Why did LLY's Q3 earnings fall short of expectations?

Eli Lilly's Q3 earnings fell short of expectations due to several key factors: 1. **Revenue Growth**: Although Lilly's revenue increased by 42%, driven by strong sales of its diabetes drug Mounjaro and cancer drug Zepbound, the growth was not enough to meet market expectations. The company's third-quarter revenue was $11.44 billion, a 20% year-over-year increase, but it missed the consensus of $12.10 billion. 2. **Strategic Investments and Pipeline Development**: The company's strategic investments and pipeline developments are likely to impact short-term profitability. For instance, the significant investment in Mounjaro's manufacturing capacity and the development of new indications for existing drugs may temporarily strain financial performance. In summary, while Eli Lilly's revenue growth and product performance show potential, the shortfall in earnings can be attributed to higher-than-expected costs and investments, which impacted profitability.