Eli Lilly’s first-quarter earnings and revenue figures have significantly exceeded analysts’ expectations, driving the company to raise its full-year sales forecast by $2 billion. The pharmaceutical giant reported robust demand for its weight loss drug Zepbound and diabetes treatment Mounjaro, leading to a revised revenue outlook for 2026. The company now anticipates revenue in the range of $82 billion to $85 billion, compared to the earlier estimate of $80 billion to $83 billion. Additionally, Eli Lilly adjusted its full-year profits forecast to between $35.50 to $37 per share, up from the previous estimate of $33.50 to $35.
Mounjaro’s revenue surged by 125% to reach $8.66 billion during the quarter, with U.S. sales accounting for $4.2 billion, surpassing the expected $7.26 billion in worldwide sales. Similarly, Zepbound brought in $4.16 billion in U.S. revenue for the quarter—an 80% increase from the same period last year—also exceeding expectations that stood at $4.04 billion.
Eli Lilly has strengthened its position in the rapidly growing market for GLP-1 drugs, capturing 60.1% of the U.S. obesity and diabetes drug market in the first quarter, while its main competitor, Novo Nordisk, held 39.4%. The company’s first-quarter earnings per share were reported at $8.55, substantially above the $6.66 expected by analysts. Total revenue for the quarter reached $19.80 billion, a significant 56% increase year-over-year, with U.S. revenue climbing 43% to $12.1 billion. This surge was largely attributed to a 49% rise in prescriptions for its leading products, Mounjaro and Zepbound, although lower prices for Zepbound and other medications tempered this growth.
Lilly’s net income for the quarter stood at $7.40 billion, or $8.26 per share, a notable increase from $2.76 billion, or $3.06 per share, the previous year. After making adjustments for one-time items related to intangible assets, the company reported earnings of $8.55 per share.
The company also introduced a new GLP-1 pill for obesity, Foundayo, which launched in the second quarter and is not included in the latest earnings report. Early indications from Eli Lilly’s CEO, David Ricks, show that over 20,000 individuals have begun using Foundayo, with more than 1,000 new patients starting treatment each day. Early data suggest this rollout has been modest, a point noted by analysts who remain cautious about its potential to compete with Novo Nordisk’s Wegovy.
Looking ahead, Eli Lilly expects to benefit from the rollout of Foundayo next quarter, along with anticipated Medicare coverage for obesity treatments and sustained global demand for both Mounjaro and Zepbound. However, the company is preparing for potential pricing pressures stemming from governmental drug pricing agreements and lower cash pay prices for Zepbound.
Despite these challenges, Ricks expressed optimism, predicting that lower prices could promote higher prescription volumes in the U.S., with expectations that the global market for GLP-1 medications could expand from about 20 million patients at the end of last year to 30 million by late 2026.
