Eli Lilly posted strong first-quarter results, exceeding analyst expectations for both revenue and earnings, largely driven by soaring demand for its diabetes and weight loss drugs. The pharmaceutical company reported $12.73 billion in revenue, up 45% from the same quarter a year ago, beating forecasts of $12.67 billion. Adjusted earnings came in at $3.34 per share, surpassing the $3.02 per share analysts had predicted.
Despite these solid results, the company revised its full-year earnings guidance downward. Adjusted 2025 earnings are now projected to fall between $20.78 and $22.28 per share, compared to the earlier estimate of $22.50 to $24. This revision stems from a $1.57 billion charge in the first quarter related to Eli Lilly’s acquisition of an oral cancer drug from Scorpion Therapeutics.
Nevertheless, the company reaffirmed its full-year sales forecast, maintaining expectations of $58 billion to $61 billion. The outlook includes the impact of current U.S. tariffs but does not reflect additional levies proposed on pharmaceutical imports.
CEO Dave Ricks emphasized that current economic incentives, including tariff threats, have already prompted companies to reinvest in U.S. manufacturing. He advocated for a permanent reduction in domestic tax rates to further attract pharmaceutical production back from low-tax jurisdictions like Ireland, Singapore, and Switzerland.
Sales of Mounjaro, the company’s diabetes treatment, soared 113% year-over-year to $3.84 billion, while weight loss drug Zepbound brought in $2.31 billion—more than quadrupling its revenue from the previous year. Both figures exceeded analyst expectations, with Mounjaro and Zepbound projected to deliver $3.81 billion and $2.28 billion, respectively.
U.S. sales jumped 49% to $8.49 billion, driven by a 57% increase in prescription volume for the two drugs, although partially offset by lower realized pricing. Net income for the quarter reached $2.76 billion, or $3.06 per share, compared to $2.24 billion, or $2.48 per share, in the same period last year.
Despite recent preference shifts by some pharmacy benefit managers toward competitor drugs, Eli Lilly continues to experience robust demand. The FDA recently confirmed the end of the U.S. shortage of tirzepatide, the active ingredient in both Mounjaro and Zepbound, limiting the availability of compounded alternatives and reinforcing Lilly’s market position.
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