Eli Lilly Q2 2026 earnings showed the pharmaceutical giant’s momentum accelerating, with worldwide revenue climbing 48% to $23.0 billion in the three months ended June 30, 2026, compared with $15.6 billion in the same period last year. Indianapolis-based Eli Lilly and Company (NYSE: LLY) attributed the surge primarily to volume growth in its incretin franchise, led by diabetes treatment Mounjaro and weight-management medicine Zepbound. The results, announced August 5, 2026, mark one of the strongest quarters in the 150-year-old company’s history and prompted management to raise its full-year financial outlook for a second consecutive quarter.
On a reported basis, second-quarter earnings per share rose 26% to $7.94, while non-GAAP EPS increased 33% to $8.38. Both figures included $3.03 per share of acquired in-process research and development (IPR&D) charges, compared with just $0.14 per share in the prior-year quarter, reflecting the company’s aggressive business development activity during the period. Net income reached $7.1 billion on a reported basis, up from $5.7 billion in Q2 2025, while non-GAAP net income totaled $7.5 billion. The scale of the beat made the Eli Lilly Q2 2026 earnings report one of the most closely watched updates of the pharmaceutical earnings season.
David A. Ricks, Lilly chair and chief executive officer, said the company delivered 48% revenue growth and raised its full-year guidance while continuing to invest in future growth drivers, including the late-stage obesity candidate retatrutide, expanded manufacturing capacity, and newly acquired pipeline assets. The Eli Lilly Q2 2026 earnings release also detailed regulatory approvals, positive late-stage trial results, and four completed corporate acquisitions during the quarter.
Revenue in the United States increased 33% to $14.4 billion, driven by a 37% rise in volume that was partially offset by a 3% decline in realized prices. Outside the United States, revenue jumped 80% to $8.6 billion on a 113% volume increase, though realized prices outside the U.S. fell 36%, largely because Mounjaro was added to China’s National Reimbursement Drug List during the first quarter. Jardiance revenue outside the U.S. also included a $250 million sales-based milestone tied to Lilly’s collaboration with Boehringer Ingelheim.
Eli Lilly Q2 2026 Earnings: Revenue and Margin Breakdown
Gross margin increased 50% to $19.7 billion, representing 85.8% of revenue, an improvement of 1.5 percentage points from a year earlier, which the company attributed to improved production costs and a more favorable product mix. Research and development expenses rose 14% to $3.8 billion, or 17% of revenue, reflecting continued investment across Lilly’s early- and late-stage pipeline. Marketing, selling, and administrative expenses climbed 25% to $3.4 billion, driven by promotional spending supporting ongoing and planned product launches.
The company recorded $2.8 billion in acquired IPR&D charges in the quarter, up sharply from $154 million a year earlier, primarily tied to the acquisitions of Orna Therapeutics and Ajax Therapeutics. Asset impairment, restructuring, and other special charges totaled $703 million, largely associated with accelerated vesting of employee equity awards and integration costs from the Kelonia Therapeutics and Centessa Pharmaceuticals acquisitions; there were no comparable charges in Q2 2025. The effective tax rate rose to 23.3% from 16.5%, mainly due to the non-deductible tax treatment of the acquired IPR&D charges.
Central to the Eli Lilly Q2 2026 earnings breakdown is Key Products revenue, a category Lilly defines as Ebglyss, Foundayo, Inluriyo, Jaypirca, Kisunla, Mounjaro, Omvoh, and Zepbound, which grew to $15.7 billion for the quarter. Within that group, revenue from the Immunology, Oncology, and Neuroscience therapeutic areas grew 121% year over year, underscoring the breadth of Lilly’s growth beyond its incretin portfolio.
Eli Lilly Q2 2026 Earnings: Mounjaro and Zepbound Lead Product Sales
Mounjaro remained the single largest contributor to the quarter, with worldwide revenue up 91% to $9.9 billion. U.S. Mounjaro revenue rose 45% to $4.8 billion on continued demand, while revenue outside the U.S. climbed 172% to $5.2 billion, driven by volume growth that was partly offset by the lower realized prices following the China reimbursement listing. Zepbound, Lilly’s obesity treatment marketed as tirzepatide, generated $4.9 billion in U.S. revenue, up 44%, as strong demand was partially offset by lower realized prices, including previously announced cash-pay price reductions.
