Lilly(Eli) & Company
Q1 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did LLY Beat Earnings? Q1 2025 Results
Eli Lilly posted a headline-grabbing first quarter for 2025, with revenue climbing 45.2% year-over-year to $12.73 billion, edging just past the $12.72 billion consensus, yet earnings per share of $3.34 fell short of the $3.46 analyst estimate by 3.39%, weighed down by $1.57 billion in acquired in-process research and development charges tied to its acquisition of Scorpion Therapeutics' PI3Kα inhibitor program, which alone depressed EPS by $1.72. The growth engine remained tirzepatide in its two approved forms, with Mounjaro revenue more than doubling to $3.84 billion and Zepbound generating $2.31 billion in U.S. revenue, together accounting for the overwhelming majority of the company's expansion. Lilly reaffirmed its full-year 2025 revenue guidance of $58.00 billion to $61.00 billion, though it trimmed EPS guidance to $20.17 to $21.67 on a reported basis, reflecting those IPR&D charges. In a broader industry context, Lilly also pledged to exceed $50 billion in U.S. manufacturing investment since 2020, joining peers in expanding domestic production capacity ahead of potential pharmaceutical sector tariffs.
- 53% increase in volume driving 45% revenue growth
- Strong Mounjaro demand with 113% revenue growth worldwide
- Zepbound U.S. revenue growth driven by increased demand
- Gross margin improvement from better cost of production and favorable product mix
- Jardiance one-time $370 million benefit from Boehringer Ingelheim collaboration amendment
“Lilly had a solid start to the year, with 45% year-over-year revenue growth driven by strong sales of Mounjaro and Zepbound. Our pipeline continued to deliver across key therapeutic areas, with product approvals in oncology and immunology, and the exciting success of our oral incretin, orforglipron, in the first of seven late-stage studies in diabetes and obesity. To support global demand for our newest medicines, we're accelerating our manufacturing investments, as underscored by our recent announcement to build four new facilities.”
Eli Lilly CEO, on the earnings call
Forward Guidance & Outlook
Lilly reaffirmed 2025 revenue guidance of $58.0 billion to $61.0 billion. Performance margin is expected to be 40.5%–42.5% (reported) and 41.5%–43.5% (non-GAAP). Other income/(expense) on a reported basis is now expected to be expense of $850 million to $750 million, and $700 million to $600 million on a non-GAAP basis. The effective tax rate increased from approximately 16% to 17% due to the non-deductible acquired IPR&D charge. EPS guidance was lowered to $20.17–$21.67 on a reported basis and $20.78–$22.28 on a non-GAAP basis, driven by acquired IPR&D charges and net losses on equity securities. Guidance is based on the tariff and trade environment as of May 1, 2025 and does not reflect any policy shifts, including pharmaceutical sector tariffs, that could impact business.
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Figures from SEC filings and company reports. Not investment advice.