Eli Lilly Lifts Annual Sales Target to $92 Billion on Strong Demand

Eli Lilly reported revenue of $24.40 billion for the third quarter, a figure that surpassed the $22.61 billion analysts projected. The company also posted adjusted earnings of $7.48 per share, well above the expected $6.26. This performance allowed the drugmaker to raise its full-year sales outlook.

Lilly now expects 2026 revenue to land between $91 billion and $92 billion. This increase comes from a previous guidance range of $85 billion to $87 billion. The company also adjusted its profit projections, setting full-year adjusted earnings between $35 and $36 per share. This is a slight shift from the earlier outlook of $35.50 to $36.50 per share. Management noted that the underlying profit guidance increased by $4.07 per share at the midpoint, although this was partially offset by $4.57 per share in charges related to recent deals.

Demand for Lilly's weight loss and diabetes medications remains high despite lower net prices in the United States. Mounjaro generated $10.72 billion in worldwide sales for the quarter, representing a 65% increase from the prior year. U.S. sales for the drug reached approximately $5 billion. International sales for Mounjaro saw a particularly sharp rise, jumping 93% outside the United States.

Zepbound, the company's other major GLP-1 product, brought in $5.35 billion during the quarter. This marked a 49% increase from the same period last year. The majority of Zepbound revenue originated in the United States. Analysts had forecast $5.09 billion in global sales for the drug, including $4.99 billion from U.S. markets.

Lilly's new obesity pill, Foundayo, underperformed expectations. The medication, which received U.S. approval in April, generated $184 million in third-quarter sales. This fell short of the $229 million analysts estimated. It is the second consecutive earnings report that includes revenue from the oral drug, which competes with a similar product from rival Novo Nordisk launched in January.

In the United States, Lilly's total revenue climbed 34% to $15.1 billion. The company attributed this growth to a 41% increase in prescription volume, primarily driven by Mounjaro and Zepbound. This volume growth was partially counterbalanced by a 7% decrease in realized prices. Outside the U.S., sales surged 47% to $9.3 billion, fueled by a 76% jump in volume that was partly offset by a 29% drop in prices.

Lilly reported net income of $6.45 billion, or $7.22 per share, for the quarter. This includes the $4.57 per share in deal-related charges. A year earlier, the company recorded net income of $5.58 billion, or $6.21 per share. Excluding one-time items, the company's earnings stood at $7.48 per share.

The company's shares rose about 5% in premarket trading following the announcement. CEO David Ricks is scheduled to join CNBC TV at 9 a.m. ET to discuss the results. The stock performance reflects continued investor confidence in the company's dominance in the diabetes and obesity market.

Lilly continues to expand its pipeline through acquisitions, including a recent deal to buy Merida Biosciences. This move aims to develop new treatments for serious autoimmune and allergic diseases. The company also cited expanded U.S. coverage for obesity care as a factor in its strong performance, referencing Medicare's decision to cover GLP-1s for weight loss under a temporary pilot program starting in July.

The firm's financial strength allows it to navigate lower U.S. drug prices while maintaining a significant market share lead over its chief rival. The combination of rising volumes and strategic international growth has positioned Lilly for a strong finish to the year.