Eli Lilly shares are rallying to a new record high on Thursday after the drugmaker delivered another beat-and-raise quarter, driven by resilient momentum in its obesity drug business. The numbers continue to impress and solidify the stock's place in our portfolio. Revenue in the third quarter rose 39% year over year to $24.4 billion, surpassing the LSEG consensus of $22.6 billion. Adjusted earnings per share (EPS) increased 6.6% from a year ago to $7.48, exceeding analyst expectations of $6.26, according to LSEG data. The modest annual growth in adjusted profit was due to a sizable, acquisition-related accounting charge booked in the September quarter. That's an easy thing to accept because Lilly is wise to spend its GLP-1 windfall on potential growth drivers in the coming years. Adjusted gross margin in the September quarter came in at 84.4%, beating the 82.7% consensus, according to FactSet. It also expanded from 83.6% in the year-ago period, an encouraging sign of profitability. Shares rose over 6% on Thursday to roughly $1,370 apiece. The advance has Lilly on track for one of its best sessions…
We're raising our price target on Eli Lilly as the obesity-drug boom rolls on
In short
The quarterly outperformance was anchored by flagship GLP-1 drugs Mounjaro and Zepbound, which delivered sharp sales gains both domestically and abroad. Mounjaro generated $10.7 billion in revenue, bolstered by a 93% surge in international markets after securing inclusion on China's reimbursement list. In the United States, Zepbound contributed $5.35 billion as expanding patient volume counterbalanced lower realized prices. With the stock already advancing over 50% since late April, market observers remain constructive while monitoring entry points.
Key points
- Increased patient volume for Zepbound successfully offset reduced realized prices during…: Increased patient volume for Zepbound successfully offset reduced realized prices during the third quarter.
- Analysts lifted their target price to $1,500 while advising investors to wait for a marke…: Analysts lifted their target price to $1,500 while advising investors to wait for a market pullback.
- The company's adjusted gross margin widened to 84.4% despite absorbing an acquisition-rel…: The company's adjusted gross margin widened to 84.4% despite absorbing an acquisition-related accounting charge.