Eli Lilly‘s stock experienced a significant surge, climbing as much as 10% in midday trading following the release of a strong sales outlook for 2026. The pharmaceutical giant’s optimistic forecast is largely attributed to the escalating demand for its groundbreaking weight-loss medications, Mounjaro and Zepbound. This surge in Lilly’s valuation pushed its market capitalization back towards the $1 trillion mark, while simultaneously impacting its primary competitor, Novo Nordisk.
Eli Lilly reported fourth-quarter 2025 revenue of $19.29 billion, surpassing analyst estimates of $17.9 billion. The company’s adjusted earnings per share (EPS) for the quarter were $7.54, also exceeding the consensus estimate of $6.91. Looking ahead to 2026, Eli Lilly anticipates a sharp increase in revenue, projecting sales to grow between 20% and 25% at the midpoint of its estimates, with total revenues expected to range from $80 billion to $83 billion.
The impressive financial results and optimistic outlook are heavily influenced by the success of Eli Lilly’s weight-loss portfolio, particularly Mounjaro and Zepbound. These drugs have seen substantial sales growth, with Mounjaro revenue increasing by 110% and Zepbound revenue by 123% in the fourth quarter of 2025 compared to the previous year. The company also highlighted regulatory progress, including FDA approval for Kwikpen for tirzepatide and expanded indications for Jaypirca, alongside submissions for orforglipron for obesity and type 2 diabetes.
Eli Lilly’s strong performance stands in contrast to its main competitor, Novo Nordisk. The Danish drugmaker’s stock fell significantly as it issued a weaker-than-expected sales outlook for 2026, citing increasing competition and regulatory pressures. Novo Nordisk anticipates a 5%-13% drop in sales for the year. While Novo Nordisk also reported revenue and EPS beats for its fourth quarter, its forward-looking guidance overshadowed these positive results, leading to a market capitalization loss of over $50 billion in recent trading sessions.
Eli Lilly’s CEO, David Ricks, emphasized the company’s strategic advancements, including a partnership with the U.S. government to expand access to obesity medicines. The company is also investing heavily in manufacturing capacity and advancing its pipeline with promising clinical trial results for various conditions, including psoriatic arthritis, obesity, and osteoarthritis. The company’s commitment to innovation and market expansion positions it for continued growth in the pharmaceutical sector.
