Eli Lilly Stock Soars 4%: LLY Crushes Q2 Earnings as Mounjaro and Zepbound Drive Record Sales
Eli Lilly (NYSE: LLY) shares increased more than four percent after impressive second quarter earnings results.
Quick overview
- Eli Lilly's shares rose over four percent following a strong Q2 earnings report, with revenue growth of 48% to nearly $23 billion.
- The company's adjusted earnings per share increased to over $8, driven by robust sales of its obesity medications, Mounjaro and Zepbound.
- Lilly raised its full-year sales expectations to between $85 billion and $87 billion, reflecting confidence in its GLP-1 product line.
- Despite facing pricing pressures and competition, Lilly's strong pipeline and manufacturing expansion position it well for long-term growth.
Eli Lilly (NYSE: LLY) shares increased more than four percent after impressive second quarter earnings results. The company reported revenue growth of forty eight percent to almost twenty three billion dollars. Adjusted earnings per share grew to over eight dollars as a result of increased sales of Mounjaro and Zepbound. Lilly anticipates even stronger sales of its GLP-1 products and increased its full year sales expectations to between eighty five and eighty seven billion dollars.
Lilly’s earnings results also indicate that the company is the leader in the developing obesity medication market. Although there is a risk of increased pricing pressure and over-reliance on the GLP-1 medication line, Lilly’s blockbuster sales, added the ability to expand manufacturing, and a strong portfolio of late stage drugs improves the prospects of Lilly as a long-term investment.
Mounjaro and Zepbound Deliver Another Blowout Quarter
Lilly’s second quarter earnings results was one of the best reported this cycle. Sales increased forty eight percent year on year to a record almost twenty three billion dollars. Lilly’s sales also surpassed the Street’s expectations of just over twenty billion dollars.
Net income also grew twenty five percent to seven point one billion dollars. Reported earnings were seven dollars and ninety four cents, while Lilly’s adjusted earnings increased to eight dollars and thirty eight cents giving the company a significant earnings beat of over six dollars.
Lilly also reported a significant in-process research and development charge of three dollars and three cents per share for the Orna and Ajax acquisitions, which added a positive operational effect beyond the earnings.
The primary revenue driver was Lilly’s obesity and diabetes product lines. Mounjaro’s quarterly revenue was almost ten billion dollars (an increase of ninety one percent year on year). Zepbound’s quarterly revenue was almost five billion dollars contributing to a much stronger quarter for Lilly. Combined, the two medicines produced around $14.87 billion, or almost 65%, of total quarterly company revenue.
Official Q2 2026 Earnings Report:
https://investor.lilly.com/static-files/ab69001c-650b-44f6-b629-309ee33f2335/
Lilly Extends Its Lead Over Novo Nordisk
These results show Eli Lilly continues to be the most competitive company with highest market share against all competitors within the global market of obesity medications. Together, the sales of Mounjaro and Zepbound were much greater than the total sales of Novo Nordisk’s obesity and diabetes related medications.
There is also an increase with sales internationally. Sales outside of the U.S. increased 80% to $8.6 billion total with a 113% increase in sales volume. U.S. sales also increased 33% to a total of $14.4 billion.
The company did experience a decrease in sales price with an overall sales price decrease of 13% and an international sales price decrease of 36%. This is partially due to Mounjaro being placed on the reimbursement list in China.
Lower relative pricing does increase market access, increases potential sales volume, and makes reimbursement more valuable. This all means that for Lilly to remain profitable from this new market access, they have to be more efficient in manufacturing.
Guidance Raised as Manufacturing Expansion Continues
Lilly’s projected total sales for 2026 has also increased to a new total estimate of $85-$87 billion compared to their previous estimate of $82-$85 billion. In addition, Lilly also increased their project non-GAAP earnings by approximately $2.78 per share at midpoint.
Management also guided an unanticipated $4.5 billion spend of new capital on their Indiana manufacturing facilities to support the production of their new obesity medications, Foundayo and retatrutide.
Lilly management believes that the new manufacturing facilities will support their goal of fulfilling demand for their key products that exceeds their current production capacity.
Pipeline Expansion from Beyond GLP-1 Medications
As Mounjaro and Zepbound revenue streams dominate the market, Lilly invests heavily on the therapies that follow. There was a $98 million revenue stream from Lilly’s first oral medication for the treatment of obesity, Foundayo, during its first fully operational quarter. Analyst predictions were slightly higher, estimating revenue streams would reach $103 million.
The first revenue stream from Foundayo was on the lower end, but the treatment of oral obesity is a highly anticipated and fast growing market due to the convenience of oral therapies over injectable ones. Promising clinical results continue for Lilly’s next generation therapy retatrutide. In the most recent Phase 3 clinical trial, subjects with obesity and a co-morbid diagnosis of Type 2 diabetes, exhibited a maximum weight loss of 20.8% over an 80 week period.
It is anticipated that Lilly will submit a request for the therapy to enter the U.S. market sometime during the first quarter of 2027. Lilly continues to pursue therapies for the realm of oncology, neuroscience, and genetic medicines, as evidenced by its proposed acquisition of AtaiBeckley for $3.8 billion, in order to strengthen its therapies for the treatment of depression.
Valuation Remains the Biggest Debate
Eli Lilly holds one of the highest valuations in the industry following another impressive quarter. Trading at $1,162 puts Eli Lilly’s market capitalization at over $1 trillion and the stock at 41 times its one-year forward earnings.
At this level of premium, the market expects Lilly to not miss on earnings. For investors, future pricing, increased competition particularly from Novo Nordisk, unknown impacts from changes in the regulatory landscape, and greater dependence on Lilly’s GLP-1 line of drugs will increase the risk profile of Lilly’s stock.
On the other hand, Lilly has an impressive late-stage pipeline and continues to penetrate more markets and expand manufacturing with the first movers advantages with GLP-1.
Eli Lilly Technical Analysis: Bulls Need a Break Above $1,198
Trading at $1,166, Lilly’s stock has consolidated after a strong rebound from the support zone at $1,119. The long-term ascending trendline has been defended, and the stock has crossed the 50 period EMA at $ 1,156 and the 100 period EMA at $ 1,166. Bullish momentum is stronger, but resistance at $1,198 remains.
If $1,198 is a confirmed closing price on the daily candle, the outlook will target $1,233 and early price discovery at $ 1,261. The RSI suggests a strengthening of momentum with the focus on buying, but not in the overbought zone with the RSI at mid 50s.
Key Levels
- Resistance: $1,198, $1,233, $1,261
- Support: $1,153, $1,119, $1,089
Trade Setup
- Entry: Buy on a confirmed close above $1,198
- Targets: $1,233, then $1,261
- Stop Loss: $1,153
Eli Lilly breaking and holding above $1,153 maintains a cautious bullish outlook and targets a new resistance level of $1,198.
Frequently Asked Questions
Why is Eli Lilly stock rising today?
Eli Lilly stock increased as a result of the impressive quarterly report of Q2 earnings, record revenues of $22.97 billion, adjusted earnings per share of $8.38, and the upward revision of the sales expectation for the year to between $85 billion and $87 billion, which were attributed to the drug Zepbound and Mounjaro.
How much revenue did Mounjaro and Zepbound generate?
The revenue from the two drugs was approximately $14.87 billion in Q2, which was approximately 65% of Eli Lilly’s revenue.
What is the biggest risk for Eli Lilly?
The biggest risks for Eli Lilly include a premium valuation, an increased reliance on GLP-1 drugs, and a highly competitive market for drugs in the obesity space and price pressure from new reimbursement programs.
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