Mounjaro and Zepbound sales powered a 56% jump in Eli Lilly's first-quarter revenue to $19.80 billion, underlining how GLP-1 drugs remain the company's growth engine. The company reported adjusted earnings of $8.55 per share, well above roughly $6.66 that analysts had expected, and raised its 2026 revenue guidance by $2 billion to $82 billion to $85 billion while boosting full-year adjusted profit guidance to $35.50 to $37 per share. Strong volume for the weight-loss drug Zepbound and diabetes treatment Mounjaro drove the results, even as realized prices fell in the U.S. Foundayo, a newly approved GLP-1 pill, launched after the quarter and won't appear in Thursday's numbers.

Big beat on top and bottom lines

Eli Lilly posted adjusted earnings per share of $8.55 for the quarter. Wall Street had been looking for about $6.66. Revenue came in at $19.80 billion. That topped the $17.62 billion analysts expected.

The company recorded net income of $7.40 billion, or $8.26 per share, for the quarter. A year earlier, net income was $2.76 billion, or $3.06 per share. Excluding one-time items tied to intangible assets and other adjustments, the adjusted EPS figure was $8.55.

Revenue rose 56% from a year earlier. U.S. Sales climbed 43% to $12.1 billion. Eli Lilly said the U.S. Increase reflected a 49% jump in volume for its products. That volume growth came mainly from Mounjaro and Zepbound. Lower realised prices on Zepbound and another drug partially offset the gains.

Which drugs moved the needle

Mounjaro generated $8.66 billion in sales for the quarter. That was a 125% increase from the year-earlier period.

Analysts had expected roughly $7.26 billion, based on a StreetAccount survey.

Zepbound booked $4.16 billion in U.S. Revenue for the quarter. That sales total rose 80% from the prior year. Analysts had modelled about $4.04 billion for Zepbound in the period. Both drugs saw higher demand while realised prices declined in the U.S.

The company noted that the increase in prescriptions and units sold was the main volume driver. Eli Lilly attributed the 49% rise in U.S. Volumes to Mounjaro and Zepbound specifically. At the same time, the company said lower realised prices for Zepbound and a treatment for psoriatic arthritis reduced the revenue benefit from volume gains.

Outlook and the Foundayo launch

After the report, Eli Lilly raised its full-year revenue guidance by $2 billion. The new range for 2026 is $82 billion to $85 billion. The prior guidance was $80 billion to $83 billion.

The company also raised full-year adjusted profit guidance. Eli Lilly now expects adjusted earnings of $35.50 to $37 per share, up from $33.50 to $35.00 per share. Those changes reflect continued strength in core products, the company said.

Mastheads

The GLP-1 pill Foundayo received approval and launched in the second quarter, so its sales aren't included in the quarter's figures. The pill's rollout will probably be a focal point in the company's earnings call. Executives are likely to face questions about uptake, access and how a pill format fits alongside injectable products.

Volume growth versus price pressure

The quarter shows a clear trade-off. Volume rose sharply. Realised prices fell. And revenue still grew rapidly.

That's because the volume increases were large. A 49% jump in units sold in the U.S. Offset weaker pricing on some products. Mounjaro's 125% year-over-year growth and Zepbound's 80% gain supplied the bulk of that volume lift.

At the same time, the company flagged price compression for Zepbound and a psoriatic arthritis medication. Those lower realised prices trimmed some of the upside from volume growth. The net result was still a much stronger quarter than analysts had modelled.

Investors have been watching demand for GLP-1 medicines closely. Eli Lilly has been among the biggest beneficiaries of that category's rapid expansion. Quarter after quarter, demand for Mounjaro and Zepbound has produced oversized revenue gains for the company.

Institutional investors tend to focus on two items. One is whether volume growth can continue as access and payer policies evolve.

The other is how price erosion will affect profit margins over time. In this quarter, volume growth overcame price declines and lifted both sales and adjusted earnings guidance.

Market reaction will likely hinge on how analysts view sustainability. The company has already noted that Foundayo's launch comes after the quarter. That puts additional focus on the company's commentary about rollouts and payor dynamics during the earnings call.

The headline adjusted EPS excludes one-time items tied to intangible assets and other adjustments. Those items reduced the GAAP EPS relative to the adjusted number. The company didn't provide a detailed breakdown of every non-GAAP adjustment in the brief summary. But it did report the GAAP net income and the adjusted EPS figure that investors use to compare earnings across quarters.

Higher revenue and volume played the main role in lifting GAAP net income versus the prior year. The jump from $2.76 billion to $7.40 billion in net income is a large change. That rise reflects both operating performance and accounting adjustments captured in the GAAP line.

Key themes for the earnings call are clear. Executives will be asked about the Foundayo rollout. They will face questions about pricing pressure and how much more volume can grow. They will also be asked to justify the wider guidance ranges and the higher profit number.

Chief Executive Officer David Ricks was noted in the company's reporting schedule. Ricks will speak publicly after the report. The company scheduled him to speak to CNBC after 7 a.m. ET on Thursday. That appearance will give investors another chance to hear management describe the quarter and the company's plans for Foundayo.

The report didn't add new regulatory milestones for the company's marketed products. Foundayo's approval and Q2 launch were the only recent regulatory items mentioned. The company also referenced broader pricing trends in the U.S. That pushed realised prices down for some drugs.

Price moves and payer responses are already part of the conversation around GLP-1 medicines. This quarter's results show how quickly volumes can rise even as prices fall. Balancing those forces will shape future revenue paths and profit margins.

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David Ricks, chief executive officer of Eli Lilly & Co., will speak to CNBC after 7 a.m. ET on Thursday.

This article was created with AI assistance.