Robust growth for Eli Lilly in Q2 2025 driven by blockbuster Diabetes and Obesity treatments

Overview

Eli Lilly reported outstanding second-quarter 2025 results, reflecting surging global demand for its innovative diabetes and obesity medicines, along with solid contributions from other therapeutic areas. Strong volume growth in Mounjaro and Zepbound underpinned a sharp rise in revenue and profitability, despite lower net pricing in certain markets. The company advanced multiple late-stage programs and expanded manufacturing infrastructure to support anticipated demand. Management raised its full-year revenue and earnings outlook, citing continued momentum in its metabolic health franchise and an increasingly diversified pipeline.

“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”, said David A. Ricks, Lilly chair and CEO.

Q2 2025 vs. Q2 2024:

Revenue rose to $15.56bn (+38% YoY), driven by unprecedented demand for Mounjaro and Zepbound, alongside growth in Verzenio, Jardiance, and Taltz.
- Revenue in the U.S. increased to $10.81bn (+38% YoY), driven by a 46% increase in volume, partially offset by an 8% decrease due to lower realized prices.
- Revenue outside the U.S. increased to $4.74bn (+37% YoY), driven by a 35% increase in volume and to a lesser extent a 3% favorable impact on foreign exchange rates, partially offset by a 1% decrease due to lower realized prices.
- Worldwide Mounjaro revenue increased to $5.20 bn (+68% YoY). U.S. revenue was $3.30bn (+37% YoY), reflecting strong demand, partially offset by lower realized prices. Revenue outside the U.S. increased to $1.90bn (compared with $677.2m in Q2 2024), primarily driven by volume growth, including entry into new markets.
- U.S. Zepbound revenue increased to $3.38bn (+172% YoY), primarily driven by increased demand, partially offset by lower realized prices.
- Worldwide Verzenio revenue increased to $1.49bn (+12% YoY). U.S. revenue was $929.0m (+8% YoY), driven by increased volume. Revenue outside the U.S. was $560.3m (+19% YoY), primarily driven by volume growth.
Gross margin increased to $13.11bn (+44% YoY), and as a percent of revenue it was 84.3% (+3.5 percentage points YoY). The increase in gross margin percent was primarily driven by improved cost of production and favorable product mix, partially offset by lower realized prices.
Research and development expenses increased to $3.34bn (+23% YoY), or 21.4% of revenue, driven by continued investments in the company’s early and late-stage portfolio.
Marketing, selling and administrative expenses increased to $2.75bn (+30% YoY), primarily driven by promotional efforts supporting ongoing and future launches.
Net income and earnings per share (EPS) were $5.66bn and $6.29, respectively, compared with net income of $2.97bn and EPS of $3.28 in Q2 2024. On a non-GAAP basis, net income and EPS were $5.68bn and $6.31, respectively, compared with net income of $3.54bn and EPS of $3.92 in Q2 2024.

Eli Lilly updated its full-year 2025 guidance to reflect stronger-than-expected performance, now projecting revenue between $60.0bn and $62.0bn, up from the prior range of $58.0bn to $61.0bn. The company anticipates a reported performance margin of 42.0% to 43.5% and a non-GAAP performance margin of 43.0% to 44.5%, both slightly higher than earlier forecasts. Reported other expenses are expected to improve modestly to between $750m and $650m, while the non-GAAP estimate remains unchanged. The reported tax rate is now projected at approximately 19%, compared to the prior 17%, with the non-GAAP rate holding steady at 17%. Reported EPS is forecast in the range of $20.85 to $22.10, and non-GAAP EPS is expected between $21.75 and $23.00, both reflecting upward revisions supported by robust sales momentum, margin expansion, and disciplined expense management.

LLY stock suffered one of its steepest single-day declines in recent history, dropping -14.14% despite reporting results generally above expectations and raising its full-year guidance. The selloff came amid heavy trading volume, with the stock breaking sharply below both its 50-day and 200-day moving averages, pushing its RSI into oversold territory near 25.82. Year-to-date, the broader trend remains negative, with the stock now down -17.63%, signaling persistent investor caution despite strong operational performance. This sharp reaction suggests that market sentiment may currently be driven more by valuation concerns or sector-specific pressures than by fundamentals alone.