Eli Lilly and Company (LLY) Q2 FY2026

Business

From the FY2025 Form 10-K, accession 0000059478-26-000013.

Eli Lilly was incorporated in Indiana in 1901, succeeding a drug manufacturing business founded in Indianapolis in 1876. It discovers, develops, manufactures, and markets human pharmaceutical products and reports as a single operating and reportable segment. Products are sold in approximately 90 countries; manufacturing and distribution run through facilities in the U.S. (including Puerto Rico), Europe, and Asia. At the end of 2025 the company employed roughly 50,000 people, about 27,000 of them outside the U.S., including approximately 12,000 in research and development.

Therapeutic franchises and marketed products

• Cardiometabolic health, Mounjaro (tirzepatide, type 2 diabetes), Zepbound (tirzepatide, obesity/overweight and obstructive sleep apnea; marketed under the Mounjaro brand for those indications in various markets outside the U.S.), Trulicity, Jardiance (Boehringer Ingelheim collaboration, including Glyxambi, Synjardy, Trijardy XR), Basaglar (Boehringer Ingelheim), Humalog and Humulin insulin families.
• Oncology, Verzenio, Jaypirca, Retevmo, Inluriyo, Cyramza, Erbitux, Tyvyt (Innovent collaboration, China).
• Immunology, Taltz, Omvoh, Ebglyss (licensed from Roche/Genentech; Almirall holds European dermatology rights), Olumiant (Incyte collaboration).
• Neuroscience, Emgality, Kisunla.

How revenue is earned. Most revenue is net product revenue; a smaller "collaboration and other" line captures the company's share of collaboration profits, royalties, and upfront and milestone payments. In the U.S., most products move through wholesalers, McKesson, Cencora, and Cardinal Health each accounted for a significant percentage of consolidated revenue in 2023, 2024, and 2025, with no other customer above 10 percent. Gross-to-net is a large and judgment-heavy item: contracts with direct and indirect customers carry managed care, Medicare, Medicaid, chargeback, and patient-assistance rebates and discounts recognized as revenue reductions at the time of sale. As of December 31, 2025 a 5 percent change in the consolidated sales return, rebate, and discount liability would change revenue by approximately $897 million, and roughly 87 percent of that liability balance related to U.S. sales.

LillyDirect, the company's direct-to-patient digital platform, delivers select medicines dispensed by third-party pharmacies and represented a growing portion of the business in 2025. Direct-to-employer channels are being built alongside it as a response to unfavorable private-sector access dynamics.

Competition and access. Lilly competes with multinational pharmaceutical, biotechnology, and generic companies, and explicitly flags intensifying competition from China and other markets whose R&D capability has expanded, with companies there increasingly licensing assets to multinationals and competing directly. Access is a structural constraint for the obesity franchise: U.S. self-insured employers must generally opt in to cover anti-obesity medicines, and payers in various international markets do not cover them for weight loss at all. Counterfeit, misbranded, adulterated, and mass-compounded incretins remain a live commercial and patient-safety problem.

Intellectual property. The compound patent is the central protection, with data protection, pediatric exclusivity, and orphan exclusivity layered on. Key estimated expiries disclosed in the 10-K:

Manufacturing. To meet expected incretin demand the company has undertaken a large capacity build, with new sites in North Carolina, Wisconsin, Indiana, Virginia, Texas, Alabama, Pennsylvania, Ireland, Germany, and the Netherlands. It also relies on third parties for portions of active-ingredient manufacturing, fill-finish, and device assembly, and, like the industry generally, on China-based suppliers for parts of its chemical supply chain.

Pricing and policy environment. In November 2025 Lilly announced preliminary voluntary agreements with the U.S. government: lower Medicaid and certain other drug prices, a more balanced launch-pricing approach across developed nations, Medicare beneficiary access to discounted obesity medicines by July 1, 2026, an option for states to expand Medicaid access, and participation in a government direct-to-patient purchasing platform. The agreements also provide a three-year grace period during which products under a Section 232 investigation would not face tariffs, conditioned on meeting U.S. manufacturing investment commitments. Under the Inflation Reduction Act, HHS selected Jardiance for government-set Medicare prices effective 2026 (announced at a 66 percent discount to the 2023 list price for a 30-day supply) and, in January 2026, selected Trulicity and Verzenio for prices effective 2028.

Risk factors

Condensed from Item 1A of the FY2025 Form 10-K, accession 0000059478-26-000013.

Concentration in a few products, and in one product class. Mounjaro, Zepbound, Verzenio, Trulicity, Taltz, and Jardiance each generated more than $3 billion of revenue and together accounted for 82 percent of total 2025 revenue; Mounjaro and Zepbound alone were 56 percent. The company expects cardiometabolic health to remain a growing share of the business. Loss of exclusivity, safety findings, demand or channel swings, or access setbacks in these products could materially affect results, and, the filing notes, could produce sudden declines or volatility in the stock price and market capitalization.

R&D is costly and fails often. A significant portion of R&D spending will not generate direct financial returns; candidates fail late, after manufacturing capacity and launch inventory have been committed. The company must keep replenishing the portfolio to cover R&D cost and replace revenue lost to pricing controls, exclusivity expiry, and competitive displacement, and it notes that its own growth increases the size of the hole future products must fill.

Business development risk. Lilly is an active acquirer, and flags competition for targets, regulatory focus on pharmaceutical combinations (FTC and European and other authorities), integration and retention failures, diligence that misses or under-sizes risk, and the resulting possibility of impairment or restructuring charges. Business development in novel modalities carries additional scientific uncertainty.

