olivlawolivlaw

olivLaw · US equity research

Eli Lilly and Company LLY

Pharmaceutical Preparations · SIC 2834

1,417.99USD+0.61% · 1 dayClose 04 Nov 2026

Eli Lilly and Company is a pharmaceutical company operating in a single segment, human pharmaceutical products. Revenue rose 48% in the second quarter of 2026 to 22.974 billion USD, and full-year 2026 revenue guidance was raised to 85.0-87.0 billion USD. Growth is driven mainly by Mounjaro and Zepbound, but pressure on realized prices and acquisition charges could affect margins.

The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).

At the close of 04 Nov 2026, Eli Lilly and Company (LLY) stock was 1,417.99 USD (+0.61% on the day), with market capitalisation 1,334.0 bn USD, P/E 46.0 on diluted EPS of 30.81 USD over the last 12 months, dividend yield 0.47%, beta 0.54, 52-week range 851.21–1,417.99 USD. Latest reported quarter (Q3 2026): revenue of 24.4 bn USD (+38.6% YoY), net income of 6.5 bn USD (+15.5% YoY), diluted EPS 7.22 USD.

Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.

Market cap
1,334.0 bn USD
shares as of 26 Oct 2026
P/E (TTM)
46.0
Diluted EPS TTM 30.81 · TTM to 30 Sept 2026
E/P (TTM)
2.17%
TTM to 30 Sept 2026
Dividend yield
0.47%
DPS 12m 6.69
Beta (2y)
0.54
Volatility (1y) 35%
52-week range
851.211,417.99

Price history

Loading chart…

Technical reading

RSI (14)
76.6
overbought (≥ 70)
Bollinger (20, 2)
1,119.75 – 1,447.17
in the upper half of the band · %B 0.91 · band width 25.5%
SMA 50 / 200
1,207.19 / 1,096.87
uptrend (price > SMA50 > SMA200)
MACD (12, 26, 9)
59.23 / 44.06
MACD above signal

Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).

Performance

CompanyS&P 500vs S&P 500Vertical median
1 month+24.0%−1.1%+25.1 pp—
3 months+21.2%−0.5%+21.7 pp—
6 months+43.7%+4.4%+39.3 pp—
Year to date+31.9%+12.3%+19.6 pp—
1 year+56.4%+13.5%+42.8 pp—
3 years+149.7%+76.4%+73.3 pp—
5 years+435.1%+63.7%+371.4 pp—
Max drawdown (1y)
−23.3%
25 Nov 2025 → 29 Apr 2026
Max drawdown (5y)
−34.8%
30 Aug 2024 → 08 Aug 2025
Compound annual growth (5y)
+39.9%
S&P 500 +10.4%

Price returns, dividends excluded.

Quarterly results

Latest quarter: Q3 2026 · 30 Sept 2026

Revenue
24.4 bn USD
+38.6% YoY
Net income
6.5 bn USD
+15.5% YoY
Diluted EPS
7.22
+16.3% YoY
net / operating
26.4% / unavailable

Quarterly margins

Quarterly statements · USD

Fiscal yearQ4 '24Q1 '25Q2 '25Q3 '25Q4 '25Q1 '26Q2 '26Q3 '26
Revenue13.5 bn12.7 bn15.6 bn17.6 bn19.3 bn19.8 bn23.0 bn24.4 bn
Cost of revenue2.4 bn2.2 bn2.4 bn3.0 bn3.4 bn3.6 bn3.3 bn3.9 bn
SG&A2.4 bn2.5 bn2.8 bn2.7 bn3.1 bn2.9 bn3.4 bn3.1 bn
Depreciation & amortisation485.2 m463.0 m478.0 m ≈470.0 m ≈586.0 m509.0 m534.0 m ≈545.0 m ≈
Interest expense225.1 m243.7 m249.0 m179.6 m222.6 m———
Pre-tax income5.0 bn3.5 bn6.8 bn7.2 bn8.3 bn8.9 bn9.2 bn8.4 bn
Income tax628.5 m697.0 m1.1 bn1.7 bn1.6 bn1.5 bn2.2 bn2.0 bn
Net income4.4 bn2.8 bn5.7 bn5.6 bn6.6 bn7.4 bn7.1 bn6.5 bn
Diluted EPS4.88 ≈3.066.296.217.39 ≈8.267.947.22
Operating cash flow2.5 bn1.7 bn3.1 bn ≈8.8 bn ≈3.2 bn5.3 bn10.7 bn ≈11.4 bn ≈
Dividends paid1.2 bn1.3 bn1.3 bn ≈1.3 bn ≈1.3 bn1.5 bn1.5 bn ≈1.5 bn ≈
Share repurchases2.1 bn1.2 bn692.0 m ≈708.0 m ≈1.5 bn2.4 bn1.6 bn ≈377.0 m ≈

≈ derived quarter (cumulative difference / share-days average)

E/P over time

E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.

