Eli Lilly and Company Q3 2026 Earnings Recap

Lilly shares rose 6.5% after Q3 revenue grew 39% and the company raised full-year financial guidance. The headline growth was tempered by lower realized prices and roughly $900 million of one-time or estimate-related revenue benefits.

Key Takeaways

• Revenue increased 39% year over year; gross margin rose 80 basis points to 84.4%, while the non-GAAP performance margin reached 54.2%, up 5.9 percentage points.
• Non-GAAP EPS was $7.48, including $4.57 of acquired IPR&D charges; the prior-year quarter was $7.20, including $0.71 of such charges.
• U.S. revenue grew 34%, primarily on Mounjaro and Zepbound volume, but U.S. price declined 7%—or 10% excluding a favorable rebate-and-discount estimate adjustment.
• Q3 revenue benefited by approximately $900 million from previously noted items, including a $410 million one-time milestone payment in Europe and the U.S. estimate adjustment.
• Lilly raised full-year financial guidance; the call also cited continued product launches and pipeline investment, with R&D expense up 23% year over year.