Government price controls, and the specific U.S. arrangements. The filing is unusually direct that the November 2025 voluntary agreements are themselves a risk: the definitive agreements may be delayed or land on unfavorable terms, and the company may fail to capitalize on expanded U.S. obesity access if the revenue from it does not offset the pricing concessions. Broader efforts to align U.S. pricing with international benchmarks could pressure pricing strategy, demand, access, and competitive position across global markets and reduce revenue in certain markets. IRA price-setting is expected to reach additional Lilly products in future years, accelerating revenue erosion ahead of exclusivity expiry; the nine-year NDA timeline is described as reducing the attractiveness of small-molecule investment.

Private-payer and channel power. Consolidated health plans, PBMs, wholesalers, and pharmacies use formularies, utilization management, and cost-sharing design to control spend. A named example: in July 2025 CVS Caremark stopped covering Zepbound as a preferred obesity management medicine on some plans, negatively affecting access for patients on those plans. Continued expansion of the 340B program, including state laws purporting to mandate 340B sales to unlimited contract pharmacies, affects an increasing percentage of sales.

Intellectual property. Trulicity will lose significant patent and remaining data protection within the next few years. U.S. patents on major products are expected to be routinely challenged under Hatch-Waxman, the BPCIA, and inter partes review; the December 2025 EU pharmaceutical legislation agreement-in-principle would make certain IP incentives conditional and cut maximum data protection by a year. Proposals for government "march-in rights" and USPTO/Congressional limits on patent families are also flagged.

Safety and efficacy after launch. Post-approval use in far larger populations can surface new safety or efficacy signals, leading to label changes, recalls, withdrawals, and product liability claims. Concerns raised about same-class, compounded, counterfeit, or same-mechanism products can be imputed to Lilly's products.

Manufacturing and supply. The capacity expansion cuts both ways: shortages and disruptions cost revenue and invite market entrants, while overestimating demand would strand large capital expenditures, create supply imbalances, and trigger contractual payment obligations. Regional and single-source dependencies, China-based suppliers in particular, add tariff and geopolitical exposure, and qualifying alternative suppliers is slow and regulator-gated.

Third parties, AI, and IT. Lilly outsources clinical trial management, testing, certain manufacturing and fill-finish, device assembly, and distribution, and has expanded relationships with contract manufacturers, consumer-access channel operators, and AI vendors. It deploys AI in drug discovery and operations and warns that AI may enable new competitors, that its own AI investments may not pay off, and that AI use compounds regulatory, cybersecurity, litigation, and data-privacy risk. IT and cybersecurity failures are called out as potentially material; to date none encountered has had a material impact on strategy, results, or financial condition.

International, currency, and tax. Significant operations in Europe and Asia expose the company to cost-containment regimes where governments are the dominant payer (EU, Japan, China), tariffs and trade restrictions, and geopolitical escalation. Lilly is a net receiver of most foreign currencies and is hurt by a strong dollar; principal exposures are the euro, yen, yuan, and sterling. Tax positions face routine examination and increasing scrutiny of cross-border issues.

Litigation. The company is predominantly self-insured for liability losses on all currently and previously marketed products because the liability insurance market is very restrictive.

Principal named legal matters (from Note 9 of the Form 10-Q, accession 0000059478-26-000081):

• Emgality patent litigation (Teva). After a 2022 jury verdict for Teva and a 2023 judgment for Lilly holding the asserted claims invalid, the Federal Circuit reversed the invalidity finding in April 2026 and remanded; Lilly recognized a charge in Q1 2026 and petitioned for rehearing en banc in June 2026.
• Verzenio Hatch-Waxman. Cipla filed an ANDA in April 2026; Lilly sued in Delaware in June 2026.
• Tirzepatide Hatch-Waxman. In July 2026 multiple generic companies filed ANDAs against Mounjaro and/or Zepbound patents; Lilly intends to sue.
• 340B litigation. Lilly's Seventh Circuit appeal over HHS's contract-pharmacy advisory opinion and ADR regulations remains pending; the Mosaic Health antitrust class action was revived by the Second Circuit and Lilly petitioned the Supreme Court in March 2026; multiple state and provider suits continue. Separately, Lilly appealed to the D.C. Circuit after a May 2025 district court ruling backing HRSA's position that its cash-replenishment model requires preapproval.
• Insulin pricing. A multidistrict litigation in New Jersey plus state, municipal, tribal, and payer suits; in July 2026 the Michigan Supreme Court reversed the appellate decision that had been in Lilly's favor in the state's Consumer Protection Act matter. Lilly previously settled with New York (2023) and Minnesota (2024) without monetary payments or admissions.
• Average manufacturer price qui tam. After a 2022 jury verdict for the relator and a September 2025 Seventh Circuit affirmance (charge recognized), the Supreme Court denied review in May 2026.
• Incretin product liability. Two federal MDLs in the Eastern District of Pennsylvania (gastrointestinal injuries; NAION), plus state proceedings in Delaware, Indiana, and New Jersey and class petitions in Israel and Canada.
• Brazil (Cosmopolis). The superior labor court significantly reduced the liquidated award in December 2025; appeals continue.
• Health Choice Alliance. A Texas Medicaid Fraud Prevention Act qui tam; in August 2025 the relator purported to dismiss the first suit and filed a second adding the State of Texas and expanding claims from three to fifteen products.

Management's discussion and analysis, fiscal year 2025

From Item 7 of the FY2025 Form 10-K, accession 0000059478-26-000013.

