On February 4, 2026 Eli Lilly and Company (NYSE: LLY) reported its financial results for the fourth-quarter of 2025 and provided 2026 financial guidance.
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"2025 was an important year for Lilly," said David A. Ricks, Lilly’s chair and CEO. "We reached millions more patients—launching Inluriyo, expanding Mounjaro and Kisunla globally, and submitting orforglipron for approval. We expanded our manufacturing capacity, and through our U.S. government agreement, opened new access to obesity medicines. Entering our 150th year with a deep pipeline and platforms like LillyDirect, we’re positioned to reach more patients than ever and expand our global health impact."
Financial Results
$ in millions, except
per share data
Fourth-Quarter
2025
2024
% Change
Revenue
$ 19,292
$ 13,533
43 %
Net income – Reported
6,636
4,410
50 %
Earnings per share – Reported
7.39
4.88
51 %
Net income – Non-GAAP
6,771
4,806
41 %
Earnings per share – Non-GAAP
7.54
5.32
42 %
A discussion of the non-GAAP financial measures is included below under "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)."
Fourth-Quarter Reported Results
In Q4 2025, worldwide revenue was $19.3 billion, an increase of 43% compared with Q4 2024, driven by a 46% increase in volume, partially offset by a 5% decrease due to lower realized prices. Key Products[1] revenue grew to $13.8 billion in Q4 2025, led by Mounjaro and Zepbound.
Revenue in the U.S. increased 43% to $12.9 billion, driven by a 50% increase in volume, partially offset by a 7% decrease due to lower realized prices. The increase in U.S. volume and decline in realized prices were driven by Zepbound and Mounjaro.
Revenue outside the U.S. increased 43% to $6.4 billion, driven by a 38% increase in volume and to a lesser extent a 4% favorable impact on foreign exchange rates. The volume increase outside the U.S. was driven primarily by Mounjaro, partially offset by Jardiance. Volume growth was negatively impacted by a one-time benefit of $300 million related to Jardiance, associated with an amendment to the company’s collaboration with Boehringer Ingelheim, in Q4 2024.
1 The Company defines Key Products as Ebglyss, Inluriyo (effective Q4 2025), Jaypirca, Kisunla, Mounjaro, Omvoh, Verzenio and Zepbound.
Gross margin increased 43% to $15.9 billion in Q4 2025. Gross margin as a percent of revenue was 82.5%, an increase of 0.3 percentage points. The increase in gross margin percent was primarily driven by favorable product mix and improved cost of production, partially offset by lower realized prices.
In Q4 2025, research and development expenses increased 26% to $3.8 billion, or 20% of revenue, driven by continued investments in the company’s early and late-stage portfolio.
Marketing, selling and administrative expenses increased 29% to $3.1 billion in Q4 2025, primarily driven by promotional efforts supporting ongoing and planned launches.
The effective tax rate was 19.7% in Q4 2025 compared with 12.5% in Q4 2024 primarily driven by a less favorable jurisdictional mix of earnings in Q4 2025 relative to Q4 2024. Additionally, the effective tax rate for Q4 2025 was unfavorably impacted by U.S. tax law changes enacted earlier in 2025.
In Q4 2025, net income and earnings per share (EPS) were $6.6 billion and $7.39, respectively, compared with net income of $4.4 billion and EPS of $4.88 in Q4 2024. EPS in Q4 2025 and Q4 2024 included acquired IPR&D charges of $0.52 and $0.19, respectively.
Fourth-Quarter Non-GAAP Measures
On a non-GAAP basis, Q4 2025 gross margin increased 42% to $16.0 billion. Gross margin as a percent of revenue was 83.2%, consistent with Q4 2024. Favorable product mix and improved cost of production were offset by lower realized prices.
The non-GAAP effective tax rate was 19.7% in Q4 2025 compared with 13.2% in Q4 2024 primarily driven by a less favorable jurisdictional mix of earnings in Q4 2025 relative to Q4 2024. Additionally, the effective tax rate for Q4 2025 was unfavorably impacted by U.S. tax law changes enacted earlier in 2025.
On a non-GAAP basis, Q4 2025 net income and EPS were $6.8 billion and $7.54, respectively, compared with net income of $4.8 billion and EPS of $5.32 in Q4 2024. Non-GAAP EPS in Q4 2025 and Q4 2024 included acquired IPR&D charges of $0.52 and $0.19, respectively.
For further detail on non-GAAP measures, see the reconciliation below as well as the "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)" table later in this press release.
Fourth-Quarter
2025
2024
% Change
Earnings per share (reported)
$ 7.39
$ 4.88
51 %
Amortization of intangible assets
.11
.12
Asset impairment, restructuring and other special charges
.07
.30
Net losses (gains) on investments in equity securities
(.03)
.02
Earnings per share (non-GAAP)
$ 7.54
$ 5.32
42 %
Acquired IPR&D
.52
.19
174 %
Numbers may not add due to rounding
Selected Revenue Highlights
(Dollars in millions)
Fourth-Quarter
Full Year
Selected Products
2025
2024
% Change
2025
2024
% Change
Mounjaro
$ 7,409
$ 3,530
110 %
$ 22,965
$ 11,540
99 %
Zepbound(1)
4,261
1,907
123 %
13,542
4,926
175 %
Verzenio
1,604
1,555
3 %
5,723
5,307
8 %
Total Revenue
19,292
13,533
43 %
65,179
45,043
45 %
(1) Tirzepatide is marketed for obesity under the brand name Zepbound in Canada, Japan, and the United States.
