the EU, positive Phase 3 retatrutide data in knee osteoarthritis, and Phase 3 data for Taltz combined with Zepbound in psoriatic arthritis. Future approvals and trial outcomes will affect the 2026 growth trajectory.
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