Eli Lilly (LLY) Q4 2025 earnings

Eli Lilly On Wednesday, it reported fourth-quarter earnings, revenue and 2026 guidance that blew away previous estimates, as demand surged for blockbuster weight loss drug Zepbound and diabetes treatment Mounjaro.

The pharmaceutical giant expects its 2026 revenues to range between $80 billion and $83 billion. Analysts expected revenue of $77.62 billion, according to LSEG.

Lilly also expects adjusted earnings to range between $33.50 and $35 per share for the year. That compares to analyst estimates of $33.23 per share, according to LSEG.

The strong forecast comes days after Lilly CEO Dave Rex told CNBC in an exclusive interview that he expects the government’s upcoming Medicare coverage for obesity treatments to expand the U.S. market for these drugs this year, saying it’s a “huge multiplier on the eligible pool” of patients.

Lilly’s guidance comes in stark contrast to the forecasts of rival Novo Nordisk, which is also grappling with falling prices in the United States following landmark deals the two companies struck with President Donald Trump to lower the costs of obesity and diabetes drugs. In contrast to Lilly, Novo warned Tuesday that it expects sales and profits to decline this year, as prices fall in the United States and exclusivity for blockbuster obesity and diabetes drugs expires in China, Brazil and Canada.

Lilly is working to maintain its dominance in the booming market for those drugs, called GLP-1s, as Novo sees a huge US launch of its new obesity pill, Wegovy. Lilly hopes to gain approval for its oral weight-loss drug, orforgliprone, later this year.

Mounjaro generated revenue of $7.41 billion for the quarter, up 110% from the same period last year. Monjaro sales in the United States reached $4.1 billion, an increase of 57%, with demand rising but prices achieved being lower. These numbers exceeded what analysts had expected for the quarter, according to StreetAccount.

Zepbound, which has been in the market for nearly three years, had revenue of $4.2 billion for the fourth quarter. This represents a 122% increase on the same period the previous year, as demand for the drug also rose while realized prices fell. Analysts were expecting sales of $3.91 billion for Zepbound, according to StreetAccount.

Here’s what the company reported for the fourth quarter compared to what Wall Street was expecting, based on a survey of analysts conducted by LSEG:

• EPS: $7.54 was revised from $6.67 expected
• profit: $19.29 billion versus $17.96 billion expected

Shares of Eli Lilly rose more than 7% in premarket trading.

The company reported fourth-quarter revenue of $19.29 billion, up 43% from the same period last year.

Revenues in the United States rose to $12.9 billion. Eli Lilly said this was driven by a 50% increase in volume – or the number of prescriptions or units sold – for its products, particularly for Mounjaro and Zepbound. This was partially offset by lower prices achieved for those drugs, the company said.

The pharmaceutical giant had net income of $6.64 billion, or $7.39 per share, in the fourth quarter. This compares to net income of $4.41 billion, or $4.88 per share, the previous year.

Excluding one-time items related to the value of intangible assets and other adjustments, Eli Lilly reported earnings of $7.54 per share during the fourth quarter.

Novo and Lilly’s deals with Trump are expected to eventually increase the number of prescriptions but ultimately hurt overall sales.

Under the agreements, Lilly and Novo agreed to lower prices for those treatments for Medicare and Medicaid beneficiaries in 2026 and offer them directly to consumers at a discount on the Trump administration’s direct-to-consumer platform, TrumpRx, which has not yet launched.

In return, the two companies will also receive a three-year exemption from customs duties.

In an interview with CNBC on Friday, Lilly’s Ricks acknowledged that under the drug pricing deal, there will be a “pricing step-down” as early as this year. But he said the company’s drug volume growth “will accelerate in the latter half of the year.”