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    LLY
    Earnings call· Jun 2026(Q2 FY26)

    ELI LILLY & Q2 FY26 earnings call LLY

    Aug 5, 2026 Source

    Executive summary

    Eli Lilly Q2 FY26 — Strong Revenue Growth and Pipeline Advancement

    Eli Lilly delivered a robust Q2 FY26, marked by significant revenue growth across key products and geographies, leading to an upward revision of full-year guidance. The company is actively expanding market access for its cardiometabolic portfolio, particularly with the Medicare GLP-1 bridge program and international Foundayo approvals. Strategic business development continues to bolster the pipeline in neuroscience, oncology, and infectious diseases, reinforcing a commitment to addressing unmet medical needs and driving long-term growth.

    Highlights

    5
    • Revenue grew 48% compared to Q2 2025, reaching $14.9 billion for Mounjaro and SERD combined.

    • Key products (oncology, immunology, neuroscience) collectively grew 121% year-over-year.

    • Full-year 2026 revenue guidance raised to $85 billion - $87 billion, an increase of $2 billion to $3 billion.

    • Foundayo received first international approvals for obesity in UAE, Saudi Arabia, and Mexico, with early uptake encouraging.

    • Medicare GLP-1 bridge program launched, expanding access for 35% more eligible Americans at $50 per month.

    Concerns

    3
    • U.S. price declined by 3% in Q2, primarily driven by Saban and Monaro, and 9% excluding adjustments for estimates for EBITs and discounts.

    • Foundayo U.S. launch curve was initially slower than anticipated, though an inflection point is now observed.

    • Net pricing for Zebbound (~$580 per prescription) is meaningfully higher than cash pay and Wegovy (~$380 per prescription), with future price reductions expected due to increased access.

    Guidance & targets

    8
    CategoryTargetConfidence
    Full-year 2026 Revenue
    $85 billion - $87 billion
    high materiality
    High
    Full-year 2026 Non-GAAP Performance Margin
    49% - 50.5%
    medium materiality
    High
    Full-year 2026 Non-GAAP EPS
    $35.50 - $36.50
    high materiality
    High
    Foundayo Global Rollout
    All major markets in 2027
    medium materiality
    High
    Retatrutide U.S. Submission
    Q1 2027
    high materiality
    High
    Retatrutide Chronic Lower Back Pain Study Readout
    Sometime next year
    low materiality
    Medium
    Lebrikizumab Less Frequent Dosing Data
    Expected in 2027
    low materiality
    Medium
    Foundayo Sleep Apnea Readout
    Later this year
    medium materiality
    High

    Segment performance

    9
    SegmentRevenueYoYQoQMargin
    Immunology
    Strong growth driven by Apples, gaining significant market share in the U.S. specialty dermatology market.
    Apples worldwide sales: more than doubled compared to Q2 2025Apples U.S. new prescription share: increased by approximately 4 percentage points in specialty dermatology market since last year
    more than doubled
    Oncology
    Jaypirca showed strong growth, and Verzenio maintained leadership in the U.S. metastatic breast cancer market. Positive clinical trial data for Jaypirca is expected to expand its label.
    Jaypirca worldwide sales: increased 56% compared to Q2 2025Verzenio U.S. new prescriptions: leader with more than 50% share in metastatic breast cancer oral serve market
    Neuroscience
    Guisonda expanded its leadership in the U.S. amyloid target therapy market, supported by increased diagnostic testing momentum.
    Guisonda revenue growth: strongP-tau217 blood test: more than doubled compared to Q2 2025
    strong
    Cardiometabolic
    Mounjaro and SERD combined for significant revenue and growth, highlighting strong performance in the cardiometabolic portfolio.
    $14.9 billion$6.3 billion
    U.S.
    U.S. revenue growth was primarily volume-driven, with strong performance across key product areas.
    Primary driver: volume growth from Mounjaro and contributions from immunology, oncology, neuroscience portfolios
    33%
    Europe
    Europe saw robust constant currency growth, largely due to Mounjaro's volume and a significant milestone payment.
    Constant currency growth: 55%Driver: sustained strong volume growth of MounjaroBenefit: $250 million charge and milestone payment
    55%
    Japan
    Japan's revenue growth was driven by strong performance of Mounjaro and Kisunla in constant currency.
    Constant currency growth: 30%Driver: Mounjaro and Kisunla
    30%
    China
    China experienced exceptional constant currency growth, primarily from the uptake of Mounjaro.
    Constant currency growth: 93%Driver: uptick of Monaro
    93%
    Rest of World
    The Rest of World segment showed very strong constant currency growth, led by Mounjaro in Latin America and Asia.
    Constant currency growth: 136%Driver: Mounjaro, primarily in Latin America and Asia
    136%

