Eli Lilly and Company

(New York Stock Exchange)
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Bullish +65

Got $10,000? Eli Lilly vs. Nvidia: The Better Buy For 2026

AI-generated analysis

πŸ“ˆ Eli Lilly booked $22.97 billion in Q2 2026 revenue, up 47.7% YoY, driven by Mounjaro and Zepbound.

πŸ’Š International Mounjaro sales jumped 172% following China's NRDL listing, expanding global market access.

πŸ“‰ U.S. prices fell 9% excluding rebates, forcing the company to rely on volume growth for revenue expansion.

πŸš€ Management raised FY2026 revenue guidance to between $85B and $87B due to strong drug momentum.

🏭 Lilly committed another $4.5 billion to Indiana manufacturing capacity to support future demand.

πŸ’° The company absorbed $2.78 billion in IPR&D charges from acquisitions of Orna, Ajax, Centessa, and Kelonia.

πŸ”¬ A retatrutide BLA filing is scheduled for Q1 2027 across obesity, sleep apnea, and knee OA indications.

πŸ“ˆ Forward EPS estimates for 2027 sit at $47.26, up from $44.49 ninety days ago as analysts revise higher.

Bullish Signals
  • Eli Lilly delivered a massive Q2 2026 revenue beat of $22.97 billion, marking a 47.7% year-over-year increase.
  • International Mounjaro sales surged 172% after gaining approval in China's NRDL, significantly boosting global growth.
  • Management proactively raised full-year 2026 revenue guidance to $85B-$87B, validating the strength of their incretin portfolio.
  • Analysts are increasing forward EPS estimates for 2027 to $47.26, reflecting growing confidence in the company's trajectory.
Risk Factors
  • U.S. pricing power is eroding with a 9% price decline excluding rebates, forcing the company to rely entirely on volume for growth.
  • The company absorbed $2.78 billion in IPR&D charges from recent acquisitions, which may impact near-term profitability or cash flow.
Full Analysis
Eli Lilly (LLY) reported a blockbuster Q2 2026 quarter with revenue of $22.97 billion, representing a 47.7% year-over-year increase driven primarily by its incretin portfolio. The company's flagship drugs, Mounjaro and Zepbound, generated combined revenue of nearly $15 billion, with international sales surging following regulatory approvals in China. Management raised full-year 2026 revenue guidance to a range of $85 billion to $87 billion, citing continued momentum despite significant pricing headwinds. The growth at Lilly is currently volume-driven rather than price-driven, as U.S. prices fell by 9% excluding rebate adjustments. To offset this pricing drag and expand its therapeutic reach, the company committed an additional $4.5 billion to Indiana manufacturing and absorbed $2.78 billion in IPR&D charges from recent acquisitions. The pipeline is expanding with a planned BLA filing for retatrutide in Q1 2027 covering obesity, sleep apnea, and knee OA pain. Analysts remain optimistic about Lilly's long-term prospects, with forward EPS estimates for 2027 rising to $47.26 from $44.49 ninety days ago. The company is strategically positioning itself to build a portfolio that outlives any single molecule while navigating the transition from high-growth pricing power to volume-based expansion in the obesity market.