Eli Lilly and Co (NYSE:LLY) shares rose nearly 7% in early trading Wednesday after the drugmaker reported second quarter results that topped Wall Street revenue expectations and raised its full-year 2026 revenue outlook, with strong demand for its Mounjaro and Zepbound weight-loss and diabetes treatments driving a sharp increase in sales.
Lilly reported second quarter revenue of $22.97 billion, up 48% from $15.56 billion a year earlier and above Wall Street estimates of roughly $20.6 billion.
Non-GAAP earnings per share rose 33% to $8.38 from $6.31 a year earlier, beating the consensus estimate of about $6.05.
The company attributed the revenue growth primarily to a 60% increase in volume, which was partially offset by a 13% decline in realized prices. Revenue from key products reached $15.7 billion, with the company's Immunology, Oncology and Neuroscience therapeutic areas posting 121% growth in key-product revenue from a year earlier.
Mounjaro revenue climbed to $9.94 billion, exceeding analyst expectations of about $8.93 billion, while Zepbound sales reached $4.93 billion, compared with estimates of approximately $4.67 billion.
U.S. revenue increased 33% to $14.4 billion, driven by a 37% increase in volume, primarily from Mounjaro and Zepbound. Realized prices in the US declined 3%, which Lilly attributed primarily to Mounjaro and Zepbound, partly offset by adjustments to estimates for rebates and discounts.
Revenue outside the U.S. rose 80% to $8.6 billion, driven by a 113% increase in volume and partially offset by a 36% decline in realized prices. Lilly attributed the international volume increase primarily to Mounjaro, while lower realized prices were driven in part by the addition of Mounjaro to China's National Reimbursement Drug List.
Lilly also benefited from a $250 million sales-based milestone related to Jardiance under its collaboration with Boehringer Ingelheim.
For the full year, Lilly raised its revenue outlook to $85 billion to $87 billion from its previous range of $82 billion to $85 billion. The company also raised its performance margin guidance to 49% to 50.5%, from 47% to 48.5% previously.
Lilly's underlying non-GAAP EPS outlook increased by $2.78 at the midpoint, reflecting stronger business performance. However, that increase was more than offset by $3.03 per share in acquired in-process research and development charges related to second-quarter business development activity. As a result, Lilly now expects full-year non-GAAP EPS of $35.50 to $36.50, compared with its previous range of $35.50 to $37.
"Lilly's momentum continues, as we delivered 48% revenue growth and raised our full-year guidance," Lilly CEO David Ricks said in the company’s earnings release.
"At the same time, Lilly is building for the future. With our next-generation weight-loss medicine retatrutide and its complete clinical data package in hand, new manufacturing capacity coming online, and exciting new assets entering our pipeline through business development, Lilly's future, after 150 years, has never been brighter."