Headline results

Revenue drivers. U.S. revenue rose 43 percent to $43,481 million and revenue outside the U.S. rose 48 percent to $21,698 million. Consolidated growth decomposed to volume +50 percent, price −6 percent, foreign exchange +1 percent; in the U.S. the split was volume +53 percent and price −10 percent. Both the volume gain and the price decline were driven principally by Mounjaro and Zepbound.

Mounjaro grew 53 percent in the U.S. on demand, partly offset by lower realized prices; outside the U.S. it went from $2.6 billion to $9.3 billion on volume. Zepbound grew 174 percent in the U.S. Verzenio grew 1 percent in the U.S. and 20 percent outside it.

Margins and expenses. Gross margin was $54,127 million, or 83.0 percent of revenue, up 1.7 points on favorable mix and improved cost of production against lower realized prices. R&D rose 21 percent to $13,337 million on early- and late-stage portfolio investment; marketing, selling, and administrative rose 29 percent to $11,094 million on launch support. Acquired IPR&D charges were $2,910 million (2024: $3,280 million), chiefly Scorpion's PI3Kα program STX-478 and SiteOne Therapeutics. The effective tax rate was 19.8 percent versus 16.5 percent, driven by jurisdictional earnings mix and 2025 U.S. tax law changes; both years were hurt by non-deductible acquired IPR&D.

Cash and capital. Operating cash flow rose to $16.8 billion from $8.8 billion; cash and equivalents ended 2025 at $7.3 billion versus $3.3 billion, with $2.9 billion of additional investments. Capital expenditures were $7.8 billion versus $5.1 billion, and management expects meaningfully higher capex near term. Contract manufacturing and supply agreements for medicines in development could require up to approximately $10 billion in payments if specified purchase volumes are not taken, over terms generally up to eight years; unfunded venture capital fund commitments were about $902 million. Total debt rose $8.9 billion to $42.5 billion, against $10.1 billion of unused committed bank facilities. Dividends paid were $6.00 per share (2024: $5.20), with the quarterly rate raised to $1.73 effective in the first quarter of 2026, an indicated annual rate of $6.92. Lilly repurchased $4.1 billion of stock under the $15.0 billion December 2024 authorization, leaving $10.9 billion. The 10-K also disclosed that 2026 business development agreements already signed and subject to closing conditions carried potential amounts payable at closing of less than $3 billion.

Pipeline as of the 10-K. Tirzepatide approvals in the EU for HFpEF and in the U.S. and EU for pediatric/adolescent type 2 diabetes, with cardiovascular outcomes submitted in the U.S. and Phase 3 programs in MASLD, morbidity/mortality in obesity, and type 1 diabetes. Insulin efsitora alfa submitted in the U.S., EU, and Japan for type 2 diabetes. Orforglipron submitted in the U.S., EU, and Japan for obesity, carrying an FDA Commissioner's National Priority Voucher, and in the EU for type 2 diabetes, with Phase 3 programs across cardiovascular outcomes, hypertension, OSA, osteoarthritis pain, peripheral artery disease, and stress urinary incontinence. Retatrutide Phase 3 across cardiovascular/renal outcomes, chronic low back pain, MASLD, obesity/osteoarthritis/OSA, and type 2 diabetes. Also in Phase 3: eloralintide, lepodisiran, muvalaplin, brenipatide (alcohol use disorder), remternetug, ixo-vec, olomorasib, sofetabart mipitecan, imlunestrant in adjuvant breast cancer, and lebrikizumab line extensions. Approvals in the period included Omvoh in Crohn's disease, Kisunla in early Alzheimer's, Inluriyo, and full approval of Jaypirca in CLL.

Other matters. The One Big Beautiful Bill Act, enacted July 2025, made permanent several Tax Cuts and Jobs Act provisions including immediate deductibility of U.S. R&D expense and 100 percent bonus depreciation. A 5 percent change in uncertain tax positions or in the valuation allowance would change net income by $160 million and $61 million respectively.

Current quarter, three and six months ended June 30, 2026

From the Form 10-Q, accession 0000059478-26-000081, and the second-quarter earnings release furnished on Form 8-K, accession 0000059478-26-000077.

Results

U.S. revenue rose 33 percent to $14,413 million and revenue outside the U.S. rose 80 percent to $8,561 million. The quarter's consolidated split was volume +60 percent, price −13 percent, foreign exchange +1 percent. Outside the U.S. the price effect was −36 percent, driven primarily by the addition of Mounjaro to China's National Reimbursement Drug List. U.S. price was −3 percent, held up by favorable adjustments to rebate and discount estimates on Trulicity, Mounjaro, and Zepbound; the earnings release states that excluding those adjustments U.S. price would have declined about 9 percent.

Mounjaro revenue outside the U.S. was $5.2 billion in the quarter against $1.9 billion a year earlier. Jardiance revenue outside the U.S. included a $250 million sales-based milestone under the Boehringer Ingelheim collaboration. Newer launches contributed: Ebglyss $201 million, Jaypirca $192 million, Kisunla $167 million, Omvoh $102 million, Foundayo (orforglipron) $98 million in its first quarter, and Inluriyo $75 million. Mounjaro and Zepbound together were 65 percent of first-half revenue, up from 56 percent of full-year 2025.

