On a non-GAAP basis, the company’s performance margin was 47.2% , up 4.2 percentage points year over year. Lilly reported an effective tax rate of 19.7% and Q4 EPS of $7.54 , which included $0.52 of acquired IPR&D charges (versus $5.32 in Q4 2024, including $0.19 of acquired IPR&D charges).In the fourth quarter, Lilly reported revenue growth of 43% compared to Q4 2024. Gross margin was 83.2% , which Montarce said was consistent with the prior-year quarter, with favorable mix and improved production costs of ...

Core Insights - Eli Lilly and Company (LLY) reported strong fourth-quarter 2025 results, with adjusted earnings per share (EPS) of $7.54, exceeding the Zacks Consensus Estimate of $6.99, and a year-over-year earnings increase of 42% [1] - Revenues reached $19.3 billion, a 43% increase year over year, driven by the success of GLP-1 drugs Mounjaro and Zepbound, surpassing the Zacks Consensus Estimate of $17.87 billion [1] Revenue Drivers - Mounjaro generated sales of $7.41 billion, up 110% year over year, exceeding the Zacks Consensus Estimate of $6.65 billion [2] - Zepbound recorded sales of $4.26 billion, a 123% increase year over year, also beating the Zacks Consensus Estimate of $3.87 billion [3] Competitive Landscape - Mounjaro and Zepbound face competition from Novo Nordisk's semaglutide products, with Novo Nordisk reporting a decline in its Diabetes and Obesity Care segment sales due to competitive pressure from Lilly's offerings [4] - Despite competitive dynamics, Mounjaro and Zepbound are expected to maintain strong demand in 2026 [13] Other Drug Performance - Trulicity generated $1.04 billion in revenue, down 17% year over year, but still beating the Zacks Consensus Estimate of $1.0 billion [5] - Jardiance sales fell 36% to $768 million, missing the Zacks Consensus Estimate of $776 million [5] - Taltz brought in $1.05 billion, up 10% year over year, exceeding the Zacks Consensus Estimate of $955 million [6] - Verzenio generated $1.60 billion, up 3% year over year, but missed the Zacks Consensus Estimate of $1.62 billion [6] Full-Year Performance - For the full year 2025, Eli Lilly's sales rose 45% to $65.2 billion, significantly beating the Zacks Consensus Estimate of $63.54 billion [10] - Adjusted earnings for 2025 were $24.21 per share, an 86% increase year over year, surpassing the Zacks Consensus Estimate of $23.74 [10] 2026 Outlook - Eli Lilly expects 2026 revenues in the range of $80 billion to $83 billion, higher than the Zacks Consensus Estimate of $77.5 billion [11] - EPS for 2026 is projected to be between $33.50 and $35.00, exceeding the Zacks Consensus Estimate of $33.24 [11] Market Reaction - Following the positive quarterly earnings and optimistic 2026 outlook, Lilly's shares rose approximately 9% in pre-market trading [14] - Over the past year, Lilly's stock has increased by 19.2%, outperforming the industry average of 17.1% [14] Strategic Initiatives - Lilly is investing in obesity treatments and has several new molecules in clinical development, including orforglipron, an oral GLP-1 small molecule [16][17] - The company is diversifying its portfolio beyond GLP-1 drugs into cardiovascular, oncology, and neuroscience areas, including recent acquisitions to enhance its capabilities in oral small-molecule therapies [19]

Eli Lilly and Company (NYSE:LLY) Q4 2025 Earnings call February 04, 2026 10:00 AM ET Company ParticipantsAdrienne Brown - President of Lilly ImmunologyAkash Tewari - Global Head of Biopharmaceutical ResearchDan Skovronsky - Chief Scientific and Product OfficerDave Ricks - Chair and CEOEvan Seigerman - Managing Director and Head of Healthcare ResearchIlya Yuffa - President of Lilly USA and Global Customer CapabilitiesKen Custer - President of Lilly Cardiometabolic HealthLucas Montarce - CFOMichael Yee - Glob ...

Not for promotional use Q4 2025 EARNINGS CALL ELI LILLY AND COMPANY Agenda Introduction and Key Events Dave Ricks, Chair and Chief Executive Officer Q4 2025 Financial Results & 2026 Financial Guidance Lucas Montarce, Chief Financial Officer R&D Update Dan Skovronsky, M.D., Ph.D., Chief Scientific and Product Officer Question & Answer Session 3 2025 Q4 EARNINGS Safe Harbor Provision and Other Information This presentation contains forward-looking statements that are based on management's current expectations ...

