Lilly(Eli) & Company
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +2.86%.
Did LLY Beat Earnings? Q2 2025 Results
Eli Lilly delivered a standout second quarter, posting non-GAAP earnings of $6.31 per share and revenue of $15.56 billion, beating Wall Street's consensus EPS estimate of $5.59 by 12.89% and topping revenue expectations of $14.67 billion by 6.06%, as sales grew 37.6% year over year. The primary engine behind those results was explosive demand across Lilly's cardiometabolic portfolio, where Zepbound's U.S. revenue rocketed 172% to $3.38 billion and Mounjaro climbed 68% globally to $5.20 billion, with international Mounjaro revenue nearly tripling as the drug expanded into new markets. Gross margin widened 3.5 percentage points to 84.3%, reflecting improved production costs and favorable product mix. The strong quarter gave management confidence to raise full-year 2025 revenue guidance to a range of $60.00 billion to $62.00 billion, with non-GAAP EPS guidance lifted to $21.75 to $23.00, signals that insider confidence in the company's trajectory, noted in recent market commentary, appears well-founded heading into the second half.
- 42% volume growth drove overall revenue increase of 38%
- Zepbound U.S. revenue surged 172% on increased demand
- Mounjaro international revenue nearly tripled driven by entry into new markets
- Gross margin percent expanded 3.5 percentage points to 84.3% from improved production costs and favorable product mix
- No asset impairment or restructuring charges in Q2 2025 versus $435M litigation charge in Q2 2024
“Lilly delivered another quarter of strong performance, achieving 38% year-over-year revenue growth driven by robust sales of Zepbound and Mounjaro and sustained momentum across our key medicines. Our pipeline continued to advance, highlighted by positive study results in oncology and cardiometabolic health—including Mounjaro's demonstrated cardio-protective effects in patients with type 2 diabetes and heart disease and strong data for our oral incretin, orforglipron, in obesity. We also expanded manufacturing capacity to meet increasing demand and invested in key R&D initiatives to support our long-term growth.”
Eli Lilly CEO, on the earnings call
Forward Guidance & Outlook
Lilly raised its full-year 2025 revenue guidance to $60.0 billion to $62.0 billion, up from prior guidance of $58.0 billion to $61.0 billion. Reported EPS guidance was raised to $20.85 to $22.10, and non-GAAP EPS guidance was raised to $21.75 to $23.00. Performance margin is expected to be 42.0%–43.5% on a reported basis and 43.0%–44.5% on a non-GAAP basis. The reported effective tax rate increased to approximately 19% due to an anticipated Q3 charge from recently enacted U.S. tax legislation, while the non-GAAP rate remains approximately 17%. Other income (expense) on a reported basis is expected to be expense of $750 million to $650 million. Guidance is based on existing tariffs as of August 7, 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.