Margins and charges. Gross margin was $19,706 million, 85.8 percent of revenue, up 1.5 points. R&D rose 14 percent to $3,819 million; marketing, selling, and administrative rose 25 percent to $3,430 million. Acquired IPR&D charges were $2,776 million versus $154 million a year earlier, principally the Orna Therapeutics ($1,233 million, ORN-252) and Ajax Therapeutics ($909 million, AJ1-11095) asset acquisitions, and asset impairment, restructuring, and other special charges were $703 million (none in Q2 2025), mostly accelerated vesting of employee equity awards and other acquisition and integration costs from the Kelonia and Centessa closings. Those two items pushed the effective tax rate to 23.3 percent from 16.5 percent. Acquired IPR&D charges equated to $3.03 of EPS in the quarter versus $0.14 a year earlier; non-GAAP EPS was $8.38, up 33 percent.

Business development in the period. Business combinations closed in the first half were Ventyx Biosciences (March 4, 2026; oral therapies for inflammatory-mediated diseases; lead asset VTX3232), Centessa Pharmaceuticals (June 24, 2026; orexin receptor 2 agonists for sleep-wake disorders; lead asset ORX750), and Kelonia Therapeutics (June 25, 2026; in vivo CAR-T; lead asset KLN-1010). Cash paid for business development in 2026 through the quarter was $13.3 billion, across Centessa, Kelonia, Orna, Ventyx, and Ajax. Contingent consideration liabilities rose to $2,518 million across current and noncurrent balances, from $251 million at year-end, chiefly from Kelonia.

Financial condition. Operating cash flow in the first half was $16.0 billion, against $16.8 billion for the whole of 2025, and capital expenditures were $5.3 billion (full-year 2025: $7.8 billion), leaving free cash flow of $10.8 billion. During the quarter the company committed an additional $4.5 billion to expand its Indiana manufacturing sites. Cash and equivalents rose to $9.0 billion from $7.3 billion, with investments of $3.9 billion. Total debt was $54.9 billion, up $12.4 billion from year-end, comprising $49.6 billion of long-term debt (carrying amount) and $5.3 billion of commercial paper; the increase funded a portion of the Centessa and Kelonia consideration and repaid commercial paper. Unused committed bank facilities remained $10.1 billion. The company repurchased $4.0 billion of stock in the first half, leaving $7.0 billion of the $15.0 billion authorization, and paid $3.1 billion, or $3.46 per share, of dividends. Unfunded venture capital commitments were about $806 million.

Pipeline and regulatory changes since the 10-K. The FDA approved orforglipron for obesity, launched in the U.S. as Foundayo in the second quarter, and Lilly submitted orforglipron for type 2 diabetes in the U.S., EU, and Japan and for obesity and/or type 2 diabetes across all major international markets. CHMP issued a positive opinion for insulin efsitora alfa in type 2 diabetes in the EU. Retatrutide Phase 3 trials in obesity met their primary endpoints, as did a Phase 3 type 2 diabetes trial; the earnings release states the clinical data package is complete to support global registrations in obesity, obstructive sleep apnea, and knee osteoarthritis pain, with a U.S. Biologics License Application planned for the first quarter of 2027. New Phase 3 starts included baricitinib in type 1 diabetes; eloralintide as an incretin add-on for obesity, for OSA, and for osteoarthritis pain; brenipatide in major depressive disorder; and sofetabart mipitecan in platinum-sensitive ovarian cancer, which also received FDA Breakthrough Therapy designation in platinum-resistant disease. Regulatory approvals in the quarter included Ebglyss for eight-week maintenance dosing in moderate-to-severe atopic dermatitis (U.S.) and Jaypirca as monotherapy for CLL across all lines of therapy (European Commission).

Access. The U.S. government pricing agreements were finalized in the first quarter of 2026. Under the resulting Medicare GLP-1 Bridge Program, Medicare beneficiaries obtained access to discounted Lilly obesity medicines effective July 1, 2026 through December 31, 2027, with state Medicaid programs separately able to expand access. Lilly continues to engage CMS on long-term Medicare access and states that the uptake from this expanded access is unknown.

Guidance. Full-year 2026 revenue guidance was raised to $85.0–$87.0 billion (prior: $82–$85 billion) and performance margin guidance to 49.0–50.5 percent (prior: 47.0–48.5 percent). Non-GAAP EPS guidance is $35.50–$36.50: underlying business strength added $2.78 at the midpoint, more than offset by the $3.03 of second-quarter acquired IPR&D charges. Tax rate guidance was unchanged at 18–19 percent. Guidance excludes acquired IPR&D incurred after June 30, 2026 and assumes about 894 million shares and exchange rates of 1.14 (euro), 153 (yen), and 7.1 (yuan).

Management's stated near-term swing factors. Timing of additional orforglipron approvals; demand and pace of uptake in new incretin channels and markets, including U.S. Medicare for Zepbound and Foundayo; and incretin volume fluctuations from channel dynamics or demand, which the company says can have a disproportionate effect on results in any given period. Longer term, management ties durability to maintaining competitive position as the therapeutic landscape evolves and delivering further innovation.

Subsequent events

From Note 4 and Item 2 of the Form 10-Q, accession 0000059478-26-000081, and Note 9 of the same filing.

• Infectious disease acquisitions (July 2026). Lilly acquired three companies to build an infectious disease portfolio for up to $3.9 billion in aggregate, inclusive of upfront payments and additional potential payments contingent on clinical, regulatory, and commercial milestones. It paid approximately $2.0 billion in July 2026 in connection with these acquisitions. The targets are not named in the filing, and because access to information was limited before closing, the fair values of assets acquired and liabilities assumed and the associated accounting treatments had not yet been determined.
• AtaiBeckley Inc. (pending). Lilly entered into an agreement to acquire AtaiBeckley Inc., subject to closing conditions. The potential amount payable at closing is approximately $2.8 billion. The earnings release describes the transaction as advancing therapies for treatment-resistant depression and other mental health conditions.
• Tirzepatide generic challenges (July 2026). Generic filers challenged Mounjaro and/or Zepbound patents, as set out under legal matters above.
• Insulin pricing, Michigan (July 2026). The Michigan Supreme Court reversed the appellate ruling that had been in Lilly's favor, as set out under legal matters above.

