Results
6Revenue in Q2 2026 increased 48% to $23.0 billion driven primarily by Mounjaro and Zepbound volume.
Q2 2026 EPS increased by 26% to $7.94 on a reported basis and increased by 33% to $8.38 on a non-GAAP basis.
Q2 2026 reported and non-GAAP EPS included $3.03 of acquired IPR&D charges compared to $0.14 in Q2 2025.
Outlook
1Increased 2026 full-year revenue guidance to be in the range of $85.0 billion to $87.0 billion and raised underlying non-GAAP EPS guidance for the full year by $2.78 at the midpoint, which was more than offset by $3.03 of acquired IPR&D charges from Q2 business development activity, resulting in an updated range of $35.50 to $36.50.Guidance raised
Corporate events
Regulatory progress included U.S. FDA approval of Ebglyss for one maintenance dose every eight weeks in moderate-to-severe atopic dermatitis, European Commission approval of Jaypirca as monotherapy for adults with chronic lymphocytic leukemia across all lines of therapy, and the submission for orforglipron for type 2 diabetes in the U.S.
Management commentary
8Pipeline highlights included positive data from three additional Phase 3 trials of retatrutide in obesity.
The clinical data package is now complete to support global registrations for obesity, obstructive sleep apnea, and knee osteoarthritis pain, with plans to submit a Biologics License Application to the U.S. FDA in the first quarter of 2027.
Corporate events
Business development activity in Q2 2026 included the completed acquisitions of Orna Therapeutics, Inc., Ajax Therapeutics, Inc., Centessa Pharmaceuticals plc. and Kelonia Therapeutics, Inc. Subsequent to quarter end, we completed three acquisitions to build an infectious disease portfolio and entered into an agreement to acquire AtaiBeckley, Inc.
Committed an additional $4.5 billion to expand Indiana manufacturing sites.
Management commentary
2"Lilly's momentum continues, as we delivered 48% revenue growth and raised our full-year guidance," said David A. Ricks, Lilly chair and CEO.Guidance raised
"At the same time, Lilly is building for the future.
With our next-generation weight-loss medicine retatrutide and its complete clinical data package in hand, new manufacturing capacity coming online, and exciting new assets entering our pipeline through business development, Lilly's future, after 150 years, has never been brighter."
Results
In Q2 2026, worldwide revenue was $23.0 billion, an increase of 48% compared with Q2 2025, driven by a 60% increase in volume, partially offset by a 13% decrease in realized prices.
Key Products 1 revenue grew to $15.7 billion in Q2 2026, led by Mounjaro and Zepbound.
Key Products revenue in the Immunology, Oncology, and Neuroscience therapeutic areas grew 121% in Q2 2026 compared to Q2 2025.
Revenue in the U.S. increased 33% to $14.4 billion, driven by a 37% increase in volume, partially offset by a 3% decrease in realized prices.
The increase in U.S. volume was driven by Zepbound and Mounjaro.
The decline in realized prices was primarily driven by Zepbound and Mounjaro, partially offset by adjustments to estimates for rebates and discounts primarily driven by Trulicity, Zepbound, and Mounjaro.
5Excluding these adjustments, U.S. price would have declined by approximately 9%.
Revenue outside the U.S. increased 80% to $8.6 billion, driven by a 113% increase in volume, partially offset by a 36% decrease in realized prices.
The lower realized prices outside the U.S. were driven primarily by the addition of Mounjaro to the National Reimbursement Drug List (NRDL) in China.
volume increase outside the U.S. was driven by Mounjaro.
Jardiance revenue outside the U.S. included a sales-based milestone of $250 million in Q2 2026, associated with the company's collaboration with Boehringer Ingelheim.
Gross margin increased 50% to $19.7 billion in Q2 2026.
7Gross margin as a percent of revenue was 85.8%, an increase of 1.5 percentage points versus the same quarter last year.
The increase was primarily driven by improved cost of production and favorable product mix, partially offset by lower realized prices.
