Eli Lilly and Company (NYSE:LLY) Shares Gap Up Following Strong Earnings

Shares of Eli Lilly and Company (NYSE:LLY) gapped up before the market opened on Wednesday following a stronger than expected earnings report. The stock had previously closed at $1,003.46, but opened at $1,075.12. Eli Lilly and Company shares last traded at $1,081.8480, with a volume of 1,494,382 shares trading hands.

The company reported $7.54 earnings per share for the quarter, beating analysts’ consensus estimates of $7.48 by $0.06. Eli Lilly and Company had a net margin of 30.99% and a return on equity of 109.52%. During the same period in the prior year, the business posted $5.32 earnings per share. The firm’s quarterly revenue was up 42.6% compared to the same quarter last year.

Eli Lilly and Company Increases Dividend

The company also recently declared a quarterly dividend, which will be paid on Tuesday, March 10th. Shareholders of record on Friday, February 13th will be issued a dividend of $1.73 per share. This represents a $6.92 dividend on an annualized basis and a yield of 0.6%. This is a positive change from Eli Lilly and Company’s previous quarterly dividend of $1.50. The ex-dividend date is Friday, February 13th. Eli Lilly and Company’s dividend payout ratio is currently 29.35%.

Trending Headlines about Eli Lilly and Company

Here are the key news stories impacting Eli Lilly and Company this week:

• Positive Sentiment: Q4 results beat expectations: adjusted EPS and revenue well above consensus, driven by volume growth. Eli Lilly sees 2026 profit above estimates on weight‑loss drug demand
• Positive Sentiment: Management issued 2026 guidance above Street estimates (revenue and profit outlook), signaling confidence in continued GLP‑1 growth. Eli Lilly blows past quarterly estimates, posts strong outlook as Zepbound and Mounjaro sales soar
• Positive Sentiment: Blockbuster drug momentum: Mounjaro and Zepbound sales doubled/grew triple digits in Q4 — primary driver of the beat and future cash flow expectations. Eli Lilly (LLY) Stock: Strong Earnings Beat Sends Shares Soaring on Weight-Loss Drug Growth
• Positive Sentiment: Capacity & pipeline investments: a $3.5B injectable manufacturing site and partnerships/biotech deals expand long‑term production and R&D optionality. Eli Lilly plans $3.5B injectable manufacturing site in Pennsylvania
• Neutral Sentiment: Strategic M&A/partnerships (Seamless Therapeutics, Veradermics, Zonsen) diversify pipeline beyond GLP‑1s — positive long term but not immediate EPS drivers. Eli Lilly Is Getting Into the Hearing Loss Market in a $1.12 Billion Deal With Seamless Therapeutics
• Neutral Sentiment: Analysts noted rising R&D and capacity spending could compress near‑term margins despite top‑line strength — monitor guidance vs. actual margins. Eli Lilly Q4 Preview: Wall St Sees Revenue Beat On Weight-Loss Heft But R&D Costs Could Drag Profits
• Negative Sentiment: Competitive and pricing pressures: Novo Nordisk’s warning and aggressive Wegovy pill launch have hammered sector sentiment and raised concerns about future pricing and share dynamics. Novo Nordisk (NVO) Stock: CEO’s Warning Sends Shares Into Freefall
• Negative Sentiment: U.S. pricing pressure (policy and payer negotiations) remains a material risk that could limit margin upside even as volumes grow. Eli Lilly Profit Rises as Weight-Loss Drug Demand Surges

Analyst Upgrades and Downgrades

Several research firms recently issued reports on LLY. Jefferies Financial Group raised their price target on Eli Lilly and Company from $976.00 to $1,300.00 and gave the company a “buy” rating in a report on Thursday, January 8th. Scotiabank began coverage on shares of Eli Lilly and Company in a research report on Thursday, November 13th. They set a “sector outperform” rating and a $1,165.00 price target on the stock. UBS Group reiterated a “buy” rating on shares of Eli Lilly and Company in a report on Monday. Loop Capital set a $950.00 price target on shares of Eli Lilly and Company in a report on Monday, November 10th. Finally, JPMorgan Chase & Co. upped their price objective on Eli Lilly and Company from $1,050.00 to $1,150.00 and gave the company an “overweight” rating in a research note on Tuesday, November 18th. Three investment analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have issued a Hold rating to the company. According to data from MarketBeat, the company has an average rating of “Moderate Buy” and an average target price of $1,162.75.

Hedge Funds Weigh In On Eli Lilly and Company

A number of hedge funds have recently modified their holdings of LLY. Maryland Capital Advisors Inc. acquired a new stake in Eli Lilly and Company in the 4th quarter valued at about $25,000. Miller Global Investments LLC purchased a new position in Eli Lilly and Company during the 4th quarter worth approximately $33,000. Dorato Capital Management purchased a new stake in Eli Lilly and Company in the 4th quarter valued at $36,000. New England Capital Financial Advisors LLC raised its holdings in Eli Lilly and Company by 142.9% during the fourth quarter. New England Capital Financial Advisors LLC now owns 34 shares of the company’s stock worth $37,000 after purchasing an additional 20 shares in the last quarter. Finally, Sumitomo Mitsui Financial Group Inc. purchased a new position in Eli Lilly and Company in the 2nd quarter valued at approximately $27,000. 82.53% of the stock is currently owned by hedge funds and other institutional investors.

Eli Lilly and Company Stock Performance

The company has a market capitalization of $1.02 trillion, a price-to-earnings ratio of 52.69, a PEG ratio of 0.79 and a beta of 0.39. The stock has a fifty day moving average price of $1,054.28 and a two-hundred day moving average price of $893.81. The company has a quick ratio of 1.24, a current ratio of 1.55 and a debt-to-equity ratio of 1.71.

Eli Lilly and Company Company Profile

Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company founded in 1876 and headquartered in Indianapolis, Indiana. The company researches, develops, manufactures and commercializes a broad range of medicines and therapies for patients worldwide. Eli Lilly maintains operations and commercial presence across North America, Europe, Asia and other regions, serving both developed and emerging markets. The company has been led in recent years by President and Chief Executive Officer David A.