Eli Lilly delivered a stunning financial performance that exceeded even the most optimistic market expectations, driven by unprecedented demand for its metabolic disease treatments. The pharmaceutical giant not only shattered analyst forecasts but immediately upgraded its full-year guidance, signaling continued momentum in its key growth segments.
Exceptional Quarterly Performance
The third-quarter financial results revealed extraordinary growth across all key metrics. Revenue surged to $17.6 billion, representing a 54% year-over-year increase that substantially outpaced the $16.1 billion consensus estimate. Even more impressive was the adjusted earnings performance, with EPS reaching $7.02 per share – nearly 17% above the highest analyst projection of $6.02.
This explosive growth was primarily fueled by the company’s tirzepatide-based pharmaceuticals. Mounjaro, indicated for diabetes treatment, generated $6.52 billion in revenue, more than doubling its performance with 109% growth. Zepbound, the obesity treatment, demonstrated even stronger expansion with $3.59 billion in sales, marking a 184% increase. Combined, these two therapeutic blockbusters produced over $10.1 billion in revenue during the three-month period.
Upward Revision of Annual Outlook
In response to the stronger-than-anticipated results, Eli Lilly significantly raised its full-year financial projections. The company now anticipates total revenue between $63.0 billion and $63.5 billion, compared to previous guidance that capped at $62 billion. The adjusted earnings per share forecast also climbed to a range of $23.00 to $23.70.
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These projections highlight the company’s remarkable transformation. As recently as 2020, annual revenue stood at just $24.5 billion. Achieving the updated forecast would mean Eli Lilly has more than doubled its revenue in just five years, positioning the company to potentially become the world’s highest-revenue pharmaceutical enterprise by 2026.
Sustainable Growth Trajectory
Multiple factors suggest this growth pattern may continue. Eli Lilly currently commands approximately 60% of new prescriptions in the highly lucrative diabetes and obesity medication markets. The company’s development pipeline includes promising candidates that could further strengthen its market position, including an oral GLP-1 medication called Orforglipron with potential market availability by 2026.
Operational efficiency has improved alongside revenue growth, with the company achieving an operating margin of 48.3% – eight percentage points higher than the previous year. This demonstrates that Eli Lilly is not only expanding its market presence but also enhancing profitability as it scales production of its most successful treatments.
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