The company states it evaluated subsequent events through the time of filing the quarterly report on August 5, 2026.

Filings that contain financial statements

• 8-K, accession 0000059478-26-000077 (filed August 5, 2026), Exhibit 99.1 press release furnishes Eli Lilly's second-quarter 2026 results: condensed income-statement figures (revenue, gross margin, R&D, SG&A, IPR&D charges, net income, reported and non-GAAP EPS) and full-year 2026 guidance.
• 8-K, accession 0000059478-26-000043 (filed April 30, 2026), Exhibit 99.1 furnishes first-quarter 2026 results and updated full-year guidance.
• 8-K, accession 0000059478-26-000008 (filed February 4, 2026), Exhibit 99.1 furnishes fourth-quarter and full-year 2025 results and initial 2026 guidance.
• 8-K, accession 0000059478-25-000251 (filed October 30, 2025), Exhibit 99.1 furnishes third-quarter 2025 results and raised 2025 guidance.
• 8-K, accession 0000059478-25-000202 (filed August 7, 2025), Exhibit 99.1 furnishes second-quarter 2025 results and raised 2025 guidance.
• 8-K, accession 0000059478-25-000138 (filed May 8, 2025), annual-meeting voting results only (Item 5.07); no financial statements.
• 8-K, accession 0000059478-25-000129 (filed May 1, 2025), Exhibit 99.1 furnishes first-quarter 2025 results and reaffirmed 2025 guidance.
• 8-K, accession 0000059478-25-000037 (filed February 6, 2025), Exhibit 99.1 furnishes fourth-quarter and full-year 2024 results and initial 2025 guidance.
• 8-K, accession 0000059478-25-000005 (filed January 14, 2025), Exhibit 99.1 furnishes preliminary, unaudited 2024 full-year and Q4 2024 revenue and initial 2025 revenue guidance (a JPMorgan Healthcare Conference update, not final GAAP financials).

The company's full interim and annual financial statements are also carried in its Form 10-Q (accession 0000059478-26-000081, quarter ended June 30, 2026) and Form 10-K (accession 0000059478-26-000013, year ended December 31, 2025), which are covered separately in this reporting package.

Earnings and guidance

• August 5, 2026, Q2 2026 results, guidance raised. Revenue rose 48% year over year to $23.0 billion, driven by Mounjaro and Zepbound volume. Reported EPS was $7.94 (up 26%) and non-GAAP EPS was $8.38 (up 33%), both including $3.03 of acquired IPR&D charges versus $0.14 a year earlier. The company raised full-year 2026 revenue guidance to $85.0–$87.0 billion and raised underlying non-GAAP EPS guidance by $2.78 at the midpoint, though that increase was more than offset by the quarter's IPR&D charges, leaving the reported non-GAAP EPS range at $35.50–$36.50. Lilly also disclosed it had committed an additional $4.5 billion to expand its Indiana manufacturing sites, and that subsequent to quarter-end it completed three acquisitions to build an infectious-disease portfolio and entered into an agreement to acquire AtaiBeckley, Inc. (8-K, accession 0000059478-26-000077).
• April 30, 2026, Q1 2026 results, guidance raised. Revenue rose 56% to $19.8 billion. Reported EPS was $8.26 (up 170%) and non-GAAP EPS was $8.55 (up 156%), including $0.52 of acquired IPR&D charges. Full-year 2026 revenue guidance was raised to $82.0–$85.0 billion and non-GAAP EPS guidance to $35.50–$37.00. The company also announced a planned Investment Community Meeting for December 7, 2026 (8-K, accession 0000059478-26-000043).
• February 4, 2026, Q4 and full-year 2025 results, 2026 guidance issued. Q4 2025 revenue rose 43% to $19.3 billion; reported EPS was $7.39 (up 51%) and non-GAAP EPS was $7.54 (up 42%), both including $0.52 of acquired IPR&D charges. Initial 2026 guidance was set at $80–$83 billion revenue and $33.50–$35.00 non-GAAP EPS. The release also referenced an agreement with the U.S. government to expand access to obesity medicines (8-K, accession 0000059478-26-000008).
• October 30, 2025, Q3 2025 results, guidance raised. Revenue rose 54% to $17.60 billion. Reported EPS was $6.21 and non-GAAP EPS was $7.02. Full-year 2025 revenue guidance was raised to $63.0–$63.5 billion, reported EPS guidance to $21.80–$22.50, and non-GAAP EPS guidance to $23.00–$23.70 (8-K, accession 0000059478-25-000251).
• August 7, 2025, Q2 2025 results, guidance raised. Revenue rose 38% to $15.56 billion. Reported EPS was $6.29 (up 92%) and non-GAAP EPS was $6.31 (up 61%), both including $0.14 of acquired IPR&D charges. Full-year 2025 revenue guidance midpoint was raised by $1.5 billion to $60–$62 billion; reported EPS guidance raised to $20.85–$22.10 and non-GAAP EPS guidance raised to $21.75–$23.00. Business development activity in the quarter included the completed acquisitions of SiteOne Therapeutics, Inc. and Verve Therapeutics, Inc. (8-K, accession 0000059478-25-000202).
• May 1, 2025, Q1 2025 results, guidance reaffirmed. Revenue rose 45% to $12.73 billion. Reported EPS was $3.06 (up 23%) and non-GAAP EPS was $3.34 (up 29%), both including $1.72 of acquired IPR&D charges. Full-year 2025 revenue guidance was reaffirmed at $58.0–$61.0 billion (8-K, accession 0000059478-25-000129).
• February 6, 2025, Q4 and full-year 2024 results, 2025 guidance issued. Q4 2024 revenue rose 45% to $13.53 billion; reported EPS was $4.88 (up 102%) and non-GAAP EPS was $5.32 (up 114%), both including $0.19 of acquired IPR&D charges. Initial 2025 guidance was set at $58.0–$61.0 billion revenue, $22.05–$23.55 reported EPS, and $22.50–$24.00 non-GAAP EPS. The release also flagged the then-pending acquisition of Scorpion Therapeutics, Inc.'s mutant-selective PI3Kα inhibitor program (8-K, accession 0000059478-25-000037).
• January 14, 2025, preliminary 2024 revenue update and initial 2025 guidance at the J.P. Morgan Healthcare Conference. Lilly said full-year 2024 revenue would be approximately $45.0 billion (about $4.0 billion above the midpoint of its original 2024 guidance) but that Q4 2024 revenue, at roughly $13.5 billion, would come in about $400 million below the low end of its most recent guidance, citing slower-than-expected U.S. incretin market acceleration and lower year-end channel inventory. The company issued initial 2025 revenue guidance of $58.0–$61.0 billion. This was explicitly labeled preliminary, unaudited information subject to change with final closing procedures (8-K, accession 0000059478-25-000005).