Today's P/E sits at the 62 percentile of its own 42-quarter history (min 13.6, median 38.9, max 238.5; quarters with earnings only).

Fiscal years

Fiscal year20182019202020212022202320242025
Revenue21.5 bn22.3 bn24.5 bn28.3 bn28.5 bn34.1 bn45.0 bn65.2 bn
Revenue YoY+7.6%+3.8%+9.9%+15.4%+0.8%+19.6%+32.0%+44.7%
Net income3.2 bn8.3 bn6.2 bn5.6 bn6.2 bn5.2 bn10.6 bn20.6 bn
Net income YoYunavailable+157.4%−25.5%−9.9%+11.9%−16.1%+102.1%+94.9%
Diluted EPS3.138.896.796.126.905.8011.7122.95
Diluted EPS YoYunavailable+184.0%−23.6%−9.9%+12.7%−15.9%+101.9%+96.0%
net %15.0%37.3%25.2%19.7%21.9%15.4%23.5%31.7%
Free cash flowunavailableunavailableunavailableunavailableunavailableunavailableunavailableunavailable

Reported results vs expectations

Loading…

Balance sheet & financial health

Fiscal year 2025 · 31 Dec 2025

Cash
7.3 bn USD
Financial debt
42.5 bn USD
Net debt
35.2 bn USD
Equity
26.5 bn USD
Total assets
112.5 bn USD
Debt / equity
1.60x
Current ratio
1.58x
ROE
101.2%
ROA
21.6%
FCF margin
unavailable

Financial statements (source on every figure)

Revenue and net income (USD)

