Eli Lilly shares jump as weight-loss drug demand fuels guidance hike
Vahid Karaahmetovic
Wed, August 5, 2026 at 5:04 PM GMT+5:30
3 min read
- LLY
+1.89%
Investing.com — Eli Lilly shares jumped more than 6% after the market opened on Wednesday as the U.S. pharma giant raised its annual revenue guidance fueled by continued demand for its popular weight-loss and diabetes drugs
The company lifted its full-year 2026 revenue guidance to $85 billion to $87 billion, up from a prior range of $82 billion to $85 billion, ahead of the $85.4 billion consensus
It also raised underlying adjusted EPS guidance by $2.78 at the midpoint, though that was more than offset by $3.03 in acquired IPR&D charges from second-quarter business development activity, resulting in an updated EPS range of $35.50 to $36.50
Lilly also raised its performance margin guidance to 49.0% to 50.5%, up from 47.0% to 48.5%
For the second quarter, Eli Lilly reported earnings per share of $8.38, missing the analyst estimate of $8.84. Revenue rose 48% year-over-year to $22.97 billion, well ahead of the $20.56 billion consensus estimate, driven primarily by Mounjaro and Zepbound volume
Key Products revenue grew to $15.7 billion, led by Mounjaro and Zepbound, with revenue from the Immunology, Oncology and Neuroscience therapeutic areas up 121% year-over-year
Mounjaro revenue jumped 91% to $9.94 billion, while Zepbound rose 56% to $4.93 billion, exceeding market expectations. “Key incretin products helped facilitate today’s beat with Mounjaro exceeding consensus by +12% and Zepbound coming in at over 6%,” BMO Capital Markets analysts said
“While commercial performance was further bolstered by the broader portfolio, relatively in line Foundayo revenues highlight persistent challenges for the product as patients prioritize efficacy over convenience in favor of Novo’s oral Wegovy, but is unlikely to limit upside at open,” they added, reiterating an Outperform rating
Adjusted gross margin rose 50% to $19.8 billion, with gross margin as a percentage of revenue climbing 1.3 percentage points to 86.3%, driven by improved production costs and a favorable product mix, partly offset by lower realized prices
“Lilly’s momentum continues, as we delivered 48% revenue growth and raised our full-year guidance,” said David Ricks, CEO of Eli Lilly. “At the same time, Lilly is building for the future. With our next-generation weight-loss medicine retatrutide and its complete clinical data package in hand, new manufacturing capacity coming online, and exciting new assets entering our pipeline through business development, Lilly’s future, after 150 years, has never been brighter.”
