Eli Lilly (LLY) is based in Indianapolis, IN. The company is one of the world’s largest pharmaceutical companies. Eli Lilly develops, manufactures, and markets prescription medicines worldwide for diabetes, obesity, cancer, immunology, and neuroscience. Its products help people manage chronic diseases and improve daily life.
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| Price | $1,013 | Catergory | Moderate | |
| Market Cap | $956.2B | Dividend | $6.23 | 0.61% |
| P/E Ratio | 44.1 | Analyst Avg | 1-Yr Target | $1,206 |
| Consensus EPS Estimate | 1Q | 2Q | 3Q | 4Q |
| 2026 | 7.27E | 8.23E | 9.20E | 9.49E |
| 2025 | 3.34A | 6.31A | 7.02A | 7.54A |
Keys for Success
Lilly has seen unparalleled success with its GLP-1 drugs, Mounjaro and Zepbound. Despite being on the market for a short time, they have become key top-line drivers, with demand remaining strong.
Eli Lilly posted a standout quarter 4Q2025 as demand for its obesity and diabetes drugs continued to surge. Mounjaro (diabetes and obesity) and Zepbound (obesity) led growth. Mounjaro’s revenue more than doubled to $7.4 billion, and Zepbound up 123% to $4.3 billion compared to the prior year. Both products grew amid surging prescription volumes but faced a 5% decline in global average prices. In 2025, the drugs generated combined sales of $36.5 billion, accounting for around 56% of the company’s total revenue.
A once-daily oral GLP-1 small molecule, orforglipron, is expected to launch in the United States in the second quarter of 2026 and in most international markets in 2027. Oral pills will be a more convenient alternative to the currently available once-weekly injectable obesity treatments. Oral pills can also be manufactured at scale to meet global demand, which, in turn, can drive billions in additional sales.
In addition to Mounjaro and Zepbound, Lilly has secured approvals for several other new therapies over the past few years. These newly approved drugs are also contributing to Lilly’s revenue growth. Lilly expects its new drugs, Mounjaro, Zepbound, Ebglyss, Jaypirca, Inluriyo, Kisunla, and Omvoh to drive sales growth in 2026.
Gross margin, a measure of profitability calculated as revenue minus direct production costs, remained strong at 83.2% on a non-GAAP basis. However, costs for research, development, and marketing rose by more than 25% year over year. The quarterly dividend increased 15% to $1.50 per share, reflecting the company’s ongoing capital returns.
Keys for Concern
Lilly’s products already face intense competition from large, mid-sized, and small pharma companies. Novo Nordisk’s Ozempic is posing strong competition to Lilly’s key growth drivers, Mounjaro and Trulicity. Rising pricing pressure in the U.S., primarily on key drug Trulicity, is hurting Lilly’s top-line growth. Prices are declining in the US primarily due to lower realized insulin prices. President Trump has also suggested potential steep price cuts for GLP-1 drugs.
Mark Notes
The company continues to broaden its pipeline, securing regulatory progress in the U.S. and internationally for future drugs, including orforglipron (an oral obesity treatment). Management also highlighted expanded manufacturing investments in the U.S. and Europe to support future growth.
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