Eli Lilly and Company saw its stock surge 8.6% in morning trading after the company released second-quarter 2026 results that topped Wall Street forecasts on both the top and bottom lines and prompted management to raise its full-year revenue outlook.
Quarterly results and guidance
On an adjusted basis, Lilly reported earnings of $8.38 per share, compared with analysts' expectations of $6.01. Revenue for the quarter was $22.97 billion, beating the consensus estimate of $20.73 billion. In light of the stronger-than-expected performance, Lilly increased its 2026 revenue guidance to a range of $85 billion to $87 billion, up from the prior $82 billion to $85 billion target.
What drove the beat
The headline outperformance was largely attributable to the company’s two leading GLP-1 therapies. Sales of Mounjaro, positioned for type 2 diabetes, rose 91% to $9.94 billion. Zepbound, the injectable weight-loss therapy, increased 46% to $4.93 billion. Together, those products accounted for almost two-thirds of Lilly’s total revenue for the quarter.
International sales were another notable contributor. Revenue outside the U.S. climbed 80% to $8.6 billion, propelled by a 113% jump in volume. Lilly also disclosed its first quarterly revenue figure for Foundayo, the newly approved oral pill for weight-loss and diabetes, which generated $98 million in sales during the quarter.
Market and analyst response
Goldman Sachs had maintained a Buy rating on Lilly prior to the report and highlighted the guidance raise and the international performance of Mounjaro as likely decisive factors for investor sentiment - points that were borne out in the market’s reaction. The company's combination of a sizable revenue beat, the guidance increase, and strong GLP-1 volume growth met investor expectations and helped lift the stock.
Competitive backdrop and market context
On the competitive front, Lilly’s positive update contrasted with movements in rival stocks. Novo Nordisk, a competing weight-loss drugmaker, raised its 2026 guidance but saw shares decline amid disappointment around Wegovy oral sales and broader competitive concerns. That contrast reinforced investor confidence in Lilly’s execution in the obesity and diabetes treatment market.
The broader U.S. equity market provided a mildly constructive backdrop, with the S&P 500 up 0.6% and the Dow Jones Industrial Average adding 0.9%, though Lilly’s intraday gain far outpaced those index moves.
Stock momentum
Shares of Lilly had experienced some volatility since reaching a record high of $1,249.45, but the strong quarter snapped a five-day losing streak. At the time of reporting, the stock was trading at $1,212.13 and moving back toward its all-time peak as investors rewarded the company’s performance in the high-growth obesity and diabetes drug categories.
Note: All figures and statements in this article reflect information released by the company and referenced analyst commentary as presented in the company’s quarter report.