Eli Lilly and Company 8-K

Summary

Q3 2026 results with raised FY2026 revenue and performance margin guidance; the FY2026 non-GAAP EPS range was lowered. Revenue rose 39%, led by Mounjaro and Zepbound, while Lilly cited global launches of Foundayo, broader U.S. obesity-care coverage and growth in newer oncology, immunology and neuroscience products. The quarter also brought FDA approvals across diabetes, oncology and immunology, positive pipeline results, and completed acquisitions of AtaiBeckley for mental-health therapies and, after quarter-end, Merida Biosciences for autoimmune and allergic-disease treatments.

Key Figures

• Q3 worldwide revenue growth reflected volume up 53%, partly offset by realized prices down 15%. U.S. revenue rose 34% to $15.1B; revenue outside the U.S. rose 47% to $9.3B, with Mounjaro driving international volume growth. Lower realized prices outside the U.S. were primarily linked to Mounjaro’s inclusion on China’s National Reimbursement Drug List.
• Mounjaro revenue was $10.7B, +65% Y/Y, and Zepbound revenue was $5.35B, +49%. Foundayo, Lilly’s newly launched oral obesity medicine, generated $184M in Q3. Revenue also included ≈$900M of benefits, primarily $410M in Jardiance milestones (no further milestones remain) and favorable rebate and discount estimate adjustments.
• Acquired in-process research and development charges were $4.18B vs $656M in Q3 2025, primarily related to the AtaiBeckley and Curevo acquisitions. Q3 reported and non-GAAP EPS each included $4.57 of these charges, vs $0.71 a year earlier.

Guidance

Performance margin is gross margin less research and development and marketing, selling, and administrative expenses, divided by revenue. Lilly said underlying non-GAAP EPS guidance increased by $4.07 at the midpoint, more than offset by $4.57 of Q3 acquired IPR&D charges. Guidance excludes acquired IPR&D incurred after 9/30/2026 and assumes approximately 894M shares outstanding.

Guidance changes, derived from earlier filings

Metric	Period	Earlier guidance	Guidance now	Change
Revenue, GAAP	FY2026	$85B-$87B	$91B-$92B	raised
Performance margin, non-GAAP	FY2026	49%-50.5%	52.0%-52.5%	raised
Tax rate, non-GAAP	FY2026	18%-19%	19%-20%	raised
EPS, non-GAAP	FY2026	$35.5-$36.5	$35-$36	lowered

Investor Takeaways

• Watch Mounjaro and Zepbound revenue and the balance between volume growth and realized prices; continued product demand alongside pricing pressure will shape the revenue trend.
• EloraTZP, a combination of eloralintide and tirzepatide for obesity and type 2 diabetes, is scheduled to enter Phase 3 trials in Q4 2026; trial progress will test the potential of Lilly’s obesity pipeline beyond its current products.