Eli Lilly and Company

Q3 revenue grew 39% year over year, with revenue increasing nearly $7 billion versus Q3 25. Gross margin as a percentage of revenue was 84.4%, up 80 basis points year over year, and non-GAAP performance margin was 54.2%, up 5.9 percentage points. Non-GAAP EPS was $7.48, compared with $7.20 in Q3 25; both periods included acquired IPR&D charges, with this quarter at $4.57 versus $0.71 a year ago. Management raised 2026 guidance to revenue of $91 billion to $92 billion, non-GAAP performance margin of 52.5%, and non-GAAP EPS of $35 to $36. Lucas said 2026 revenue benefited from about $2 billion of one-time items not expected to recur. He also said the company expects continued U.S. volume growth, the full-year impact of Medicare GLP-1 Bridge access, and the launch of Foundayo in type 2 diabetes next year, while net realized price remains a headwind offset by volume growth.

David Ricks characterized the quarter as another period of solid execution, highlighting strong financial results, pipeline advancement, and manufacturing expansion. He emphasized that Lilly is leading what he described as the largest new category expansion in pharma history, especially in incretins, while also pushing growth in oncology, immunology, and neuroscience. His tone was confident and long-term oriented, stressing that the company is investing now to support durable global growth and broader access through efforts like the Medicare Bridge program and Lilly Direct.

Lucas Montarce said revenue grew 39%, gross margin reached 84.4%, and non-GAAP EPS was $7.48, with the quarter also benefiting from approximately $900 million of previously mentioned items such as milestones and rebate/discount estimate changes. He explained that U.S. revenue rose 34% on Zepbound and Mounjaro volume, Europe grew 29% in constant currency, Japan rose 26%, China 62%, and rest of world 87%, all driven largely by Mounjaro. On guidance, he said Lilly now expects 2026 revenue of $91 billion to $92 billion, non-GAAP performance margin of 52.5%, and non-GAAP EPS of $35 to $36, and noted that 2026 revenue included about $2 billion of non-recurring one-time items. He also framed 2027 as likely to see continued volume growth, more Medicare/Medicaid access, and persistent price pressure more than offset by volume.

Analysts focused heavily on whether Lilly’s raised guidance reflects a bigger-than-expected incretin market or demand pulled forward. Management said the surprise has mainly been better-than-expected uptake in the Medicare Bridge program, stronger international out-of-pocket demand, and overall confirmation that the company is still early in market penetration. Questions on persistency, Bridge mix, and future access prompted management to say Zepbound adherence has been strong, Bridge is drawing about 75% injectable use with roughly 80% treatment-naive patients, and commercial access should stay relatively stable while Medicare and Medicaid expand. Analysts also pressed on Lilly’s longer-term pipeline and M&A, and management emphasized ongoing work in oncology, neuroscience, and immunology, with more data expected at the December 7 Investor Day.