Eli Lilly and Company

(New York Stock Exchange)
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Bullish +72

What Was Eli Lilly Telling You Before Its Stock Ran?

Company update Earnings report Production ramp-up AI-generated analysis

πŸ“ˆ Zepbound and Mounjaro generated $14.9 billion in revenue for the quarter ended June 2026, representing approximately 65% of total quarterly sales.

🏭 Management confirmed that production capacity constraints have been resolved, allowing the company to meet rising demand for its blockbuster drugs.

πŸ’° Operating margins expanded significantly to 45.1% in the quarter ended June 2025, up from 38.8% in September 2024.

πŸ“Š Revenue growth moderated slightly to 47.7% year-over-year in the June 2026 quarter compared to 55.5% in the March quarter.

πŸ’‰ U.S. revenue grew 33% in the June 2026 quarter, driven primarily by higher prescription volumes rather than price increases.

🌍 The company launched its first batch of commercial material at a new manufacturing site in Limerick, Ireland.

πŸ“… Combined sales of Zepbound and Mounjaro increased by $6.3 billion from the June 2025 quarter to the June 2026 quarter.

πŸ“‰ U.S. prices for the company's core drugs fell 9% in the June 2026 quarter when excluding changes in rebate and discount estimates.

Bullish Signals
  • Zepbound and Mounjaro generated $14.9 billion in revenue for the quarter ended June 2026, accounting for roughly 65% of total quarterly sales.
  • The company successfully expanded manufacturing capacity to meet demand, resolving previous supply constraints that limited growth potential.
  • Operating margins improved substantially to 45.1% in the quarter ended June 2025, reflecting strong pricing power and cost management.
  • Revenue grew 33% year-over-year in the U.S. for the June 2026 quarter, driven by increased prescription volumes of core drugs.
Risk Factors
  • Revenue growth rate slowed to 47.7% year-over-year in the June 2026 quarter from a higher 55.5% expansion in the March quarter.
  • U.S. prices for core drugs fell 9% in the June 2026 quarter, indicating potential margin pressure if volume growth does not fully offset price declines.
Full Analysis
Eli Lilly (LLY) has experienced significant stock appreciation driven primarily by the commercial success of its diabetes and obesity drugs, Zepbound and Mounjaro. By mid-2026, these two products accounted for approximately 65% of the company's quarterly revenue, generating $14.9 billion in the quarter ended June 2026. This concentration represents a major shift in the company's financial profile, with growth largely fueled by increased prescription volumes rather than price hikes. The company has successfully navigated production constraints that previously limited its ability to meet demand. Executives highlighted supply expansion as a top priority starting in late 2024, and subsequent filings confirmed that manufacturing capacity caught up with market needs. Revenue growth accelerated from the initial post-pandemic levels to over 45% in early 2025 before moderating slightly as the company managed its inventory and production ramp-up. Financial metrics show strong profitability alongside revenue expansion. Operating margins improved significantly, reaching 45.1% by mid-2025 from roughly 38.8% a year prior. While U.S. prices faced downward pressure of 9% in the most recent quarter, volume growth offset this decline, resulting in overall revenue increases of over 33%. The company continues to expand its manufacturing footprint with new commercial sites coming online in Ireland.