"Momentum Continues": Lilly Jumps After Raising Revenue Outlook On Surging GLP-1 Demand

Shares of Eli Lilly & Co. are rising in premarket trading after the pharmaceutical giant raised its full-year revenue forecast following a 48% jump in second-quarter sales, fueled by accelerating demand for the diabetes drug Mounjaro and the obesity treatment Zepbound.

Lilly's second-quarter results topped Wall Street expectations: Adjusted earnings rose to $8.38 a share from $6.31 a year earlier. Revenue surged 48% to $22.97 billion, beating the $20.59 billion Bloomberg Consensus estimate.

Mounjaro generated $9.94 billion in sales, exceeding the $8.83 billion estimate, while Zepbound revenue climbed 18% from the previous quarter to $4.93 billion, ahead of the $4.64 billion estimate. Research and development spending increased 14% to $3.82 billion, below the $4.05 billion projected by analysts tracked by Bloomberg.

Here's a snapshot of 2Q earnings:

Adjusted EPS $8.38 vs. $6.31 y/y

Revenue $22.97 billion, +48% y/y, estimate $20.59 billion

• Zepbound revenue $4.93 billion, +18% q/q, estimate $4.64 billion *

R&D expenses $3.82 billion, +14% y/y, estimate $4.05 billion

Mounjaro revenue $9.94 billion, estimate $8.83 billion

"Lilly's momentum continues, as we delivered 48% revenue growth and raised our full-year guidance," Lilly CEO David A. Ricks wrote in a statement.

Lilly upgraded its full-year revenue forecast to between $85 billion and $87 billion, up from its previous range of $82 billion to $85 billion. The midpoint exceeds the $85.31 billion Bloomberg consensus estimate.

Ricks continued, "At the same time, Lilly is building for the future. With our next-generation weight-loss medicine retatrutide and its complete clinical data package in hand, new manufacturing capacity coming online, and exciting new assets entering our pipeline through business development, Lilly's future, after 150 years, has never been brighter."

Lilly shares jumped nearly 6% in New York premarket trading. The stock had gained about 4% this year through Tuesday's close.

The quarter also provides the first commercial readout for Lilly's newly launched obesity pill, Foundayo, which generated $98 million in sales.

The pill received U.S. approval in April and is competing directly with Novo Nordisk's rival pill, which launched several months earlier.