Core Insights - Eli Lilly (LLY) has established a strong position in the cardiometabolic market, primarily due to the success of its GLP-1 therapies, Mounjaro and Zepbound, which generated $24.8 billion in sales, representing 54% of total revenues in the first nine months of 2025 [1][10] Group 1: Product Performance - Mounjaro and Zepbound's sales growth is attributed to improved domestic supply and expansion into new international markets, prompting Eli Lilly to raise its sales and earnings guidance twice in 2025 [2] - Sales estimates for Mounjaro and Zepbound for the upcoming quarter are projected at $6.55 billion and $3.62 billion, respectively, driven by stronger market penetration in the U.S. and international adoption [3] Group 2: Broader Portfolio Growth - Eli Lilly's portfolio, including oncology drug Verzenio and immunology drug Taltz, continues to show steady growth, with new launches like Omvoh, Ebglyss, Jaypirca, and Kisunla contributing to overall revenue [4] Group 3: Competitive Landscape - Eli Lilly and Novo Nordisk (NVO) are the leading players in the obesity market, with Mounjaro and Zepbound competing against NVO's semaglutide products, Ozempic and Wegovy [5] - Novo Nordisk received FDA approval for its oral Wegovy pill, enhancing its competitive edge, while Eli Lilly is seeking FDA approval for its own oral GLP-1 pill, orforglipron [6] Group 4: Market Dynamics - The obesity market is gaining attention due to its significant growth potential, with smaller biotech firms like Viking Therapeutics and Structure Therapeutics developing competing GLP-1 therapies [7][8] Group 5: Stock Performance and Valuation - Eli Lilly's stock has increased by 35.9% over the past six months, outperforming the industry average of 20.9% [11] - The stock is currently trading at a price/earnings ratio of 31.58, which is higher than the industry average of 17.86, but below its five-year mean of 34.56 [14] - Earnings estimates for 2025 have improved from $23.69 to $23.85 per share, and for 2026 from $32.06 to $33.25 [18]

Core Insights - The medical sector is increasingly adopting artificial intelligence (AI), enhancing drug synthesis, device creation, and diagnostic accuracy [2][3] Group 1: Eli Lilly and Co. (LLY) - Eli Lilly focuses on cardiometabolic health, neuroscience, oncology, and immunology, which are high-growth areas with significant commercial potential [5] - Demand for LLY's GLP-1 drugs, Mounjaro and Zepbound, remains strong, contributing to robust sales in 2025 [6] - LLY is advancing its pipeline with an oral GLP-1 obesity pill, orforglipron, expected to launch next year [7] - Eli Lilly is collaborating with OpenAI for novel medicine discovery and invested $409 million in Genetic Leap for AI-driven drug discovery [7] - The company is building a supercomputer with NVIDIA to enhance its AI capabilities, with expected revenue and earnings growth rates of 22.3% and 41.3% respectively for the current year [8] - LLY has a return on equity (ROE) of 109.5%, significantly higher than the industry average of 37% [9] Group 2: Medtronic plc (MDT) - Medtronic is integrating AI into its solutions to improve patient care and operational efficiency, including an AI-powered surgical video management platform [10] - The GI Genius project enhances colorectal cancer detection, increasing survival rates by identifying polyps that may be missed [11] - Medtronic's partnerships leverage AI to optimize cardiac procedures and improve diagnostic precision, driving growth in the medtech sector [12] - The company has an expected revenue and earnings growth rate of 7.5% and 2.7% respectively for the current year [14] - MDT has a ROE of 14.9%, outperforming the industry average of -2.5% [14] Group 3: Intuitive Surgical Inc. (ISRG) - Intuitive Surgical is embedding AI into its robotic systems, providing objective performance indicators for surgeons [15] - The company is piloting telecollaboration for remote surgical support, enhancing training and decision-making [16] - ISRG's revenue and earnings growth rates are expected to be 14.3% and 11.1% respectively for the current year [19] - ISRG has a ROE of 15.1%, compared to the industry's ROE of -18.7% [19] Group 4: Regeneron Pharmaceuticals Inc. (REGN) - Regeneron utilizes AI and machine learning for drug target identification, clinical trial optimization, and precision medicine [20] - The company has seen revenue growth driven by strong performance from Dupixent and Libtayo, despite declining sales of Eylea [21] - REGN's expected revenue and earnings growth rates are 4.9% and -0.4% respectively for the current year [23] - REGN has a ROE of 13.8%, significantly higher than the industry's ROE of -65.41% [23] Group 5: Johnson & Johnson (JNJ) - Johnson & Johnson's MedTech division is focused on AI technologies for surgical robotics and digital surgery analytics [24] - The company has developed the Ottava robotic surgery platform and the Caresurgical/VELYS digital surgery systems, enhancing procedure planning [25] - JNJ has an expected revenue and earnings growth rate of 5% and 5.7% respectively for the current year [26] - JNJ has a ROE of 32.7%, compared to the industry's ROE of 37% [26]

