Eli Lilly Forecasts Strong 2026 Profit on Zepbound Demand

Strong Projections and Quarterly Performance

Eli Lilly has projected significant profit growth for 2026, fueled by robust demand for its weight-loss medication, Zepbound. The company surpassed fourth-quarter expectations, reporting a profit of $7.54 per share against an estimated $6.67 and revenue of $19.3 billion, ahead of the $17.96 billion forecast.

Market Landscape and Drug Sales

The optimistic forecast contrasts with rival Novo Nordisk's warning of future pricing pressures. Lilly's strong performance was driven by key drug sales, with diabetes treatment Mounjaro achieving $7.41 billion and Zepbound recording $4.3 billion in quarterly sales, both exceeding market consensus.

Economic and Market Impact

Following the announcement, Eli Lilly's shares rose over 7% in premarket trading, reflecting strong investor confidence. The company's successful navigation of the expanding obesity market has solidified its position, making it the first pharmaceutical firm to reach a $1 trillion valuation last year.

Outlook Summary

For the current year, Lilly expects to earn between $33.50 and $35 per share on an adjusted basis, with sales projected in the range of $80 billion to $83 billion. Focus is now turning to the potential launch of its oral weight-loss pill, orforglipron, which is seen as a major future growth driver.

FAQ

Q: What were Eli Lilly's key drug sales in the fourth quarter?
A: Zepbound sales reached $4.3 billion, and Mounjaro sales were $7.41 billion, both surpassing analyst forecasts.

Q: What is Eli Lilly's earnings forecast for the year?
A: The company expects adjusted earnings of $33.50 to $35 per share on sales between $80 billion and $83 billion.

Source: Investing.com