Eli Lilly's 2025 Surge Sets the Stage for Another Big Year in 2026

Eli Lilly and Company LLY announced fourth-quarter and full-year results last week. The company delivered robust financial performance in 2025 with revenues of $65.2 billion rising 45% and EPS growing 86% to $24.21. Revenue growth was driven by the robust uptake of Lilly’s popular GLP-1 drugs, Mounjaro for type II diabetes and Zepbound for obesity. In 2025, the drugs generated combined sales of $36.5 billion, comprising around 56% of the company’s total revenues.

Lilly’s other new products, like Ebglyss, Inluriyo, Jaypirca, Kisunla and Omvoh, also contributed to sales growth.

Along with its earnings results, Lilly also announced a bullish outlook for 2026. In 2026, Lilly expects to record revenues in the range of $80 billion to $83 billion, representing an increase of 25% at the midpoint. Earnings per share are expected to be in the range of $33.50 to $35.00, representing growth of more than 40% at the midpoint.

Lilly expects continued robust growth of Mounjaro and Zepbound in 2026, backed by continued strong demand trends. While newer drugs like Ebglyss, Jaypirca, Inluriyo, Kisunla and Omvoh are expected to contribute to growth in 2026, late-life cycle products like Trulicity, Taltz and Verzenio are expected to be flat or decline.

Sales of Trulicity are being hurt due to competitive dynamics, including patient switches to Mounjaro and lower realized prices, while soft demand trends in the United States are hurting Verzenio’s sales.

Adjusted gross margin is expected to be relatively stable to slightly down in 2026. R&D expenses are expected to increase in 2026 as the company expands its pipeline and plans to initiate more phase III studies in 2026. Marketing, selling and administrative expenses are also expected to rise in 2026.

Eli Lilly started 2026 on a strong footing after a standout 2025, powered by surging demand for Mounjaro and Zepbound. With revenues and earnings set to climb sharply, newer product launches gaining traction, and increased investment in R&D and commercialization, the company is positioning its growth engines even as some mature products face pressure.

Race to Make Oral Obesity Pill Intensifies

Competition in the obesity market is heating up. Mounjaro and Zepbound face strong competition from Novo Nordisk’s NVO semaglutide medicines, Ozempic for diabetes and Wegovy for obesity.

Novo Nordisk gained approval for an oral version of Wegovy in December 2025 and launched the pill in January 2026. Wegovy is the first oral GLP-1 drug to be approved in the United States, ushering in a new era of obesity treatment. The Wegovy pill gives NVO the first-to-market advantage and will initially bring in additional revenues, which may hurt Lilly’s market share. However, we believe Lilly may be able to close the gap fast, once its own oral GLP-1 obesity pill, orforglipron is approved by the FDA in 2026.

Smaller biotechs like Structure Therapeutics GPCR and Viking Therapeutics VKTX are also developing oral GLP-1 drugs for treating obesity.

LLY’s Stock Price, Valuation and Estimates

Lilly’s stock has risen 20.7% in the past year compared with the industry’s increase of 17.7%.

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From a valuation standpoint, Lilly’s stock is expensive. Going by the price/earnings ratio, LLY’s shares currently trade at 30.52 forward earnings, much higher than 18.76 for the industry. However, LLY’s stock is trading below its 5-year mean of 34.57.

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The Zacks Consensus Estimate for 2026 has risen from $33.14 per share to $33.28 per share over the past 30 days, while that for 2027 has risen from $41.53 to $41.72 per share over the same timeframe.

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LLY’s Zacks Rank

Lilly has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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