Eli Lilly reported third-quarter 2026 earnings and revenue that significantly exceeded Wall Street expectations, prompting the company to raise its full-year sales guidance [1]. The pharmaceutical giant reported adjusted earnings per share of $7.48 versus the expected $6.26, and revenue of $24.40 billion compared to analyst expectations of $22.61 billion [1]. The company's shares rose approximately 4% in premarket trading following the announcement [1].
The strong results were driven primarily by surging demand for Eli Lilly's GLP-1 drugs, particularly Mounjaro and Zepbound [1]. Mounjaro's worldwide revenue rose 65% to $10.72 billion for the quarter, including U.S. sales of approximately $5 billion, exceeding analyst expectations of $10.10 billion in worldwide sales and $4.79 billion in U.S. revenue [1]. International sales of Mounjaro demonstrated particular strength, with sales outside the U.S. jumping 93% [1]. Zepbound, the company's obesity drug that entered the market roughly three years ago, posted $5.35 billion in revenue for the third quarter, up 49% year-over-year, surpassing analyst forecasts of $5.09 billion in global sales [1].
However, Eli Lilly's newly launched oral GLP-1 pill Foundayo, which won U.S. approval in April, underperformed expectations with $184 million in sales for the third quarter, falling short of analyst forecasts of around $229 million [1]. Despite this, Eli Lilly maintains dominant market share in the GLP-1 space, holding 63% of the U.S. obesity and diabetes drug market in the third quarter, compared to competitor Novo's 36.6% share, with Lilly holding 58.4% internationally [1].
Looking ahead, Eli Lilly raised its full-year 2026 revenue guidance to between $91 billion and $92 billion, up from previous guidance of $85 billion to $87 billion [1]. The company projects full-year adjusted earnings between $35 and $36 per share, compared to previous outlook of $35.50 to $36.50 per share, noting that the underlying profit guidance was raised by $4.07 per share at the midpoint but offset by $4.57 per share in charges tied to deals completed in the quarter [1].
CONCLUSION
Eli Lilly's strong Q3 performance and raised full-year guidance underscore the continued robust demand for its GLP-1 drugs, particularly Mounjaro and Zepbound, which are driving significant revenue growth despite pricing pressures [1]. While the underperformance of the newly launched Foundayo pill presents a near-term concern, Eli Lilly's commanding 63% market share in the U.S. GLP-1 market positions the company to capitalize on the expanding obesity and diabetes treatment market [1]. The 4% premarket stock increase reflects investor confidence in the company's growth trajectory and market dominance in this high-demand therapeutic category [1].