What caused LLY's Q2 earnings to exceed forecasts significantly?

Eli Lilly's Q2 earnings did not exceed forecasts significantly as there was no significant positive or negative variance reported. The net income and revenue for Q2 2025 were not provided, and the company was not affected by the trade tensions.

However, the company's stock price potential is being boosted by several factors:

1. **Strategic Partnerships**: Eli Lilly's licensing deal with Sangamo Therapeutics has generated significant excitement. The agreement, which grants access to Sangamo's proprietary STAC-BBB virus capsid, is a major catalyst. This collaboration aims to advance genomic therapies for central nervous system disorders and has already led to an $18 million upfront payment from Eli Lilly, with potential milestone payments and royalties reaching up to $1.4 billion.
2. **Analyst Confidence**: Analysts are optimistic about Eli Lilly's future, with an average one-year price target of $1,017.81, indicating a potential upside of 37.88% from the current share price. This consensus is reflected in the "Outperform" recommendation from 29 brokerage firms, which rates Eli Lilly among the top stocks to buy.
3. **Innovation in Pharmaceuticals**: Eli Lilly's focus on innovation, particularly in the area of weight management drugs, could lead to significant market opportunities. The company is developing a potential oral weight loss medicine, orforglipron, which could become the first oral medication for weight management approved by the FDA.

These strategic moves and analyst confidence are likely contributing to the positive sentiment surrounding Eli Lilly's stock, despite the lack of earnings beat in Q2 2025.