Eli Lilly and Company (NYSE:LLY) Releases Quarterly Earnings Results, Beats Estimates By $1.29 EPS

Eli Lilly and Company (NYSE:LLY) released its earnings results on Thursday. The company reported $8.55 EPS for the quarter, topping the consensus estimate of $7.26 by $1.29, FiscalAI reports. Eli Lilly and Company had a net margin of 31.66% and a return on equity of 102.94%. The firm had revenue of $19.80 billion for the quarter, compared to the consensus estimate of $17.61 billion. During the same quarter in the previous year, the firm earned $3.34 earnings per share. The company’s quarterly revenue was up 55.5% compared to the same quarter last year. Eli Lilly and Company updated its FY 2026 guidance to 35.500-37.000 EPS.

Here are the key takeaways from Eli Lilly and Company’s conference call:

• Foundayo (orforglipron) was approved and launched as the first oral GLP?1 for obesity, with broad pharmacy and telehealth availability, early uptake (roughly 20,000+ patients treated) and planned national DTC TV advertising in Q3.
• Q1 results were strong — revenue grew 56% year?over?year, Mounjaro and Zepbound together generated $12.8 billion, non?GAAP EPS improved materially to $8.55, and Lilly raised 2026 revenue guidance to $82–$85 billion.
• Pipeline and business development momentum — multiple positive Phase III readouts (including ACHIEVE?4 showing cardiovascular safety and lower all?cause death for Foundayo, and positive data for retatrutide and Jaypirca) plus acquisitions (Orna, Centessa, Kelonia, Ajax) to broaden future growth.
• Pricing headwinds continue — U.S. list price trends reduced gross margin modestly (Q1 U.S. price down ~7%, ~10% excluding a one?time estimate adjustment) and management expects a full?year price headwind in the low?to?mid teens, creating margin sensitivity despite volume growth.
• Access initiatives could broaden adoption — the Medicare GLP?1 Bridge program was extended through December 2027 with a $50/month copay cap, and Lilly launched Employer Connect to encourage employer coverage, both aimed at expanding longer?term patient activation.

Eli Lilly and Company Price Performance

Eli Lilly and Company stock traded up $85.83 during mid-day trading on Thursday, reaching $937.04. 8,224,074 shares of the company’s stock traded hands, compared to its average volume of 2,632,681. The company has a market cap of $885.33 billion, a price-to-earnings ratio of 40.83, a PEG ratio of 1.00 and a beta of 0.51. The stock has a 50 day moving average of $948.77 and a two-hundred day moving average of $985.31. The company has a quick ratio of 1.19, a current ratio of 1.58 and a debt-to-equity ratio of 1.54. Eli Lilly and Company has a 12-month low of $623.78 and a 12-month high of $1,133.95.

Institutional Investors Weigh In On Eli Lilly and Company

A number of hedge funds have recently bought and sold shares of LLY. J. Stern & Co. LLP raised its stake in Eli Lilly and Company by 46,191.3% during the fourth quarter. J. Stern & Co. LLP now owns 4,047,245 shares of the company’s stock valued at $4,047,245,000 after purchasing an additional 4,038,502 shares in the last quarter. Cardano Risk Management B.V. raised its stake in Eli Lilly and Company by 876.1% during the fourth quarter. Cardano Risk Management B.V. now owns 2,375,050 shares of the company’s stock valued at $2,552,419,000 after purchasing an additional 2,131,734 shares in the last quarter. Price T Rowe Associates Inc. MD raised its stake in Eli Lilly and Company by 10.6% during the fourth quarter. Price T Rowe Associates Inc. MD now owns 14,910,505 shares of the company’s stock valued at $16,024,022,000 after purchasing an additional 1,432,069 shares in the last quarter. Amundi increased its position in Eli Lilly and Company by 27.1% during the third quarter. Amundi now owns 4,525,902 shares of the company’s stock valued at $3,823,977,000 after acquiring an additional 964,675 shares during the last quarter. Finally, State Street Corp increased its position in Eli Lilly and Company by 1.8% during the fourth quarter. State Street Corp now owns 35,361,916 shares of the company’s stock valued at $38,002,744,000 after acquiring an additional 635,358 shares during the last quarter. Hedge funds and other institutional investors own 82.53% of the company’s stock.

