Eli Lilly and Company (NYSE: LLY) reported second-quarter 2026 revenue of $23 billion on August 5, an increase of 48% from the same quarter of 2025. The company attributed the increase primarily to higher volumes of its Mounjaro and Zepbound medicines.
Mounjaro treats type 2 diabetes and Zepbound treats obesity, both based on the compound tirzepatide. Reported revenue growth reflected a 60% increase in volume, partially offset by a 13% decline in realized prices, according to the company.
#Mounjaro and Zepbound Lead Revenue Higher
Worldwide Mounjaro revenue rose 91% to $9.9 billion in the quarter. U.S. revenue for the diabetes treatment increased 45% to $4.8 billion, while revenue outside the United States rose 172% to $5.2 billion.
U.S. Zepbound revenue increased 44% to $4.9 billion, which Lilly said reflected demand and previously announced reductions in cash-pay prices. Total company revenue in the United States rose 33% to $14.4 billion.
Revenue outside the United States increased 80% to $8.6 billion. The company said lower realized prices abroad were driven mainly by the addition of Mounjaro to China's National Reimbursement Drug List.
Revenue from the company's Key Products group reached $15.7 billion, led by Mounjaro and Zepbound. Gross margin rose 50% to $19.7 billion, or 85.8% of revenue, an increase of 1.5 percentage points from the prior-year quarter.
#Lilly Raises Full-Year Revenue and Earnings Guidance
Lilly raised its 2026 revenue guidance to a range of $85 billion to $87 billion, from a prior range of $82 billion to $85 billion. The company cited continued revenue performance in the first half of the year.
Non-GAAP earnings per share guidance was updated to a range of $35.50 to $36.50, from $35.50 to $37.00. The company said underlying business growth added $2.78 at the midpoint, offset by $3.03 in acquired IPR&D charges from business development activity.
Reported earnings per share for the quarter rose 26% to $7.94, and non-GAAP earnings per share rose 33% to $8.38. Both figures included $3.03 of acquired IPR&D charges, compared with $0.14 a year earlier.
Reported net income increased 25% to $7.1 billion, and non-GAAP net income rose 32% to $7.5 billion. The reported effective tax rate was 23.3%, up from 16.5% a year earlier, which the company said reflected the tax impact of non-deductible acquired IPR&D charges.
"Lilly's momentum continues, as we delivered 48% revenue growth and raised our full-year guidance," said David A. Ricks, Lilly chair and CEO, in the earnings release.
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#Regulatory Approvals and Retatrutide Data Advance the Pipeline
During the quarter, the U.S. Food and Drug Administration approved Ebglyss for one maintenance dose every eight weeks in patients with moderate-to-severe atopic dermatitis. The European Commission approved Jaypirca as a monotherapy for adults with chronic lymphocytic leukemia across all lines of therapy.
The company also submitted its oral GLP-1 medicine orforglipron for type 2 diabetes for review in the United States.
Lilly reported positive data from three additional Phase 3 trials of retatrutide, an experimental obesity medicine. The company said the clinical data package now supports planned global registrations for obesity, obstructive sleep apnea, and knee osteoarthritis pain, and that it intends to submit a Biologics License Application to the FDA in the first quarter of 2027.
Lilly competes primarily with Novo Nordisk in incretin-based therapies for diabetes and obesity. The two companies account for most of the GLP-1 class treatments that have expanded rapidly across both markets.
Acquired IPR&D charges totaled $2.8 billion in the quarter, compared with $154 million a year earlier. Lilly said the charges related primarily to its acquisitions of Orna Therapeutics and Ajax Therapeutics.
The company completed four acquisitions during the quarter and committed an additional $4.5 billion to expand its manufacturing sites in Indiana.
Lilly said its guidance excludes acquired IPR&D charges incurred after June 30 and assumes stated foreign exchange rates. The company identified regulatory approval timelines, competition, pricing pressures, and the outcome of acquisitions and business development transactions among the factors that could affect its outlook.