Eli Lilly 2025 Q1 Earnings Beats Expectations with 23% Net Income Growth

Eli Lilly, ranked 13th by market capitalization, has announced its fiscal 2025 Q1 earnings results, with a remarkable 45.2% increase in total revenue to $12.73 billion, surpassing market expectations of $12.67 billion. The pharmaceutical giant has reaffirmed its revenue guidance for 2025 to be between $58.0 billion and $61.0 billion. However, Eli Lilly has lowered its full-year profit outlook due to a recent $1.57 billion deal charge primarily related to the acquisition of an oral cancer drug from Scorpion Therapeutics.

Revenue

Eli Lilly's first-quarter revenue surged by 45.2%, reaching $12.73 billion, compared to $8.77 billion in the same period last year. A significant portion of this growth was driven by Mounjaro, which generated $3.84 billion, followed by Zepbound at $2.31 billion. Verzenio also contributed with $1.16 billion, culminating in total segment revenue of $7.31 billion.

Earnings/Net Income

Eli Lilly's earnings per share (EPS) declined 85.4% to $0.34 in Q1 2025 from $2.36 in Q1 2024. However, the net income rose to $2.76 billion, marking a 23% increase from the previous year's $2.24 billion. Despite the EPS drop, the net income growth indicates strong profitability.

Post-Earnings Price Action Review

Eli Lilly's stock price tends to exhibit strong performance in the short term following earnings releases. A review of past earnings reports shows that the stock has a 3-Day win rate of 68.42%, a 10-Day win rate of 63.16%, and a 30-Day win rate of 63.16%. The maximum return observed after an earnings release within 30 days is 15.00%, with an optimal purchase time identified around 79 days post-release. This suggests a favorable trend for investors looking to capitalize on Eli Lilly's post-earnings price movements.

CEO Commentary

"Lilly had a solid start to the year, with 45% year-over-year revenue growth driven by strong sales of Mounjaro and Zepbound," said David A. Ricks, Chair and CEO of Eli Lilly. He highlighted the company's pipeline momentum, noting positive results for orforglipron in Type 2 diabetes trials and recent product approvals in oncology and immunology. To meet global demand for new medicines, Lilly is accelerating manufacturing investments, including plans for four new facilities.

Guidance

Eli Lilly reaffirmed its revenue guidance for 2025, projecting total revenue to be between $58.0 billion and $61.0 billion. The company emphasized its commitment to supporting growth through ongoing investments in its pipeline and manufacturing capabilities.

Additional News

In recent developments, Eli Lilly has announced plans to more than double its U.S. manufacturing investment since 2020, exceeding $50 billion. This strategic move aligns with efforts to meet increasing demand for its innovative medicines while supporting domestic production. Additionally, Eli Lilly has launched new savings opportunities for self-pay patients, particularly focusing on expanding Zepbound vial doses. Furthermore, the company has expanded its LillyDirect platform to enhance access to Alzheimer's disease care, showcasing its commitment to addressing critical health challenges. These initiatives reflect Eli Lilly's proactive approach towards strengthening its market position and fostering sustainable growth.