Eli Lilly (NYSE: LLY) Q2 2026: Revenue Jumps 48% to $23B, Guidance Raised to $87B

Eli Lilly and Company (NYSE: LLY) reported Q2 2026 revenue of $23.0 billion, up 47.7% year over year, while adjusted EPS of $8.38 beat the $6.07 consensus estimate by 38.1%. The company raised its full-year 2026 revenue guidance to a range of $85.0 billion to $87.0 billion, crediting volume growth in its weight-loss and diabetes franchises.

Q2 2026 Results

• Revenue: $23.0 billion in Q2 2026 vs. $15.6 billion in Q2 2025, a 47.7% increase year over year, driven by a 60% volume increase partially offset by a 13% decline in realized prices.
• Mounjaro: Worldwide revenue rose 91% to $9.9 billion; U.S. revenue increased 45% to $4.8 billion, while revenue outside the U.S. grew 172% to $5.2 billion.
• Zepbound: U.S. revenue rose 44% to $4.9 billion, driven by volume growth partially offset by lower realized prices.
• GAAP EPS: $7.94, up 26.2% from $6.29 in Q2 2025, weighed down by $3.03 per share in acquired in-process research and development (IPR&D) charges.
• Adjusted EPS: $8.38, up 32.8% from $6.31 in Q2 2025, beating the $6.07 consensus by $2.31.
• Gross margin: 85.8% in Q2 2026, up 1.5 percentage points versus Q2 2025, reflecting improved production costs and favorable product mix.

What Drove the Results

Adjusted EPS of $8.38 beat the $6.07 consensus by 38.1%, and revenue of $23.0 billion exceeded the prior-year quarter by 47.7%. Gross margin expanded 1.5 percentage points to 85.8%, supported by improved manufacturing costs and a richer product mix weighted toward higher-margin GLP-1 therapies.

GAAP net income of $7.1 billion grew 25.3% year over year, lagging revenue growth of 47.7%, primarily because of $2.8 billion in acquired IPR&D charges in Q2 2026 compared with $154 million in Q2 2025. An additional $703 million in asset impairment and restructuring charges, tied to the accelerated vesting of employee equity awards and costs associated with the closings of Kelonia Therapeutics and Centessa Pharmaceuticals, further compressed GAAP net income relative to adjusted results.

Research and development expenses rose 14% to $3.8 billion, while marketing, selling, and administrative expenses increased 25% to $3.4 billion, reflecting investments in ongoing and planned product launches.

Pipeline and Business Development

Lilly completed four acquisitions during Q2 2026: Orna Therapeutics, Ajax Therapeutics, Centessa Pharmaceuticals, and Kelonia Therapeutics. Subsequent to quarter-end, the company completed three additional acquisitions to build an infectious disease portfolio and entered into an agreement to acquire AtaiBeckley, Inc. The company also committed an additional $4.5 billion to expand its Indiana manufacturing sites.

On the regulatory front, the U.S. FDA approved Ebglyss for a maintenance dose every eight weeks in moderate-to-severe atopic dermatitis, the European Commission approved Jaypirca as monotherapy for adults with chronic lymphocytic leukemia, and Lilly submitted orforglipron for type 2 diabetes to U.S. regulators. Separately, positive Phase 3 data from three additional trials of retatrutide in obesity completed the clinical data package needed to support global regulatory submissions; Lilly plans to file a Biologics License Application with the U.S. FDA in Q1 2027.

Guidance

Lilly raised its full-year 2026 revenue guidance to $85.0 billion to $87.0 billion. The company raised its underlying non-GAAP EPS guidance by $2.78 at the midpoint, which was more than offset by the $3.03 per share in acquired IPR&D charges from Q2 business development activity, yielding an updated non-GAAP EPS guidance range of $35.50 to $36.50.

Wall Street View

Analyst sentiment on Lilly was broadly constructive heading into the print, with a consensus leaning toward Buy across major firms covering the stock. The Q2 adjusted EPS beat of 38.1% above consensus and the raised full-year revenue range to as much as $87.0 billion are likely to reinforce that positioning, particularly given the retatrutide BLA submission timeline now confirmed for Q1 2027.

Investor Takeaway

Lilly's Q2 results confirm that Mounjaro and Zepbound volume growth, at 91% and 44% respectively, remains the primary revenue engine, but the forward story is increasingly about what comes next: retatrutide's completed Phase 3 package, new manufacturing capacity in Indiana, and a broadened pipeline assembled through six acquisitions in and around Q2 2026. The gap between GAAP EPS of $7.94 and adjusted EPS of $8.38 reflects $2.8 billion in IPR&D charges that are non-recurring in nature but will recur as long as Lilly continues its acquisition pace, making the adjusted figure the more comparable metric for period-over-period analysis. Investors evaluating the raised $85.0 billion to $87.0 billion revenue guidance will likely focus on whether new manufacturing capacity can sustain GLP-1 supply to meet ongoing demand.