3 Reasons to Buy Eli Lilly Stock

Core Insights - Eli Lilly has become the largest healthcare company and the first to reach a market capitalization of $1 trillion, outperforming broader equities over the past five years [1] Financial Performance - Eli Lilly reported exceptional financial results, with fourth-quarter sales of $19.3 billion, reflecting a 43% year-over-year increase, and adjusted earnings per share of $7.54, up 42% compared to the previous year [3] - The company anticipates revenue between $80 billion and $83 billion for the current year, indicating a top-line growth of 25% at the midpoint, which exceeds analysts' expectations despite price reductions on key medicines [4] Market Position - Eli Lilly is gaining significant ground in the diabetes and weight management market, with its tirzepatide drug generating over $30 billion in sales in 2025, making it the world's best-selling compound [5] - The company's market share for incretin analogs has increased to 60.5% by the end of 2025, while competitor Novo Nordisk's share has decreased to 39.1%, indicating Lilly's dominance in this sector [6] Pipeline Development - Eli Lilly has several promising pipeline candidates, including an oral GLP-1 medicine, orforglipron, expected to gain approval by the second quarter of 2026, and retatrutide, which has shown excellent phase 3 results targeting weight loss [7]