Margins

Income statement · USD

Revenue
2023
34.1 bn
2024
45.0 bn
2025
65.2 bn

SEC (XBRL)· 12 Feb 2026verified

Cost of revenue
2023
7.1 bn
2024
8.4 bn
2025
11.1 bn

SEC (XBRL)· 12 Feb 2026verified

Gross profit
2023
27.0 bn ≈
2024
36.6 bn ≈
2025
54.1 bn ≈

SEC (XBRL)· 12 Feb 2026derived

Research & development
2023
—
2024
—
2025
—

SEC (XBRL)· 22 Feb 2023verified

SG&A
2023
7.4 bn
2024
8.6 bn
2025
11.1 bn

SEC (XBRL)· 12 Feb 2026verified

Depreciation & amortisation
2023
1.5 bn
2024
1.8 bn
2025
2.0 bn

SEC (XBRL)· 12 Feb 2026verified

Interest expense
2023
485.9 m
2024
781.0 m
2025
895.0 m

SEC (XBRL)· 12 Feb 2026verified

Pre-tax income
2023
6.6 bn
2024
12.7 bn
2025
25.7 bn

SEC (XBRL)· 12 Feb 2026verified

Income tax
2023
1.3 bn
2024
2.1 bn
2025
5.1 bn

SEC (XBRL)· 12 Feb 2026verified

Net income
2023
5.2 bn
2024
10.6 bn
2025
20.6 bn

SEC (XBRL)· 12 Feb 2026verified

Diluted EPS
2023
5.80
2024
11.71
2025
22.95

SEC (XBRL)· 12 Feb 2026verified

Weighted average diluted shares
2023
903.3 m
2024
904.1 m
2025
899.3 m

SEC (XBRL)· 12 Feb 2026verified

Dividend per share
2023
4.69
2024
5.40
2025
6.23

SEC (XBRL)· 12 Feb 2026verified

Balance sheet · USD

Cash
2023
2.8 bn
2024
3.3 bn
2025
7.3 bn

SEC (XBRL)· 12 Feb 2026verified

Receivables
2023
9.1 bn
2024
11.0 bn
2025
17.8 bn

SEC (XBRL)· 12 Feb 2026verified

Inventories
2023
5.8 bn
2024
7.6 bn
2025
13.7 bn

SEC (XBRL)· 12 Feb 2026verified

Current assets
2023
25.7 bn
2024
32.7 bn
2025
55.6 bn

SEC (XBRL)· 12 Feb 2026verified

Property, plant & equipment, net
2023
12.9 bn
2024
17.1 bn
2025
24.7 bn

SEC (XBRL)· 12 Feb 2026verified

Goodwill
2023
4.9 bn
2024
5.8 bn
2025
5.9 bn

SEC (XBRL)· 12 Feb 2026verified

Intangibles (excl. goodwill)
2023
6.9 bn
2024
6.2 bn
2025
6.5 bn

SEC (XBRL)· 12 Feb 2026verified

Total assets
2023
64.0 bn
2024
78.7 bn
2025
112.5 bn

SEC (XBRL)· 12 Feb 2026verified

Accounts payable
2023
2.6 bn
2024
3.2 bn
2025
5.4 bn

SEC (XBRL)· 12 Feb 2026verified

Short-term debt
2023
6.9 bn
2024
5.1 bn
2025
1.6 bn

SEC (XBRL)· 12 Feb 2026verified

Long-term debt
2023
18.3 bn
2024
28.5 bn
2025
40.9 bn

SEC (XBRL)· 12 Feb 2026verified

Current liabilities
2023
27.3 bn
2024
28.4 bn
2025
35.2 bn

SEC (XBRL)· 12 Feb 2026verified

Equity
2023
10.9 bn
2024
14.3 bn
2025
26.5 bn †

SEC (XBRL)· 12 Feb 2026verified

Cash flow · USD

Operating cash flow
2023
4.2 bn
2024
8.8 bn
2025
16.8 bn

SEC (XBRL)· 12 Feb 2026verified

Investing cash flow
2023
-7.2 bn
2024
-9.3 bn
2025
-11.0 bn

SEC (XBRL)· 12 Feb 2026verified

Financing cash flow
2023
3.5 bn
2024
1.2 bn
2025
-2.2 bn

SEC (XBRL)· 12 Feb 2026verified

Dividends paid
2023
4.1 bn
2024
4.7 bn
2025
5.4 bn

SEC (XBRL)· 12 Feb 2026verified

Share repurchases
2023
750.0 m
2024
2.5 bn
2025
4.1 bn

SEC (XBRL)· 12 Feb 2026verified

Computed indicators

Growth

Revenue growth (YoY)
44.7%
computed by olivLawFY 2025
Revenue CAGR 3Y
31.7%
computed by olivLawFY 2022 → FY 2025
Revenue CAGR 5Y
21.6%
computed by olivLawFY 2020 → FY 2025
EBIT growth (YoY)
unavailable
input data missing
Net income growth (YoY)
94.9%
computed by olivLawFY 2025
Net income CAGR 3Y
49.0%
computed by olivLawFY 2022 → FY 2025
Net income CAGR 5Y
27.2%
computed by olivLawFY 2020 → FY 2025
EPS growth (YoY)
96.0%
computed by olivLawFY 2025
EPS CAGR 3Y
49.3%
computed by olivLawFY 2022 → FY 2025
EPS CAGR 5Y
27.6%
computed by olivLawFY 2020 → FY 2025
FCF growth (YoY)
unavailable
input data missing

Profitability

Gross margin
83.6%
computed by olivLawTTM to 30 Sept 2026
EBITDA margin
unavailable
input data missing
EBIT margin
unavailable
input data missing
Net margin
31.9%
computed by olivLawTTM to 30 Sept 2026
FCF margin
unavailable
input data missing

Returns

ROE
86.1%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROA
21.0%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
ROIC
unavailable
input data missing
ROCE
unavailable
input data missing
Payout ratio (EPS)
21.7%
computed by olivLawTTM to 30 Sept 2026
Payout ratio (FCF)
unavailable
input data missing

Balance sheet

Net debt
44.6 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Net debt / EBITDA
unavailable
input data missing
Debt / equity
1.2x
computed by olivLawbalance sheet at 30 Sept 2026
Interest coverage
unavailable
input data missing

Liquidity

Current ratio
1.4x
computed by olivLawbalance sheet at 30 Sept 2026
Quick ratio
1.0x
computed by olivLawbalance sheet at 30 Sept 2026
Cash ratio
0.1x
computed by olivLawbalance sheet at 30 Sept 2026

Cash

Operating cash flow
30.6 bn USD
computed by olivLawTTM to 30 Sept 2026
Capital expenditure
unavailable
input data missing
Free cash flow
unavailable
input data missing
FCF conversion
unavailable
input data missing
Cash conversion
unavailable
input data missing

