Eli Lilly's Q2 Earnings to Focus on Oncology Segment Performance

Eli Lilly's Q2 earnings are expected to be driven by growth in the oncology segment, with sales estimated at $2.4 billion, a 11% YoY increase. Sales of Verzenio and Retevmo are likely to have contributed positively, while declining sales of older cancer drugs like Alimta and Cyramza may have offset gains. Shares have outperformed the industry year-to-date, but the stock is expensive with a P/E ratio of 29.66. EPS estimates for 2025 have risen to $21.99.

Eli Lilly and Company (LLY) is expected to report strong second-quarter (Q2) earnings, driven primarily by robust growth in its oncology segment. According to analysts, sales from the oncology division are estimated to reach $2.4 billion, marking an 11% year-over-year (YoY) increase [2]. This growth is largely attributed to the performance of key drugs like Verzenio and Retevmo, which are likely to have contributed positively to top-line growth during the quarter.

Verzenio, a blockbuster breast cancer drug, is expected to have driven significant sales, benefiting from increased demand and higher realized prices. Similarly, Retevmo, a RET inhibitor, and Jaypirca, a newer lymphoma drug, are also anticipated to have contributed positively to sales. However, these gains might have been partially offset by the declining sales of older cancer drugs like Alimta and Cyramza, which are facing competition from immuno-oncology agents in the United States [2].

Shares of Eli Lilly have outperformed the industry year-to-date, as seen in the chart below. However, the stock is considered expensive, with a price-to-earnings (P/E) ratio of 29.66, higher than its industry average of 14.91. Despite this, the stock is trading below its five-year mean of 34.54. EPS estimates for 2025 have risen to $21.99 over the past 30 days, indicating analyst optimism [2].

Investors will be closely tracking Lilly's sequential growth and market share trends in the upcoming Q2 earnings report, scheduled for release on August 7. While the oncology segment is a key driver of growth, the company's primary focus remains on its blockbuster GLP-1 medicines, Mounjaro and Zepbound, which serve multiple therapeutic areas, including diabetes and obesity.

References:
[1] https://finance.yahoo.com/news/3-things-matter-eli-lilly-141500708.html
[2] https://www.nasdaq.com/articles/how-will-eli-lillys-oncology-drugs-perform-q2-earnings