Factual Summary
Eli Lilly and Company reported Q1 2026 revenue of $19.8 billion (+56% year-over-year), with combined Mounjaro and Zepbound revenue of $12.8 billion. On April 1, 2026, the FDA approved Foundayo (orforglipron), the world's first oral small-molecule GLP-1 receptor agonist, for obesity/overweight indications. On July 16, 2026, Lilly announced it had entered into an agreement to acquire AtaiBeckley Inc. to strengthen its neuroscience pipeline, and on July 14 the FDA converted Retevmo (selpercatinib)'s RET fusion-positive solid tumor indication from accelerated to full approval.
Price Context Note
Following Q1 earnings announced on April 30, 2026 — in which both revenue and EPS exceeded market expectations and the FY2026 revenue guidance range was raised to $82.0-$85.0 billion — LLY's closing price reached an all-time high of $1,235.56 on July 7. In the following week (July 13-18), amid continued pipeline news including the Retevmo full-approval conversion and the AtaiBeckley acquisition announcement, the share price fluctuated modestly (weekly moves reported in the +0.85% to +1.4% range), and the reference-date (2026-07-17) close was $1,179.11, up +0.85% from the previous close.
Business Overview & Pipeline
Eli Lilly and Company (NYSE: LLY) operates as a single segment focused on human pharmaceutical products, with cardiometabolic health (diabetes, obesity), oncology, immunology, and neuroscience as its principal therapeutic areas (A, FY2025 10-K). The company is headquartered in Indianapolis, Indiana, and David A. Ricks serves as Chairman of the Board and Chief Executive Officer.
- Kisunla (donanemab, an Alzheimer's disease treatment) recorded Q1 2026 revenue of $124 million (up sharply from $22 million in the prior-year quarter); Health Canada approved the early symptomatic Alzheimer's disease indication on 2026-05-04
- Jaypirca — positive Phase 3 results in combination with venetoclax and rituximab for relapsed/refractory CLL/SLL
- Verzenio — removed from the list of key products starting Q1 2026 (estimated to reflect a declining revenue share)
- Total U.S. manufacturing investment of approximately $27 billion (including multiple facility announcements in 2026); a new $3.5 billion injectable and device manufacturing facility in Pennsylvania's Lehigh Valley (announced 2026-01-30, targeted to begin operations in 2031)
5-Year Financial Trends
| Year | Revenue (USD billions) | Net Income (USD billions) | EPS (diluted, USD) | Gross Margin |
|---|---|---|---|---|
| 2021 | 28.3 | 5.6 | 6.12 | 74.2% |
| 2022 | 28.5 | 6.2 | 6.90 | 76.8% |
| 2023 | 34.1 | 5.2 | 5.80 | 79.3% |
| 2024 | 45.0 | 10.6 | 11.71 | 81.3% |
| 2025 | 65.2 | 20.6 | 22.95 | 83.0% |
Source: stockanalysis.com aggregation (underlying data from each year's 10-K, SEC EDGAR CIK 0000059478), as of fiscal year-end (12/31) (A). Q1 2026 (period ended 2026-03-31) revenue was $19.8 billion (+56% YoY), with non-GAAP diluted EPS of $8.55 (+156% YoY) (A, source: Lilly Q1 2026 earnings release, 2026-04-30). The FY2026 revenue guidance range is $82.0-$85.0 billion, with non-GAAP EPS guidance of $35.50-$37.00 (E, per company disclosure, raised 2026-04-30).
Valuation (Factual Multiples)
Market capitalization is calculated as approximately $1.11 trillion, based on the reference-date closing price ($1,179.11) multiplied by shares outstanding as of 2026-04-27 (941,741,406 shares) (A, price and share-count reference dates differ). P/E, P/B, and similar multiples are approximate, as the price reference date (2026-07-17) differs from the financial-item reference dates (quarter-end/year-end); a primary-source (10-K/10-Q) direct calculation of TTM EBITDA and EV was not obtained.
Peer Comparison
| Company | Market Cap | As of |
|---|---|---|
| LLY | $1.1 trillion | 2026-07-06 |
| NVO | $217.4 billion | 2026-07-06 |
| ABBV | $438.3 billion | 2026-07-10 |
| MRK | $320.0 billion | 2026-07-03 |
| PFE | $141.5 billion | 2026-07 |
LLY's tirzepatide (Mounjaro, Zepbound) is expected to retain patent protection in major markets into the late 2030s, whereas Novo Nordisk's semaglutide compound patents were found to be nearing expiration in some markets (secondary source). As of May 2026, LLY was reported to have surpassed Novo Nordisk's GLP-1 market share outside the United States as well (secondary, GxP News).