Mergers and acquisitions

Several acquisitions were signed and/or closed across the period. Based on the language in Lilly's own filings:

• Centessa Pharmaceuticals plc, agreement to acquire disclosed as pending in the Q1 2026 earnings release (April 30, 2026); Lilly's quarterly report for the period ended June 30, 2026 confirms the acquisition closed on June 24, 2026, with an acquisition-date fair value of consideration of $6,593 million (cash consideration paid or to be paid, net of cash acquired, of $5,958 million, plus contingent consideration up to $1,542 million). The Q2 2026 earnings release (August 5, 2026) lists Centessa among acquisitions completed in the quarter (10-Q, accession 0000059478-26-000081; 8-K, accession 0000059478-26-000077).
• Kelonia Therapeutics, Inc., closed June 25, 2026, with an acquisition-date fair value of consideration of $4,897 million ($3,086 million cash consideration net of cash acquired, plus up to $3,750 million of contingent consideration) (10-Q, accession 0000059478-26-000081).
• Ventyx Biosciences, Inc., closed March 4, 2026, with an acquisition-date fair value of consideration of $1,178 million ($1,058 million cash consideration net of cash acquired) (10-Q, accession 0000059478-26-000081).
• Ajax Therapeutics, Inc., acquisition completed in June 2026; accounted for as an asset acquisition with a $909 million acquired IPR&D charge for AJ1-11095, a Phase 1 oral JAK2 inhibitor (10-Q, accession 0000059478-26-000081).
• Orna Therapeutics, Inc., acquisition completed in May 2026; accounted for as an asset acquisition with a $1,233 million acquired IPR&D charge for ORN-252, a Phase 1 CAR-T therapy (10-Q, accession 0000059478-26-000081).
• SiteOne Therapeutics, Inc. and Verve Therapeutics, Inc., both acquisitions completed in Q2 2025, per the August 7, 2025 earnings release (8-K, accession 0000059478-25-000202).
• Scorpion Therapeutics, Inc., its PI3Kα inhibitor program (STX-478) was described as a pending acquisition in the February 6, 2025 earnings release; a $1,412 million acquired IPR&D charge tied to Scorpion is recorded in March 2025, indicating the deal closed in Q1 2025 (8-K, accession 0000059478-25-000037; 10-Q, accession 0000059478-26-000081).
• AtaiBeckley, Inc., Lilly disclosed it "entered into an agreement to acquire" AtaiBeckley subsequent to the quarter ended June 30, 2026, as noted in the Q2 2026 earnings release dated August 5, 2026. This is a signed but not-yet-closed deal as of that release (8-K, accession 0000059478-26-000077).
• Lilly also disclosed it "completed three acquisitions to build an infectious disease portfolio" subsequent to the quarter ended June 30, 2026, without naming the targets in the Exhibit 99.1 summary (8-K, accession 0000059478-26-000077).

Debt issuance

Lilly completed three underwritten public notes offerings in the period, all issued under its 1991 indenture (as amended) and a shelf registration on Form S-3:

