# Eli Lilly (LLY) Q2 2026 earnings

Results filed 2026-08-05 for the quarter ended 2026-06-30. Source page: https://earnings.opennash.com/companies/lly/2026-q2/
Press release and exhibits: https://www.sec.gov/Archives/edgar/data/59478/000005947826000077/0000059478-26-000077-index.htm
> Summaries and transcripts are machine-generated and can contain errors.

## In brief

Revenue in Q2 2026 increased 48% to $23.0 billion driven primarily by Mounjaro and Zepbound volume, and EPS increased by 26% to $7.94 on a reported basis and increased by 33% to $8.38 on a non-GAAP basis.

Lilly's second-quarter revenue rose 48% to $23.0 billion, driven by a 60% increase in volume, partly offset by a 13% decrease in realized prices. Mounjaro revenue grew 91% to $9.9 billion and Zepbound's U.S. revenue grew 44% to $4.9 billion. Reported EPS was $7.94, which included $3.03 of acquired IPR&D charges from acquisitions such as Orna Therapeutics and Ajax Therapeutics.
Lilly raised its 2026 revenue guidance to $85.0 billion to $87.0 billion and expects non-GAAP EPS of $35.50 to $36.50. The underlying EPS increase of $2.78 at the midpoint was more than offset by $3.03 of IPR&D charges from Q2 deals. The main tension is falling realized prices, which declined 13%, against rising volume, plus the cost of continued business development.

## Key numbers

| Metric | Value | Change | Basis |
| --- | --- | --- | --- |
| Revenue | $22,974 | up 48% from a year ago | GAAP |
| Net income (reported) | 7,095 | up 25% from a year ago | GAAP |
| Diluted EPS (reported) | $7.94 | up 26% from a year ago | GAAP |
| EPS (non-GAAP) | $8.38 | up 33% from a year ago | non-GAAP |
| Gross margin as a percent of revenue | 85.8% | up 1.5 percentage points versus the same quarter last year | GAAP |
| Gross margin as a percent of revenue (non-GAAP) | 86.3% | up 1.3 percentage points versus the same quarter last year | non-GAAP |
| Operating income | 8,978 | up 31% from a year ago | GAAP |

## Segments and operating metrics

| Name | Value | Change |
| --- | --- | --- |
| Mounjaro | $9,943 | up 91% from a year ago |
| Zepbound | 4,928 | up 46% from a year ago |
| Ebglyss | 201 | up 131% from a year ago |
| Jaypirca | 192 | up 56% from a year ago |
| Kisunla | 167 |  |
| Foundayo | 98 |  |
| U.S. revenue | $14.4 billion | up 33% |
| Revenue outside the U.S. | $8.6 billion | up 80% |

## Outlook

| Metric | Period | Outlook |
| --- | --- | --- |
| Revenue | full-year 2026 | $85 to $87 billion |
| Performance margin | full-year 2026 | 49.0% to 50.5% |
| Tax rate | full-year 2026 | 18% to 19% |
| Non-GAAP earnings per share | full-year 2026 | $35.50 to $36.50 |

## Key takeaways

1. **Volume growth drove 48% revenue increase** Revenue rose to $23.0 billion on a 60% increase in volume, partially offset by a 13% decrease in realized prices. Mounjaro and Zepbound led the growth.
2. **IPR&D charges weighed on Q2 earnings** Q2 2026 reported and non-GAAP EPS included $3.03 of acquired IPR&D charges compared to $0.14 in Q2 2025. The charges primarily related to the acquisitions of Orna Therapeutics, Inc. and Ajax Therapeutics, Inc.
3. **Full-year revenue guidance raised to $85-87 billion** The prior range was $82 to $85 billion. Performance margin guidance also rose to 49.0% to 50.5% from 47.0% to 48.5%.
4. **EPS guidance narrowed after $3.03 charge** Underlying non-GAAP EPS guidance rose by $2.78 at the midpoint, but $3.03 of Q2 IPR&D charges produced an updated range of $35.50 to $36.50.
5. **Retatrutide data package complete for filings** Three additional Phase 3 obesity trials were positive, and Lilly plans to submit a Biologics License Application to the U.S. FDA in the first quarter of 2027.

## Questions

**How did Eli Lilly perform in Q2 2026?** Revenue increased 48% to $23.0 billion, driven by a 60% increase in volume and partly offset by a 13% decrease in realized prices. Reported EPS was $7.94 and non-GAAP EPS was $8.38.
**What is Lilly's updated 2026 guidance?** Lilly raised full-year revenue guidance to $85 to $87 billion from $82 to $85 billion. Non-GAAP EPS guidance is now $35.50 to $36.50, down at the top end from $35.50 to $37.00 because of $3.03 of Q2 IPR&D charges.
**Which products drove growth?** Mounjaro revenue rose 91% to $9,943 million and Zepbound rose 46% to $4,928 million. Newer products such as Foundayo, which was added to Key Products in Q2 2026, contributed $98 million.
**Why did EPS growth look lower than underlying growth?** Q2 2026 EPS included $3.03 of acquired IPR&D charges versus $0.14 a year earlier. The effective tax rate also rose to 23.3% from 16.5%, driven by non-deductible IPR&D charges.
**What are the key pipeline milestones?** Lilly completed the clinical data package for retatrutide and plans a U.S. FDA Biologics License Application submission in the first quarter of 2027. It also submitted orforglipron for type 2 diabetes in the U.S.