LY.US (LLY.US) Q3 results exceeded expectations, raising full-year revenue guidance to US$91-92 billion

The Zhitong Finance App learned that on October 29, US stocks announced pre-market results for the third quarter of 2026: revenue of US$24.397 billion, an increase of 39% over the previous year, higher than LSEG's forecast of about US$22.6 billion, of which sales increased 53% and actual prices fell 15%. Reported net profit of $6.451 billion and earnings per share of $7.22, up 16% year over year; non-GAAP earnings per share were $7.48, up 7% year over year, higher than LSEG/IBES forecast of $6.49.

Two core products continued to grow: Mounjaro's global revenue was US$10.723 billion, up 65% year on year, Zepbound US$5.352 billion, up 49%, KeyProducts totaled US$17.1 billion, and revenue in the fields of immunology, oncology, and neuroscience doubled year over year. US revenue increased 34% to US$15.1 billion; revenue from outside the US increased 47% to US$9.3 billion, and sales increased 76%, but prices fell 29% due to Mounjaro's inclusion in China's national health insurance catalogue.

Affected by the acquisitions of AtaiBeckley and Curevo, it was confirmed this quarter that the acquisition cost of R&D was US$4.181 billion, or US$4.57 per share (US$0.71 in the same period last year). This cost is included in both GAAP and non-GAAP dimensions. The company also said that the quarterly revenue included a one-time benefit of about 900 million US dollars, mainly favorable adjustments to Jardiance's sales milestone of 410 million US dollars and rebate discount estimates.

In terms of guidance, the annual revenue guidance was raised from US$85 billion to US$87 billion to US$91 billion to US$92 billion, the profit margin on performance was raised from 49.0% — 50.5% to 52.0% — 52.5%, and the tax rate increased from 18% to 19% — 20%; however, the bottom line profit improvement was offset by the above acquisition R&D expenses, and the adjusted earnings per share guide for the whole year was lowered from US$35.50-36.50 to US$35.00-36.00.

In terms of regulatory progress, the US FDA approved Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes; approved Onswik (basic insulin once a week) for adults with type 2 diabetes; approved Inluriyo in combination with Verzenio for adults with advanced ER+, HER2-, ESR1 mutations or metastatic breast cancer; and expanded Jaypirca's indications for adults with untreated chronic lymphocytic leukemia or small lymphocytic lymphoma.

Pipeline highlights include: positive head-to-head phase III trial of retatrutide versus Ozempic 2mg in adults with type 2 diabetes; phase III results of ebGlyss in moderate to severe atopic dermatitis of hands and feet; phase II results of eloratzp in adults with obesity and type 2 diabetes. The phase III trial will commence in the fourth quarter of 2026.

Business development activities for the third quarter of 2026 include completing the acquisition of AtaiBeckley to advance treatments for intractable depression and other mental health conditions. After the quarter ended, the company completed the acquisition of Merida Biosciences to advance treatment of serious autoimmune and allergic diseases.

As of press time, Eli Lilly is up 3.33% in the premarket.