Lilly Q2 revenue jumps 47.7% to $23.0B on Mounjaro/Zepbound; net income up 25.3% to $7.09B

The Federal Circuit reversed the trial court's invalidity ruling, leading Lilly to recognize a charge in Q1 2026 and file for en banc rehearing. This is a material adverse development in the Emgality patent case.

Newly disclosed patent litigation against Cipla over a generic Verzenio ANDA. This is a new challenge to a key product's exclusivity.

Newly disclosed ANDA filings by multiple generic companies targeting Mounjaro and Zepbound, Lilly's key incretin products. Lilly intends to sue for infringement.

The TST significantly reduced the liquidated award in December 2025, a favorable development, though appeals continue. The baseline disclosed a much larger inflation-adjusted award.

The Mosaic Health case progressed: after the Second Circuit reversal, Lilly sought Supreme Court review in March 2026. The matter remains ongoing.

The Michigan Supreme Court reversed the Court of Appeals decision in July 2026, an adverse development in the state's effort to investigate Lilly under the MCPA.

The Seventh Circuit affirmed the jury verdict against Lilly, leading to a recognized charge, and the Supreme Court denied further review in May 2026. This is a final adverse outcome.

The Ninth Circuit affirmed class certification and the Supreme Court denied certiorari, so the class action proceeds. The matter remains ongoing.

The product liability litigation has expanded: now two MDLs (gastrointestinal and NAION), specific state courts named, and two new class action petitions in Canada.

The relator expanded the case to fifteen products and added the State of Texas as a party, while Lilly opposes dismissal of the first lawsuit. This is a significant escalation.

Total revenue for the three months ended June 30, 2026 was $22,974 million, up 48% from $15,558 million in the prior-year period. For the six months, revenue was $42,773 million, up 51% from $28,286 million. The growth was driven primarily by increased volume, partially offset by lower realized prices, with Mounjaro and Zepbound as the main contributors.

Net income for the three months ended June 30, 2026 was $7,095 million, up 25% from $5,661 million in the prior-year period. For the six months, net income was $14,491 million, up 72% from $8,420 million. The increase was primarily due to higher gross margin, partially offset by higher acquired IPR&D charges, asset impairment, restructuring, and other special charges, and marketing, selling, and administrative expenses.

Diluted earnings per share for the three months ended June 30, 2026 was $7.94, up 26% from $6.29 in the prior-year period. For the six months, diluted EPS was $16.19, up 73% from $9.35. The increase was driven by higher net income.

The current filing reports that the FDA approved orforglipron for the treatment of obesity, a significant regulatory milestone. The baseline filing only reported that a Phase 3 trial for orforglipron for obesity met its primary and all secondary endpoints. This represents a major advancement in the product's development.

The current filing reports that orforglipron has been submitted for regulatory approval for type 2 diabetes in the U.S., EU, and Japan. The baseline filing only reported that a Phase 3 trial for orforglipron for type 2 diabetes met its primary endpoint. This indicates progression from clinical trial results to regulatory submission.

The current filing reports that the CHMP issued a positive opinion recommending insulin efsitora alfa for the treatment of type 2 diabetes in the EU. The baseline filing only reported that the application was submitted to the European Commission. This represents a positive regulatory development.

The current filing reports that Phase 3 trials for retatrutide for obesity met their primary endpoints. The baseline filing only reported that a Phase 3 trial was initiated for retatrutide for chronic low back pain and overweight or obesity. This indicates positive clinical trial results for retatrutide in obesity.

The current filing reports that a Phase 3 trial for retatrutide for type 2 diabetes met its primary endpoint. This information was not present in the baseline filing, indicating a new positive clinical trial result.

The current filing reports that a Phase 3 trial was initiated for brenipatide for major depressive disorder. This information was not present in the baseline filing, indicating a new clinical development program.

The current filing reports that a Phase 3 trial was initiated for sofetabart mipitecan for platinum-sensitive ovarian cancer. This information was not present in the baseline filing, indicating a new clinical development program.

The current filing reports that the FDA granted Breakthrough Therapy designation for sofetabart mipitecan for the treatment of certain patients with platinum-resistant ovarian cancer. This information was not present in the baseline filing, indicating a new regulatory designation.