    Operational metrics

    28
    Revenue growth
    48%YoY
    Q2 2026

    Compared to Q2 2025.

    Key products revenue growth
    $6.8 billion
    Q2 2026

    Increase in revenue from key products.

    Oncology, Immunology, Neuroscience revenue growth
    121%YoY
    Q2 2026

    Collective growth compared to the same quarter last year.

    Gross margin as percentage of revenue
    86.3%+1.3 percentage points
    Q2 2026

    Increase versus Q2 2025.

    Marketing, selling and administrative expenses growth
    25%
    Q2 2026

    Investment in promotional activities to support current and planned product launches.

    R&D expenses growth
    14%
    Q2 2026

    Driven by continued investment in pipeline, including more than 40 active Phase III programs.

    Non-GAAP performance margin
    54.8%+9 percentage points
    Q2 2026

    Increase from Q2 2025 driven by revenue growth.

    Non-GAAP EPS
    $8.38vs $6.31 in Q2 2025
    Q2 2026

    Q2 2025 EPS included $0.14 of acquired IPR&D charges.

    U.S. price decline
    3%
    Q2 2026

    U.S. price benefited from a change to estimates for EBITs and discounts in Q2.

    Europe revenue benefit
    $250 million
    Q2 2026

    Benefit from a charge and milestone payment.

    Total prescriptions in U.S. incretin analog market
    31%YoY
    Q2 2026

    Compared to Q2 2025.

    Total prescriptions in U.S. incretin analog obesity market
    78%
    Q2 2026

    Growth in Q2.

    Lilly anti-obesity portfolio share of total prescriptions
    6 out of 10
    Q2 2026

    Approximately 6 out of 10 total prescriptions for an incretin were for a Lilly medicine.

    Lilly anti-obesity portfolio share of injectable prescriptions
    7 out of 10
    Q2 2026

    Approximately 7 out of 10 injectable prescriptions were for a Lilly medicine.

    Self-pay Sepon prescriptions
    45%
    Q2 2026

    Accounted for approximately 45% of total Sepon prescriptions in Q2 and approximately 55% of new prescriptions.

    Total prescriptions in U.S. Type 2 diabetes incretin analog market
    9%YoY
    Q2 2026

    Compared to Q2 2025, reflecting a more mature market compared to obesity.

    Lilly T2D incretin portfolio share
    6 out of 10
    Q2 2026

    More than 6 out of 10 prescriptions for an incretin were for a Lilly medicine.

    International incretin analog market growth
    74%YoY
    Q2 2026

    Increased since the same period last year.

    Lilly global incretin market share
    55%+2 percentage points
    Q2 2026

    Gained almost 2 percentage points of share compared to Q1 2026.

    Dividends distributed
    $1.5 billion
    Q2 2026

    In the second quarter.

    Share repurchases
    $1.6 billion
    Q2 2026

    Executed in the second quarter.

    Medicare GLP-1 bridge program eligible Americans
    20 million
    July 1, 2026

    Granting insurance coverage for GLP-1s for obesity.

    Foundayo U.S. new starts
    1 out of 4
    July 2026

    Nearly around 1 out of 4 new starts are on Foundayo.

