While many big stocks were falling this week, Eli Lilly went the other way. The drugmaker reported a very strong third quarter on Thursday, October 29, raised its full-year sales outlook, and saw its shares rise about 7% on the day.
The reason is no mystery. Demand for its diabetes and weight-loss medicines, Mounjaro and Zepbound, keeps growing, in the United States and around the world.
What Happened
Eli Lilly’s revenue rose 39% from a year earlier to $24.4 billion in the third quarter of 2026. That was well above the $22.61 billion analysts expected. Adjusted earnings per share came in at $7.48, up 7% from a year earlier. Reported net income rose to $6.5 billion, or $7.22 per share, from $5.6 billion a year earlier.
Mounjaro, the company’s diabetes medicine that is also widely used for weight loss, brought in $10.7 billion, up 65% from a year earlier. Sales outside the United States nearly doubled, and US sales rose 41%. Zepbound, the company’s weight-loss medicine, brought in $5.35 billion, up about 49%.
Together, Mounjaro and Zepbound generated more than $16 billion in the quarter, about $6 billion more than a year earlier.
The company also raised its full-year 2026 revenue forecast to $91 billion to $92 billion, up from $85 billion to $87 billion. That is a $5.5 billion increase at the midpoint. Its full-year adjusted earnings forecast moved to $35 to $36 per share, from $35.50 to $36.50 before. The company said its underlying profit outlook actually rose, but $4.57 per share in charges from research deals it acquired in the quarter more than offset that gain.
Why It Happened
The main driver is simple: more people are using these medicines, and more countries are covering them. In the United States, a Medicare programme that helps people access weight-loss medicines has seen strong early uptake, with more than 500,000 prescriptions filled since July 1. In China, Mounjaro passed $1 billion in revenue in its first full year after being added to the national reimbursement list, which means the government helps pay for it.
About $900 million of the quarter’s revenue came from one-time benefits, including $410 million in milestone payments linked to the diabetes medicine Jardiance. The company said no further Jardiance milestones remain, so that boost will not repeat.
Eli Lilly also reported progress on new products. Its new weight-loss pill, Foundayo, launched in the United States in April, brought in $184 million in the quarter, below the roughly $229 million analysts expected. But the company also won US regulatory approvals for new uses of its medicines, including Mounjaro for reducing cardiovascular risk in adults with type 2 diabetes, and a once-weekly insulin called Onswik.
Key Figures
- Q3 revenue: $24.4 billion, up 39% (expected: $22.61 billion)
- Q3 adjusted earnings per share: $7.48, up 7%
- Q3 net income: $6.5 billion
- Mounjaro revenue: $10.7 billion, up 65%
- Zepbound revenue: $5.35 billion, up about 49%
- New 2026 revenue forecast: $91 billion to $92 billion (from $85 billion to $87 billion)
- New 2026 adjusted earnings forecast: $35 to $36 per share
- Shares: rose about 7% on Thursday
Why It Matters
Eli Lilly’s results show that the weight-loss medicine market is still in its early stages. The company’s chief executive, Dave Ricks, said only an estimated 3% to 10% of eligible patients in the United States currently receive obesity care. If that number grows, the market could expand dramatically, but it also means the company’s growth depends on insurance coverage, government programmes and manufacturing capacity keeping up with demand.
For investors, Lilly is also a contrast to the technology sell-off this week. While tech companies are being punished for heavy spending, Lilly is being rewarded for products people already buy in large numbers. It is a reminder that not all growth stories depend on the same thing.
What Happens Next
The company will keep investing in factories to make more of its medicines, since supply has been a limit in the past. Investors will watch whether Mounjaro and Zepbound keep growing at this pace, whether the new pill Foundayo picks up, and whether competition from rival drugmakers starts to slow Lilly’s momentum. The next big test will be the fourth-quarter results early in 2027, which will show whether the raised forecast was cautious or confident.
Final Thoughts
Eli Lilly’s quarter was strong because the underlying demand is real and still growing. The raised outlook tells investors the company expects that demand to continue. But even here, the details matter: one-time benefits helped this quarter, and deal charges trimmed the profit forecast. Good results are worth celebrating, but reading past the headline is always worth the extra minute.
Disclaimer: This article is for educational and informational purposes only and does not constitute financial advice.
Sources: CNBC, “Eli Lilly hikes sales outlook, as CEO says there’s room for ‘dramatic’ obesity market expansion” (https://www.cnbc.com/2026/10/29/eli-lilly-lly-earnings-q3-2026.html); Eli Lilly Q3 2026 results press release via PR Newswire (https://www.tradingview.com/news/prnewswire:9aa6dc6999d18:0-lilly-reports-third-quarter-2026-financial-results-raises-full-year-guidance-and-highlights-regulatory-progress-across-the-portfolio/).
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