On April 30, 2026 Eli Lilly and Company (NYSE: LLY) reported its financial results for the first quarter of 2026 and provided updated 2026 financial guidance.
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"2026 is off to a strong start, we delivered 56% revenue growth in the first quarter and raised our full-year revenue guidance by $2 billion," said David A. Ricks, Lilly chair and CEO. "A key milestone was the U.S. FDA approval of Foundayo—the only approved GLP-1 pill that can be taken any time of day, without food and water restrictions. Foundayo will meaningfully expand the number of people who can benefit from GLP-1s. We also delivered pipeline progress across all four therapeutic areas and continued investing in Lilly’s future growth through four acquisitions."
Financial Results
$ in millions, except
per share data
First-Quarter
2026
2025
% Change
Revenue
$ 19,799
$ 12,729
56 %
Net income – Reported
7,396
2,759
168 %
Earnings per share – Reported
8.26
3.06
170 %
Net income – Non-GAAP
7,663
3,004
155 %
Earnings per share – Non-GAAP
8.55
3.34
156 %
A discussion of the non-GAAP financial measures is included below under "Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)."
First-Quarter Reported Results
In Q1 2026, worldwide revenue was $19.8 billion, an increase of 56% compared with Q1 2025, driven by a 65% increase in volume, partially offset by a 13% decrease due to lower realized prices. Key Products1 revenue grew to $13.4 billion in Q1 2026, led by Mounjaro and Zepbound. Key Products revenue in the Immunology, Oncology, and Neuroscience therapeutic areas grew 160% in Q1 2026 compared to Q1 2025.
Revenue in the U.S. increased 43% to $12.1 billion, driven by a 49% increase in volume, partially offset by a 7% decrease due to lower realized prices. The increase in U.S. volume was driven by Zepbound and Mounjaro and the decline in realized prices was primarily driven by Zepbound and Taltz.
Revenue outside the U.S. increased 81% to $7.7 billion, driven by a 95% increase in volume, partially offset by a 25% decrease due to lower realized prices. The lower realized prices outside the U.S. were driven primarily by the addition of Mounjaro to the National Reimbursed Drug List (NRDL) in China. The volume increase outside the U.S. was driven by Mounjaro. Jardiance revenue outside the U.S. included one-time benefits of $250 million in Q1 2026 compared to $370 million in Q1 2025, associated with the company’s collaboration with Boehringer Ingelheim.
1 The Company currently defines Key Products as Ebglyss, Inluriyo, Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound. Effective Q1 2026, Verzenio is excluded from Key Products.
Gross margin increased 54% to $16.2 billion in Q1 2026. Gross margin as a percent of revenue was 81.9%, a decrease of 0.6 percentage points versus the same quarter last year. The change was primarily driven by lower realized prices.
In Q1 2026, research and development expenses increased 28% to $3.5 billion, or 18% of revenue, driven by continued investments in the company’s early and late-stage portfolio.
Marketing, selling, and administrative expenses increased 19% to $2.9 billion in Q1 2026, primarily driven by promotional efforts supporting ongoing and planned launches.
In Q1 2026, the company recognized acquired in-process research and development (IPR&D) charges of $584 million compared with $1.6 billion in Q1 2025. The Q1 2025 charges primarily related to the acquisition of Scorpion Therapeutics, Inc.’s PI3Kα inhibitor program STX-478.
Asset impairment, restructuring and other special charges of $279 million in Q1 2026 were primarily related to litigation matters. In Q1 2025, there was a charge of $35 million related to intangible asset impairments.
The effective tax rate was 16.4% in Q1 2026 compared with 20.2% in Q1 2025, primarily driven by the unfavorable tax impact of a non-deductible acquired IPR&D charge in Q1 2025. The 2026 and 2025 effective tax rates were impacted by net discrete tax benefits in each period.
In Q1 2026, net income and earnings per share (EPS) were $7.4 billion and $8.26, respectively, compared with net income of $2.8 billion and EPS of $3.06 in Q1 2025. EPS in Q1 2026 and Q1 2025 included acquired IPR&D charges of $0.52 and $1.72, respectively.
First-Quarter Non-GAAP Measures
On a non-GAAP basis, Q1 2026 gross margin increased 54% to $16.4 billion. Gross margin as a percent of revenue was 82.6%, a decrease of 0.9 percentage points versus the same quarter last year. The change was primarily driven by lower realized prices.
The non-GAAP effective tax rate was 16.5% in Q1 2026 compared with 20.2% in Q1 2025, primarily driven by the unfavorable tax impact of a non-deductible acquired IPR&D charge in Q1 2025. The 2026 and 2025 effective tax rates were impacted by net discrete tax benefits in each period.
On a non-GAAP basis, Q1 2026 net income and EPS were $7.7 billion and $8.55, respectively, compared with net income of $3.0 billion and EPS of $3.34 in Q1 2025. Non-GAAP EPS in Q1 2026 and Q1 2025 included acquired IPR&D charges of $0.52 and $1.72, 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.
First-Quarter
2026
2025
% Change
Earnings per share (reported)
$ 8.26
$ 3.06
170 %
Amortization of intangible assets
.11
.11
Asset impairment, restructuring and other special charges
.25
.03
Net losses (gains) on investments in equity securities
(.07)
.13
Earnings per share (non-GAAP)
$ 8.55
$ 3.34
156 %
Acquired IPR&D
.52
1.72
(70) %
Numbers may not add due to rounding
Selected Revenue Highlights
(Dollars in millions)
First-Quarter
Selected Products
2026
2025
% Change
Mounjaro
$ 8,662
$ 3,842
125 %
Zepbound(1)
4,160
2,312
80 %
Jaypirca
165
92
79 %
Ebglyss
145
60
141 %
Kisunla
124
22
NM
Omvoh
80
37
115 %
Inluriyo
35
—
NM
Total Revenue
19,799
12,729
56 %
(1) Tirzepatide is marketed for obesity under the brand name Zepbound in Canada, Japan, and the
United States.