    Foundayo U.S. prescribers
    36,000up from 8,000
    Q2 2026

    Increased number of prescribers for Foundayo.

    Zebbound net price per prescription
    $580
    Q2 2026

    Meaningfully higher than cash pay price and Wegovy price.

    Wegovy net price per prescription
    $380
    Q2 2026

    Compared to Zebbound's net price.

    LillyDirect patient prices
    $299 - $449
    Q2 2026

    Starting price for direct-to-patient prices.

    Foundayo UAE sales
    $31 million
    Q2 2026

    Sales in the quarter for Foundayo in a single country.

    Industry KPIs

    12
    MetricValueDetails
    Prescription volume31%%
    EPS revenue guidance$85 billion - $87 billionUSD
    Pricing policy impact35%%
    Product franchise net sales$14.9 billionUSD
    Pipeline clinical milestonesPositive results
    Regulatory approvals filingsApproved
    Therapeutic drug market share4 percentage points%
    Price volume mix decomposition3%%
    Glp 1 incretin franchise metrics$14.9 billionUSD
    Geographic regional revenue growth33%%
    Clinical trial efficacy safety dataProfound weight loss
    Business development capacity deal appetiteActive

    Deals & partnerships

    7
    KurboAcquisition of a company developing a potential next-generation verazelezostervirus vaccine for shingles.

    Building a platform of potential new medicines to prevent infectious disease and their downstream complications.

    LimmaTech BiologicsAcquisition of a company developing vaccines to prevent serious bacterial infections.

    Its platform focuses on bacteria by targeting the toxins and super antigens that drive disease.

    Vaccine CompanyAcquisition of a company with a lead program against Epstein-Barr virus.

    Building a platform of potential new medicines to prevent infectious disease and their downstream complications.

    BeckleyAcquisition of a company developing novel treatments for treatment-resistant depression and other mental conditions.

    Lead asset, BPL 003, has shown encouraging Phase IIb results.

    SYNTEtAAcquisition adding Clemen Orexin to the pipeline.

    Clemenarextan is a potential best-in-class Orexin-receptor 2 agonist being studied in a Phase II/III trial in central hypersomnias.

    Ajax TherapeuticsAcquisition of a company with AG111095, a type 2 JAK inhibitor.

    Program demonstrated compelling early efficacy and safety in hematology.

    Colonia TherapeuticsAcquisition of a company with KLN 1010, an in vivo CAR T therapy.

    Program demonstrated compelling early efficacy and safety in hematology.

    Risks & headwinds

    5
    U.S. price declineQ2 2026

    3% (9% excluding adjustments)

    Mitigation: Offset by volume growth; increased access (CVS, Medicare Bridge) expected to lead to lower net prices but higher volume.

    Foundayo U.S. launch curveQ2 2026

    Initially slower than anticipated

    Mitigation: Increased investment in physician education, commercial access, and direct-to-consumer marketing; observed inflection point in late July.

    Active litigation regarding Retatrutide BLA pathwayOngoing

    Mixed decision in first court decision

    Mitigation: Ongoing communication with the FDA to support a BLA application; gathering CMC data for Q1 2027 submission.

    Seasonality effects on revenueH2 2026

    Europe Q3 (vacation holidays), U.S. Type 2 diabetes Q4

    Mitigation: Factored into full-year guidance; strong growth in dollars expected to continue despite percentage growth comparisons.

    Generic competition for incretins ex-U.S.Ongoing

    Launch of generics in India and Brazil

    Mitigation: Mounjaro TRx growth continues due to strong differentiation and superiority data; generic companies experiencing supply constraints.

    What to watch in Q3 FY26

    5

    Foundayo U.S. launch inflection

    Next quarter
    CurrentVolume doubled in last month, ~1 out of 4 new starts on Foundayo
    TargetContinued week-on-week growth in prescriptions and new starts

    Why it matters

    Indicates the success of increased investment in access and consumer awareness for a key growth driver.

