Lilly Surges on Blockbuster Drug Demand

Eli Lilly has reported fourth-quarter earnings and issued 2026 revenue guidance that significantly exceeded analyst forecasts. This strong performance is largely driven by exceptional demand for its highly successful Zepbound weight loss drug and Mounjaro diabetes treatment. The company anticipates its 2026 revenue will range between $80 billion and $83 billion, surpassing the $77.62 billion expected by LSEG analysts.

Lilly's adjusted earnings per share are projected to be between $33.50 and $35 for 2026, also topping the $33.23 estimate. These positive results stand in contrast to rival Novo Nordisk's recent warning of declining sales and profits due to U.S. price reductions and patent expirations in key international markets. Lilly is actively working to solidify its leading position in the lucrative GLP-1 drug market, especially with Novo Nordisk's successful launch of its own obesity pill.

The pharmaceutical company is also pursuing regulatory approval for its oral weight loss drug, orforglipron, which could gain clearance later this year. In November 2025, Lilly, along with Novo Nordisk, entered into agreements to lower the prices of their top obesity and diabetes medications for Medicare beneficiaries starting in 2026. These deals are expected to increase prescription numbers, although they may impact overall sales figures.

Lilly's CEO, Dave Ricks, acknowledged that a "step down in pricing" would occur early in 2026 as a result of these agreements. However, he expressed confidence that the volume growth of the company's drugs would accelerate in the latter half of the year, compensating for the initial price adjustments.