Eli Lilly’s second quarter was marked by a positive market reaction, despite the company missing Wall Street’s revenue expectations. Management credited growth in key products—especially in cardiometabolic health, oncology, and neuroscience—as drivers of performance. CEO David Ricks pointed to “robust revenue growth across all Key Products and major geographies,” noting the strength of new medicines and expansion in emerging markets. The launch of Foundayo in the U.S. and UAE, along with ongoing investments in manufacturing and R&D, were highlighted as factors supporting the company’s ongoing business momentum.
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Eli Lilly (LLY) Q2 CY2026 Highlights:
- Revenue: $22.97 billion vs analyst estimates of $20.62 billion (47.7% year-on-year growth, 11.4% beat)
- Adjusted EPS: $8.38 vs analyst estimates of $6.58 (27.3% beat)
- The company lifted its revenue guidance for the full year to $86 billion at the midpoint from $83.5 billion, a 3% increase
- Management lowered its full-year Adjusted EPS guidance to $36 at the midpoint, a 0.7% decrease
- Operating Margin: 39.1%, down from 44.1% in the same quarter last year
- Market Capitalization: $1.08 trillion
While we enjoy listening to the management’s commentary, our favorite part of earnings calls is the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Eli Lilly’s Q2 Earnings Call
- Seamus Fernandez (Guggenheim): Asked about Lilly’s strategy for expanding consumer access in the obesity market and differences between the U.S. and overseas self-pay dynamics. Ilya Yuffa, President of Lilly USA, emphasized ongoing efforts to grow access, including through the Medicare Bridge program and LillyDirect.
- Asad Haider (Goldman Sachs): Inquired about the Foundayo launch trajectory and international competition, especially with Novo Nordisk’s oral GLP-1. Ilya Yuffa and Patrik Jonsson, President of Lilly International, described encouraging early uptake and plans for further launches, noting competition but highlighting Lilly’s strong supply and brand.
- Courtney Breen (Bernstein): Probed the regulatory pathway for retatrutide and whether a Biologics License Application (BLA) designation is likely. CEO David Ricks explained ongoing discussions with the FDA, litigation, and that submission is expected in early 2027.
- Akash Tewari (Jefferies): Questioned why full-year guidance implies slower growth despite Medicare Bridge and new launches. CFO Lucas Montarce pointed to one-off adjustments, prior launch boluses, and seasonal effects in Europe and U.S. diabetes markets.
- Umer Raffat (Evercore): Asked about the sustainability of net pricing for Zepbound and medical exception impacts. CFO Lucas Montarce acknowledged that medical exceptions are a temporary factor and that prices may decrease as broader access is achieved, offset by volume growth.
Catalysts in Upcoming Quarters
Looking ahead, the StockStory team will be monitoring (1) the pace of regulatory approvals and market access for Foundayo and retatrutide, (2) continued international uptake and reimbursement wins for the incretin portfolio, and (3) integration and progress of newly acquired assets in infectious diseases and mental health. Additional clinical trial readouts and the expansion of manufacturing capacity will also be key indicators of execution.
Eli Lilly currently trades at $1,217, up from $1,116 just before the earnings. Is there an opportunity in the stock? The answer lies in our full research report (it’s free).
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