Core Insights - The medical sector is rapidly adopting artificial intelligence (AI), significantly transforming diagnostics, treatment, and operational efficiency in 2024 [1] - AI-powered diagnostics have become central to enhancing accuracy and speed in medical practices [1] Group 1: AI Adoption in Healthcare - The healthcare sector is typically defensive, characterized by low-beta and dividend-paying stocks, but AI has turned several stocks into potential high-growth providers [2] - Key stocks benefiting from AI integration include Eli Lilly and Co. (LLY), Medtronic plc (MDT), Intuitive Surgical Inc. (ISRG), Regeneron Pharmaceuticals Inc. (REGN), and Johnson & Johnson (JNJ) [2] Group 2: Eli Lilly and Co. (LLY) - Eli Lilly focuses on cardiometabolic health, neuroscience, oncology, and immunology, which are high-growth areas with significant commercial potential [5] - Strong demand for LLY's GLP-1 drugs, Mounjaro and Zepbound, is driving top-line growth, supported by international market launches and increased production [6] - LLY is advancing its pipeline in obesity and diabetes, with an oral GLP-1 obesity pill expected to launch next year [7] - The company is collaborating with OpenAI and investing in AI-driven biotech initiatives, including a $409 million investment in Genetic Leap [9] - LLY has an expected revenue growth rate of 22.3% and earnings growth rate of 41.3% for the current year, with a beta of 0.35 and a dividend yield of 0.6% [9][10] Group 3: Medtronic plc (MDT) - Medtronic is integrating AI into its surgical systems and endoscopy to enhance patient care and operational efficiency [11] - The GI Genius project uses AI algorithms to detect colorectal polyps during colonoscopies, improving cancer survival rates [12] - MDT's partnerships leverage AI to optimize cardiac procedures and improve diagnostic precision, positioning the company for growth in medtech innovation [13] - Medtronic has an expected revenue growth rate of 7.5% and earnings growth rate of 2.7% for the current year, with a beta of 0.71 and a dividend yield of 3% [15] Group 4: Intuitive Surgical Inc. (ISRG) - Intuitive Surgical is embedding AI and digital tools into its robotic ecosystem, enhancing surgical performance metrics [16] - The company is piloting telecollaboration through Intuitive Telepresence, allowing remote surgical support [17] - ISRG has an expected revenue growth rate of 14.3% and earnings growth rate of 11.1% for the current year, with a beta of 0.39 and an ROE of 15.1% [20] Group 5: Regeneron Pharmaceuticals Inc. (REGN) - Regeneron utilizes AI and machine learning for drug target identification, clinical trial optimization, and precision medicine [21] - The company has seen revenue growth driven by strong performance from drugs like Eylea HD and Dupixent, despite declining sales of its lead drug [22] - REGN has an expected revenue growth rate of 4.9% and earnings growth rate of -0.4% for the current year, with a beta of 0.39 and a dividend yield of 0.5% [24] Group 6: Johnson & Johnson (JNJ) - Johnson & Johnson's MedTech division applies AI technologies for surgical robotics and digital surgery analytics [25] - The company has developed the Ottava robotic surgery platform and the Caresurgical/VELYS digital surgery systems, enhancing procedure planning and real-time data sharing [26] - JNJ has an expected revenue growth rate of 5% and earnings growth rate of 5.7% for the current year, with a beta of 0.34 and a dividend yield of 2.5% [27]

