Eli Lilly and Company

(New York Stock Exchange)
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Very Bullish +85

Bristol Myers Squibb vs. Eli Lilly: Which Healthcare Stock Is a Better Buy in 2026?

Drug pricing AI-generated analysis

πŸ“ˆ Eli Lilly reported FY 2025 revenue of $65.2 billion, representing a 45% increase over the prior year.

πŸ’° Net income for Eli Lilly reached approximately $21 billion in FY 2025, more than doubling the previous year's result.

πŸ“Š The company achieved a net margin of roughly 32% and maintained a debt-to-equity ratio of 1.6x as of December 2025.

πŸš€ Revenue is expected to grow over 30% in 2026, reaching an estimated $88.6 billion driven by GLP-1 demand.

πŸ’Š Net income for 2026 is projected to reach close to $31.4 billion as weight-loss and metabolic treatments scale.

🧬 The company's next weight-loss drug, Retatrutide, utilizes a triple-agonist approach expected to exceed current results.

πŸ’Έ A new lower-cost GLP pill called Foundayo is being sold directly to consumers to target less affluent customers.

❀️ Eli Lilly is developing an siRNA therapeutic targeting lipoprotein(a) for cardiovascular disease prevention.

πŸ† Analysts believe the lipoprotein(a) drug could generate over $1 billion in lifetime revenue if approved.

πŸ“‰ Bristol Myers Squibb faces pricing pressure and patent expiration risks, contrasting with LLY's growth trajectory.

Bullish Signals
  • Eli Lilly transformed into a growth powerhouse through leadership in weight-loss and metabolic health treatments.
  • FY 2025 revenue climbed to $65.2 billion, an increase of approximately 45% over the previous year.
  • Net income reached close to $21 billion in FY 2025, more than doubling the prior year result.
  • The company achieved a net margin of roughly 32%, demonstrating high profitability per dollar of sales.
  • Revenue is expected to grow more than 30% in 2026, reaching an estimated $88.6 billion.
  • Net income for 2026 is projected to reach close to $31.4 billion, reflecting strong earnings power.
  • The upcoming drug Retatrutide uses a triple-agonist approach expected to exceed the weight-loss results of Zepbound.
  • Foundayo, a lower-cost GLP pill sold directly to consumers, targets less affluent customer segments.
  • Analysts believe the lipoprotein(a) therapeutic could become a blockbuster with over $1 billion in lifetime revenue.
  • Eli Lilly is established as the market leader in GLP-1 treatments with a long runway ahead.
Risk Factors
  • Global pricing controls affect major products like Jardiance and Trulicity, potentially limiting revenue growth.
  • Intense competition from generic and biosimilar manufacturers continues to challenge branded revenue growth.
Full Analysis
The article compares Bristol Myers Squibb and Eli Lilly & Co. (NYSE:LLY) as investment options, highlighting LLY's transformation into a growth powerhouse driven by its leadership in weight-loss and metabolic health treatments. While Bristol Myers Squibb is positioned as a value play with a recovering financial profile, the text argues that Eli Lilly offers superior future potential due to its dominant position in the GLP-1 market. Eli Lilly reported significant financial expansion for fiscal year 2025, with revenue climbing approximately 45% to $65.2 billion and net income more than doubling to nearly $21 billion. The company achieved a net margin of roughly 32%, supported by a debt-to-equity ratio of 1.6x and free cash flow reaching $9.0 billion. These metrics underscore the strong profitability and operational efficiency of its core therapeutic areas. Looking ahead, analysts project Eli Lilly's revenue to grow more than 30% in 2026, reaching an estimated $88.6 billion with net income approaching $31.4 billion. This growth is primarily fueled by the continued success of its GLP-1 drugs, Zepbound and Mounjaro, alongside anticipated contributions from the next-generation triple-agonist drug Retatrutide and a new lower-cost oral formulation called Foundayo targeting less affluent customers. Beyond its current blockbuster portfolio, Eli Lilly is developing a small interfering RNA therapeutic targeting lipoprotein(a) for cardiovascular disease prevention, which analysts believe could become a billion-dollar revenue generator if approved. The article concludes that while Bristol Myers Squibb has potential, the premium valuation of Eli Lilly is justified by its long runway in the high-growth GLP-1 sector and its status as the market leader.