In Q2 2026, research and development expenses increased 14% to $3.8 billion, or 17% of revenue, driven by continued investments in the company's early and late-stage portfolio.
Marketing, selling, and administrative expenses increased 25% to $3.4 billion in Q2 2026, primarily driven by promotional efforts supporting ongoing and planned launches.
In Q2 2026, the company recognized acquired in-process research and development (IPR&D) charges of
4$2.8 billion compared with $154 million in Q2 2025.
The Q2 2026 charges primarily related to the acquisitions of Orna Therapeutics, Inc. and Ajax Therapeutics, Inc.
Asset impairment, restructuring and other special charges of $703 million in Q2 2026 were primarily related to the accelerated vesting of employee equity awards and other acquisition and integration costs associated with the closing of our acquisitions of Kelonia Therapeutics, Inc. and Centessa Pharmaceuticals plc.
In Q2 2025, there were no asset impairment, restructuring and other special charges.
The effective tax rate was 23.3% in Q2 2026 compared with 16.5% in Q2 2025, primarily driven by the unfavorable tax impact of non-deductible acquired IPR&D charges in Q2 2026.
In Q2 2026, net income and earnings per share (EPS) were $7.1 billion and $7.94, respectively, compared with net income of $5.7 billion and EPS of $6.29 in Q2 2025.
EPS in Q2 2026 and Q2 2025 included acquired IPR&D charges of $3.03 and $0.14, respectively.
On a non-GAAP basis, Q2 2026 gross margin increased 50% to $19.8 billion.
Gross margin as a percent of revenue was 86.3%, an increase of 1.3 percentage points versus the same quarter last year.
Management commentary
increase was primarily driven by improved cost of production and favorable product mix, partially offset by lower realized prices.
Results
The non-GAAP effective tax rate was 22.2% in Q2 2026 compared with 16.5% in Q2 2025, primarily driven by the unfavorable tax impact of non-deductible acquired IPR&D charges in Q2 2026.
On a non-GAAP basis, Q2 2026 net income and EPS were $7.5 billion and $8.38, respectively, compared with net income of $5.7 billion and EPS of $6.31 in Q2 2025.
Non-GAAP EPS in Q2 2026 and Q2 2025 included acquired IPR&D charges of $3.03 and $0.14, respectively.
For Q2 2026, worldwide Mounjaro revenue increased 91% to $9.9 billion.
U.S. revenue was $4.8 billion, an increase of 45%, reflecting strong demand, partially offset by lower realized prices.
Lower realized prices were partially offset by adjustments to estimates for rebates and discounts.
Revenue outside the U.S. increased 172% to $5.2 billion primarily driven by volume growth, partially offset by lower realized prices driven by the addition of Mounjaro to the NRDL in Q1 2026.
For Q2 2026, U.S. Zepbound revenue increased 44% to $4.9 billion, primarily driven by strong demand, partially offset by lower realized prices, including previously announced reductions in cash-pay prices.
Lower realized prices were partially offset by adjustments to estimates for rebates and discounts.
Outlook
The following table summarizes the company's updated full-year 2026 non-GAAP financial guidance, reflecting the continued strong revenue performance in Q2.Guidance raised
The first half of 2026 also benefited from sales based milestones and adjustments for rebates and discounts.
3In addition to updates to Revenue and Performance Margin guidance, EPS guidance has been adjusted to reflect an increase of $2.78 (at the midpoint of the range) due to strong underlying business growth, offset by $3.03 associated with the Q2 acquired IPR&D charges from recent business development activity:Guidance raised
Revenue$82 to $85 billion$85 to $87 billion
Performance Margin (1)(2)47.0% to 48.5%49.0% to 50.5%
Tax Rate (1)(3)18% to 19%unchangedGuidance reaffirmed
Earnings per Share (1)(3)(4)$35.50 to $37.00$35.50 to $36.50Guidance lowered
(3) Guidance does not include acquired in-process research and development (IPR&D) incurred after June 30, 2026.
Results
Operating Results (Unaudited) – REPORTED
NM – not meaningful
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