Eli Lilly Lifts 2026 Revenue Target to $92 Billion as Drug Sales Soar

Eli Lilly reported third-quarter results on Wednesday that exceeded market expectations, prompting the company to raise its full-year sales outlook. The pharmaceutical giant now projects 2026 revenue between $91 billion and $92 billion, up from its previous estimate of $85 billion to $87 billion. This adjustment reflects sustained consumer demand for its leading obesity and diabetes treatments.

For the quarter, the company posted adjusted earnings of $7.48 per share on revenue of $24.40 billion. Analysts surveyed by LSEG had expected earnings of $6.26 per share and revenue of $22.61 billion. Net income came in at $6.45 billion, or $7.22 per share, which includes charges related to acquisitions made during the period. A year earlier, net income stood at $5.58 billion, or $6.21 per share.

Mounjaro, the company's diabetes treatment, drove a major portion of the growth with worldwide revenue rising 65% to $10.72 billion. U.S. sales accounted for approximately $5 billion, while sales outside the United States surged 93%. Zepbound, the weight loss drug, generated $5.35 billion in revenue, a 49% increase from the same period last year. Most of these sales originated in the U.S. market.

Despite strong volume, the company faced pressure on pricing. U.S. revenue climbed 34% to $15.1 billion, with a 41% increase in volume partially offset by a 7% decline in realized prices. Revenue outside the U.S. rose 47% to $9.3 billion, aided by a 76% volume surge that was partly counteracted by a 29% drop in realized prices. These lower U.S. prices followed a drug pricing agreement with the Trump administration last year.

Not all new products met targets. Foundayo, Lilly's GLP-1 obesity pill approved in April, generated $184 million in sales. This figure fell short of the roughly $229 million analysts anticipated. This was the second earnings report to include revenue from the pill, which competes with an oral drug from rival Novo Nordisk that launched in January.

The company also cited expanded U.S. coverage for obesity care, noting Medicare's decision in July to begin covering GLP-1 drugs for weight loss under a temporary pilot program. Lilly's leadership plans to use its profits for further acquisitions, including a recent agreement to buy Merida Biosciences for autoimmune treatments. CEO David Ricks was scheduled to discuss the results on CNBC TV at 9 a.m. ET.