The current filing reports that the company has entered into voluntary agreements with the U.S. government to lower Medicaid and certain other drug prices and to launch new medicines with a more balanced pricing approach. The baseline filing discussed an executive order and presidential letters regarding most-favored-nation pricing. This represents a shift from potential government action to actual voluntary agreements.

The current filing reports that Medicare beneficiaries obtained access to discounted Lilly obesity medicines under the Bridge Program effective July 1, 2026 through December 31, 2027. This information was not present in the baseline filing, indicating a new program that could impact pricing and access.

The current filing reports that HHS selected Trulicity and Verzenio in January 2026 to be effective 2028, in addition to Jardiance. The baseline filing only mentioned Jardiance and stated that additional products were expected to be selected. This represents a new development in government price setting.

The current filing expands the description of litigation and investigations to include discussions with government entities and broadens the scope from access to insulin to access to medicine. This indicates a potentially wider range of legal and regulatory matters.

The current filing reports that Mounjaro and Zepbound accounted for 65% of total revenue for the six months ended June 30, 2026, and expects cardiometabolic health products to continue to represent a significant and growing portion of the business. The baseline filing discussed supply and demand dynamics for incretin medicines. This represents a shift in focus to the revenue contribution of these products.

The current filing reports that the company finalized drug pricing agreements with the U.S. government in the first quarter of 2026, including Medicare access to discounted obesity medicines under the Bridge Program. This information was not present in the baseline filing, indicating a new development in pricing agreements.

The current filing reports that the company launched Foundayo (orforglipron) in the U.S. for the treatment of obesity and submitted orforglipron to the FDA for type 2 diabetes in the second quarter of 2026. This information was not present in the baseline filing, indicating a new product launch and regulatory submission.

The current filing reports that the company has launched Mounjaro internationally and submitted orforglipron for obesity and/or type 2 diabetes in all major markets. The baseline filing discussed the launch of tirzepatide in most major markets and supply considerations. This represents an update on international launches and regulatory submissions.

The current filing provides forward-looking guidance on near-term financial performance, citing the timing of regulatory approvals for orforglipron and demand in new incretin channels and markets, including U.S. Medicare for Zepbound and Foundayo. This information was not present in the baseline filing.

The current filing adds a statement about the potential disproportionate impact of incretin volume fluctuations on results of operations. This information was not present in the baseline filing, indicating a new risk disclosure.

The current filing adds a statement about the long-term durability of cardiometabolic health product offerings and the need to maintain competitive position and deliver innovations. This information was not present in the baseline filing, indicating a new strategic consideration.

The current filing adds a statement about increasing tax disclosure obligations globally that could heighten audit risk. This information was not present in the baseline filing, indicating a new tax-related risk.

U.S. revenue for the three months ended June 30, 2026 was $14,413 million, up 33% from $10,814 million in the prior-year period. For the six months, U.S. revenue was $26,532 million, up 37% from $19,304 million. The growth was driven by Zepbound and Mounjaro.

Outside U.S. revenue for the three months ended June 30, 2026 was $8,561 million, up 80% from $4,743 million in the prior-year period. For the six months, outside U.S. revenue was $16,241 million, up 81% from $8,983 million. The growth was driven by Mounjaro.

The volume component of revenue growth for the three months ended June 30, 2026 was 37% in the U.S., 113% outside the U.S., and 60% consolidated. For the six months, volume growth was 42% in the U.S., 104% outside the U.S., and 62% consolidated. These figures are significantly higher than the prior-year period, reflecting strong demand for Mounjaro and Zepbound.

The price component of revenue change for the three months ended June 30, 2026 was -3% in the U.S., -36% outside the U.S., and -13% consolidated. For the six months, price change was -5% in the U.S., -31% outside the U.S., and -13% consolidated. The larger negative price impact outside the U.S. is primarily due to the addition of Mounjaro to the NRDL in China.

The foreign exchange rate component of revenue change for the three months ended June 30, 2026 was 0% in the U.S., 4% outside the U.S., and 1% consolidated. For the six months, foreign exchange impact was 0% in the U.S., 7% outside the U.S., and 2% consolidated. This represents a positive impact from foreign exchange rates, compared to a negative impact in the prior-year period.

Mounjaro revenue for the three months ended June 30, 2026 was $9,943 million, up 91% from $5,199 million in the prior-year period. The increase was driven by strong demand, partially offset by lower realized prices.

Zepbound revenue for the three months ended June 30, 2026 was $4,928 million, up 46% from $3,381 million in the prior-year period. The increase was driven by strong demand, partially offset by lower realized prices.

