TLDR

• Eli Lilly reported Q3 earnings of $7.02 per share and revenue of $17.60 billion, both beating Wall Street estimates by wide margins.
• The company raised its full-year 2025 revenue guidance to $63-63.5 billion and adjusted earnings to $23-23.70 per share.
• Mounjaro diabetes treatment brought in $6.52 billion in Q3 revenue, up 109% year-over-year, while Zepbound weight loss drug generated $3.57 billion, up 184%.
• Shares jumped 5% in premarket trading following the earnings announcement on Thursday morning.
• The company partnered with Walmart to offer in-store pickup of discounted Zepbound vials and is developing an experimental obesity pill called orforglipron.

Eli Lilly reported third-quarter results that blew past analyst expectations. The pharmaceutical company posted adjusted earnings of $7.02 per share, beating estimates by $1.33.

Revenue hit $17.60 billion, topping the $16.01 billion that Wall Street predicted. That’s a 54% increase compared to the same period last year.

The company’s weight loss and diabetes drugs drove the strong performance. Zepbound, the weight loss injection, pulled in $3.57 billion in Q3 revenue.

Eli Lilly and Company, LLY

That represents a 184% jump from the year-earlier period. The figure slightly beat analyst estimates of $3.5 billion.

Mounjaro, used for diabetes treatment, generated $6.52 billion in quarterly revenue. That’s up 109% year-over-year and well above the $5.51 billion analysts expected.

The strong results prompted Eli Lilly to raise its full-year outlook. The company now expects 2025 revenue between $63 billion and $63.5 billion.

That’s up from previous guidance of $60 to $62 billion. Full-year adjusted earnings are now projected at $23 to $23.70 per share, up from $21.75 to $23.

Shares rose 5% in premarket trading Thursday following the announcement. The stock has gained over 30% this year as demand for GLP-1 drugs continues to grow.

Market Share Gains Continue

U.S. sales jumped 45% to $11.30 billion in the quarter. Volume increased 60%, driven primarily by Mounjaro and Zepbound prescriptions.

Lower realized prices partially offset the volume gains. The company has been working to expand access to its drugs through various channels.

On Wednesday, Eli Lilly announced a partnership with Walmart. The deal allows cash-paying patients to pick up discounted Zepbound vials at Walmart stores.

The company’s net income reached $5.58 billion, or $6.21 per share. That compares to $970.3 million, or $1.07 per share, a year ago.

Competitive Landscape Heats Up

Eli Lilly continues to battle Novo Nordisk for dominance in the GLP-1 drug market. The company has captured the majority market share over the past year.

Direct-to-consumer sales have boosted the company’s position. Its weight loss and diabetes drugs have strong clinical profiles that appeal to doctors and patients.

Eli Lilly is betting on orforglipron, its experimental obesity pill, to strengthen its lead. Other drugmakers are racing to bring their own pills and next-generation injections to market.

On Thursday, Novo Nordisk made a rival bid for U.S. obesity biotech company Metsera. The move came after Pfizer had already made an offer for the company.

The company’s updated guidance reflects existing tariffs as of Thursday. It does not include threatened levies on pharmaceuticals imported into the U.S.

Eli Lilly’s current ratio stands at 1.28, with a debt-to-equity ratio of 2.18. The company issued $22.4 billion in new debt over the past three years.

Operating margin hit 42.97% while net margin reached 25.91%. The company maintains a market capitalization of approximately $729.3 billion.

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