Eli Lilly Raises Sales Forecast As Weight Loss Drug Demand Soars. Its Stock is Climbing

Eli Lilly raised its full-year revenue outlook after reporting second-quarter earnings and sales that comfortably exceeded Wall Street expectations, as strong demand for its blockbuster diabetes and weight-loss treatments continued to fuel rapid growth across its business.

The pharmaceutical company now expects 2026 revenue of $85 billion to $87 billion, up from its previous forecast of $82 billion to $85 billion, following another quarter of robust sales for Mounjaro and Zepbound, CNBC reported.

Shares of Eli Lilly rose more than 5% in premarket trading after the company also reported adjusted earnings of $8.38 per share on revenue of $22.97 billion, topping analysts' expectations of $6.01 per share and $20.73 billion in revenue, according to estimates compiled by LSEG, Reuters reported.

Mounjaro remained the company's biggest growth driver, generating $9.94 billion in worldwide sales during the quarter, up 91% from a year earlier. That exceeded analyst expectations of roughly $8.99 billion, according to StreetAccount.

The diabetes drug posted particularly strong international growth, with revenue outside the United States climbing 172%, while U.S. sales reached $4.8 billion.

Meanwhile, obesity treatment Zepbound generated $4.93 billion in U.S. sales during the quarter, a 44% increase from a year earlier and above analysts' expectations of $4.69 billion. Lilly said prescription volumes continued to rise even as realized prices declined following previously announced cash-pay discounts.

The results also included the first quarterly contribution from Foundayo, Lilly's oral GLP-1 obesity pill, which received U.S. regulatory approval in April. The drug generated $98 million in revenue during the quarter, slightly below analyst estimates of about $103 million, according to FactSet.

Foundayo is competing directly with Novo Nordisk's oral obesity treatment, intensifying the race to expand beyond injectable GLP-1 therapies into pill-based weight-loss medications.

Revenue in the United States increased 33% to $14.4 billion, driven primarily by higher prescription volumes for Mounjaro and Zepbound. International revenue climbed 80% to $8.6 billion, supported by a 113% increase in sales volume, although lower prices weighed on growth after Mounjaro was added to China's national health insurance program for patients with Type 2 diabetes.

Net income for the quarter rose to $7.10 billion, or $7.94 per share, compared with $5.66 billion, or $6.29 per share, during the same period last year. The reported profit included charges related to several acquisitions completed during the quarter.

Lilly maintained its adjusted earnings outlook at $35.50 to $36.50 per share, noting that stronger underlying operating performance was largely offset by acquisition-related charges. The company said its underlying profit guidance improved by approximately $2.78 per share at the midpoint before accounting for $3.03 per share in deal-related expenses.

Flush with cash from its obesity franchise, Lilly has continued an aggressive acquisition strategy this year. In July, the company agreed to acquire a psychedelics drug developer, following announcements in May that it planned to purchase three vaccine companies as it expands its pipeline beyond metabolic diseases.

Demand for GLP-1 therapies is also expected to receive additional support following the launch of Medicare's expanded coverage of obesity drugs in early July. Lilly CEO Dave Ricks said earlier this year that broader access and lower prices should help accelerate patient adoption, estimating global GLP-1 use could increase from roughly 20 million people at the end of 2025 to 30 million by the end of 2026.