Lilly(US:LLY)2025-10-30 11:03Financial Performance - Q3 2025 revenue increased 54% year-over-year to $17.60 billion, driven by volume growth from Mounjaro and Zepbound[4] - Q3 2025 reported EPS rose to $6.21, up from $1.07 in Q3 2024, while non-GAAP EPS increased to $7.02 from $1.18[4] - The company raised its 2025 full-year revenue guidance to a range of $63.0 billion to $63.5 billion, with reported EPS guidance increased to $21.80 to $22.50[4] - Revenue for Q3 2025 was reported at $17,600.8 million, a 54% increase compared to $11,439.1 million in Q3 2024[37] - The net income for the nine months ended September 30, 2025, was $14,002.3 million, representing a 127% increase from $6,180.2 million in the same period of 2024[37] - Reported net income for Q3 2025 was $5,582.5 million, a significant increase from $970.3 million in Q3 2024[40] - Non-GAAP net income for Q3 2025 reached $6,311.9 million, compared to $1,064.5 million in Q3 2024, reflecting strong operational performance[40] - For the nine months ended September 30, 2025, reported net income was $14,002.3 million, up from $6,180.2 million in the same period of 2024[40] - Non-GAAP net income for the nine months ended September 30, 2025 was $14,995.6 million, compared to $6,941.0 million in 2024, showcasing strong growth[40] Product Performance - Mounjaro revenue grew 109% to $6.52 billion in Q3 2025, with U.S. revenue at $3.55 billion, a 49% increase[20] - Zepbound revenue in Q3 2025 increased 185% to $3.59 billion, primarily driven by increased demand[21] - Revenue outside the U.S. rose 74% to $6.30 billion, with a 66% increase in volume and a 6% favorable impact from foreign exchange rates[7] Expenses and Margins - Research and development expenses increased 27% to $3.47 billion, representing 19.7% of revenue, reflecting continued investments in the pipeline[9] - The gross margin as a percentage of revenue was reported at 82.9% for Q3 2025, compared to 81.0% for Q3 2024[38] - The expected performance margin is now between 43.5% and 44.5% on a reported basis, and between 45.0% and 46.0% on a non-GAAP basis[26] - The company incurred $364.9 million in asset impairment and restructuring charges in Q3 2025, compared to $81.6 million in Q3 2024[40] Regulatory and Strategic Developments - U.S. FDA approved Inluriyo (imlunestrant) for certain adults with advanced or metastatic breast cancer, marking significant regulatory progress[4] - The company announced new manufacturing facilities in Virginia and Texas, and an expansion of its Puerto Rico site to increase capacity[3] - Lilly plans to acquire Adverum Biotechnologies and invest over $1.2 billion in its Puerto Rico facility to enhance oral medicine manufacturing capacity[24] - The company completed the acquisition of Verve Therapeutics, Inc., which included litigation and integration costs, impacting financial results[41] Tax and Other Income - The effective tax rate remains unchanged at approximately 19% on a reported basis and 17% on a non-GAAP basis[27] - The effective tax rate for reported income was 22.8% in Q3 2025, down from 38.9% in Q3 2024[40] - The effective tax rate for non-GAAP income was 17.7% in Q3 2025, compared to 37.6% in Q3 2024, reflecting favorable tax adjustments[40] - Other income (expense) is now expected to be an expense in the range of $700 million to $600 million on a reported basis[29]