Eli Lilly Raises 2026 Revenue Guidance to $91bn to $92bn as Q3 Sales Rise 39%
Eli Lilly raised its 2026 revenue guidance by $5.5 billion at the midpoint on 29 October, after third-quarter revenue rose 39%, driven mainly by Mounjaro and Zepbound.
For shareholders, stronger sales did not lift the earnings outlook. The company’s non-GAAP earnings-per-share guidance moved down to a range of $35.00 to $36.00. Acquired research and development charges of $4.57 a share from third-quarter deals more than offset a $4.07 lift to the underlying outlook.
In The Edge’s reading, the new range points to a fourth quarter close to the third rather than a further step up. It implies fourth-quarter revenue of $23.8 billion to $24.8 billion, The Edge’s calculation from the nine-month total. That range brackets the third quarter’s $24.4 billion.
The third quarter also included an estimated $900 million of benefits, by the company’s account, among them $410 million of Jardiance milestones that will not recur. Matching that quarter would therefore need growth elsewhere in the business.
Mounjaro and Zepbound bring in nearly two-thirds of revenue
Revenue reached $24.4 billion in the quarter, up from $17.6 billion a year earlier. Volume rose 53% while realized prices fell 15%.
Mounjaro and Zepbound, both sold as tirzepatide, made up 65.9% of revenue, against 57.4% a year earlier. Mounjaro alone brought in $10.7 billion, up 65%. Zepbound revenue rose 49% to $5.4 billion.
Against the second quarter, group revenue rose 6.2%. Year-on-year growth slowed from 48% in the second quarter. Quarter on quarter, Mounjaro grew 7.8% and Zepbound 8.6%.
US revenue rose 34% to $15.1 billion. US volume rose 41%, led by Zepbound and Mounjaro, while prices fell 7%, mainly on Zepbound.
Outside the US, revenue rose 47% to $9.3 billion. Prices there fell 29%, which the company tied mainly to Mounjaro’s inclusion on China’s National Reimbursement Drug List.
Jardiance sales milestones outside the US were more than double the $200 million of a year earlier.
Newer medicines grew from a smaller base. Kisunla revenue rose 175% to $193 million. Foundayo, Lilly’s oral GLP-1, brought in $184 million, against no sales a year earlier.
Selected revenue, third quarter (in $ millions)
| Product | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Mounjaro | 10,723 | 6,515 | 65% |
| Zepbound | 5,352 | 3,588 | 49% |
| Jaypirca | 228 | 143 | 59% |
| Ebglyss | 202 | 127 | 59% |
| Kisunla | 193 | 70 | 175% |
| Foundayo | 184 | Nil | NM |
| Omvoh | 114 | 65 | 76% |
| Inluriyo | 73 | Nil | NM |
| Total revenue | 24,397 | 17,601 | 39% |
Changes as the company prints them; NM means not meaningful, and Nil marks no sales reported a year earlier.
Acquisition charges cut the operating margin as gross margin widens
Gross margin widened to 83.9% of revenue from 82.9%, on product mix and lower production costs, partly offset by lower realized prices, the company said. Research and development spending rose 23% to $4.2 billion. That was 17% of revenue.
Operating income rose 17%, less than half the pace of revenue. Acquired in-process research and development charges reached $4.2 billion, against $656 million a year earlier, mainly for the AtaiBeckley and Curevo acquisitions.
The operating margin narrowed to 35.3% from 41.8%.
The company’s performance margin, defined as gross margin less research and development and marketing, selling and administrative costs, leaves those charges out. On that definition, using the company’s non-GAAP gross margin, the quarter came to 54.2% on The Edge’s calculation, against 48.3% a year earlier.
Net income rose 16% to $6.5 billion. Reported earnings per share were $7.22. Non-GAAP earnings per share rose 7% to $7.48.
The acquired research charges took $4.57 off earnings per share in the quarter, against $0.71 a year earlier. The effective tax rate rose to 23.3% from 22.8%, which the company attributed mainly to nondeductible acquired research charges.
Third-quarter income statement (in $ millions)
| Line | Q3 2026 | Q3 2025 | Change |
|---|---|---|---|
| Revenue | 24,397 | 17,601 | 39% |
| Gross margin | 20,464 | 14,593 | 40% |
| R&D | 4,247 | 3,466 | 23% |
| Marketing and admin | 3,125 | 2,741 | 14% |
| Acquired IPR&D | 4,181 | 656 | NM |
| Operating income | 8,608 | 7,365 | 17% |
| Net income | 6,451 | 5,583 | 16% |
Reported basis. Changes as the company prints them; NM means not meaningful. Marketing and admin is marketing, selling and administrative expense.
Nine-month sales reach $67.2 billion as Lilly lifts its outlook
Revenue for the first nine months rose 46% to $67.2 billion. Net income rose 50% to $20.9 billion.
The company also raised its full-year performance margin guidance to a range of 52.0% to 52.5%.
The guidance assumes an estimated 894 million shares outstanding and a euro rate of 1.13 dollars, the company said. It excludes acquired research charges incurred after 30 September.
Full-year 2026 guidance
| Measure | Prior | Updated |
|---|---|---|
| Revenue | $85bn to $87bn | $91bn to $92bn |
| Performance margin | 49.0% to 50.5% | 52.0% to 52.5% |
| Tax rate | 18% to 19% | 19% to 20% |
| EPS, non-GAAP | $35.50 to $36.50 | $35.00 to $36.00 |
Prior figures are the ranges the company printed beside the update on 29 October; performance margin, tax rate and EPS are non-GAAP.
Regulatory news listed with the results included US approval of Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes. Onswik, a once-weekly basal insulin, was also approved for adults with type 2 diabetes.
In the pipeline, retatrutide produced positive topline results against Ozempic 2 mg in a head-to-head Phase 3 trial in adults with type 2 diabetes. Phase 3 trials of EloraTZP are due to start in the fourth quarter of 2026.
After the quarter ended, Lilly completed its acquisition of Merida Biosciences, which works on autoimmune and allergic diseases. Dividends paid in the third quarter rose 15% to $1.73 a share.
What to watch: Lilly’s Innovation Day takes place on 7 December, starting at 14:00 GMT.
Figures are from Eli Lilly and Company’s third-quarter 2026 results release of 29 October 2026, filed with the US Securities and Exchange Commission on Form 8-K, and its second-quarter release of 5 August 2026. Percentages and comparisons not attributed to a source are The Edge’s calculations.
Sources: Eli Lilly and Company, The Edge.