Efficiency

Days sales outstanding
81 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days inventory outstanding
392 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Days payables outstanding
130 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Cash conversion cycle
343 days
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

Market and valuation

Market capitalisation
1,334.0 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Enterprise value
1,378.6 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
Market cap / net income TTM
48.4x
computed by olivLawTTM to 30 Sept 2026
P/E (TTM)
46.0x
computed by olivLawTTM to 30 Sept 2026
Earnings yield
2.2%
computed by olivLawTTM to 30 Sept 2026
P/B
33.1x
computed by olivLawbalance sheet at 30 Sept 2026
P/S
15.4x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
EV/EBIT
unavailable
input data missing
EV/Sales
15.9x
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
P/FCF
unavailable
input data missing
FCF yield
unavailable
input data missing
Dividend yield
0.5%
computed by olivLawTTM to 30 Sept 2026
Shareholder yield (distributions)
0.9%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026

1 indicators that do not apply to the sector.

Valuation

olivLaw classification

Insufficient data
What is missing
  • score weight coverage: 43.8% of at least 60%
  • valuation methods computed: 0 of at least 1

A scoring methodology on indicators and valuation, not investment advice.

Closing price

1,417.99 USD

04 Nov 2026Source: olivLaw, closing series

Market cap: 1,334.0 bn USD

Key indicators

Market capitalisation
1,334.0 bn USD
computed by olivLawbalance sheet at 30 Sept 2026
P/E (TTM)
46.0x
computed by olivLawTTM to 30 Sept 2026
P/B
33.1x
computed by olivLawbalance sheet at 30 Sept 2026
EV/EBITDA
unavailable
input data missing
ROE
86.1%
computed by olivLawTTM to 30 Sept 2026 · balance sheet at 30 Sept 2026
Net margin
31.9%
computed by olivLawTTM to 30 Sept 2026
Revenue growth (YoY)
44.7%
computed by olivLawFY 2025
Dividend yield
0.5%
computed by olivLawTTM to 30 Sept 2026

Coverage and freshness

31/37 reporting lines present
Latest full fiscal year: 2025
Latest reported period: 30 Sept 2026
Latest balance sheet date: 30 Sept 2026
Share count (cover of the latest filing), as of: 26 Oct 2026
Source: SEC (XBRL)published 29 Oct 2026
verified 2823derived 207

Score by group

44% · Insufficient data

Estimated value range

unavailable — no valuation method could be computed

Valuation assumptions are editorial choices, not measured; beta is not measured.

Valuation methods

  • DCF (discounted cash flow)unavailable · input data missing
  • Peers: EV/EBITDAunavailable · input data missing
  • Peers: P/Eunavailable · not enough peers
  • Dividend discount (DDM)outside the aggregate81.87 – 110.10 (Mid 93.91)
    a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Multiple comparisons use the SIC vertical

Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.

Assumptions (illustrative, editorial)

Risk-free rate
4.3%
Equity risk premium
5.0%
Beta (default)
1.00
Cost of equity
9.3%
Terminal growth
2.5%

Factor scorecard

Insufficient data

Minimum-evidence gate: score weight coverage: 43.8% of at least 60%; valuation methods computed: 0 of at least 1

FactorValueScoreWeight used
ROIC · Qualityunavailableunavailable—
Net margin · Quality31.9%100 (on a fixed band)14%
FCF conversion · Qualityunavailableunavailable—
Revenue CAGR 3Y · Growth31.7%100 (on a fixed band)19%
EPS CAGR 3Y · Growth49.3%100 (on a fixed band)19%
Net debt / EBITDA · Balance sheetunavailableunavailable—
Interest coverage · Balance sheetunavailableunavailable—
Current ratio · Balance sheet1.4x49 (on a fixed band)10%
P/E (TTM) · Valuation46.0x0 (on a fixed band)24%
EV/EBITDA · Valuationunavailableunavailable—
FCF yield · Valuationunavailableunavailable—
Shareholder yield (distributions) · Returns0.9%13 (on a fixed band)14%
Payout ratio (FCF) · Returnsunavailableunavailable—

Factors without a value were dropped; the remaining weights were renormalised.

