Eli Lilly Raises 2026 Outlook After Blockbuster Quarter Fueled by Zepbound and Mounjaro

Key facts

• Q1 2026 revenue rose 56% to $19.8 billion, beating analyst expectations of $17.62 billion.
• Adjusted EPS of $8.55 far exceeded the $6.66 forecast.
• Mounjaro worldwide revenue jumped 125% to $8.66 billion; U.S. sales were $4.2 billion.
• Zepbound U.S. revenue hit $4.16 billion, up 80% year-over-year.
• Lilly now holds 60.1% of the U.S. obesity and diabetes GLP-1 market; Novo Nordisk has 39.4%.
• Full-year revenue guidance raised to $82-$85 billion; adjusted EPS guidance raised to $35.50-$37.00.
• U.S. FDA approved Foundayo, the first GLP-1 pill without food or water restrictions.
• Lilly completed four acquisitions in Q1: Orna Therapeutics, Centessa Pharmaceuticals, Kelonia Therapeutics, and Ajax Therapeutics.

Record Quarter Driven by Weight-Loss and Diabetes Drugs

first-quarter 2026 earnings that smashed Wall Street expectations, propelled by surging demand for its blockbuster weight-loss injection Zepbound and diabetes treatment Mounjaro. Revenue soared 56% to $19.8 billion, while adjusted earnings per share hit $8.55 — far above the $6.66 analysts had predicted. Shares of the Indianapolis-based pharmaceutical giant jumped more than 10% in afternoon trading on Thursday as investors cheered the results. The company also raised its full-year revenue guidance by $2 billion, now expecting between $82 billion and $85 billion, and lifted its adjusted profit forecast to a range of $35.50 to $37.00 per share.

Mounjaro and Zepbound Post Double-Digit Growth Despite Price Declines

Mounjaro, the diabetes drug that is also widely prescribed off-label for weight loss, generated $8.66 billion in worldwide revenue during the quarter — a 125% increase from a year earlier and well above the $7.26 billion analysts had expected. U.S. sales of Mounjaro reached $4.2 billion. Zepbound, Lilly's dedicated obesity treatment that launched nearly three years ago, posted $4.16 billion in U.S. revenue, up 80% year-over-year. Analysts had forecast $4.04 billion. Both drugs saw volume increases that more than offset lower realized prices, which fell 13% overall due to pricing pressures in the U.S. and abroad.

Lilly Extends Market Dominance Over Novo Nordisk

Lilly's share of the U.S. obesity and diabetes GLP-1 drug market reached 60.1% in the first quarter, according to the company's earnings presentation. Its main rival, Novo Nordisk, held 39.4% of the market. The figures underscore Lilly's commanding lead in the booming GLP-1 sector, which has become one of the most competitive and lucrative areas in pharmaceuticals. The company's revenue growth was driven by a 65% increase in volume, partially offset by a 13% decline in realized prices. In the U.S., volume rose 49% while prices fell 7%. Outside the U.S., volume surged 95% but prices dropped 25%, largely due to the inclusion of Mounjaro on China's National Reimbursed Drug List.

Foundayo Approval Opens New Front in GLP-1 Pill Race

A key milestone in the quarter was the U.S. Food and Drug Administration's approval of Foundayo (orforglipron), a once-daily GLP-1 pill for adults with obesity or overweight with weight-related medical conditions. Lilly says Foundayo is the only approved GLP-1 pill that can be taken any time of day without food or water restrictions, potentially broadening access to patients who avoid injections. Foundayo launched in the second quarter, so its sales were not included in Thursday's report. The company also announced positive Phase 3 results for Foundayo in adults with type 2 diabetes and obesity or overweight at increased cardiovascular risk, as well as progress on other pipeline candidates including retatrutide for type 2 diabetes.

Aggressive Business Development and Pipeline Progress

Lilly continued to invest in future growth through four acquisitions completed in the first quarter: Orna Therapeutics, Centessa Pharmaceuticals, Kelonia Therapeutics, and Ajax Therapeutics. The deals span multiple therapeutic areas, though financial terms were not disclosed. Pipeline advancements included positive Phase 3 data for Jaypirca in combination with venetoclax and rituximab for certain blood cancers, and for Taltz and Zepbound used together in patients with psoriasis and obesity. The company's Key Products revenue — which includes Mounjaro, Zepbound, and others — grew to $13.4 billion in Q1, with immunology, oncology, and neuroscience products collectively up 160% year-over-year.

Outlook and Investor Meeting Scheduled

Lilly now expects full-year 2026 revenue in the range of $82 billion to $85 billion, up from the previous guidance of $80 billion to $83 billion. Adjusted earnings per share are forecast at $35.50 to $37.00, compared with the earlier outlook of $33.50 to $35.00. The company announced it will hold an Investment Community Meeting on December 7, 2026, to provide further strategic updates. CEO David A. Ricks said in a statement that 2026 is off to a strong start, citing the 56% revenue growth and the Foundayo approval as key achievements. He added that the company is continuing to invest in its future through acquisitions and pipeline development.

The bottom line

• Eli Lilly's Q1 2026 revenue surged 56% to $19.8 billion, beating estimates by over $2 billion.
• Mounjaro and Zepbound together generated $12.82 billion in sales, despite lower realized prices.
• Lilly now commands 60.1% of the U.S. GLP-1 market, far ahead of Novo Nordisk's 39.4%.
• The FDA approval of Foundayo gives Lilly the first GLP-1 pill without food or water restrictions.
• Full-year revenue guidance was raised to $82-$85 billion, and adjusted EPS guidance to $35.50-$37.00.
• Lilly completed four acquisitions in Q1 and has a pipeline with multiple positive Phase 3 readouts.