Eli Lilly and Company

Q2 2026 revenue grew 48% year over year. Gross margin was 86.3%, up about 1.3 percentage points from Q2 2025. Non-GAAP EPS was $8.38, versus $6.31 in Q2 2025. Non-GAAP performance margin was 54.8%, up 9 percentage points year over year. U.S. revenue rose 33%; Europe revenue grew 55% in constant currency; Japan rose 30%; China rose 93%; rest of world rose 136%, all in constant currency where noted. Mounjaro and Zepbound generated $14.9 billion of revenue and $6.3 billion of growth versus Q2 2025. Lilly raised full-year 2026 guidance to revenue of $85 billion-$87 billion, non-GAAP performance margin of 49%-50.5%, and non-GAAP EPS of $35.50-$36.50.

Dave Ricks framed the quarter as another step in Lilly’s strong momentum, emphasizing broad-based revenue growth, pipeline advancement, and new access wins. He highlighted increased coverage for obesity medicines through the Medicare GLP-1 Bridge program, plus international launches and approvals for Foundayo. His tone was confident but still execution-focused, saying Lilly is pleased with progress but “not satisfied” and remains focused on sustained long-term growth.

Lucas Montarce said revenue grew 48% year over year, gross margin was 86.3%, and non-GAAP EPS was $8.38, with the year-over-year comparison benefiting from higher volume and favorable mix. He noted SG&A rose 25% and R&D rose 14%, reflecting launch support and continued pipeline investment, including more than 40 active Phase 3 programs. On capital returns, management paid $1.5 billion in dividends and repurchased $1.6 billion of stock in the quarter. He also explained that U.S. pricing was affected by rebate and discount estimate changes and said the full-year guide was raised because of stronger-than-expected first-half performance.

Analysts focused on Foundayo’s rollout pace, competitive dynamics outside the U.S., retatrutide’s regulatory path, Medicare obesity access, and whether Q2 pricing and guidance imply a second-half slowdown. Management said Foundayo is now seeing an inflection in the U.S., with prescriptions almost doubling versus a month ago and new starts approaching 1 out of 4, while ex-U.S. launches have started well in the UAE and will expand into Mexico and Saudi Arabia. On retatrutide, Ricks said Lilly is pursuing a BLA pathway and still needs more CMC work, but has the clinical data package ready and expects submission in Q1 2027. On the Medicare Bridge program, management said access is expanding and early uptake has been positive, with about 80% of treated patients on injectables and roughly 60%-70% coming in as new to therapy.