Eli Lilly and Company stock slips as outlook raise meets deal charges

Eli Lilly and Company raised its full-year 2026 revenue outlook after reporting strong third-quarter demand for Mounjaro and Zepbound. The pharmaceutical group announced the results on October 29, with its official earnings release showing revenue growth across the portfolio.

The real-time quote of Eli Lilly and Company stock traded at 1,249.90 euros on Lang & Schwarz at 13:36 CET on Tuesday, November 3, 0.45 percent below the Xetra close of Monday, November 2.

Strong demand lifts quarterly sales

Third-quarter revenue increased 39 percent year over year to 24.397 billion US dollars. Worldwide volume rose 53 percent, while realized prices declined 15 percent. The company said Mounjaro and Zepbound were the main contributors to the increase.

Mounjaro revenue climbed 65 percent to 10.723 billion US dollars. Sales in the United States rose 41 percent to 5.0 billion US dollars, while revenue outside the United States increased 93 percent to 5.7 billion US dollars. Zepbound revenue in the United States rose 48 percent to 5.352 billion US dollars.

The earnings mix was less straightforward. Reported earnings per share rose 16 percent to 7.22 US dollars, while non-GAAP earnings per share increased 7 percent to 7.48 US dollars. Both measures included 4.57 US dollars per share of acquired in-process research and development charges, compared with 0.71 US dollars in the year-earlier quarter.

Higher sales, lower adjusted earnings range

Lilly lifted its 2026 revenue guidance from 85 billion to 87 billion US dollars to a range of 91 billion to 92 billion US dollars. The company also raised its expected performance margin to 52.0 percent to 52.5 percent from 49.0 percent to 50.5 percent.

The adjusted earnings outlook moved in the opposite direction. Lilly now expects 2026 earnings per share of 35.00 to 36.00 US dollars, compared with 35.50 to 36.50 US dollars previously. Management said the underlying forecast improved by 4.07 US dollars per share at the midpoint, but the benefit was more than offset by 4.57 US dollars of acquired research and development charges linked to third-quarter business development activity.

The company also cautioned that the first three quarters benefited from sales milestones and changes in rebate and discount estimates. Those items contributed to 2026 revenue but are not expected to recur at the same level, increasing the importance of continued volume growth from the core medicines.

Pipeline and manufacturing remain key

Chief Executive David A. Ricks said growth was supported by global demand for Mounjaro and Zepbound, the launches of newer products, broader United States coverage for obesity care and expansion in oncology, immunology and neuroscience. Lilly also highlighted regulatory progress for Mounjaro, Onswik, Inluriyo and Jaypirca.

For investors, the higher sales target reinforces the commercial momentum of the cardiometabolic portfolio, while the lower adjusted earnings range highlights the cost of Lilly's acquisition strategy. The next test will be whether volume growth can offset pricing pressure and the absence of one-time benefits as the company moves toward its fourth-quarter report.

For broader market context, follow the S&P 500.

More updates are available in More news and analyses on Eli Lilly and Company stock.