Eli Lilly and Company (LLY) reported first-quarter 2026 revenue of $14.78 billion on Friday, exceeding the $14.16 billion consensus by $620 million and rising 38.4% year-on-year. Adjusted earnings per share came in at $3.96 versus the $3.72 estimate. The dual-incretin GLP-1 franchise — Mounjaro (Type 2 diabetes) plus Zepbound (obesity) — generated $9.42 billion of combined revenue, up 71% year-on-year and now representing 63.7% of total company sales.
The company raised full-year 2026 revenue guidance to $62.0-64.0 billion (midpoint $63.0 billion) from $58.0-60.5 billion, and lifted adjusted EPS guidance to $24.50-25.50 from $23.00-24.00. The guidance revision was anchored on the ramp of two new manufacturing facilities — the Lebanon, Indiana high-volume parenteral plant which began commercial production in February, and the Limerick, Ireland fill-finish facility which received FDA approval mid-April. Combined manufacturing capacity is now approximately 2x the December 2025 baseline.
Pipeline Read-Through
Lilly's oral GLP-1 candidate orforglipron remains on track for FDA submission in the third quarter, with the SURMOUNT-OASIS Phase 3 obesity readout in late June a major catalyst. The retatrutide tri-incretin Phase 3 dataset — last updated in March showing 24.2% weight loss at 88 weeks — supports a 2027 launch, with peak-sales Street estimates ranging from $26 billion (Goldman Sachs) to $40 billion (Citi).
Competitive Pressure on Novo
The strong print extends Lilly's market-share lead over Novo Nordisk (NVO) in the U.S. obesity vertical, with Mounjaro/Zepbound capturing 58.4% of new prescriptions in April per IQVIA — up from 54.1% at year-end and 47.2% one year ago. Novo Nordisk shares declined 2.4% Friday in Copenhagen. The pricing dynamic continues to favor Lilly, which has held list prices flat year-on-year while Novo announced a 4% Wegovy list-price reduction effective July 1.
Capital Allocation
Lilly raised its quarterly dividend by 14.6% to $1.65 per share and announced a $30 billion incremental share-repurchase authorization, taking total program capacity to $42 billion. Net long-term debt declined to $14.2 billion from $16.8 billion at year-end, with leverage now at 0.4x EBITDA. Free cash flow generation of $4.6 billion in the quarter was up 91% year-on-year.