Elsewhere in the Eli Lilly Q2 2026 earnings tables, other Key Products also posted sharp gains. Jaypirca (pirtobrutinib) revenue rose 56% to $192 million, Ebglyss (lebrikizumab-lbkz) revenue more than doubled, climbing 131% to $201 million, and Kisunla revenue rose to $167 million from $49 million a year earlier. Omvoh (mirikizumab-mrkz) revenue increased 36% to $102 million. Two newer entrants, Inluriyo and Foundayo (orforglipron), contributed $75 million and $98 million, respectively, having generated no revenue in the prior-year quarter.
Eli Lilly Q2 2026 Earnings: Regulatory and Pipeline Milestones
Beyond the financial results, the Eli Lilly Q2 2026 earnings release highlighted a series of regulatory and clinical advances. The U.S. Food and Drug Administration approved Ebglyss for a maintenance dosing schedule of once every eight weeks in patients with moderate-to-severe atopic dermatitis, while the European Commission approved Jaypirca as a monotherapy for adults with chronic lymphocytic leukemia across all lines of therapy. Lilly also submitted its oral GLP-1 medicine orforglipron, marketed as Foundayo, to U.S. regulators for treatment of type 2 diabetes.
On the pipeline front, Lilly reported positive data from three additional Phase 3 trials of retatrutide, its triple-agonist candidate for obesity. With this data, the company said its clinical package is now complete to support global registrations for obesity, obstructive sleep apnea, and knee osteoarthritis pain, and it plans to submit a Biologics License Application to the FDA in the first quarter of 2027. Separately, olomorasib received FDA Breakthrough Therapy designation for previously treated KRAS G12C-mutant advanced pancreatic cancer, and Retevmo demonstrated an 83% reduction in the risk of disease recurrence or death as adjuvant therapy in early-stage RET fusion-positive lung cancer.
Q2 2026 Financial Results Summary (Reported vs. Non-GAAP)
| Metric | Q2 2026 | Q2 2025 | % Change |
|---|---|---|---|
| Revenue | $22,974M | $15,558M | 48% |
| Net Income (Reported) | $7,095M | $5,661M | 25% |
| EPS Diluted (Reported) | $7.94 | $6.29 | 26% |
| Net Income (Non-GAAP) | $7,493M | $5,680M | 32% |
| EPS Diluted (Non-GAAP) | $8.38 | $6.31 | 33% |
| Gross Margin (Reported) | $19,706M / 85.8% | $13,110M / 84.3% | +1.5 pp |
| Gross Margin (Non-GAAP) | $19,831M / 86.3% | $13,232M / 85.0% | +1.3 pp |
| R&D Expense | $3,819M | $3,336M | 14% |
| SG&A Expense | $3,430M | $2,753M | 25% |
| Acquired IPR&D Charges | $2,776M | $154M | NM |
| Effective Tax Rate (Reported) | 23.3% | 16.5% | +6.8 pp |
Selected Key Product Revenue, Q2 2026 vs. Q2 2025 ($ millions)
| Product | Q2 2026 | Q2 2025 | % Change |
|---|---|---|---|
| Mounjaro | $9,943 | $5,199 | 91% |
| Zepbound | $4,928 | $3,381 | 46% |
| Jaypirca | $192 | $123 | 56% |
| Ebglyss | $201 | $87 | 131% |
| Kisunla | $167 | $49 | NM |
| Omvoh | $102 | $75 | 36% |
| Inluriyo | $75 | $0 | NM |
| Foundayo | $98 | $0 | NM |
| Total Revenue | $22,974 | $15,558 | 48% |
Regulatory and Clinical Milestones, Q2 2026
| Date | Product/Candidate | Milestone |
|---|---|---|
| June 6, 2026 | Retatrutide | Positive data in two additional Phase 3 obesity trials (weight, A1C) |
| June 8, 2026 | Foundayo (orforglipron) | Superior A1C control and weight loss in three pivotal type 2 diabetes trials |
| June 9, 2026 | Ebglyss (lebrikizumab-lbkz) | FDA approval for maintenance dosing every 8 weeks in moderate-to-severe atopic dermatitis |
| June 26, 2026 | Jaypirca (pirtobrutinib) | European Commission approval as monotherapy for CLL across all lines of therapy |
| Q2 2026 (submitted) | Foundayo (orforglipron) | U.S. submission for type 2 diabetes indication |
| Q2 2026 | Retatrutide | Data package complete for obesity, OSA, and knee osteoarthritis; BLA submission planned Q1 2027 |
| May 31, 2026 | Retevmo (selpercatinib) | 83% reduction in risk of disease recurrence/death as adjuvant therapy, RET fusion-positive lung cancer |
