Eli Lilly and Company 8-K
PositiveEarningsGuidance loweredImpairment / charge
Mounjaro and Zepbound volume drove higher revenue and margin guidance despite price declines; acquired IPR&D charges lowered the EPS outlook.
Filed 2026-08-05 07:05 ET
- 2.02 Results of Operations
- 9.01 Financial Statements and Exhibits
Summary
Q2 2026 results with raised FY2026 guidance. Revenue grew 48%, led by Mounjaro and Zepbound volume, while realized prices declined. Lilly raised revenue and performance-margin guidance; its updated EPS range reflects stronger underlying growth offset by Q2 acquired IPR&D charges. Retatrutide’s obesity clinical data package is complete, with a U.S. BLA filing planned for Q1 2027.
Key Figures
| Metric | Q2 2026 | Q2 2025 | Y/Y |
|---|---|---|---|
| Revenue | $23.0B | $15.6B | 48% |
| Operating income | $8.98B | $6.87B | 31% |
| Net income, reported | $7.10B | $5.66B | 25% |
| Net income, non-GAAP | $7.49B | $5.68B | 32% |
| Diluted EPS, reported | $7.94 | $6.29 | 26% |
| Diluted EPS, non-GAAP | $8.38 | $6.31 | 33% |
- Revenue volume rose 60%, partly offset by a 13% decline in realized prices. Mounjaro revenue was $9.94B, up 91%; Zepbound revenue was $4.93B, up 46%.
- Acquired IPR&D charges were $2.78B vs $154M; reported and non-GAAP EPS included $3.03 per share of acquired IPR&D charges vs $0.14. Asset impairment, restructuring and other special charges were $703M, primarily for accelerated vesting of employee equity awards and acquisition and integration costs.
- Lilly committed an additional $4.5B to expand Indiana manufacturing sites.
Guidance
| Metric | Period | Guidance | Prior | Direction |
|---|---|---|---|---|
| Revenue, GAAP | FY2026 | $85B-$87B | $82B-$85B | Raised |
| Performance margin, non-GAAP | FY2026 | 49%-50.5% | 47%-48.5% | Raised |
| Tax rate, non-GAAP | FY2026 | 18%-19% | 18%-19% | Reaffirmed |
| EPS, non-GAAP | FY2026 | $35.5-$36.5 | $35.5-$37 | Lowered |
Underlying non-GAAP EPS guidance increased by $2.78 at the midpoint, more than offset by $3.03 of Q2 acquired IPR&D charges, resulting in the updated range.
Investor Takeaways
- FY2026 revenue of $85B-$87B is the benchmark to watch as volume growth contends with realized-price pressure.
- Lilly plans to submit a U.S. BLA for retatrutide in Q1 2027; the filing is a key next step following completion of its obesity clinical data package.
The summary is written by an AI model reading the filing.
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