Eli Lilly reported second-quarter earnings of $8.38 per share, exceeding analyst expectations of $6.01, and revenue of $22.97 billion, surpassing the forecast of $20.73 billion. The company raised its 2026 revenue guidance to between $85 billion and $87 billion, up from $82 billion to $85 billion.
This growth is largely attributed to the success of its drugs Zepbound and Mounjaro, with Mounjaro's worldwide revenue increasing by 91% to $9.94 billion, significantly above the expected $8.99 billion. U.S. sales for Mounjaro reached $4.8 billion, while Zepbound generated $4.93 billion in U.S. revenue, both exceeding analyst predictions.
Despite lower realized prices due to discounts and new insurance coverage in China, demand remains strong, with a 37% increase in prescription volume for these products. Lilly's net income rose to $7.10 billion, or $7.94 per share, compared to $5.66 billion, or $6.29 per share, a year earlier.
The company is also pursuing an aggressive M&A strategy, recently acquiring a psychedelics drugmaker and planning to buy three vaccine manufacturers. CEO Dave Ricks anticipates that lower prices will further boost prescription volumes, particularly with Medicare's new coverage for obesity drugs expected to enhance sales in the latter half of the year