    And what we've seen in terms of overall growth and inflection is that the last week of July, we're seeing inflections. So the -- we're doubling the volume that we had just a month ago. And we're starting to see new starts coming in nearly around 1 out of 4 starting on Foundayo.

    Q&A highlights

    8

    How does Lilly envision expanding its treatment opportunity through consumer engagement, and what are the similarities/differences between U.S. and international self-pay markets?

    Lilly sees significant opportunity in obesity treatment, with only mid-single-digit utilization. They are increasing consumer awareness and expanding LillyDirect offerings. The international self-pay market is mainly out-of-pocket, and Lilly is replicating U.S. practices while adapting to local regulations.

    I think the overall market, if you think about just obesity in general, in the U.S. and globally, we're still have single -- mid-single digit in terms of utilization or treatment of obesity. And so there's still a significant opportunity ahead of us after more patients in terms of access.

    asked by Seamus Fernandez · answered by Ilya Yuffa

    2 min read6 chapters

    Detailed Narrative

    01

    GLP-1 Market Expansion and Access

    Eli Lilly is significantly expanding access to its GLP-1 medicines, particularly for obesity. The Medicare GLP-1 bridge program, launched July 1, grants 20 million eligible Americans insurance coverage for GLP-1s at a low out-of-pocket cost of $50 per month, increasing coverage by 35%. Foundayo has also received its first international approvals for obesity in the UAE, Saudi Arabia, and Mexico, with early uptake demonstrating pent-up demand. The company expects a global rollout in all major markets in 2027, with over 40 markets currently under regulatory review.

    02

    Pipeline Progress in Cardiometabolic Health

    The company announced positive top-line results from three Phase III trials for Retatrutide (Triumph 1, 2, 3) in obesity, showing profound weight loss and improvements in A1c, cardiovascular risk factors, osteoarthritis pain, and sleep apnea. The U.S. submission for Retatrutide is planned for Q1 2027 under the BLA pathway. Orphaglipron's U.S. submission for type 2 diabetes is complete, with detailed results showing superior glycemic control and weight reduction against oral semaglutide. Additionally, a positive CHMP opinion was received for insulin epatoralpha in the EU for type 2 diabetes.

    03

    Neuroscience and Oncology Advancements

    Lilly is expanding its presence in neuroscience through strategic acquisitions, including Beckley for treatment-resistant depression and Synteza for sleep-wake disorders. In oncology, Jaypirca continues strong growth with new Phase III data showing a 45% reduction in disease progression or death in CLL, and Selpercatinib demonstrated an 83% reduction in recurrence or death in adjuvant RET fusion-positive NSCLC. The company also highlighted promising early data from acquired hematology programs, AG111095 and KLN 1010.

    04

    Immunology and Infectious Disease Portfolio

    In immunology, the FDA approved a new maintenance dosing regimen for Lebrikizumab, allowing for as few as six injections per year for atopic dermatitis, with pediatric indications submitted in the U.S. and planned globally. Lilly is also building a platform for infectious disease prevention through acquisitions of Kurbo (shingles vaccine), LimmaTech Biologics (bacterial infections), and Vaccine Company (Epstein-Barr virus), aiming to address significant population-level health problems.

    05

    Manufacturing Scale-Up and Sustainability Efforts

    Lilly is actively investing in its manufacturing capabilities, having opened its first dedicated genetic medicine manufacturing facility in Lebanon, Indiana, and produced the first commercial batch at its new Limerick, Ireland site. The company also exceeded its sustainability goal of reaching 1 billion people in resource-limited settings by 2030, reaching approximately 40 million people in 2025, and is developing new commitments for diabetes and obesity in these regions.

    06

    Strategic Business Development

    Business development remains a critical component of Lilly's R&D strategy, with increased activity and average deal size in the first half of 2026. The focus is on acquiring potential new medicines in established and emerging therapeutic areas, particularly those addressing significant unmet needs and leveraging Lilly's development, regulatory, and manufacturing scale. The company aims to remain active in M&A while maintaining discipline to create long-term value.

    AI-generated summary of the company’s earnings call. Not investment advice.