Mounjaro
For Q4 2025, worldwide Mounjaro revenue increased 110% to $7.4 billion. U.S. revenue was $4.1 billion, an increase of 57%, reflecting strong demand, partially offset by lower realized prices. Revenue outside the U.S. increased to $3.3 billion compared with $899 million in Q4 2024, primarily driven by volume growth.
Zepbound
For Q4 2025, U.S. Zepbound revenue increased 122% to $4.2 billion, compared with $1.9 billion in Q4 2024, primarily driven by increased demand, partially offset by lower realized prices.
Verzenio
For Q4 2025, worldwide Verzenio revenue increased 3% to $1.6 billion. U.S. revenue was $997 million, a decrease of 4%. Revenue outside the U.S. was $608 million, an increase of 18%, primarily driven by volume growth.
Lilly shared numerous updates recently on key regulatory, clinical, business development and other events, including:
Regulatory
Lilly’s sofetabart mipitecan receives U.S. FDA’s Breakthrough Therapy designation for the treatment of certain patients with platinum-resistant ovarian cancer (announcement)
U.S. FDA approves expanded indication for Lilly’s Jaypirca (pirtobrutinib), the first and only non-covalent (reversible) BTK inhibitor, for adults with relapsed or refractory CLL/SLL previously treated with a covalent BTK inhibitor (announcement)
Clinical
Lilly’s Taltz (ixekizumab) and Zepbound (tirzepatide) used together delivered superior efficacy in first-of-its-kind Phase 3b trial for adults with active psoriatic arthritis and obesity or overweight (announcement)
Lilly’s orforglipron helped people maintain weight loss after switching from injectable incretins to oral GLP-1 therapy in first-of-its-kind Phase 3 trial (announcement)
Updated data for Lilly’s Inluriyo (imlunestrant) reinforce efficacy results as monotherapy and in combination with Verzenio (abemaciclib) in ER+, HER2- advanced breast cancer (announcement)
Lilly’s triple agonist, retatrutide, delivered weight loss of up to an average of 71.2 lbs along with substantial relief from osteoarthritis pain in first successful Phase 3 trial (announcement)
Lilly’s Jaypirca (pirtobrutinib) significantly improved progression-free survival, reducing the risk of progression or death by 80%, versus chemoimmunotherapy in patients with treatment-naïve CLL/SLL (announcement)
Lilly’s Jaypirca (pirtobrutinib) met its primary endpoint in first-of-its-kind, head-to-head Phase 3 study versus Imbruvica (ibrutinib) (announcement)
Lilly’s selective amylin agonist, eloralintide, demonstrated meaningful weight loss and favorable tolerability in a Phase 2 study of adults with obesity or overweight (announcement)
Other
Lilly selects Pennsylvania as home for its newest injectable medicine and device manufacturing facility (announcement)
NVIDIA and Lilly Announce Co-Innovation AI Lab to Reinvent Drug Discovery In the Age of AI (announcement)
Lilly to acquire Ventyx Biosciences to advance oral therapies targeting inflammatory-mediated diseases (announcement)
Lilly to build $6 billion facility to manufacture active pharmaceutical ingredients in Alabama (announcement)
Lilly and Adverum announce expiration and completion of Adverum tender offer and acquisition (announcement)
Carolyn Bertozzi returns to Lilly board of directors (announcement)
Lilly announces plans to open Lilly Gateway Labs site in Philadelphia (announcement)
Lilly announces two new Executive Committee members and expansion of leadership roles to prepare for next wave of growth (announcement)
Lilly and U.S. government agree to expand access to obesity medicines to millions of Americans (announcement)
Lilly plans to build a new $3 billion facility to boost oral medicine manufacturing capacity in Europe for patients worldwide (announcement)
For information on important public announcements, visit the news section of Lilly’s website.
2026 Financial Guidance
In addition to providing guidance for GAAP revenue, Lilly provides guidance for certain non-GAAP measures. Lilly does not provide reconciliations of forward-looking non-GAAP measures to the most directly comparable GAAP measures because comparable GAAP measures are not reasonably accessible or reliable due to the inherent difficulty in forecasting and quantifying measures that would be necessary for a reconciliation. In particular, Lilly cannot reasonably predict certain items including net gains and losses on equity securities, asset impairment, acquisition or divestiture-related items, restructuring and other adjustments, without unreasonable effort. These items are uncertain, depend on various factors, and could have a material impact on Lilly’s reported results in accordance with GAAP.
The following table summarizes the company’s full-year 2026 financial guidance:
2026 Guidance
Revenue
$80 to $83 billion
Performance Margin(1)(2)
46.0% to 47.5%
Tax Rate(2)(3)
18% to 19%
Earnings per Share(2)(3)(4)
$33.50 to $35.00
(1) The Company defines performance margin as gross margin less research and development
and marketing, selling, and administrative expenses divided by revenue.
(2) Excludes the impact of intangible asset amortization.
(3) Guidance does not include acquired in-process research and development (IPR&D) either
incurred or expected to be incurred, after December 31, 2025.
(4) 2026 assumes shares outstanding of approximately 894 million
Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the Q4 2025 financial results conference call through a link on Lilly’s website at investor.lilly.com/webcasts-and-presentations. The conference call will begin at 10 a.m. Eastern time today and will be available for replay via the website.
(Press release, Eli Lilly, FEB 4, 2026, View Source [SID1234662468])