Eli Lilly and Company (NYSE:LLY) Releases Quarterly Earnings Results, Beats Expectations By $1.77 EPS

Eli Lilly and Company (NYSE:LLY) posted its earnings results on Thursday. The company reported $7.48 earnings per share (EPS) for the quarter, topping the consensus estimate of $5.71 by $1.77, FiscalAI reports. Eli Lilly and Company had a return on equity of 93.68% and a net margin of 31.90%. The firm had revenue of $24.40 billion for the quarter, compared to analyst estimates of $22.58 billion. During the same quarter in the prior year, the company earned $7.02 EPS. Eli Lilly and Company’s revenue was up 38.6% on a year-over-year basis.

Here are the key takeaways from Eli Lilly and Company’s conference call:

• Q3 revenue rose 39% to approximately $24 billion, driven by Mounjaro, Zepbound, and broad strength across oncology, immunology, and neuroscience. Lilly raised its 2026 guidance to $91–$92 billion in revenue and $35–$36 in non-GAAP EPS.
• The incretin franchise continued to accelerate, with Mounjaro and Zepbound generating more than $16 billion in combined quarterly revenue. The Medicare GLP-1 Bridge Program has served more than 500,000 prescriptions, with seven in 10 new bridge patients choosing a Lilly obesity medicine.
• Lilly reported encouraging pipeline and regulatory progress, including strong retatrutide results versus semaglutide, positive data for the eloralintide/tirzepatide combination, and U.S. approvals for weekly basal insulin Onswik, expanded pirtobrutinib use, and new tirzepatide and imlunestrant indications.
• Pricing remains a significant headwind, with U.S. realized price declining 10% excluding a favorable rebate adjustment, while expanded Medicare and Medicaid access and self-pay growth are expected to pressure net price per prescription in 2027. Management also cautioned that roughly $2 billion of 2026 one-time benefits will not recur next year.
• Lilly is investing heavily for long-term growth, breaking ground on $11.5 billion of new U.S. manufacturing capacity and adding pipeline assets through the AtaiBeckley and Merida acquisitions, while maintaining a broad set of late-stage programs across oncology, neuroscience, and immunology.

Eli Lilly and Company Stock Up 3.1%

LLY traded up $41.94 on Friday, reaching $1,415.64. The company’s stock had a trading volume of 5,246,333 shares, compared to its average volume of 2,376,343. The company has a market capitalization of $1.33 trillion, a price-to-earnings ratio of 45.95, a P/E/G ratio of 1.73 and a beta of 0.46. Eli Lilly and Company has a fifty-two week low of $834.19 and a fifty-two week high of $1,449.68. The company has a quick ratio of 1.00, a current ratio of 1.35 and a debt-to-equity ratio of 1.41. The stock has a 50 day moving average of $1,197.72 and a two-hundred day moving average of $1,092.57.

Eli Lilly and Company Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, December 10th. Investors of record on Friday, November 13th will be paid a dividend of $1.73 per share. The ex-dividend date is Friday, November 13th. This represents a $6.92 annualized dividend and a yield of 0.5%. Eli Lilly and Company’s payout ratio is presently 22.46%.

Insiders Place Their Bets

In other news, CAO Donald Zakrowski sold 2,000 shares of the company’s stock in a transaction on Monday, August 10th. The shares were sold at an average price of $1,185.01, for a total value of $2,370,020.00. Following the completion of the transaction, the chief accounting officer owned 1,526 shares in the company, valued at approximately $1,808,325.26. This represents a 56.72% decrease in their position. The sale was disclosed in a filing with the SEC, which is accessible through this link. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, EVP Patrik Jonsson sold 6,500 shares of the firm’s stock in a transaction dated Monday, August 17th. The stock was sold at an average price of $1,175.10, for a total value of $7,638,150.00. Following the transaction, the executive vice president directly owned 54,147 shares in the company, valued at approximately $63,628,139.70. The trade was a 10.72% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last quarter, insiders have sold 13,500 shares of company stock valued at $15,958,170. 0.14% of the stock is owned by corporate insiders.

Key Headlines Impacting Eli Lilly and Company

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

• Positive Sentiment: Q3 results substantially beat expectations. Revenue rose 39% year over year to $24.4 billion, while adjusted EPS was $7.48 versus the $5.68 consensus estimate. Mounjaro sales increased 65% to $10.7 billion and Zepbound sales rose 49% to $5.35 billion. Lilly third-quarter results
• Positive Sentiment: Lilly raised its 2026 revenue forecast to $91 billion-$92 billion, up from $85 billion-$87 billion previously. Strong demand, broader Medicare access and growing middle-income adoption are supporting expectations for continued GLP-1 expansion. Q3 earnings call highlights
• Positive Sentiment: Analysts raised their price targets and maintained bullish ratings. Scotiabank lifted its target to $1,605 with a “sector outperform” rating, Morgan Stanley raised its target to $1,596 with an “overweight” rating, and RBC moved to $1,600 with an “outperform” rating. Analyst commentary
• Positive Sentiment: Pipeline and portfolio diversification offer additional upside. Positive Phase 3 retatrutide data strengthened Lilly’s competitive position against Novo Nordisk, while oncology, immunology and neuroscience products are beginning to contribute more meaningfully. Lilly growth opportunities
• Negative Sentiment: Investors face execution and valuation risks. Realized prices fell 15%, meaning volume growth must continue to offset pricing pressure. Results also benefited from roughly $900 million in one-time items, and acquired in-process research charges weighed on earnings. With GLP-1 drugs representing a large share of revenue and the stock near its high, expectations are elevated. Reuters earnings report

Wall Street Analysts Forecast Growth

LLY has been the subject of several recent research reports. Argus raised their price objective on shares of Eli Lilly and Company from $1,300.00 to $1,550.00 and gave the company a “buy” rating in a research note on Friday. Sanford C. Bernstein reaffirmed an “outperform” rating and set a $1,450.00 target price on shares of Eli Lilly and Company in a research note on Monday, October 26th. Royal Bank Of Canada increased their target price on shares of Eli Lilly and Company from $1,500.00 to $1,600.00 and gave the stock an “outperform” rating in a report on Friday. TD Cowen reissued a “buy” rating and issued a $1,250.00 price target on shares of Eli Lilly and Company in a research report on Tuesday, September 22nd. Finally, BMO Capital Markets restated an “outperform” rating and issued a $1,650.00 price target on shares of Eli Lilly and Company in a research note on Friday. One investment analyst has rated the stock with a Strong Buy rating, twenty-four have given a Buy rating, three have given a Hold rating and one has assigned a Sell rating to the company. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $1,398.43.

Eli Lilly and Company Company Profile

Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company that discovers, develops, manufactures and markets medicines for a range of medical conditions. Its major therapeutic areas include diabetes and obesity, oncology, immunology, neuroscience and cardiovascular health.

The company’s portfolio includes Mounjaro and Trulicity for diabetes, Zepbound for chronic weight management, Humalog insulin, Taltz for inflammatory diseases, Verzenio for certain breast cancers and Kisunla for early symptomatic Alzheimer’s disease.