Eli Lilly hikes sales outlook, as CEO says there's room for 'dramatic' obesity market expansion

Eli Lilly raised its 2026 revenue guidance to $91 billion to $92 billion, up from $85 billion to $87 billion, after reporting third-quarter earnings and revenue that exceeded Wall Street expectations. Demand for its GLP-1 drugs Zepbound and Mounjaro drove the performance.

Mounjaro worldwide revenue rose 65% to $10.72 billion for the quarter, surpassing analyst expectations of $10.10 billion. U.S. sales reached $5 billion versus the expected $4.79 billion. International Mounjaro sales jumped 93%.

Zepbound generated $5.35 billion in third-quarter revenue, up 49% year-over-year and above the $5.09 billion analyst forecast. The vast majority came from U.S. sales.

Foundayo, Lilly's newly launched oral obesity pill, posted $184 million in sales, falling short of the $229 million analyst estimate. However, total U.S. prescriptions and new patient counts for Foundayo doubled from the prior quarter. About 4 in 10 patients starting an oral obesity medicine chose Foundayo. CFO Lucas Montarces noted that 7 out of 10 U.S. prescriptions for injectable obesity and diabetes drugs in the quarter went to a Lilly medicine.

Lilly held 63% share of the U.S. obesity and diabetes drug market in the third quarter, compared with 36.6% for rival Novo Nordisk. Internationally, Lilly held 58.4% share versus Novo's 41.6%.

CEO Dave Ricks told CNBC he estimates only 3% to 10% of eligible U.S. patients access obesity care, saying the "room for expansion here of this market is dramatic."

U.S. revenue climbed 34% to $15.1 billion, driven by a 41% increase in prescription volume, partially offset by a 7% decrease in realized prices. Sales outside the U.S. jumped 47% to $9.3 billion.

Eli Lilly shares rose about 7% on Thursday. The company expects adjusted full-year earnings between $35 and $36 per share, down from prior guidance of $35.50 to $36.50 per share, reflecting $4.57 per share in deal-related charges that offset a $4.07 per share underlying profit increase.

Lilly announced plans to acquire Merida Biosciences for autoimmune and allergic disease treatments.