Ownership and Flow Trends
The short interest ratio declined slightly from the prior settlement date (2026-06-15, 1.0%) (A, per secondary republication). Per Form 4 filings for May-June 2026, Lilly Endowment Inc. disposed of a portion of its stake (2026-05-06 to 07, 15,828 shares total), and one executive (Ilya Yuffa) sold 2,500 shares (2026-06-10) under a previously adopted 10b5-1 plan. No disposals by senior executives (including the CEO) were identified within the review period (2026-05-01 to 06-15) (treated as not obtained; this is not to be read as confirming no disposals occurred).
Governance & Shareholder Structure
David A. Ricks holds the dual role of Chairman of the Board and Chief Executive Officer, while Juan Luciano serves as Lead Independent Director providing an oversight check. All committees — including Audit, Governance, Ethics and Compliance, Science and Technology, and Talent and Compensation — are composed entirely of independent directors (A, DEF 14A filed 2026-03-20). Large index-fund managers such as BlackRock and State Street shifted to reporting holdings at the subsidiary level amid 2024-2026 internal restructuring, so an up-to-date consolidated ownership percentage was not obtained.
Macro Factors
| Factor | Current Value (as of) | Transmission Channel / Impact |
|---|---|---|
| U.S. Policy Rate | 3.50~3.75%(2026-06-17) | Higher discount-rate channel, negative for growth-stock valuations, moderate intensity |
| U.S. Dollar Index (DXY) | 100.73(2026-07-20) | Dollar strength over the trailing 12 months tends to reduce translated foreign revenue (39% of Q1 total revenue) |
| MFN / IRA Drug Pricing Policy | GLP-1 Medicare/Medicaid target price agreement of $245 | Lower per-unit pricing in government-insurance channels, partly offset by volume expansion |
| Section 232 Pharmaceutical Tariffs | 0% applied (onshoring agreement, through 2029-01-20) | Tariff cost is low, but U.S. manufacturing investment burden increases (approximately $27 billion total) |
| Payer / Insurance Coverage Trends | 41% of employer plans fully exclude obesity treatments (2026) | Increased reliance on cash-pay (out-of-pocket) channels; potential shift toward a lower-margin channel mix |
| FDA Staffing & Budget | FY2026 -1,940 FTE, -$457 million | Exposure to potential delays in new-drug and label-expansion approval timelines |
Recent News Timeline
| Date | Details |
|---|---|
| 2026-07-16 | Entered into an acquisition agreement for AtaiBeckley Inc. — approximately $2.8 billion upfront plus up to $1.0 billion in milestone payments (up to $3.8 billion total), expected to close in Q3 2026 |
| 2026-07-14 | FDA converted Retevmo (selpercatinib)'s RET fusion-positive solid tumor indication from accelerated to full approval |
| 2026-07-12~15 | Participated in AAIC 2026 (London), presenting 16 abstracts including long-term safety and biomarker data for Kisunla |
| 2026-07-07 | Closed at a record high of $1,235.56 (52-week high of $1,249.45) |
| 2026-06-22 | Declared Q3 2026 dividend of $1.73 per share (record date 2026-08-14, payment date 2026-09-10) |
| 2026-04-30 | Reported Q1 2026 results — revenue of $19.8 billion (+56% YoY), non-GAAP EPS of $8.55, raised FY2026 revenue guidance range ($82.0-$85.0 billion) |
| 2026-04-01 | FDA approved Foundayo (orforglipron) for obesity/overweight indications — the world's first oral small-molecule GLP-1 receptor agonist |
| 2026-01-30 | Announced a new $3.5 billion injectable and device manufacturing facility in Pennsylvania's Lehigh Valley (targeted to begin operations in 2031) |
Q2 2026 earnings are scheduled for release on 2026-08-05 (before market open, per secondary aggregated source).
Risk & Policy Factors
- Structural, ongoing pressure on GLP-1 product pricing in government-insurance channels stemming from MFN/IRA drug pricing policy
- Ongoing litigation related to the 340B program — outcomes could have a material impact on the business (A, FY2025 10-K)
- Exposure to key-product patent expirations — Trulicity was found to expire around 2027, though sources conflict and cross-checking against the original 10-K is required (not obtained); tirzepatide is expected to retain patent protection in major markets into the late 2030s
- Expanding litigation against unauthorized compounding of semaglutide and tirzepatide — Lilly is often the plaintiff, creating exposure in terms of litigation cost and time
- Potential exposure to regulatory or legal action from tightening manufacturing and quality regulations (GMP, impurity control, etc.) (A, FY2025 10-K)
- Coverage restrictions — such as 41% of self-funded employer plans fully excluding obesity treatments — act as a structural constraint on access to products like Zepbound
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Fact Highlights
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