Lilly Raises Revenue Forecast After Strong Quarter

Eli Lilly raised its full-year 2026 revenue outlook on Thursday as strong demand for its injectable diabetes and weight-loss medicines drove better-than-expected quarterly results. The Indianapolis-based drugmaker now expects revenue of $91 billion to $92 billion, an increase of $5 billion from its previous forecast.

Third-quarter revenue reached $24.4 billion, exceeding analysts’ expectations of $22.61 billion, according to LSEG data. Adjusted earnings came in at $7.48 per share, compared with the $6.26 forecast.

The results reinforce Lilly’s position in the expanding GLP-1 drug market and support its competition with Danish rival Novo Nordisk. The company’s market valuation has reached approximately $1.2 trillion.

Lilly shares rose more than 6% in afternoon trading to $1,369.79 after briefly reaching a record high of $1,408.

Mounjaro and Zepbound Lead Sales Growth

Lilly’s injectable treatments remained the primary growth drivers. Mounjaro, its diabetes medicine, generated $10.72 billion in third-quarter sales, beating expectations of $10.16 billion. Zepbound, its obesity injection, delivered $5.35 billion, above the $5.09 billion forecast.

International demand also strengthened. Sales of Mounjaro outside the United States reached $5.7 billion, a 93% increase from the same quarter a year earlier.

The company also reported that more than 500,000 patients had accessed its obesity medicines through a Medicare pilot program launched in July for people aged 65 and older or those with disabilities. The program includes weight-loss medicines from both Lilly and Novo Nordisk.

The expansion of discounted access could broaden Lilly’s customer base, although lower prices may affect margins over time. The company’s historical cash-pay platform has charged $449 per month for its medicines.

Foundayo Misses Sales Expectations

Lilly’s newer oral obesity treatment, Foundayo, generated $184 million in third-quarter revenue, below analyst expectations of $216.86 million.

Chief Financial Officer Lucas Montarce attributed the shortfall to launch-quarter inventory effects rather than weak underlying demand. He said approximately $30 million in second-quarter revenue reflected inventory sold into distribution channels. Excluding that effect, US demand more than tripled to over $120 million from approximately $37 million.

Montarce also said Foundayo’s share of new-to-brand prescriptions doubled from the previous quarter to approximately 40%.

Despite the shortfall, the company’s broader commercial performance helped offset concerns about the pill’s rollout. Foundayo launched in the United States and Britain earlier in 2026, with additional European markets potentially following by year-end.

Lower Earnings Guidance Reflects Acquisition Costs

Despite raising its revenue forecast, Lilly reduced its 2026 adjusted earnings outlook to $35–$36 per share from $35.50–$36.50. The company attributed the reduction primarily to significant charges associated with its acquisitions of AtaiBeckley and Curevo.

Quarterly revenue also included approximately $900 million in benefits, primarily milestone payments linked to Jardiance and favorable adjustments to rebate and discount estimates. Lilly said it did not expect further milestone payments of the type received for Jardiance.

Pricing trends remain another factor to monitor. Realized prices declined 15% during the quarter, partly offsetting a 53% increase in sales volume. US prices fell 7%, while prices outside the United States declined 29%, driven largely by Mounjaro’s inclusion on China’s national reimbursement drug list.

What Investors Should Watch Next

Investors will monitor whether demand for Mounjaro and Zepbound continues to support Lilly’s higher revenue outlook, while tracking the commercial rollout of Foundayo and the effect of pricing changes on profitability.

Attention is also shifting toward retatrutide, Lilly’s next-generation weight-loss candidate, which the company plans to submit for regulatory review next year. Midstage trials showed average weight loss of 24%, according to the report.

The key question is whether Lilly can sustain strong growth across its injectable portfolio while expanding its oral treatments and managing pricing pressure, acquisition costs and future product development.