Eli Lilly Surges Past Q1 Expectations, Boosts 2026 Outlook on Soaring Zepbound and Mounjaro Sales

Eli Lilly delivered a blockbuster first-quarter performance, smashing earnings and revenue estimates thanks to skyrocketing sales of its weight loss drug Zepbound and diabetes treatment Mounjaro. The company responded by raising its full-year sales outlook by $2 billion and increasing its adjusted profit guidance.

This surge underscores Eli Lilly's dominant position in the rapidly expanding GLP-1 drug market for obesity and diabetes, highlighting the growing demand for innovative treatments despite pricing pressures in the U.S. The launch of its new obesity pill Foundayo is poised to further impact the market in the coming quarters.

Eli Lilly's Q1 Earnings Blow Past Wall Street Expectations

Eli Lilly reported adjusted earnings per share of $8.55, significantly exceeding the $6.66 expected by analysts. Revenue soared to $19.80 billion, up 56% year-over-year and well above the $17.62 billion forecast. Shares jumped over 7% in premarket trading following the announcement.

The U.S. market contributed $12.1 billion in revenue, a 43% increase driven by a 49% rise in prescription volume, primarily fueled by Mounjaro and Zepbound. Despite lower realized prices for some drugs, strong demand propelled the company's robust financial results.

Zepbound and Mounjaro Sales Skyrocket

Mounjaro's global revenue surged 125% to $8.66 billion, including $4.2 billion in U.S. sales, surpassing analyst expectations of $7.26 billion. Meanwhile, Zepbound posted $4.16 billion in U.S. revenue for the quarter, an 80% increase from the previous year, beating the $4.04 billion forecast.

Eli Lilly now commands a commanding 60.1% share of the U.S. obesity and diabetes drug market, outpacing competitor Novo Nordisk, which holds 39.4%.

Foundayo Launch and Future Growth Prospects

The company's newly approved GLP-1 pill for obesity, Foundayo, launched in the second quarter and was not included in the Q1 results. CEO David Ricks revealed that over 20,000 patients have started Foundayo within weeks of its release, with more than 1,000 new users daily and 80% being new to GLP-1 treatments.

While early data suggests a modest rollout compared to Novo Nordisk's Wegovy, which had a three-month head start, Eli Lilly anticipates that Medicare coverage of obesity drugs and continued global demand for Mounjaro and Zepbound will drive growth.

Navigating Pricing Pressures and Market Expansion

Despite facing pricing pressures from recent drug pricing agreements and lower cash-pay prices, Eli Lilly expects these factors to accelerate prescription volumes in the U.S. CEO David Ricks projects global GLP-1 usage to climb from 20 million patients at the end of last year to 30 million by the end of 2026.

“We expect lower prices to accelerate prescription volumes in the U.S.,” said Eli Lilly CEO David Ricks.—David Ricks, CEO of Eli Lilly & Co.

Looking Ahead: Eli Lilly's Market Leadership and Innovation

Eli Lilly's strong quarterly results and optimistic outlook highlight its leadership in the obesity and diabetes treatment market. With the Foundayo pill's rollout underway and expanding Medicare coverage, the company is well-positioned to sustain growth amid evolving market dynamics and competitive pressures.