Eli Lilly (LLY) on Thursday raised its full-year revenue and profit forecasts for 2026, following a blockbuster first quarter that saw sales surge 56% to $19.8 billion. The Indianapolis-based pharmaceutical giant credited strong uptake of its diabetes drug Mounjaro and obesity therapy Zepbound, which together generated $12.8 billion in quarterly sales.
Adjusted earnings came in at $8.55 per share, topping analyst expectations. The company now projects 2026 revenue in the range of $82 billion to $85 billion, up from its earlier guidance of $80 billion to $83 billion. Adjusted earnings per share are expected between $35.50 and $37.00, compared with the prior forecast of $33.50 to $35.00, and above the consensus estimate of $34.55, according to LSEG data cited by Reuters.
GLP-1 Drugs Drive Growth
Mounjaro, approved for type 2 diabetes, posted $8.7 billion in sales, more than doubling from a year earlier and exceeding analyst forecasts by over $1 billion. Zepbound, the obesity treatment, contributed $4.2 billion, also handily beating expectations. The strong performance underscores the enduring global demand for GLP-1 receptor agonists, which mimic a gut hormone to regulate appetite and blood sugar.
Despite the robust volume growth, Lilly noted that lower realized prices—the net amount after rebates and discounts—tempered revenue gains. Competition from Novo Nordisk (NVO), maker of Wegovy and Ozempic, remains a persistent risk. However, Lilly has been gaining market share since Zepbound launched in late 2023.
Foundayo Launch Begins
Lilly also highlighted the recent U.S. launch of Foundayo, its oral GLP-1 pill, which began rolling out in early April. The pill was not included in first-quarter results, but investors are closely watching its uptake as a potential game-changer in the obesity market, potentially attracting patients who avoid injectables.
CEO David Ricks expressed confidence in the company's momentum, stating, "2026 is off to a strong start." He noted that Foundayo could expand access beyond the injectable market. However, analysts caution it is too early to assess the launch. Evan Seigerman of BMO Capital Markets called it "too early" to draw conclusions, while Terence McManus of Bellevue Asset Management noted that initial data may overlook direct-to-consumer sales and that a clearer picture typically emerges after five to six weeks.
Competitive Landscape and Risks
Novo Nordisk remains a formidable competitor, having pioneered the obesity treatment space with Wegovy. But the battleground is shifting toward oral therapies, which could broaden the patient base. Lilly's Foundayo aims to challenge Novo's oral Wegovy, which entered the U.S. market earlier.
Investors also face uncertainties around U.S. reimbursement for obesity drugs, federal coverage decisions, and pricing pressure from lower-cost rivals abroad. Kevin Gade, chief operating officer at Bahl & Gaynor, described these factors as "sources of angst" for Lilly shareholders.
Financial Highlights
Net income soared to $7.4 billion from $2.8 billion a year earlier. On a non-GAAP basis, net income reached $7.7 billion, benefiting from lower charges related to acquired in-process research and development. Lilly shares rose in premarket trading as investors focused on the strong demand signals.
The results reinforce the critical role of Lilly's obesity and diabetes portfolio in driving its market value. With Mounjaro and Zepbound continuing to deliver double-digit growth and Foundayo poised to capture new patients, the company is well-positioned to maintain its leadership in the GLP-1 space, even as competitive and pricing headwinds persist.
