Mounjaro Maker Eli Lilly Banks On Bigger 2026 Thanks To Weight Loss Drugs

Core Viewpoint - Eli Lilly and Co. reported better-than-expected Q4 earnings and provided optimistic fiscal 2026 guidance, leading to a rise in stock price [1][7] Earnings Overview - Adjusted earnings for Q4 were $7.54 per share, surpassing the consensus estimate of $6.67 [2] - Total sales reached $19.3 billion, exceeding the consensus of $17.96 billion, with a year-over-year increase of 43% driven by a 46% rise in volume, partially offset by a 5% decrease from lower realized prices [2] Gross Profit and Margin - Gross profit increased by 43% to $15.9 billion, with a gross margin of 82.5%, up by 0.3 percentage points [3] - The increase in gross margin was mainly due to a favorable product mix and improved production costs, despite the impact of lower realized prices [3] Weight Loss Drugs - Revenue from key products grew to $13.8 billion in Q4 2025, primarily driven by Mounjaro and Zepbound [4] - Mounjaro's revenue surged by 110% to $7.4 billion, with U.S. revenue at $4.1 billion (up 57%) and international revenue increasing to $3.3 billion from $899 million a year ago [4] - Zepbound's U.S. revenue rose by 122% to $4.2 billion, also driven by increased demand [5] - Verzenio, a breast cancer drug, saw a 3% revenue increase to $1.6 billion, attributed to volume growth [5] Future Investments - The company plans to invest over $3.5 billion in a new manufacturing facility in Lehigh Valley, Pennsylvania, which will focus on next-generation weight-loss therapies [5][6] Guidance - For fiscal 2026, Eli Lilly projects adjusted earnings of $33.50-$35 per share, compared to the consensus of $33.23 [7] - Expected sales are between $80 billion and $83 billion, exceeding Wall Street's estimate of $77.62 billion [7] - Eli Lilly's stock rose by 8.85% to $1092.23 during premarket trading, nearing its 52-week high of $1133.95 [7]