Verzenio revenue for the three months ended June 30, 2026 was $1,474 million, down 1% from $1,489 million in the prior-year period. This represents a slight decline in revenue for this product.

Jardiance revenue for the three months ended June 30, 2026 was $1,232 million, up 79% from $690 million in the prior-year period. This product was not separately disclosed in the baseline filing, indicating a change in reporting granularity.

Trulicity revenue for the three months ended June 30, 2026 was $1,219 million, up 12% from $1,092 million in the prior-year period. This product was not separately disclosed in the baseline filing, indicating a change in reporting granularity.

Taltz revenue for the three months ended June 30, 2026 was $856 million, up 1% from $848 million in the prior-year period. This product was not separately disclosed in the baseline filing, indicating a change in reporting granularity.

Other revenue for the three months ended June 30, 2026 was $3,322 million, up 16% from $2,859 million in the prior-year period. The baseline filing reported 'Other products' revenue of $5,488 million, which included products now separately disclosed (Jardiance, Trulicity, Taltz).

Mounjaro revenue for the six months ended June 30, 2026 was $18,605 million, up 106% from $9,041 million in the prior-year period. The increase was driven by strong demand, partially offset by lower realized prices.

Zepbound revenue for the six months ended June 30, 2026 was $9,088 million, up 60% from $5,693 million in the prior-year period. The increase was driven by strong demand, partially offset by lower realized prices.

Verzenio revenue for the six months ended June 30, 2026 was $2,776 million, up 5% from $2,648 million in the prior-year period. This represents a slower growth rate compared to the prior-year period.

Jardiance revenue for the six months ended June 30, 2026 was $2,346 million, up 38% from $1,704 million in the prior-year period. This product was not separately disclosed in the baseline filing, indicating a change in reporting granularity.

Trulicity revenue for the six months ended June 30, 2026 was $2,138 million, down 2% from $2,187 million in the prior-year period. This product was not separately disclosed in the baseline filing, indicating a change in reporting granularity.

Taltz revenue for the six months ended June 30, 2026 was $1,588 million, down 1% from $1,610 million in the prior-year period. This product was not separately disclosed in the baseline filing, indicating a change in reporting granularity.

Other revenue for the six months ended June 30, 2026 was $6,233 million, up 15% from $5,403 million in the prior-year period. The baseline filing reported 'Other products' revenue of $10,904 million, which included products now separately disclosed (Jardiance, Trulicity, Taltz).

Gross margin for the three months ended June 30, 2026 was $19,706 million, up 50% from $13,110 million in the prior-year period. For the six months, gross margin was $35,928 million, up 52% from $23,614 million. The increase was driven by improved cost of production and favorable product mix, partially offset by lower realized prices.

Gross margin as a percent of revenue for the three months ended June 30, 2026 was 85.8%, up from 84.3% in the prior-year period. For the six months, gross margin was 84.0%, up from 83.5%. The increase was driven by improved cost of production and favorable product mix, partially offset by lower realized prices.

Research and development expenses for the three months ended June 30, 2026 were $3,819 million, up 14% from $3,336 million in the prior-year period. For the six months, R&D expenses were $7,329 million, up 21% from $6,070 million. The increase was driven by continued investments in the early and late-stage portfolio.

Marketing, selling, and administrative expenses for the three months ended June 30, 2026 were $3,430 million, up 25% from $2,753 million in the prior-year period. For the six months, MS&A expenses were $6,364 million, up 22% from $5,221 million. The increase was driven by promotional efforts supporting ongoing and planned launches.

Acquired IPR&D charges for the three months ended June 30, 2026 were $2,776 million, compared to $154 million in the prior-year period. For the six months, acquired IPR&D charges were $3,360 million, up 95% from $1,726 million. The increase was primarily related to the acquisitions of Orna and Ajax.

Asset impairment, restructuring, and other special charges for the three months ended June 30, 2026 were $703 million, compared to $0 in the prior-year period. For the six months, these charges were $982 million, compared to $35 million in the prior-year period. The increase was primarily related to accelerated vesting of employee equity awards and other acquisition and integration costs, as well as litigation matters.

Income taxes for the three months ended June 30, 2026 were $2,152 million, up 93% from $1,116 million in the prior-year period. For the six months, income taxes were $3,606 million, up 99% from $1,813 million. The increase was driven by higher pre-tax income and a higher effective tax rate.

