Eli Lilly Reports Strong Q3 Revenue Growth and Regulatory Progress
News related to:Eli Lilly and Company · 2 min read
Indianapolis-based pharmaceutical giant Eli Lilly and Company reported strong third-quarter financial results on October 29, 2026, highlighting robust revenue growth and regulatory progress across its portfolio. The company's Q3 2026 revenue surged 39% to $24.4 billion, driven primarily by the strong performance of key products Mounjaro and Zepbound. This increase was fueled by a 53% rise in volume, partially offset by a 15% decrease in realized prices.
Revenue in the U.S. saw a 34% increase to $15.1 billion, with a 41% increase in volume and a 7% decrease in realized prices. The U.S. volume growth was attributed to the performance of Zepbound and Mounjaro. Revenue outside the U.S. grew 47% to $9.3 billion, driven by a 76% increase in volume, with a 29% decrease in realized prices. The volume increase outside the U.S. was largely due to Mounjaro, while Jardiance revenue outside the U.S. benefited from sales-based milestones of $410 million in Q3 2026, compared to $200 million in Q3 2025.
Eli Lilly's gross margin increased 40% to $20.5 billion in Q3 2026, with a margin rate of 83.9%, up 1.0 percentage points from the same quarter last year. This improvement was driven by favorable product mix and improved cost of production, though lower realized prices partially offset these gains.
The company's research and development expenses rose 23% to $4.2 billion, or 17% of revenue, as the firm continued to invest in its early and late-stage portfolio. Marketing, selling, and administrative expenses increased 14% to $3.1 billion, primarily driven by promotional efforts supporting ongoing and planned launches.
Earnings per share (EPS) for the quarter increased by 16% to $7.22 on a reported basis and by 7% to $7.48 on a non-GAAP basis. The non-GAAP EPS included $4.57 of acquired in-process research and development (IPR&D) charges, compared to $0.71 in Q3 2025.
For the full year 2026, Eli Lilly raised its revenue guidance by $5.5 billion, setting a new range of $91.0 to $92.0 billion. The company also adjusted its underlying non-GAAP EPS guidance for the full year by $4.07 at the midpoint, which was more than offset by the $4.57 of acquired IPR&D charges, resulting in an updated range of $35.00 to $36.00.
In terms of regulatory progress, the company secured several approvals, including the U.S. FDA's approval of Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes, the launch of Onswik, a once-weekly basal insulin for adults with type 2 diabetes, and Inluriyo with Verzenio for adults with ER+, HER2-, ESR1-mutated advanced or metastatic breast cancer. Additionally, the company expanded the indication for Jaypirca in adults with untreated chronic lymphocytic leukemia or small lymphocytic lymphoma.
Eli Lilly also made significant business development moves, acquiring AtaiBeckley Inc. to advance therapies for treatment-resistant depression and other mental health conditions, and subsequently acquiring Merida Biosciences to advance treatments for serious autoimmune and allergic diseases. The company highlighted positive topline results from a head-to-head Phase 3 trial of retatrutide versus Ozempic 2 mg in adults with type 2 diabetes, Phase 3 results from Ebglyss in moderate-to-severe hand and foot atopic dermatitis, and Phase 2 results from EloraTZP in adults with obesity and type 2 diabetes, with Phase 3 trials set to begin in Q4 2026.