Eli Lilly Raises 2025 Targets, Q2 Earnings Exceed Expectations

Eli Lilly raised its FY 2025 adjusted EPS target range to $21.75-$23, up from $20.78-$22.28, and increased its midpoint revenue guidance for the current fiscal year by $1.5bn to $60bn-$62bn. Q2 adjusted EPS jumped 61% to $6.31, well above consensus, on revenue up 38% to $15.6bn, driven by volume growth for Zepbound and Mounjaro. The company's pipeline continued to advance, with positive results from studies in oncology and cardiometabolic health.

Eli Lilly and Company (NYSE: LLY) reported robust second-quarter 2025 financial results, with revenue surging 38% to $15.6 billion. The company's adjusted earnings per share (EPS) increased 61% to $6.31, significantly outperforming consensus estimates. This strong performance was driven by volume growth for key products, Zepbound and Mounjaro.

The company raised its full-year 2025 adjusted EPS target range to $21.75-$23, up from $20.78-$22.28. Additionally, Eli Lilly increased its midpoint revenue guidance for the current fiscal year by $1.5 billion to $60 billion-$62 billion. These revisions reflect the company's strong performance and updated foreign exchange rate expectations.

Key drivers of the company's growth include Zepbound and Mounjaro, which saw revenue increases of 172% and 68%, respectively. These products are establishing Eli Lilly as a dominant player in the rapidly expanding weight loss and diabetes markets.

Eli Lilly's pipeline continues to deliver breakthroughs, with positive results from studies in oncology and cardiometabolic health. The ATTAIN-1 study for orforglipron, an oral GLP-1 receptor agonist for obesity, demonstrated substantial weight loss efficacy. Additionally, the SURPASS-CVOT trial showed that tirzepatide (Mounjaro) demonstrated cardiovascular protection.

Despite the strong results and raised guidance, Eli Lilly's stock dropped 14.38% in premarket trading, falling to $639.01. This negative reaction suggests that investors had higher expectations for the company's performance, particularly for the performance of Mounjaro and Zepbound. The loss of CVS template plan access for Zepbound and the efficacy data for orforglipron may have contributed to investor caution.

Eli Lilly will need to continue executing flawlessly to meet investors' high expectations and maintain its strong growth trajectory.

References:
[1] https://www.stocktitan.net/news/LLY/lilly-reports-second-quarter-2025-financial-results-and-raises-x1d7b3x3u2th.html
[2] https://ca.investing.com/news/company-news/eli-lilly-q2-2025-slides-revenue-up-38-raises-guidance-despite-stock-drop-93CH-4142887