• May 20, 2026, $9.0 billion aggregate principal of notes (net proceeds approximately $8.94 billion). Comprising Floating Rate Notes due 2028 ($750 million) and 2029 ($500 million), and Fixed Rate Notes due 2029 (4.150%, $750 million), 2031 (4.375%, $1.5 billion), 2033 (4.650%, $1.25 billion), 2036 (4.850%, $1.5 billion), 2056 (5.600%, $1.75 billion) and 2066 (5.700%, $1.0 billion). The 2029 Floating Rate Notes and the 2029, 2031, 2033 and 2036 Fixed Rate Notes carry a special mandatory redemption at 101% of principal if the Centessa acquisition did not close by an outside date of March 31, 2027 (or later, as agreed), a condition that had not yet been triggered, since Centessa closed the following month, on June 24, 2026, per the 10-Q. Net proceeds were used for general corporate purposes, including repaying commercial paper and funding a portion of the Centessa and Kelonia acquisitions (8-K, accession 0001193125-26-232707).
• August 20, 2025, $6.75 billion aggregate principal of notes (net proceeds approximately $6.71 billion). Comprising Floating Rate Notes due 2028 ($750 million) and Fixed Rate Notes due 2028 (4.000%, $1.0 billion), 2031 (4.250%, $750 million), 2032 (4.550%, $1.0 billion), 2035 (4.900%, $1.25 billion), 2055 (5.550%, $1.0 billion) and 2065 (5.650%, $1.0 billion) (8-K, accession 0001193125-25-184093).
• February 12, 2025, $6.5 billion aggregate principal of notes (net proceeds approximately $6.46 billion). Comprising Fixed Rate Notes due 2028 (4.550%, $1.0 billion), 2030 (4.750%, $1.25 billion), 2032 (4.900%, $1.0 billion), 2035 (5.100%, $1.25 billion), 2055 (5.500%, $1.25 billion) and 2065 (5.600%, $750 million) (8-K, accession 0001193125-25-025057).

Board and governance

• May 4, 2026, 2026 annual meeting results. Shareholders elected all four director nominees (Carolyn Bertozzi, William Kaelin, Jr., Jon Moeller, David Ricks) and ratified Ernst & Young LLP as auditor. Proposals to eliminate the classified board and eliminate supermajority voting provisions each fell short of the required 80% supermajority. A shareholder proposal for an independent board chair and one requesting an annual lobbying report were both voted down (8-K, accession 0000059478-26-000048).
• November 18, 2025, board appointment. Carolyn R. Bertozzi, Ph.D. (Stanford chemistry professor and HHMI investigator) was elected to Lilly's board effective December 8, 2025 (8-K, accession 0000059478-25-000271).
• May 5, 2025, 2025 annual meeting results. Shareholders elected all four director nominees (Ralph Alvarez, Mary Lynne Hedley, Kimberly Johnson, Juan Luciano) and ratified Ernst & Young LLP as auditor. Proposals to eliminate the classified board and eliminate supermajority voting provisions again fell short of the required 80% supermajority (8-K, accession 0000059478-25-000138).
• November 19, 2024, board changes. Jon Moeller, chairman, president and CEO of Procter & Gamble, was elected to Lilly's board effective December 1, 2024. Karen Walker resigned from the board effective December 31, 2024, while continuing to collaborate with Lilly on certain digital commercial initiatives; her departure was described as not arising from any disagreement with the company (8-K, accession 0000059478-24-000258).

Note on scope

All 15 8-Ks filed by Eli Lilly between November 19, 2024 and August 5, 2026 are reflected above. No standalone Item 8.01 8-K separately announced the signing of the Centessa Pharmaceuticals acquisition; the signing was disclosed in the Q1 2026 earnings release (8-K, accession 0000059478-26-000043, April 30, 2026), which listed "Lilly to acquire Centessa Pharmaceuticals to advance treatments for sleep-wake disorders" among its business-development announcements, with the closing confirmed in the company's Form 10-Q for the quarter ended June 30, 2026.

About this file

LLY annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

LLY quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

LLY year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

LLY trailing twelve month income statement and cash flow

Derived by AI from the figures the filings report. No filing prints these, so none of them is linked.