Core Viewpoint - The healthcare sector is anticipated to potentially rebound in 2026, with several attractive stocks identified for investment, including AbbVie, Eli Lilly, and Intuitive Surgical. AbbVie - AbbVie is recognized as a reliable dividend payer, boasting 54 consecutive payout increases, qualifying it as a Dividend King [3] - The company reported third-quarter revenue of $15.8 billion, reflecting a 9% increase year-over-year [4] - AbbVie's product portfolio includes key drugs such as Vraylar, Botox Therapeutics, Qulipta, Skyrizi, and Rinvoq, which are expected to drive future growth [6][8] - Skyrizi is projected to become the second best-selling drug globally by 2030, with estimated sales of $26.6 billion [7] Eli Lilly - Eli Lilly's third-quarter revenue reached $17.6 billion, marking a significant 54% year-over-year growth [9] - The company is leveraging tirzepatide, marketed as Zepbound and Mounjaro, to sustain its growth trajectory, alongside promising pipeline candidates like orforglipron [10] - Eli Lilly is diversifying its portfolio, with recent launches in oncology, including Jaypirca for mantle cell lymphoma and Inluriyo for breast cancer [13] - The company's strategic investments in artificial intelligence and other therapeutic areas position it favorably for future growth [14] Intuitive Surgical - Intuitive Surgical faces challenges from tariffs and increased competition, particularly from Medtronic's Hugo system [15] - Despite these challenges, the company maintains a strong economic moat with 10,763 da Vinci systems installed, which creates high switching costs for customers [16] - The da Vinci system has over two decades of clinical evidence supporting its effectiveness, allowing Intuitive Surgical to command significant pricing power [18] - The company is expected to benefit from label expansions and increased procedure volumes, which will enhance revenue and margins over time [19]

Core Viewpoint - Eli Lilly's stock has shown remarkable performance over the past five years, increasing by 530%, but its current valuation at 27 times forward earnings raises questions about its attractiveness as an investment [1][4]. Valuation Metrics - The forward price-to-earnings ratio (P/E) is a popular metric, but it does not account for growth, which is essential for evaluating a stock's true value [4]. - The price/earnings-to-growth ratio (PEG) for Eli Lilly is estimated at 0.9, indicating that the stock is undervalued, as a PEG of 1 or below is considered cheap [5][7]. Financial Performance - Eli Lilly has a market capitalization of $954 billion, with a gross margin of 83.03% and a dividend yield of 0.59% [6][7]. - The company has experienced rapid revenue and earnings growth, positioning itself as a leader in the anti-obesity medicine market with its product Zepbound [7][8]. Competitive Landscape - While increased competition is a concern, Eli Lilly's clinical trial results are favorable compared to industry peers, suggesting strong medium-term prospects [8]. - Analysts predict continued strong growth in both revenue and earnings through the end of the decade, justifying the current forward P/E ratio [8]. Product Pipeline and Market Expansion - Eli Lilly has made significant advancements in oncology and immunology, with successful products like Verzenio and Taltz, and new launches such as Jaypirca and Omvoh [9][10]. - The company's robust business model is expected to drive market-beating returns in the coming years [10].

Core Insights - Eli Lilly and Company's stock reached $1000 per share for the first time on November 12, indicating strong market performance and nearing a $1 trillion market cap, primarily driven by the success of GLP-1 drugs like Mounjaro and Zepbound [1][8] Drug Approvals and Revenue Contributions - Lilly has received approvals for several new drugs, including Omvoh, Jaypirca, Ebglyss, and Kisunla, which are contributing to revenue growth alongside GLP-1 drugs [2][5] - In the first nine months of 2025, Omvoh generated $176.9 million, while Ebglyss, Kisunla, and Jaypirca contributed $274.1 million, $140.6 million, and $358.2 million, respectively, totaling $950 million from these new drugs [3][10] Ongoing Studies and Future Potential - New drugs are being evaluated for additional indications, with Ebglyss in phase III trials for chronic rhinosinusitis and Jaypirca being studied for broader use in CLL and MCL [4][8] - Lilly anticipates launching new drugs in the fourth quarter of 2025 and throughout 2026, which will further enhance revenue [5][8] M&A Strategy - To diversify its portfolio beyond GLP-1 drugs, Lilly is pursuing M&A opportunities in cardiovascular, oncology, and neuroscience sectors, including the acquisition of Verve Therapeutics and Adverum Biotechnologies [6][7] Competitive Landscape - Omvoh faces competition from AbbVie’s and J&J’s products, while Kisunla competes with Eisai/Biogen's Leqembi, and Jaypirca competes with older BTK inhibitors [9][11] Stock Performance and Valuation - Lilly's stock has increased by 35.8% this year, outperforming the industry average of 14.4% [12] - The stock trades at a price/earnings ratio of 33.83, significantly higher than the industry average of 16.84, but below its 5-year mean of 34.54 [14] Earnings Estimates - The Zacks Consensus Estimate for 2025 earnings per share has risen from $22.94 to $23.78, and for 2026 from $30.79 to $32.06 over the past 30 days [16]