Score groups

  • Balance sheet· partial49/100 · 1/3 factors with a value
  • Growth100/100 · 2/2 factors with a value
  • Quality· partial100/100 · 1/3 factors with a value
  • Returns· partial13/100 · 1/2 factors with a value
  • Valuation· partial0/100 · 1/3 factors with a value

A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.

Memo

ELI LILLY AND COMPANY (LLY). Latest full fiscal year: 2025; data up to 2026-09-30.

Figures computed from the financial statements: revenue 65.2 bn USD in 2025; YoY growth 44.7%; net margin 31.9%; ROE 86.1%.

Valuation cannot be computed from the available data.

Insufficient data for a verdict (score weight coverage: 43.8% of at least 60%; valuation methods computed: 0 of at least 1).

Text generated deterministically from the figures shown; no language model. Not investment advice.

What supports the thesis

  • Net margin: 31.9%
  • Revenue CAGR 3Y: 31.7%
  • EPS CAGR 3Y: 49.3%

What contradicts it

  • P/E (TTM): 46.0x
  • Shareholder yield (distributions): 0.9%

Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, Net debt / EBITDA, Interest coverage, EV/EBITDA, FCF yield, Payout ratio (FCF).

Versus the vertical median

Not enough comparable companies with data for an average.

olivLaw engine forecast

The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.

Valuation scenarios (editable assumptions)

Illustrative scenarios

Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.

Bear
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Base
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Bull
Allowed range: -50 … 50%
Allowed range: -100 … 100%
Allowed range: 0 … 100
Allowed range: -10 … 20%
Allowed range: 0 … 100%
Nothing is saved.

Estimated price (USD)

Estimated priceBearBaseBull
1 years
881.68
Total return -37% · Per year -37%
1,551.63
Total return 10% · Per year 10%
2,327.44
Total return 65% · Per year 65%
3 years
1,045.81
Total return -25% · Per year -9%
2,052.02
Total return 47% · Per year 14%
3,351.51
Total return 139% · Per year 34%
5 years
1,240.50
Total return -10% · Per year -2%
2,713.80
Total return 95% · Per year 14%
4,826.17
Total return 245% · Per year 28%
What moves the 3-year price the most
  • Exit P/E± 513.01
  • Net margin± 359.10
  • Annual revenue growth± 267.82
  • Annual dilution± 30.17

AI analysis

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (29 Oct 2026 · results).

In brief

Eli Lilly and Company is a pharmaceutical company operating in a single segment, human pharmaceutical products. Revenue rose 48% in the second quarter of 2026 to 22.974 billion USD 23, and full-year 2026 revenue guidance was raised to 85.0-87.0 billion USD 3. Growth is driven mainly by Mounjaro and Zepbound, but pressure on realized prices and acquisition charges could affect margins.

SWOT

Strengths

  • The company holds a strong position in incretin medicines and has grown revenue rapidly 23.
  • Gross margin rose in 2026, supported by better production costs and a favorable product mix 3.
  • The portfolio spans four therapeutic areas with products approved in the United States, the European Union and Japan 1.

Weaknesses

  • A large share of revenue depends on a few products, which increases exposure to changes in demand or pricing 1.
  • Realized prices have fallen, and changes in the U.S. and abroad could reduce revenue per unit 23.
  • Acquisitions and external collaborations can bring large IPR&D charges and affect profit in a given period 3.

Opportunities

  • If new products in obesity and diabetes gain approvals, they could widen patient access and revenue 12.
  • Expanding manufacturing capacity and the Indiana investment could support future growth 13.
  • Direct-to-patient channels and new partnerships could broaden access to medicines 1.

Threats

  • Price pressure from governments and private payers may reduce revenue in some markets 12.
  • Generics, biosimilars and competition from China could erode market share after exclusivity ends 1.
  • Counterfeit or compounded products could affect patient safety and brand reputation 1.

Risks

  • Pricing and access pressurehigh

    Price and reimbursement restrictions, as well as commitments with the U.S. government, could reduce revenue per unit 12.

  • Uncertain research and developmenthigh

    Most candidates never reach the market, and approvals and launches can be delayed 1.

  • Generic and biosimilar competitionmedium

    After exclusivity ends, products can quickly lose a significant part of their revenue 1.

  • Tariffs and supply chainmedium

    New or reinstated tariffs could raise costs and disrupt supply 2.

  • Litigation and regulationmedium

    Litigation over pricing, insulin and the 340B program, along with compliance issues, can carry financial and reputational effects 1.