The effective tax rate for the three months ended June 30, 2026 was 23.3%, up from 16.5% in the prior-year period. For the six months, the effective tax rate was 19.9%, up from 17.7%. The increase was primarily driven by the unfavorable tax impact of nondeductible acquired IPR&D charges and a mix of earnings in higher tax jurisdictions.

Cash and cash equivalents increased to $9.0 billion as of June 30, 2026, compared with $7.3 billion as of December 31, 2025. This represents a significant increase in cash balances compared to the prior-year period.

Total investments increased to $3.9 billion as of June 30, 2026, compared with $2.9 billion as of December 31, 2025. This represents an increase in investment balances compared to the prior-year period.

The current filing discloses approximately $806 million of unfunded commitments to invest in venture capital funds, which will be paid over up to 10 years. This information was not present in the baseline filing, indicating a new disclosure about future investment obligations.

The current filing reports that the company issued $9.0 billion of long-term debt in May 2026, primarily to fund acquisitions of Centessa and Kelonia. The baseline filing reported a $6.50 billion debt issuance in February 2025 for the Scorpion acquisition. This represents a new, larger debt issuance.

The current filing reports that the company paid $13.3 billion in 2026 for business development activity, primarily for the acquisitions of Centessa, Kelonia, Orna, Ventyx, and Ajax. The baseline filing reported $1.86 billion paid in 2025 for acquired IPR&D. This represents a significant increase in business development spending.

The current filing reports that the company paid approximately $2.0 billion in July 2026 to acquire companies to build an infectious disease portfolio. The baseline filing reported the acquisition of Verve in July 2025. This represents a new acquisition activity in the current period.

The current filing discloses a pending agreement to acquire AtaiBeckley Inc. for approximately $2.8 billion, subject to closing conditions. This information was not present in the baseline filing, indicating a new pending acquisition.

Total debt increased to $54.9 billion as of June 30, 2026, an increase of $12.4 billion from $42.5 billion as of December 31, 2025. This represents a significant increase in debt levels compared to the prior-year period.

Unused committed bank credit facilities increased to $10.1 billion as of June 30, 2026, compared with $8.45 billion as of June 30, 2025. This represents an increase in available credit facilities.

The company repurchased $4.0 billion of shares during the six months ended June 30, 2026, compared with $1.89 billion in the prior-year period. As of June 30, 2026, $7.0 billion remained under the $15.0 billion share repurchase program, compared with $13.11 billion as of June 30, 2025. This represents a significant increase in share repurchase activity.

Dividends paid during the six months ended June 30, 2026 were $3.1 billion, or $3.46 per share, compared with $2.69 billion, or $3.00 per share, in the prior-year period. This represents an increase in dividend payments.

The baseline filing disclosed up to approximately $8 billion in potential payments under contract manufacturing and supply agreements. This disclosure is absent from the current filing, which may indicate that the company no longer considers this commitment material or has updated its assessment.

The current filing discloses three significant business combinations completed in 2026 (Kelonia, Centessa, Ventyx), while the baseline filing's business combination note focused on a 2024 manufacturing facility acquisition. This represents a major expansion of Lilly's acquisition activity.

The current filing reports significantly higher acquired in-process research and development charges compared to the baseline period, driven by new asset acquisitions including Ajax, Orna, and Scorpion. This reflects a substantial increase in upfront R&D spending.

The current filing discloses a $9.0 billion long-term debt issuance in May 2026, with proceeds used for general corporate purposes including funding acquisitions. This is a new financing event not present in the baseline.

The current filing shows a significant increase in contingent consideration liabilities, primarily from the Kelonia acquisition, reflecting potential future milestone payments. This is a new disclosure not in the baseline.

The current filing provides an update on the Emgality patent litigation, including a reversal by the Federal Circuit and a recognized charge. This is a new development not present in the baseline.

The current filing discloses new Hatch-Waxman litigation related to Verzenio and tirzepatide products, which was not present in the baseline. This represents new patent challenges to key products.

The current filing discloses a subsequent event involving the acquisition of three companies for up to $3.9 billion to build an infectious disease portfolio. This is a new strategic initiative not in the baseline.

The current filing discloses $7.0 billion remaining under the share repurchase program, compared to $13.11 billion remaining in the baseline. The decline reflects program repurchases during the period.