Wall Street Analyst Weigh In

LLY has been the topic of several research analyst reports. Zacks Research downgraded shares of Eli Lilly and Company from a “strong-buy” rating to a “hold” rating in a report on Friday, January 30th. Leerink Partners lowered their target price on shares of Eli Lilly and Company from $1,296.00 to $1,058.00 and set an “outperform” rating on the stock in a report on Monday. CICC Research boosted their target price on shares of Eli Lilly and Company from $1,060.00 to $1,107.00 and gave the stock a “neutral” rating in a report on Wednesday, February 11th. Barclays initiated coverage on shares of Eli Lilly and Company in a report on Thursday, February 19th. They issued an “overweight” rating and a $1,350.00 target price on the stock. Finally, Royal Bank Of Canada assumed coverage on shares of Eli Lilly and Company in a report on Tuesday, February 24th. They issued an “outperform” rating and a $1,250.00 target price on the stock. Two investment analysts have rated the stock with a Strong Buy rating, twenty-three have issued a Buy rating, four have assigned a Hold rating and one has given a Sell rating to the company’s stock. According to MarketBeat.com, Eli Lilly and Company currently has an average rating of “Moderate Buy” and an average price target of $1,216.52.

Key Stories Impacting Eli Lilly and Company

Here are the key news stories impacting Eli Lilly and Company this week:

• Positive Sentiment: Earnings beat and guidance raise — Lilly reported Q1 revenue of $19.8B (up ~56% YoY) and non?GAAP EPS that topped estimates; management raised full?year 2026 revenue and EPS guidance. Lilly Q1 press release
• Positive Sentiment: GLP-1 sales are the growth engine — Mounjaro and Zepbound volumes drove huge top?line growth and analysts/Jim Cramer highlighted the large addressable weight?loss market as a multi?year tailwind. GLP-1 Sales Continue to Lift Eli Lilly
• Positive Sentiment: Regulatory move could limit compounded competitors — the FDA proposed excluding active ingredients in tirzepatide/semaglutide from the 503B bulks list, which would curb large?scale compounding of cheaper alternatives and support branded sales. FDA proposes excluding weight-loss drugs from compounding list
• Positive Sentiment: Foundayo pill early uptake — management said more than 20,000 people have started the newly launched oral GLP?1 pill, supporting upside potential for incremental sales beyond injections. More than 20,000 people are taking Eli Lilly’s weight loss pill
• Neutral Sentiment: Pipeline and tech partnerships — Lilly signed a multi?year ~$2.25B AI/genetics deal to advance recombinase-based gene editing, which is strategic for long?term growth but not immediately revenue?generating. Eli Lilly Signs Up To $2.25 Billion AI Gene Editing Deal
• Neutral Sentiment: Full earnings detail available — the Q1 earnings call transcript and slides give color on volume vs. price, channel mix and Foundayo expectations for investors who want to dig into the drivers. Eli Lilly Q1 2026 Earnings Call Transcript
• Negative Sentiment: Pricing pressure and lower realized prices — management noted strong volume but lower realized prices for GLP?1s partially offset revenue growth; sustained price erosion would limit margin upside. FT: Lilly profits more than double as weight-loss drug sales soar
• Negative Sentiment: Competition and generics risk — approvals of generic GLP?1s abroad and mixed early social?data on Foundayo vs. peers create execution and share?loss risk that investors should monitor. LLY falls as Canada approves generic weight-loss drugs

About Eli Lilly and Company

Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company founded in 1876 and headquartered in Indianapolis, Indiana. The company researches, develops, manufactures and commercializes a broad range of medicines and therapies for patients worldwide. Eli Lilly maintains operations and commercial presence across North America, Europe, Asia and other regions, serving both developed and emerging markets. The company has been led in recent years by President and Chief Executive Officer David A.