Lilly Raises 2026 Revenue Outlook as Mounjaro, Zepbound Sales Rise
Eli Lilly raised its 2026 revenue outlook to $91B-$92B due to strong sales of Mounjaro and Zepbound, reporting Q3 revenue of $24.4B, up 38% YoY. Mounjaro revenue grew 65% to $10.7B, while Zepbound grew 49% to $5.35B. Non-GAAP EPS was $7.48, up 7% YoY. Lilly cited acquisition-related charges for a slight EPS forecast reduction.
How this was made
The 30-second read
Why it matters
The company’s Q3 results and updated 2026 guidance provide a near-term re-rating catalyst for revenue, margins, and EPS expectations, while explicitly flagging realized-price declines and acquisition-related charges as offsets.
Market read
This is a guidance-updated earnings follow-through with concrete full-year revenue and margin changes, plus stated pricing and charge headwinds that matter for valuation.
What to watch
China’s reimbursement-driven price pressure is singled out; traders may underweight how quickly reimbursement terms can change versus volume growth.
Background
Lilly’s GLP-1 portfolio includes Mounjaro (tirzepatide for Type 2 diabetes) and Zepbound (tirzepatide for weight management), with expanding access via the Medicare GLP-1 Bridge Program.
Ticker impact
Eli Lilly raised its 2026 revenue outlook to $91B-$92B after Mounjaro and Zepbound sales drove Q3 growth, despite lower realized prices and acquisition charges.
Likely upward bias as the market reprices full-year revenue and margin expectations, tempered by concerns about price pressure and EPS drag from acquisition-related charges.
The article reports a specific full-year revenue range increase and margin outlook lift, with explicit offsets (realized price declines, acquired research charges) that define the net risk to the stock.
Market effects
Reinforces demand durability for GLP-1 obesity and diabetes franchises, while highlighting ongoing pricing pressure in key geographies like China.
China reimbursement dynamics are cited as a driver of overseas price pressure, keeping regional pricing risk in focus.
Supports broader investor sentiment toward large-cap obesity/diabetes drug developers, with attention on reimbursement and realized-price trends.
Counterpoint
The raised revenue range may still mask worsening realized pricing, and the EPS outlook midpoint is effectively constrained by acquired research charges and lower realized prices.
Key entities
- companyEli Lilly and Company
Raised 2026 revenue range to $91B-$92B and lifted non-GAAP margin outlook after Mounjaro and Zepbound sales growth.
- productMounjaro
Tirzepatide brand; revenue increased 65% to $10.723B in Q3.
- productZepbound
Tirzepatide brand for weight management; revenue grew 49% to $5.352B in Q3.
- programMedicare GLP-1 Bridge Program
Expanded access to obesity medicines for about 20 million seniors; over 500,000 filled prescriptions since July 1.
