Eli Lilly and Company, founded in 1876 by Eli Lilly, is a major American pharmaceutical company based in Indianapolis, Indiana. The company is known for creating important medicines like Prozac, Cymbalta, and Humalog. Eli Lilly operates worldwide, selling products in about 125 countries, and focuses on treating diabetes, cancer, and immune system disorders.
Also, the company invests a lot in research and development, leading to significant medical advancements. They were among the first to produce human insulin and the polio vaccine. Despite challenges like legal issues and competition, Eli Lilly remains a key player in the pharmaceutical industry.
Eli Lilly Fiscal Q4 2025
Eli Lilly (LLY) reported strong fourth‑quarter 2025 results, with revenue rising 43% to $19.3 billion, driven largely by continued demand for Mounjaro and Zepbound.
Earnings per share also grew sharply, reaching $7.39 on a reported basis and $7.54 on a non‑GAAP basis, both reflecting $0.52 in acquired R&D charges.
The company highlighted several regulatory milestones, including FDA approval of the Kwikpen for tirzepatide, an expanded indication for Jaypirca, and new submissions for orforglipron in major global markets.
Lilly also reported meaningful pipeline progress, with positive Phase 3 results across multiple programs, including combination use of Taltz and Zepbound, oral GLP‑1 therapy with orforglipron, and retatrutide for obesity and knee osteoarthritis. The company announced a new agreement with the U.S. government aimed at expanding access to obesity medicines.
Highlights:
- Q4 2025 worldwide revenue rose 43% to $19.3B, driven by strong volume growth.
- Key Products revenue reached $13.8B, led by Mounjaro and Zepbound.
- U.S. revenue grew 43% to $12.9B, with volume up 50% but prices lower.
- 2025 International revenue increased 43% to $6.4B, helped by FX and strong Mounjaro demand.
- Gross margin rose 43% to $15.9B, reaching 82.5% of revenue.
- R&D spending increased 26% to $3.8B due to continued pipeline investment.
- Marketing and administrative costs rose 29% to $3.1B to support product launches.
- The effective tax rate increased to 19.7% from 12.5% last year.
- Net income reached $6.6B and EPS $7.39, up from $4.4B and $4.88 in Q4 2024.
- Non‑GAAP gross margin was 83.2%, with net income of $6.8B and EPS of $7.54.
Guidance
Lilly expects 2026 revenue to range from $80 to $83 billion, with a projected performance margin between 46.0% and 47.5%.
The company anticipates a tax rate of 18% to 19% and forecasts earnings per share between $33.50 and $35.00 for the year.
Boards Statements
David A. Ricks, chair and CEO of Lilly, described 2025 as an important year for the company. He noted that Lilly reached millions more patients by launching Inluriyo, expanding Mounjaro and Kisunla worldwide, and submitting orforglipron for approval.
He also highlighted the company’s expanded manufacturing capacity and its U.S. government agreement, which opened new access to obesity medicines. Lilly enters its 150th year with a strong pipeline and platforms like LillyDirect. Ricks said the company is positioned to reach more patients than ever and broaden its global health impact.
Impact on the Stock Market
Lilly’s blowout fourth‑quarter results and stronger‑than‑expected 2026 guidance triggered a sharp positive reaction in the market, sending the stock up more than 8% in pre‑market trading.
Investors responded to the company’s 43% revenue surge, major momentum from Mounjaro and Zepbound, and a revenue outlook that exceeded Wall Street expectations. The combination of strong operational performance and an upbeat forecast signaled continued growth ahead, driving the early‑morning jump in LLY shares.
