Key Stats for Eli Lilly Stock
- 1-week Price Change for Eli Lilly stock: 5%
- $LLY Share Price as of Oct. 31: $863
- 52-Week High: $935
- $LLY Stock Price Target: $900
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What Happened?
Eli Lilly (LLY) stock jumped over 5% last week after the pharmaceutical giant crushed third-quarter expectations and raised its full-year guidance for both revenue and earnings.
The strong performance was driven by the explosive growth of its diabetes and weight loss drugs, Mounjaro and Zepbound.
Eli Lilly reported earnings of $7.02 per share on revenue of $17.60 billion, easily beating analyst estimates of $5.89 per share on $16.07 billion in sales. Revenue grew 54% year-over-year, powered by blockbuster results from tirzepatide-based medications.
Mounjaro, approved for type 2 diabetes, generated $6.52 billion in the quarter—up 109% from last year and well ahead of the $5.51 billion Wall Street expected.
Zepbound, the obesity version of the same drug, generated $3.59 billion, representing 184% growth and slightly exceeding the $3.5 billion estimate.
CEO Dave Ricks called tirzepatide “the real star” of the quarter, noting the drug is dominating the U.S. market for obesity and diabetes.
Eli Lilly has captured nearly 60% of prescriptions in the injectable incretin class and has gained market share for five straight quarters.
The company also gained four percentage points of market share in type 2 diabetes during the third quarter alone.
International expansion drove much of the upside as Mounjaro launched in China, Brazil, and India earlier this year and is now available in 55 countries.
Ricks highlighted that approximately 75% of Mounjaro revenue outside the U.S. comes from patients with obesity who are paying out of pocket, demonstrating strong global demand.
Following the strong results, LLY stock got an additional boost from the raised guidance. Management now expects full-year revenue to be between $63 billion and $63.5 billion, up from its previous guidance of $60 billion to $62 billion.
Adjusted earnings per share guidance increased to $23.00 to $23.70, up from $21.75 to $23.00.
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What the Market Is Telling Us About LLY Stock
The surge in LLY stock reflects investor confidence that Eli Lilly is winning the race for obesity and diabetes drugs. While competitor Novo Nordisk also operates in this space, Eli Lilly has pulled ahead with superior market share gains and stronger prescription growth.
The company’s performance margin—gross margin minus R&D and selling expenses as a percentage of revenue—improved to 48.3%, up more than 8 percentage points from a year ago.
This demonstrates that Eli Lilly is not only growing revenue but also doing so profitably, even while ramping up spending on research and manufacturing.
The company announced plans to build two new U.S. manufacturing facilities and expand an existing Puerto Rico plant. It also partnered with Walmart to offer in-store pickup of discounted Zepbound vials for cash-paying customers, expanding direct-to-consumer access.
The pipeline looks strong as well, given Eli Lilly reported positive Phase III results for orforglipron, its experimental oral GLP-1 drug for obesity.
Management plans to begin global regulatory submissions later this year and expects a U.S. launch in 2026.
Orforglipron delivered weight loss comparable to injectable GLP-1s and showed head-to-head superiority over oral semaglutide in diabetes trials.
Beyond obesity, the company hit several other pipeline milestones.
- The FDA approved imlunestrant (Inluriyo) for certain types of breast cancer.
- Pirtobrutinib posted positive Phase III results in chronic lymphocytic leukemia.
- The EU approved Kisunla for early Alzheimer’s disease.
These diversified revenue streams reduce Eli Lilly’s dependence on any single product category.
LLY stock appears positioned for continued strength as the GLP-1 market is still in early innings—only about 8 million Americans use these drugs out of 170 million who could potentially benefit.
Internationally, that opportunity scales to hundreds of millions of patients. With its expanding manufacturing capacity, a differentiated product portfolio, and an oral option on the way, Eli Lilly appears well-positioned to capture a significant share of this massive market.
Competition is heating up, with Novo Nordisk making a rival bid for obesity biotech Metsera. But Ricks emphasized on the earnings call that Eli Lilly is focused on execution rather than worrying about competitors.
Given the company’s momentum across five consecutive quarters of share gains, that confidence appears well-founded.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
