Eli Lilly Stock Soars with 38% Revenue Surge, Driven by Mounjaro and Zepbound Demand

Eli Lilly and Company (NYSE: LLY) reported robust financial results for the second quarter of 2025, with a notable 38% increase in revenue, amounting to $15.56 billion. This impressive growth was largely fueled by a rising demand for key products Zepbound and Mounjaro. The company's efforts in expanding its pipeline demonstrate significant progress, particularly in the fields of obesity treatments and cardiometabolic health. Positive results from studies involving Mounjaro's cardiovascular benefits and the oral incretin orforglipron for obesity further underscore Lilly's innovative advances.

The company's financial outlook has improved with an increased midpoint for full-year revenue guidance, now in the range of $60 billion to $62 billion. Reported earnings per share (EPS) guidance also saw an uplift, reaching a projected range of $20.85 to $22.10. On a non-GAAP basis, anticipated EPS is pegged between $21.75 and $23.00.

For Q2 2025, Eli Lilly achieved a 92% increase in EPS, tallying at $6.29 on a reported basis, while the non-GAAP EPS rose by 61% to $6.31. Both metrics include charges of $0.14 related to acquired IPR&D. Active business development saw the completion of acquisitions like SiteOne Therapeutics, Inc. and Verve Therapeutics, Inc., bolstering Lilly's commitment to long-term growth.

Revenue analyses reveal robust performance across the board. The U.S. market achieved a 38% rise, amounting to $10.81 billion, spurred by a 46% uptick in volume, although tempered by an 8% decline due to lower prices. Outside the U.S., revenue grew by 37% to $4.74 billion, driven primarily by Mounjaro. This international surge was enhanced by a favorable 3% shift in foreign exchange rates, offset slightly by pricing pressures.

Gross margin rose by 44% to $13.11 billion, cementing a margin of 84.3% of revenue—up by 3.5 percentage points. This margin increase is attributed largely to improved production costs and beneficial product mix, despite facing challenges from lower prices. Research and development expenditures grew by 23% to $3.34 billion, reaffirming Eli Lilly's strategic investment into its burgeoning portfolio. Marketing and administrative expenses increased by 30% to $2.75 billion, reflecting heightened promotional activities supporting current and future launches.

The financial results demonstrate Eli Lilly's effective management of tax rates, reporting an increase to 16.5% in Q2 2025 from 15.6% the previous year, attributed to the absence of favorable impacts seen from litigation charges previously.

Leading products such as Mounjaro continue to drive global revenue, with a notable 68% increase, illustrating prodigious demand and entry into new markets. Meanwhile, Zepbound boasted a striking 172% growth in U.S. revenue driven by significant demand. Verzenio's worldwide revenue grew by 12%, with U.S. gains of 8% and international growth at 19%.

Strategic developments highlight regulatory advancements including Donanemab's positive CHMP opinion for Alzheimer's disease and numerous FDA approvals, enhancing the therapeutic profile of medicines such as Kisunla and Amyvid. Clinical milestones reveal promising data from Lilly's innovative treatments, including demonstrated cardiovascular protection of Mounjaro and compelling outcomes from Jaypirca's head-to-head trials.

Eli Lilly's ongoing strategic acquisitions, such as Verve Therapeutics for cardiovascular advancements and SiteOne Therapeutics to broaden its pain management pipeline, fortify its developmental trajectory. Continued investment in collaborative ventures, like with Purdue University, further accentuates its commitment to pharmaceutical innovation.

Guidance for the entire 2025 year is optimistic, driven by strong portfolio performance and fluctuating foreign exchange rates, with anticipated revenue reaching $60 billion to $62 billion. Adjustments to performance margins are projected, with reported margins between 42.0% and 43.5% and non-GAAP margins ranging from 43.0% to 44.5%.

Investors are apprised of predicted adjustments in EPS guidance reflecting strategic changes and anticipated fiscal impacts from recent U.S. tax legislation. The company's forward-looking stance emphasizes continued strong operational performance and fiscal discipline expected to drive sustainable growth.

Eli Lilly's dynamic portfolio, particularly in weight management and diversified therapeutic areas, affirms its place in leading innovation within the healthcare sector. Its impressive lineup and strategic scientific investments underscore its anticipated trajectory toward achieving significant business milestones. As Eli Lilly progresses through 2025, the company positions itself as a key player in dominantly growing markets such as weight management and diabetes care, reinforcing its impact on global health solutions.