Eli Lilly raises 2026 outlook as GLP-1 portfolio drives growth

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Highlights

Eli Lilly's Q2 revenue surges 48% year over year to $22.97 billion, with adjusted EPS at $8.38, both exceeding analyst expectations.
Eli Lilly raises full-year 2026 revenue guidance to $85 billion–$87 billion and performance margin forecast to 49%–50.5%, citing strong GLP-1 franchise performance.
Lilly expands Foundayo after FDA approval, broadens global launches, and advances pipeline, while other drugs like Ebglyss and Kisunla also post significant sales growth.

Quarterly results and guidance upgrade

According to CNBC, Eli Lilly said on Wednesday that second-quarter revenue rises 48% year over year to $22.97 billion, beating the LSEG consensus of $20.7 billion, while adjusted earnings per share reach $8.38, above the $6.01 expected by analysts.

The drugmaker also raises its full-year 2026 guidance, forecasting revenue of $85 billion to $87 billion, up from the prior $82 billion to $85 billion range. It now expects performance margin of 49% to 50.5%, versus an earlier 47% to 48.5%, and earnings per share of $35.50 to $36.50.

Its core GLP-1 franchise continues to lead the performance. Sales of Zepbound and Mounjaro exceed expectations in the quarter, with lower prices offset by strong volume growth. In the U.S., tirzepatide is sold as Mounjaro for diabetes and Zepbound for obesity, while in many international markets Mounjaro is used for both indications.

Management also points to broader access as a demand driver. Chief Executive David Ricks says on the earnings call that Medicare reimbursement for obesity drugs in the U.S. is expanding access, helped by the Medicare GLP-1 Bridge launched on July 1, which gives some 20 million Americans coverage for GLP-1 treatments for obesity at $50 a month out of pocket.

Pipeline progress and wider portfolio impact

Beyond injectables, Lilly is building its oral obesity and diabetes offering through Foundayo, which was approved by the Food and Drug Administration on April 1 and launched shortly after. Revenue of $98 million comes in below expectations, but Ricks says prescriptions and consumer awareness are increasing rapidly as the company expands physician education, advertising and formulary access, including CVS coverage from June 1.

Lilly says Foundayo has launched for obesity in the United Arab Emirates and is recently approved in Saudi Arabia and Mexico, with regulatory review under way in more than 40 additional countries. Ricks adds that the company does not see cannibalization of Zepbound from oral alternatives, and instead views them as expanding the addressable market.

Other therapy areas also contribute to growth. Chief Financial Officer Lucas Montarce says worldwide sales of eczema treatment Ebglyss more than double from a year earlier, Jaypirca sales rise 56%, breast cancer drug Inluriyo leads new prescriptions in the U.S. after two full quarters, and Alzheimer's treatment Kisunla posts more than triple the prior-year sales level.

On the pipeline, Chief Scientific and Product Officer Dr. Daniel Skovronsky says Lilly remains in discussions with the FDA on retatrutide, its next-generation obesity injectable, after stating in late July that it plans a submission in the first quarter of 2027. He also says Lilly completes its U.S. submission to expand orforglipron, the active ingredient in Foundayo, into type 2 diabetes, as the company pushes to extend its reach in the fast-growing GLP-1 market.

Our earlier coverage of Eli Lilly’s raised 2026 outlook after its Q2 results detailed how revenue and adjusted EPS beat expectations, prompting management to lift full-year guidance. We also noted that continued GLP-1 momentum from Mounjaro and Zepbound—alongside early contributions from the new oral option Foundayo—helped offset pricing pressure while supporting strong volume growth, including internationally.

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