Eli Lilly and Company reported first-quarter 2026 revenue of $19.8B, an increase of 56% versus Q1 2025, driven by a 65% rise in volume partially offset by a 13% decline from lower realized prices. Key Products revenue, including Ebglyss, Inluriyo, Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound (excluding Verzenio from Q1 2026 onward), reached $13.4B, led by Mounjaro and Zepbound and showing 160% growth in the Immunology, Oncology, and Neuroscience franchises. U.S. revenue grew 43% to $12.1B on 49% higher volume and 7% lower prices, while revenue outside the U.S. rose 81% to $7.7B on 95% volume growth and a 25% price decline, reflecting factors such as Mounjaro’s addition to China’s National Reimbursed Drug List.
On a reported basis, Q1 2026 net income was $7.4B, up from $2.8B in Q1 2025, with reported earnings per share (EPS) increasing 170% to $8.26. Reported EPS included $0.52 per share of acquired in‑process research and development (IPR&D) charges, compared with $1.72 per share in the prior-year quarter. Non‑GAAP net income was $7.7B versus $3.0B a year earlier, and non‑GAAP EPS rose 156% to $8.55, also including $0.52 of acquired IPR&D versus $1.72 in Q1 2025. The reported effective tax rate was 16.4% (20.2% in Q1 2025), and the non‑GAAP effective tax rate was 16.5%, with both periods affected by discrete tax benefits and the prior-year impact of a non‑deductible IPR&D charge.
Gross margin increased 54% to $16.2B on a reported basis (82% of revenue) and to $16.4B on a non‑GAAP basis (82.6% of revenue), with both margins slightly lower as a percentage of revenue than in Q1 2025, primarily due to lower realized prices. Research and development expenses rose 28% to $3.5B, or 18% of revenue, reflecting continued investment in early- and late‑stage programs. Marketing, selling, and administrative expenses increased 19% to $2.9B, driven largely by promotional activities for current and planned launches. Acquired IPR&D charges were $584M, down from $1.6B in Q1 2025, when charges were mainly tied to the acquisition of Scorpion Therapeutics’ PI3Kα inhibitor program STX‑478. Asset impairment, restructuring and other special charges totaled $279M, primarily related to litigation; Q1 2025 included $35M of intangible asset impairments.
Mounjaro revenue more than doubled, rising 125% year over year to $8.7B globally. U.S. Mounjaro sales increased 59% to $4.2B on strong demand and lower prices partially offset by a favorable one‑time rebate and discount adjustment. Outside the U.S., Mounjaro revenue grew from $1.2B to $4.4B, driven by volume growth and lower realized prices associated with China NRDL inclusion. U.S. Zepbound revenue increased 79% to $4.1B versus $2.3B a year earlier, reflecting demand and partially offset by lower prices, including previously announced cash‑pay reductions and a favorable one‑time pricing adjustment. Other key products also contributed, including Jaypirca ($165M, up 79%), Ebglyss ($145M, up 141%), Kisunla ($124M versus $22M), Omvoh ($80M versus $37M), and Inluriyo ($35M, versus no revenue in Q1 2025.
Lilly updated its 2026 financial guidance to reflect stronger-than-expected Q1 performance. The company now projects full‑year revenue of $82B to $85B, up from prior guidance of $80B to $83B. It also increased its non‑GAAP EPS guidance range to $35.50–$37.00 from $33.50–$35.00 and raised its performance margin target to 47.0%–48.5% from 46.0%–47.5%. The non‑GAAP outlook assumes a tax rate of 18%–19%, excludes acquired IPR&D incurred after March 31, 2026, and is based on approximately 895M shares outstanding and specified foreign exchange assumptions.
During the quarter, Lilly reported significant regulatory and pipeline milestones. The U.S. Food and Drug Administration approved Foundayo (orforglipron), described as the only GLP‑1 pill for weight loss that can be taken any time of day without food or water restrictions. The company also highlighted positive Phase 3 results for Foundayo in adults with type 2 diabetes and obesity or overweight at increased cardiovascular risk; Jaypirca in combination with venetoclax and rituximab for relapsed or refractory chronic lymphocytic leukemia or small lymphocytic lymphoma; Taltz plus Zepbound in adults with psoriasis and obesity or overweight; and retatrutide in type 2 diabetes. Additional data updates were reported across its EBGLYSS, Omvoh, Retevmo, and other programs.
Lilly’s business development activity in early 2026 included agreements to acquire Orna Therapeutics (cell therapies), Centessa Pharmaceuticals (sleep‑wake disorder treatments), Kelonia Therapeutics (in vivo CAR‑T cell therapies), and Ajax Therapeutics (myelofibrosis and polycythemia vera). The company also launched the Lilly Employer Connect platform with more than 15 independent program administrators to provide tailored obesity coverage options. Lilly announced plans to host an Investment Community Meeting on December 7, 2026, to further discuss its long-term strategy and portfolio.
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