Investment thesis

What would need to be true (bull case)

  • Rapid revenue growth from incretin medicines and raised 2026 guidance point to solid demand for products 23.
  • Rising gross margin and investment in production could support profitability over the medium term 3.
  • Pipeline progress, including retatrutide clinical data and the orforglipron approval, could open new revenue sources 23.

What would break the thesis

  • Realized prices have fallen, and reduced access in some markets could limit growth 23.
  • Acquisitions and IPR&D charges can reduce net income in a period and raise questions about the return on these investments 3.
  • Reliance on a few products could amplify the impact of a change in policy, competition or regulation 1.

What to watch

  • Realized prices and U.S. access after the Medicare GLP-1 Bridge programQ3 2026
  • Submission of the Biologics License Application for retatrutide to the FDAQ1 2027
  • Updated full-year 2026 guidance for revenue and non-GAAP EPSnext 10-Q
  • Integration of recent acquisitions and their effect on IPR&D charges2027

Products, market & competition

AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.

Possibly outdated: the newest document it read is from 05 Aug 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (29 Oct 2026 · results).

The business

In the United States most products are distributed through wholesalers, and three wholesale distributors each accounted for a significant share of consolidated revenue in 2023, 2024 and 2025 1. The company has expanded LillyDirect, its direct-to-patient platform, whose share of the business grew in 2025 1. Some products are also marketed through arrangements with other pharmaceutical companies 1.

Main therapeutic areas are cardiometabolic health, oncology, immunology and neuroscience 1. Cardiometabolic products such as Mounjaro, Zepbound, Jardiance and insulins make up the largest part of revenue 13, and the pipeline includes candidates such as orforglipron and retatrutide 12.

Segments

Cardiometabolic health

Mounjaro and Zepbound accounted for 56% of total revenue in fiscal 2025 1. In the second quarter of 2026 Mounjaro generated 9.943 billion USD and Zepbound 4.928 billion USD 3. Orforglipron, an oral candidate for obesity and type 2 diabetes, has been submitted and approved for obesity 2.

Neuroscience

Kisunla, a treatment for early Alzheimer's disease, and Emgality for migraine belong to this area 1. Kisunla revenue rose sharply in the second quarter of 2026 3.

Market context

U.S. prices are under pressure from negotiations with insurers, government programs and recent voluntary agreements with the U.S. government 12, which could weigh on revenue per unit even when volumes grow.

Trends

  • Strong demand for incretin medicinestailwind

    Demand for Mounjaro and Zepbound has grown strongly and drove quarterly revenue growth 23. If this demand persists, it could support further expansion of manufacturing capacity 1.

  • Pricing pressureheadwind

    Governments and private payers restrict prices and patient access, and negotiations with the U.S. government could reduce revenue in some markets 12. Government price setting under the IRA for products such as Jardiance, Trulicity and Verzenio could shape longer-term trends 12.

  • Acquisitions and the pipelinemixed

    Acquisitions completed in and after the second quarter brought significant acquired IPR&D charges but could expand the pipeline in obesity and infectious disease 3. The effect depends on clinical results and future approvals 1.

  • Tariffs and the supply chainmixed

    Tariffs can be imposed or paused quickly, and the company may not be able to pass on all added costs 12. Expanding production capacity, including the additional investment in Indiana, partly mitigates this risk 3.

Competitive position

Lilly competes with many multinational pharmaceutical, biotechnology and generic companies, and competition from China has intensified 1. Generic and biosimilar products can quickly reduce revenue of products that lose exclusivity 1.

Competitive factors include effectiveness, safety, patient access, formulary placement and price, and early market entry can be decisive 1. New treatment modalities can reduce sales of existing products 1.

  • Novo Nordisk

    Named in the analysed sources as an actor in incretin therapies for obesity and diabetes; no ticker is given in the sources.

  • Large multinational pharmaceutical companies

    The sources describe general competition from large pharmaceutical companies without a complete named list.

  • Generic and biosimilar manufacturers

    Competition from generics and biosimilars can become intense after exclusivity ends, according to the sources.

  • Biotechnology and Chinese companies

    The sources flag expanding research capacity in China and licensing of products to multinational companies.

News & filings

In the press

SEC filings

Sources

  1. [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Eli Lilly and Company · 12 Feb 2026
  2. [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Eli Lilly and Company · 05 Aug 2026
  3. [3] Form 8-K, results release (exhibit 99.1) · SEC / Eli Lilly and Company · 05 Aug 2026

Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.