On February 4, 2026, Eli Lilly & Co. delivered a jolt to Wall Street, posting fourth-quarter results that not only trounced analyst expectations but also propelled the company’s market capitalization past the coveted $1 trillion mark. Investors, analysts, and competitors alike watched as the Indiana-based pharmaceutical giant’s shares surged nearly 9% in premarket trading, brushing up against its 52-week high and signaling a new era of dominance in the fiercely competitive weight-loss drug market.
According to Benzinga, Eli Lilly reported adjusted earnings per share (EPS) of $7.54 for Q4 2025, easily outpacing the consensus estimate of $6.67. Sales for the quarter reached a staggering $19.3 billion, soaring 43% year-over-year and eclipsing the expected $17.96 billion. The company’s gross profit also leapt 43% to $15.9 billion, with a gross margin of 82.5%—a 0.3 percentage point improvement largely attributed to a favorable product mix and improved production costs. Volume growth was the main engine here, with a 46% increase, though a 5% decrease in realized prices did take a little shine off the top line.
The company’s key products—particularly its GLP-1 drugs targeting diabetes and obesity—were the clear drivers behind this performance. Revenue from flagship products Mounjaro and Zepbound rose to $13.8 billion in the quarter. Mounjaro alone saw revenue spike 110% to $7.4 billion, with U.S. sales hitting $4.1 billion (a 57% jump) and international sales climbing to $3.3 billion from just $899 million a year prior. Zepbound, meanwhile, posted a U.S. revenue increase of 122% to $4.2 billion, again reflecting intense demand even as lower realized prices provided some headwind.
As PR Newswire reported, CEO David A. Ricks was upbeat about the company’s trajectory, stating, “2025 was an important year for Lilly. We reached millions more patients—launching Inluriyo, expanding Mounjaro and Kisunla globally, and submitting orforglipron for approval. We expanded our manufacturing capacity, and through our U.S. government agreement, opened new access to obesity medicines. Entering our 150th year with a deep pipeline and platforms like LillyDirect, we’re positioned to reach more patients than ever and expand our global health impact.”
Lilly’s operational leadership over rival Novo Nordisk, another heavyweight in the obesity and diabetes drug market, was underscored by its higher revenue growth from GLP-1 products. The story was not just about numbers, though. The company also made significant regulatory and clinical advances. The U.S. Food and Drug Administration (FDA) approved the Kwikpen for tirzepatide, expanded the indication for Jaypirca, and received submissions for orforglipron for obesity in the U.S. and Japan, as well as for obesity and type 2 diabetes in the EU. Positive Phase 3 results were announced for several pipeline therapies—including a trial pairing Taltz and Zepbound for adults with active psoriatic arthritis and obesity, and another for retatrutide, a triple hormone receptor agonist, in patients with obesity and knee osteoarthritis.
In addition, Eli Lilly inked a landmark agreement with the U.S. government to expand access to obesity medicines for millions of Americans—a move that could have wide-reaching implications for public health and the company’s bottom line. The company also revealed plans to invest more than $3.5 billion in a new manufacturing facility in Lehigh Valley, Pennsylvania, dedicated to producing next-generation injectable weight-loss therapies, including retatrutide.
Looking ahead, Eli Lilly issued robust guidance for 2026, projecting revenue between $80 billion and $83 billion and adjusted EPS between $33.50 and $35.00. These figures handily beat Wall Street’s estimates, which had pegged revenue at $77.62 billion and EPS at $33.23. As Seeking Alpha noted, this guidance “far exceeds consensus,” further cementing the company’s operational leadership in the sector.
The company’s U.S. revenue for Q4 2025 rose 43% to $12.9 billion, driven by a 50% increase in volume, partially offset by a 7% drop in realized prices. International revenue also grew 43% to $6.4 billion, buoyed by a 38% volume increase and a favorable swing in foreign exchange rates. Notably, the company’s gross margin improvement was primarily due to a better product mix and cost efficiencies, even as pricing pressures persisted.
Lilly’s research and development expenses increased 26% to $3.8 billion for the quarter, reflecting continued investment in its early- and late-stage pipeline. Marketing, selling, and administrative costs also rose—up 29% to $3.1 billion—driven by promotional efforts for ongoing and planned product launches. The company’s effective tax rate climbed to 19.7% from 12.5% a year earlier, due to a less favorable jurisdictional mix and changes in U.S. tax law enacted in 2025.
Other highlights from the quarter included positive clinical trial results for new drug combinations and expanded indications, as well as strategic moves such as the acquisition of Ventyx Biosciences and the announcement of a $6 billion manufacturing facility in Alabama. The company also launched new initiatives, like the LillyDirect platform and plans to open a new Gateway Labs site in Philadelphia.
On the capital markets front, Barron’s and Seeking Alpha both highlighted the company’s ability to “still surprise” investors with its performance, even after crossing the $1 trillion market cap threshold. The stock’s rise—up 8.85% to $1,092.23 in premarket trading—was a testament to investor confidence, especially as it approached its 52-week high of $1,133.95.
Analysts pointed to Eli Lilly’s growing separation from competitors, especially Novo Nordisk, whose own outlook had recently disappointed the market. Lilly’s superior volume growth, particularly in GLP-1 products, and its aggressive investment in manufacturing and R&D have positioned it as the clear leader in the next phase of pharmaceutical innovation.
With its 150th anniversary on the horizon, Eli Lilly is not just celebrating a historic financial milestone but also signaling its intent to shape the future of medicine. The company’s focus on weight-loss therapies, diabetes care, and innovative treatments for conditions like Alzheimer’s and cancer underscores a strategy built on both commercial success and broad health impact.
For now, the message from Indianapolis is clear: Eli Lilly is on a growth trajectory that shows little sign of slowing, with a deep pipeline, expanding global reach, and a willingness to invest heavily in the future of healthcare. Investors, patients, and industry rivals will be watching closely as the company writes its next chapter.