NM – not meaningful
Mounjaro
For Q1 2026, worldwide Mounjaro revenue increased 125% to $8.7 billion. U.S. revenue was $4.2 billion, an increase of 59%, reflecting strong demand, partially offset by lower realized prices. Lower realized prices were partially offset by a favorable one-time adjustment to estimates for rebates and discounts in Q1 2026. Revenue outside the U.S. increased to $4.4 billion compared with $1.2 billion in Q1 2025, primarily driven by volume growth, partially offset by lower realized prices driven by the addition of Mounjaro to the NRDL within the China market.
Zepbound
For Q1 2026, U.S. Zepbound revenue increased 79% to $4.1 billion, compared with $2.3 billion in Q1 2025, primarily driven by strong demand, partially offset by lower realized prices, including previously announced reductions in cash pay prices. Lower realized prices were partially offset by a favorable one-time adjustment to estimates for rebates and discounts in Q1 2026.
Lilly shared numerous updates recently on key regulatory, clinical, business development and other events, including:
Regulatory
FDA approves Lilly’s Foundayo (orforglipron), the only GLP-1 pill for weight loss that can be taken any time of day without food or water restrictions (announcement)
Lilly’s Olumiant (baricitinib) recommended by CHMP for approval of expanded use in the European Union for adolescents with severe alopecia areata (announcement)
Zepbound (tirzepatide), the most prescribed weight management medication in 2025, now available in multi-dose KwikPen (announcement)
Clinical
ACHIEVE-4, the longest Phase 3 study of Lilly’s Foundayo (orforglipron) to date, reaffirmed its cardiovascular and overall safety profile as well as consistent improvements across key measures of cardiometabolic health (announcement)
Lilly’s Jaypirca (pirtobrutinib) significantly extended progression-free survival when added to a venetoclax time-limited regimen in patients with previously treated CLL/SLL (announcement)
Phase 3b data presented at AAD Annual Meeting show Lilly’s Taltz (ixekizumab) plus Zepbound (tirzepatide) delivered superior efficacy for adults with psoriatic arthritis and obesity (announcement)
Lilly’s EBGLYSS (lebrikizumab-lbkz) delivered up to four years of durable disease control for patients with moderate-to-severe atopic dermatitis (announcement)
Lilly’s triple agonist, retatrutide, demonstrated significant reductions in A1C and weight in first Phase 3 trial for treatment of type 2 diabetes (announcement)
Lilly’s EBGLYSS (lebrikizumab-lbkz) is the first and only selective IL-13 inhibitor to deliver positive Phase 3 outcomes in patients aged six months to 18 years with moderate-to-severe atopic dermatitis (announcement)
Lilly’s oral GLP-1, orforglipron, delivered superior blood sugar control and weight loss compared to oral semaglutide in head-to-head type 2 diabetes trial published in The Lancet (announcement)
Patients with Crohn’s disease maintained steroid-free remission for three years with Lilly’s Omvoh (mirikizumab-mrkz) (announcement)
Lilly’s Taltz (ixekizumab) and Zepbound (tirzepatide) used together delivered superior efficacy in first-of-its-kind Phase 3b trial for adults with psoriasis and obesity or overweight (announcement)
Lilly’s Retevmo (selpercatinib) delivers substantial event-free survival benefit as an adjuvant therapy in early-stage RET fusion-positive lung cancer (announcement)
Other
Lilly to acquire Ajax Therapeutics to advance outcomes for patients with myelofibrosis and polycythemia vera (announcement)
Lilly to acquire Kelonia Therapeutics to advance in vivo CAR-T cell therapies (announcement)
Foundayo (orforglipron), Lilly’s new oral GLP-1 pill for weight loss, now available in the U.S. (announcement)
Lilly to acquire Centessa Pharmaceuticals to advance treatments for sleep-wake disorders (announcement)
Lilly Employer Connect platform launches with over fifteen independent program administrators offering tailored obesity coverage options to expand access to patients (announcement)
Lilly to acquire Orna Therapeutics to advance cell therapies (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.
The following table summarizes the company’s updated full-year 2026 non-GAAP financial guidance, reflecting the strong revenue performance in Q1:
Prior
Updated
Revenue
$80 to $83 billion
$82 to $85 billion
Performance Margin(1)(2)
46.0% to 47.5%
47.0% to 48.5%
Tax Rate(1)(3)
18% to 19%
Unchanged
Earnings per Share(1)(3)(4)
$33.50 to $35.00
$35.50 to $37.00
(1) 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. See Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited) table
below for additional Non-GAAP information.
(2) The company defines performance margin as gross margin less research and development and marketing, selling, and administrative
expenses divided by revenue.
(3) Guidance does not include acquired in-process research and development (IPR&D) incurred after March 31, 2026.
(4) 2026 assumes shares outstanding of approximately 895 million and foreign currency exchange rate assumptions of 1.16 (Euro), 153
(Yen) and 7.1 (Yuan)
Webcast of Conference Call
As previously announced, investors and the general public can access a live webcast of the Q1 2026 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, APR 30, 2026, View Source [SID1234664965])