Lilly reports third-quarter 2025 financial results, highlights R&D pipeline momentum and raises 2025 guidance

• Revenue in Q3 2025 increased 54% to $17.60 billion driven by volume growth from Mounjaro and Zepbound.
• Q3 2025   EPS increased by $5.14 to $6.21 on a reported basis and increased by $5.84 to $7.02 on a non-GAAP basis.
• Increased our 2025 full-year revenue guidance to be in the range of $63.0 billion to $63.5 billion; reported EPS guidance raised to be in the range of $21.80 to $22.50 and non-GAAP EPS guidance raised to be in the range of $23.00 to $23.70.
• Pipeline progress included positive results in four Phase 3 trials of orforglipron, across type 2 diabetes and obesity, with plans to submit to global regulatory authorities by the end of the year for the treatment of obesity.
• Regulatory progress included U.S. FDA approval of Inluriyo (imlunestrant) for certain adults with advanced or metastatic breast cancer.
• Manufacturing progress included announcements of two new facilities in Virginia and Texas, and the expansion of Lilly’s existing Puerto Rico site.

04^th  November 2025

Eli Lilly and Company (NYSE: LLY) today announced its financial results for the third-quarter of 2025.

“Lilly delivered another strong quarter, with 54% revenue growth year-over-year driven by continued demand for our incretin portfolio,” said David A. Ricks, Lilly chair and CEO. “We advanced orforglipron through four additional Phase 3 trials, enabling global obesity submissions by year-end, and we achieved U.S. FDA approval of Inluriyo (imlunestrant)—marking key progress across our pipeline. We continue to increase manufacturing capacity, announcing new facilities in Virginia and Texas and an expansion of our site in Puerto Rico.”

A discussion of the non-GAAP financial measures is included below under “Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited).”
In Q3 2025, worldwide revenue was $17.60 billion, an increase of 54% compared with Q3 2024, driven by a 62% increase in volume, partially offset by a 10% decrease due to lower realized prices. Key Products¹ revenue grew to $11.98 billion in Q3 2025, led by Mounjaro and Zepbound.

Revenue in the U.S. increased 45% to $11.30 billion, driven by a 60% increase in volume, partially offset by a 15% decrease due to lower realized prices. Price was negatively impacted by a favorable one-time adjustment to estimates for rebates and discounts in Q3 2024. Excluding this base period effect, U.S. price declined by high single digits.

Revenue outside the U.S. increased 74% to $6.30 billion, driven by a 66% increase in volume and to a lesser extent a 6% favorable impact on foreign exchange rates. The volume increase outside the U.S. was driven primarily by Mounjaro. Revenue included a $200.0 million sales-based milestone payment for Jardiance and $180.0 million of revenue associated with the divestiture of the rights to Cialis in select markets outside of the U.S.

Gross margin increased 57% to $14.59 billion in Q3 2025. Gross margin as a percent of revenue was 82.9%, an increase of 1.9 percentage points. The increase in gross margin percent was primarily driven by favorable product mix, partially offset by lower realized prices.

In Q3 2025, research and development expenses increased 27% to $3.47 billion, or 19.7% of revenue, driven by continued investments in the company’s early and late-stage portfolio.

Marketing, selling and administrative expenses increased 31% to $2.74 billion in Q3 2025, primarily driven by promotional efforts supporting ongoing and future launches.

In Q3 2025, the company recognized acquired in-process research and development (IPR&D) charges of $655.7 million compared with $2.83 billion in Q3 2024. The Q3 2025 charges primarily related to the acquisition of SiteOne Therapeutics, Inc. The Q3 2024 charges were primarily related to the acquisition of Morphic Holding, Inc.

Asset impairment, restructuring and other special charges of $364.9 million in Q3 2025 were primarily related to a litigation charge, as well as acquisition and integration costs associated with the closing of our acquisition of Verve Therapeutics, Inc. In Q3 2024, there was a charge of $81.6 million, that primarily related to impairment of an intangible asset associated with a molecule in development.

The effective tax rate was 22.8% in Q3 2025 compared with 38.9% in Q3 2024. The effective tax rates for Q3 2025 and Q3 2024 were both unfavorably impacted by non-deductible acquired IPR&D charges, with a larger impact occurring in Q3 2024. Additionally, the effective tax rate for Q3 2025 was unfavorably impacted by U.S. tax law changes enacted during the quarter.

In Q3 2025, net income and earnings per share (EPS) were $5.58 billion and $6.21, respectively, compared with net income of $970.3 million and EPS of $1.07 in Q3 2024. EPS in Q3 2025 and Q3 2024 included acquired IPR&D charges of $0.71 and $3.08, respectively.
On a non-GAAP basis, Q3 2025 gross margin increased 56% to $14.71 billion. Gross margin as a percent of revenue was 83.6%, an increase of 1.4 percentage points. The increase in gross margin percent was primarily driven by favorable product mix, partially offset by lower realized prices.

The non-GAAP effective tax rate was 17.7% in Q3 2025 compared with 37.6% in Q3 2024. The effective tax rates for Q3 2025 and Q3 2024 were both unfavorably impacted by non-deductible acquired IPR&D charges, with a larger impact occurring in Q3 2024. 

On a non-GAAP basis, Q3 2025 net income and EPS were $6.31 billion and $7.02, respectively, compared with net income of $1.06 billion and EPS of $1.18 in Q3 2024. Non-GAAP EPS in Q3 2025 and Q3 2024 included acquired IPR&D charges of $0.71 and $3.08, respectively.

For further detail on non-GAAP measures, see the reconciliation below as well as the “Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information (Unaudited)” table later in this press release.

Mounjaro
For Q3 2025, worldwide Mounjaro revenue increased 109% to $6.52 billion. U.S. revenue was $3.55 billion, an increase of 49%, reflecting strong demand, partially offset by lower realized prices. Revenue outside the U.S. increased to $2.97 billion compared with $728.0 million in Q3 2024, primarily driven by volume growth.

Zepbound
In the third quarter of 2025, Zepbound’s U.S. revenue increased by 184%, reaching $3.57 billion, compared to $1.26 billion in the third quarter of 2024. This growth was primarily driven by higher demand, although revenue was partially impacted by lower realized prices.

Verzenio
In the third quarter of 2025, global revenue for Verzenio rose by 7% to $1.47 billion. U.S. revenue reached $880.3 million, compared to $878.8 million in the same period last year, reflecting an increase in sales volume partially offset by lower realized prices. Revenue outside the U.S. totaled $589.8 million, up 20%, mainly driven by higher sales volume and, to a lesser extent, a positive impact from foreign exchange rates.

Financial Guidance for 2025
The company has raised its full-year revenue guidance to a range of $63.0 billion to $63.5 billion, primarily reflecting strong performance across its core business portfolio and favorable foreign exchange rates.

Operating margin is now expected to range between 43.5% and 44.5% on a reported basis, and between 45.0% and 46.0% on an adjusted basis — both ranges reflecting the higher revenue guidance.

For other income (or expense) on a reported basis, the company now expects a range of $600 million to $700 million, due to reduced net losses from investments in marketable securities. Expectations remain the same on an adjusted basis, with expenses projected between $600 million and $700 million.

There has been no change in the company’s estimated effective tax rate for 2025, which remains between 17% and 19% on both a reported and adjusted basis.

Based on these changes, earnings per share (EPS) guidance for 2025 has been raised to $21.80–$22.50 on a reported basis and $23.00–$23.70 on an adjusted basis.