Eli Lilly and Company Q4 Earnings Call Highlights

Core Insights - Eli Lilly reported strong financial performance for 2025, with full-year revenue of $65.2 billion, a 45% increase compared to 2024, and earnings per share (EPS) of $24.21, up 86% year-over-year [3][6] - The company anticipates continued revenue growth in 2026, projecting revenue between $80 billion and $83 billion, reflecting approximately 25% growth at the midpoint despite expected pricing pressures [4][9] Financial Performance - In Q4 2025, Lilly achieved a revenue growth of 43% compared to Q4 2024, with a gross margin of 83.2% [2] - The non-GAAP performance margin was reported at 47.2%, an increase of 4.2 percentage points year-over-year [1] - R&D expenses rose by 26%, while marketing, selling, and administrative expenses increased by 29%, driven by investments in the pipeline and promotional support [2] Product Performance - The incretin portfolio was a significant growth driver, generating over $13 billion in Q4, a 91% increase year-over-year [6] - Key products like Zepbound and Mounjaro saw substantial market growth, with Zepbound revenue more than doubling year-over-year and holding nearly 70% share of new prescriptions in the branded obesity market [8] Pipeline and Clinical Updates - Lilly's late-stage pipeline includes Orforglipron, which is expected to receive FDA approval in Q2 2026, and retatrutide, which showed promising results in weight loss trials [13][14] - The company is also advancing combination studies in immunology and oncology, with positive results reported for ixekizumab and pirtobrutinib [15][16] Access Initiatives and Market Strategy - Lilly has established a U.S. access agreement for obesity medicines, capping patient out-of-pocket costs at $50 per month, with Medicare access expected by July 1, 2026 [5][17] - The company is expanding direct channels, with LillyDirect engaging over 1 million patients, to offset pricing pressures through increased volume [19] Capital Allocation - In 2025, Lilly returned $1.3 billion to shareholders through dividends and $1.5 billion in share repurchases, while committing over $55 billion to manufacturing expansion since 2020 [20]