Eli Lilly (LLY) Stock: Strong Earnings Beat Sends Shares Soaring on Weight-Loss Drug Growth

TLDR

• Eli Lilly reported Q4 adjusted earnings of $7.54 per share, beating analyst expectations of $6.91
• Quarterly revenue reached $19.3 billion, exceeding the $17.9 billion estimate and up 43% year-over-year
• Mounjaro revenue more than doubled to $7.4 billion while Zepbound revenue jumped 123% to $4.3 billion
• Full-year 2026 guidance projects revenue between $80-83 billion, above analyst expectations of $77.6 billion
• Shares jumped 8.3% in premarket trading despite closing down 3.9% Tuesday following Novo Nordisk’s weak outlook

Eli Lilly delivered a knockout punch with its fourth-quarter earnings report. The pharmaceutical giant crushed Wall Street’s expectations on both the top and bottom lines.

The company posted adjusted earnings of $7.54 per share for Q4. Analysts had only expected $6.91 per share. That’s a 42% jump from the $5.32 reported in the same quarter last year.

Revenue told an even better story. Lilly brought in $19.3 billion for the quarter. That beat the Street’s estimate of $17.9 billion by a healthy margin.

Eli Lilly and Company, LLY

The real stars of the show were Mounjaro and Zepbound. These weight-loss drugs continue to dominate the market. Mounjaro revenue more than doubled to $7.4 billion from $3.5 billion in the prior year.

Zepbound revenue climbed 123% year-over-year to $4.3 billion. That’s up from $1.9 billion in 2024. Volume growth drove these impressive numbers across both brands.

Looking Ahead to 2026

Lilly’s guidance for 2026 gave investors even more reason to cheer. The company expects full-year revenue between $80 billion and $83 billion. Analysts were only looking for $77.6 billion.

Adjusted earnings should land between $33.50 and $35 per share. Wall Street had penciled in $33.04 per share. CEO David Ricks highlighted the company’s position as it enters its 150th year.

He pointed to the deep pipeline and platforms like LillyDirect as key growth drivers. The stock responded predictably. Shares jumped 8.3% in premarket trading Wednesday.

This comes after a rough Tuesday. The stock closed down 3.9% following weak guidance from Novo Nordisk. Novo is Lilly’s main competitor in the weight-loss drug space.

Competition Heats Up

The weight-loss drug market is getting crowded. Rivals are working on more convenient delivery methods. Some are developing oral medications. Others are testing once-monthly injections.

Lilly isn’t sitting still. The company is developing orforglipron, an oral weight-loss pill. Recent regulatory submissions went to authorities in the U.S., Japan, and the European Union.

In November, Lilly made a deal with the U.S. government. The agreement offers tirzepatide at lower prices for cash-paying patients. It also reduces costs for Medicare and Medicaid plans.

The lowest dose of Zepbound now costs $299 monthly for cash customers. Higher doses run $449. That’s down from the previous pricing of $350 to $500 per month.

Orforglipron will cost even less once approved. Cash-paying customers will pay $149 for the lowest dose. Higher doses max out at $399 monthly.

Beyond weight loss, Lilly has other revenue streams. Verzenio treats specific types of breast cancer. Worldwide revenue for this drug grew 3% to $1.6 billion in Q4.

International Verzenio sales jumped 18% on volume growth. Domestic sales slipped 4% during the quarter. The company also attributed growth to the launch of Inluriyo and the global expansion of Kisunla.

Lilly increased manufacturing capabilities during the quarter. This expansion helps meet growing demand for its obesity medicines. The U.S. government agreement also opened new access channels.

Heading into the report, LLY shares had fallen 6.6% in 2026. The S&P 500 gained 1.1% over the same period. Over the past 12 months, the stock was still up 19.15%.

Wall Street analysts remain bullish on Lilly. The consensus rating is Strong Buy based on 17 Buy and two Hold ratings. The average price target sits at $1,204.22, representing a 20% upside from current levels.

Performance margin guidance for 2026 ranges from 46% to 47.5%. The expected tax rate is between 18% and 19%. These projections give investors clear visibility into next year’s performance.

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