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Pharma & Biotech

Eli Lilly shares soar after Q4 beat, strong forecast on weight-loss drugs

Eli Lilly and Co (NYSE:LLY) shares surged 9.5% in Wednesday morning trading after the drugmaker posted fourth-quarter results that topped Wall Street expectations and issued a robust forecast for 2026, fueled by soaring demand for its weight‑loss treatments.

The company reported revenue of $19.29 billion for the fourth quarter, up 43% from a year earlier and well above analysts’ estimate of $18.01 billion. Adjusted earnings per share climbed 42% to $7.54, beating the Street’s forecast of $6.99.

Growth was led by its weight‑loss drugs Mounjaro and Zepbound. Mounjaro generated $7.41 billion in sales, up 110% year-on-year, while Zepbound contributed $4.26 billion, up 123% from the prior year. Both exceeded consensus expectations.

“Revenue in Q4 2025 increased 43% to $19.3 billion driven by volume growth from Mounjaro and Zepbound,” the company said.

Looking ahead, Eli Lilly issued full-year 2026 guidance well above forecasts, projecting revenue between $80 billion and $83 billion and non-GAAP earnings per share of $33.50 to $35, compared with analysts’ expectations of $77.7 billion in revenue and $33.24 in EPS.

Other key metrics for the quarter included a gross margin of 82.5%, a non-GAAP gross margin of 83.2%, $3.8 billion in R&D expenses, and $3.1 billion in marketing, selling, and administrative costs.

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