A pharmaceutical company whose medicines treat diabetes and obesity (Mounjaro, Zepbound, Trulicity, Jardiance), cancer (Verzenio, Cyramza), immunology conditions, and neurological diseases like migraine and Alzheimer's. Founded in 1876 in Indianapolis by Colonel Eli Lilly, a Civil War veteran and chemist, the firm started as a wholesale drug maker. Its founder opened the lab partly to fight the "snake oil" patent medicines of his day, vowing to sell only high-quality remedies recommended by physicians.
Mounjaro and Zepbound drove Q2 2026 revenue up 48% to $23.0B, while $2.8B in acquired IPR&D charges from new acquisitions weighed on net income growth.
Eli Lilly's incretin portfolio continued to reshape the company's scale, but the quarter's earnings growth was muted by a increase in acquisition-related charges. rose 48% to $23.0 billion as and volume drove to 85.8%, yet grew only 25% to $7.1 billion after $2.8 billion in from the Orna and Ajax acquisitions. The business is generating enormous demand, but the pace of deal-making to fill the pipeline is now the primary governor on reported profit.
Key takeaways
rose 48% to $23.0 billion in Q2 2026, with U.S. revenue up 33% and outside-U.S. revenue up 80%, driven primarily by volume increases for and .
rose 91% to $9.9 billion and revenue rose 46% to $4.9 billion; lower realized prices from the China NRDL listing and U.S. cash-pay reductions partially offset the volume gains.
improved 1.5 percentage points to 85.8%, as improved production costs and favorable product mix more than offset lower realized prices.
Section summaries
Management's Discussion and Analysis
Revenue surged 48% to $23.0B in Q2 2026, driven by Mounjaro and Zepbound volume, while higher acquired IPR&D and restructuring charges weighed on net income growth.
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Total grew 48% to $23.0B in Q2 2026, with U.S. revenue up 33% and outside-U.S. revenue up 80%, driven primarily by volume increases for and .
rose to $2.8 billion from $0.2 billion a year ago, primarily from the acquisitions of Orna and Ajax, while asset and restructuring charges reached $703 million.
rose 36% to $9.2 billion, but narrowed 3.3 points to 40.2% as the IPR&D and restructuring charges grew faster than .
The FDA approved (Foundayo) for obesity, and the company launched it in the U.S. during the quarter, with submissions for type 2 diabetes underway in major markets.
What changed
The Q1 2026 watch item on compression has reversed: after narrowing 0.6 points in Q1, gross margin widened 3.8 points sequentially to 85.8% in Q2, as improved production costs and mix overcame the 13% price decline noted in Q1.
The pending acquisitions flagged in Q1 materialized: the company deployed $13.3 billion for business development including Centessa, Kelonia, Orna, Ventyx, and Ajax, driving to $2.8 billion in Q2 from $584 million in Q1.
Cash and equivalents rebounded to $9.0 billion from $5.3 billion at Q1-end, supported by a $9.0 billion debt issuance in May 2026, while rose to $47.9 billion.
The Jardiance Medicare price cut watch item from prior filings has now taken effect in 2026, though the filing does not break out its individual impact this quarter.
What to watch
Q3 2026 acquired IPR&D charge level to see whether the $2.8 billion Q2 run-rate from Orna and Ajax was a one-time step or continues as the company deploys the remaining acquisition capacity.
Foundayo () launch in Q3 2026 as the first oral incretin obesity therapy enters the portfolio alongside the injectable and .
trajectory to see whether the 85.8% Q2 peak is sustainable or if lower realized prices from China NRDL and U.S. cash-pay channels will compress it as they did in Q1.
Total debt and cash deployment against the $47.9 billion balance and ongoing manufacturing after the $9.0 billion May 2026 note issuance.
rose 91% to $9.9B and rose 46% to $4.9B in Q2 2026; lower realized prices from the China NRDL listing and U.S. cash-pay reductions partially offset volume gains.
improved 1.5 percentage points to 85.8% in Q2 2026, benefiting from improved production costs and favorable product mix, partially offset by lower realized prices.
charges surged to $2.8B in Q2 2026 from $0.2B a year ago, primarily from the acquisitions of Orna and Ajax, while and restructuring charges reached $703M.
Cash and equivalents rose to $9.0B as of June 30, 2026, supported by a $9.0B debt issuance in May 2026, while $13.3B was deployed for business development including Centessa, Kelonia, Orna, Ventyx, and Ajax.
The FDA approved (Foundayo) for obesity in Q2 2026, and the company launched it in the U.S., with submissions for type 2 diabetes underway in major markets.
Quantitative and Qualitative Disclosures About Market Risk
For a discussion of our market risk, see “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025.
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For a discussion of our market risk, see “Quantitative and Qualitative Disclosures About Market Risk” in Part II, Item 7A of our Annual Report on Form 10-K for the year ended December 31, 2025.
We are a party to various currently pending legal actions, government investigations, and environmental proceedings. See Note 9 to the consolidated condensed financial statements for information on various legal proceedings. This Item should be read in conjunction with "Legal Pr…
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We are a party to various currently pending legal actions, government investigations, and environmental proceedings. See Note 9 to the consolidated condensed financial statements for information on various legal proceedings.
This Item should be read in conjunction with "Legal Proceedings" in Part I, Item 3 of our Annual Report on Form 10-K for the year ended December 31, 2025.
Our material risk factors are disclosed in "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ende…
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Our material risk factors are disclosed in "Risk Factors" in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2025. There have been no material changes from the risk factors previously disclosed in our Annual Report on Form 10-K for the year ended December 31, 2025.