Eli Lilly recently announced its third-quarter earnings, demonstrating robust financial performance that exceeded market expectations. The pharmaceutical company reported a significant increase in both revenue and earnings, leading it to raise its full-year guidance. The strong demand for its prominent weight loss drug Zepbound and diabetes treatment Mounjaro has been a major contributor to this success, prompting a notable upsurge in the company’s stock, which rose 5% in premarket trading.
Adjusting its fiscal outlook, Eli Lilly expects revenue for the entire 2025 fiscal year to reach between $63 billion and $63.5 billion, up from the previous estimate of $60 to $62 billion. The company also anticipates full-year adjusted profits to fall between $23 and $23.70 per share, an increase from the previous guidance of $21.75 to $23 per share.
Eli Lilly’s latest financial results reflect various factors, including existing tariffs imposed by the Trump administration, but notably exclude any potential future tariffs on pharmaceuticals imported into the United States.
In the third quarter alone, Mounjaro alone generated $6.52 billion in revenue, marking a staggering 109% increase year-over-year, significantly surpassing analysts’ forecasts of $5.51 billion. Similarly, Zepbound reported revenue of $3.57 billion, an impressive 184% rise from the same quarter last year and slightly exceeding expectations of $3.5 billion.
In summary, Eli Lilly achieved third-quarter revenue of $17.60 billion, a 54% increase compared to the previous year, with U.S. sales rising 45% to $11.30 billion. This surge was primarily fueled by a 60% increase in prescription volumes, particularly for Mounjaro and Zepbound, although the company faced some downward pressure due to lower realized prices for its drugs.
Eli Lilly’s net income reached $5.58 billion, equating to $6.21 per share, a sharp increase from last year’s net income of $970.3 million, or $1.07 per share. When excluding one-time adjustments related to intangible assets, earnings stood at $7.02 per share for the quarter, well above the $5.69 expected by analysts.
These results highlight Eli Lilly’s strong position in the burgeoning GLP-1 drug market, where it has captured significant market share over the past year due to the effectiveness of its weight loss and diabetes treatments, as well as enhanced direct-to-consumer sales strategies. Looking ahead, the company is optimistic about its experimental obesity pill, orforglipron, which is expected to further cement its dominance in the evolving landscape of obesity and diabetes therapies. Meanwhile, competition remains fierce; Novo Nordisk recently launched a rival bid for Metsera, a U.S. obesity biotech firm, in a strategic move to bolster its foothold in the sector as it strives to keep pace with Eli Lilly.
