Eli Lilly Crushes Third-Quarter Estimates and Lifts 2026 Revenue Outlook to $91 Billion

Eli Lilly reported third-quarter earnings and revenue on Thursday that blew past Wall Street estimates, and the drugmaker raised its full-year sales outlook for the third straight quarter. Booming demand for its weight loss drug Zepbound and its diabetes treatment Mounjaro drove the results. The company’s shares rose about 4% in premarket trading.

The results show that the world’s most valuable healthcare company is not slowing down. Lilly beat revenue expectations by roughly $1.8 billion and exceeded profit forecasts by a wide margin. One product did disappoint, though: its new obesity pill sold below analyst expectations.

Lilly Tops Wall Street Forecasts by a Wide Margin

Lilly posted adjusted earnings of $7.48 per share for the quarter, compared with the $6.26 analysts expected, according to a survey by LSEG. Revenue reached $24.40 billion, well above the $22.61 billion Wall Street forecast. The numbers underline how much resilient demand for Zepbound and Mounjaro has fueled several strong quarters in a row.

• Earnings per share: $7.48 adjusted vs. $6.26 expected
• Revenue: $24.40 billion vs. $22.61 billion expected

Lilly delivered those gains even though it now collects lower net prices in the U.S. for its medications. Those lower prices followed a drug pricing deal the company struck with the Trump administration last year. Volume has more than made up the difference so far.

Full-Year Guidance Jumps Sharply Higher

The company now expects 2026 revenue between $91 billion and $92 billion. That compares with its previous guidance of $85 billion to $87 billion, a significant upward revision. Lilly has lifted its full-year sales outlook in each of the last three quarters.

The profit outlook looks more complicated on the surface. Lilly projects full-year adjusted earnings of $35 to $36 per share, versus a previous range of $35.50 to $36.50. The company explained that it raised its underlying profit guidance by $4.07 per share at the midpoint. Charges tied to deals in the quarter, totaling $4.57 per share, offset that increase.

Those charges reflect a broader strategy. Lilly is converting its massive profits into a dealmaking spree, and it most recently agreed to buy Merida Biosciences. The acquisition aims to develop a new class of treatments for serious autoimmune and allergic diseases.

Mounjaro Posts Another Blockbuster Quarter

Mounjaro’s worldwide revenue climbed 65% to $10.72 billion for the quarter. U.S. sales accounted for about $5 billion of that total. Analysts surveyed by StreetAccount had expected $10.10 billion in worldwide sales and $4.79 billion in U.S. revenue, so the drug cleared both bars comfortably.

Zepbound also contributed to the quarter’s strength, as demand for the weight loss treatment soared again. Lilly pointed to expanded U.S. coverage for obesity care as a tailwind. In particular, the company referred to Medicare’s decision in July to start covering GLP-1 drugs for weight loss under a temporary pilot program.

Lilly’s lead over its chief rival, Novo, in market share shows no sign of shrinking. The company continues to hold that advantage even as it absorbs lower U.S. net prices. Together, the pricing pressure and the market share lead define the current moment for the obesity drug market.

Foundayo Launch Falls Short of Expectations

Not every part of the report impressed investors and analysts. Sales of Foundayo, Lilly’s new GLP-1 obesity pill, came in below Wall Street’s expectations for the quarter. The drug launched in the U.S. in April, so it has been on the market for only a short time.

The miss stands out against the strength elsewhere in the portfolio. Zepbound and Mounjaro continue to carry the company’s growth, while the pill remains an early-stage launch. Investors will likely watch how quickly Foundayo builds momentum in the coming quarters.

Analysts Keep Lilly Among Their Favorites

Lilly’s report arrives as the broader stock market tries to find its footing. In that environment, investors have focused on stocks that are holding up and that equity analysts love most. One recent screen of seven stocks with strong earnings growth prospects named Amazon.com, Alphabet and Eli Lilly among its picks.

The third-quarter results give that view fresh support. Lilly beat both earnings and revenue estimates, raised its sales guidance sharply and kept its dealmaking engine running. The company also showed that it can grow quickly even while it accepts lower U.S. prices for its top drugs.

What the Results Mean Going Forward

Lilly’s massive diabetes and obesity windfall now funds both its expansion and its pipeline. The Merida Biosciences agreement signals that management wants to diversify beyond metabolic disease into autoimmune and allergic conditions. At the same time, the deal-related charges show that this expansion carries a real cost to near-term reported profit.

For investors, the key question is whether demand for Zepbound and Mounjaro can keep outpacing price pressure. The company’s raised revenue range of $91 billion to $92 billion suggests management feels confident that it can. Meanwhile, the underperforming Foundayo launch gives analysts one clear area to monitor as the obesity market evolves.

For now, the message from Thursday’s report is straightforward. Eli Lilly keeps beating forecasts, keeps raising its outlook, and keeps its lead in the most closely watched drug category in the industry.