Adjustments

Notes

• This record covers exactly the periods the two filings behind it put on their face: the FY2025 Form 10-K (accession 0000059478-26-000013), which presents fiscal 2025, 2024 and 2023 income statements and cash flow statements and balance sheets at December 31, 2025 and 2024; and the Form 10-Q for the quarter ended June 30, 2026 (accession 0000059478-26-000081), which presents the three and six months ended June 30, 2026 and 2025 and balance sheets at June 30, 2026 and December 31, 2025.
• All figures are stated in actual U.S. dollars. The filings present their statements in millions; every amount here has been multiplied out to whole dollars, so a $22,974 million revenue line appears as 22,974,000,000.
• Lilly's income statement does not present an operating income subtotal. The line reported here as 'operating_income_derived' is revenue less cost of sales, research and development, marketing/selling/administrative, acquired in-process research and development, and asset impairment/restructuring/other special charges. It excludes the 'Other-net, (income) expense' line, which the company reports separately and which bridges this subtotal to income before income taxes as presented in the filings. For the June 2026 quarter that derived operating income is $8,978 million, and the $269 million of other-net income brings it to the $9,247 million of income before income taxes shown on the face of the 10-Q.
• Only the discrete three-month periods appear in the quarterly list. The six-month figures the 10-Q prints alongside them are reported separately under 'year_to_date' (with the prior-year six months nested inside it), and a twelve-month view appears under 'trailing_twelve_months'.
• The 10-Q's cash flow statement is presented on a six-month basis only. The June 2026 and June 2025 quarterly cash flow figures shown here were obtained by subtracting the corresponding March-quarter amounts, as reported in the Form 10-Q for the quarter ended March 31, 2026 (accession 0000059478-26-000045), from the six-month columns of the current 10-Q. Several independent checks confirm the result: the resulting June-2026-quarter stock-based compensation of $201 million and acquired in-process research and development of $2,776 million match the equity statement and income statement in the current 10-Q, the $8,941 million of long-term debt proceeds matches the roughly $9.0 billion May 2026 issuance the 10-Q describes, and the derived cash roll-forward lands exactly on the $8,950 million of cash on the June 30, 2026 balance sheet.
• Trailing-twelve-month figures are arithmetic: fiscal 2025 less the six months ended June 30, 2025 plus the six months ended June 30, 2026. On that basis trailing revenue is $79,666 million and trailing net income is $26,711 million.
• Capital expenditures are the 'Purchases of property and equipment' line of the cash flow statement. The 10-Q's segment note separately discloses 'expenditures for long-lived assets' of $2,906 million for the June 2026 quarter and $5,344 million for the six months, which additionally include computer software costs; the cash flow statement figure is used here for consistency with the free cash flow calculation.
• Free cash flow is operating cash flow less purchases of property and equipment. It is a calculated measure, not a line item in the filings.
• The 10-Q balance sheet presents June 30, 2026 and December 31, 2025 only, so no balance sheet is reported for the June 2025 quarter. Cash and cash equivalents at June 30, 2025 were $3,376 million per that period's comparative cash flow statement. Likewise the FY2025 10-K presents only two balance sheet dates, so fiscal 2023 carries no balance sheet here; year-end 2023 cash and cash equivalents of $2,819 million appear in the 10-K's cash flow statement.
• Total debt is the sum of 'Short-term borrowings and current maturities of long-term debt' and 'Long-term debt' from the balance sheet: $54,908 million at June 30, 2026 against $42,503 million at December 31, 2025. The 10-Q's own liquidity discussion states total debt of $54.9 billion at June 30, 2026, an increase of $12.4 billion over year-end. Net debt subtracts cash and cash equivalents only; short-term investments are not broken out on the face of the balance sheet.
• Dividends declared per share come from the consolidated condensed statements of shareholders' equity: $3.46 per share declared in the June 2026 quarter and $3.00 in the June 2025 quarter. In each year the entire first-half declaration falls in the second quarter, so the six-month figure equals the quarterly one. Cash dividends actually paid were $3,094 million in the first half of 2026 and $2,693 million in the first half of 2025.
• Goodwill rose from $5,898 million at December 31, 2025 to $8,849 million at June 30, 2026 and other intangibles from $6,521 million to $18,110 million, reflecting acquisitions completed during the half. The 10-Q states the company paid $13.3 billion in 2026 related to business development activity, primarily the acquisitions of Centessa, Kelonia, Orna, Ventyx and Ajax.
• Lilly operates as a single reportable segment, so the product, therapeutic-area and geographic figures here are revenue disaggregations from the notes and not segment results. Because the filing rounds each column to the nearest million, the therapeutic-area columns can differ by $1 million from the revenue on the face of the income statement (the June 2025 quarter sums to $15,559 million against $15,558 million reported, and the six months ended June 30, 2026 sum to $42,774 million against $42,773 million); the income statement figure is used as revenue. The same rounding means an individual product's U.S. and outside-U.S. amounts can differ by $1 million from its printed total: Zepbound in the June 2025 quarter is shown as $3,380 million in the U.S. and $2 million outside the U.S. against a total of $3,381 million, and Zepbound for the six months ended June 30, 2026 as $9,006 million and $81 million against a total of $9,088 million. The totals are reproduced here exactly as the filing prints them.
• The 10-Q's segment note discloses interest expense, which does not appear on the face of the income statement: $345 million for the June 2026 quarter and $677 million for the six months, against $249 million and $493 million in the comparable 2025 periods.
• Where the filing shows an em dash the amount is recorded here as zero: asset impairment, restructuring, and other special charges were nil in the June 2025 quarter, and cash paid for acquisitions was nil in the first half of 2025. The June 2025 quarter also shows no proceeds from issuance of long-term debt, because all $6,461 million of first-half 2025 issuance fell in the March quarter.
• Fiscal 2025, 2024 and 2023 are the three years the FY2025 10-K presents. The figures are as presented in that 10-K and are unchanged from the prior year's presentation; the filing reports no restatement of them.

Uncertainties

• The June 2026 and June 2025 quarterly cash flow figures are derived by differencing the 10-Q's six-month columns against the March-quarter amounts from the March 31, 2026 Form 10-Q (accession 0000059478-26-000045). They are arithmetic rather than figures Lilly prints. Every subtotal ties and four independent cross-checks agree, but a reader wanting a company-published quarterly cash flow statement will not find one.
• The 'operating_income_derived' line is a calculated subtotal, not a figure Lilly prints. Users who define operating income to include the 'Other-net, (income) expense' line will arrive at a different number (that alternative equals income before income taxes, since Lilly reports no interest expense line on the face of the income statement).
• Trailing-twelve-month diluted earnings per share of $29.79 is arithmetic (fiscal 2025 less the first half of 2025 plus the first half of 2026) and is an approximation, since the share-count denominators differ across the periods being combined. No trailing share count is reported for that reason.
• Balance sheet data are not reported for the June 2025 quarter or for fiscal 2023, because neither filing presents those columns.
• The quarterly cash flow statement in the 10-Q collapses working-capital movements into a single 'Other changes in operating assets and liabilities' line, so the receivables, inventory and payables detail available annually is not available for the interim periods.
• Free cash flow does not deduct purchases of in-process research and development ($3,486 million in the first half of 2026) or cash paid for acquisitions ($9,805 million), which the company classifies as investing outflows. For a business that spends this heavily on externally sourced pipeline assets, some readers will want those treated as recurring rather than discretionary.
• The acquisitions completed during the first half of 2026 are reflected in the June 30, 2026 balance sheet but contributed only partial-period results, so quarter-over-quarter comparisons of goodwill, intangibles and acquired in-process research and development are not like-for-like.

Company details

Fiscal period