Eli Lilly exceeded third-quarter earnings and revenue expectations, prompting the company to raise its full-year sales forecast for 2026. The pharmaceutical giant's revenue guidance now stands between $91 billion and $92 billion, up from the earlier range of $85 billion to $87 billion. Adjusted earnings per share are projected between $35 and $36, slightly revised downward from the previous estimate due to deal-related charges that offset profit improvements. Lilly’s stock gained roughly 7% following the earnings announcement.

The strong performance was driven by high demand for Lilly’s obesity drug Zepbound and diabetes medication Mounjaro, both of which outpaced analyst predictions. Mounjaro’s worldwide revenue surged 65% to $10.72 billion, fueled by a 93% increase in international sales, while Zepbound posted a 49% year-over-year revenue rise to $5.35 billion, primarily from U.S. sales. Despite these successes, Foundayo, Lilly’s newly introduced oral GLP-1 obesity pill launched in April, fell short of Wall Street’s forecasts with $184 million in quarterly sales, though prescription growth remained promising.

Lilly’s CEO Dave Ricks emphasized significant potential for expanding obesity treatment access, noting that only a small fraction of eligible patients currently receive care. The company is benefiting from broadened U.S. insurance coverage, including Medicare’s pilot program for GLP-1 drugs. Lee maintains a dominant position in the obesity and diabetes drug market, controlling 63% of the U.S. market share in the third quarter versus 36.6% held by competitor Novo Nordisk, and 58.4% of the international market.

Operationally, Lilly’s U.S. revenue climbed 34% to $15.1 billion, helped by a 41% increase in sales volume despite a 7% decline in realized prices mainly for Zepbound. Outside the U.S., sales rose 47% to $9.3 billion with a 76% volume increase offset partially by a 29% dip in prices. The quarter also benefited from a $410 million milestone payment related to Jardiance, Lilly’s Type 2 diabetes drug co-developed with Boehringer Ingelheim. Net income reached $6.45 billion, or $7.22 per share, reflecting deal charges but marking a solid financial quarter for the company.