Lilly earnings: guidance and results
Lilly's next results are expected on October 29, 2026. Watch whether sales volume, realized prices and operating cash remain strong.
What has Lilly guided for 2026?
Management guides to 85 billion to 87 billion of 2026 revenue. It expects a 49.0% to 50.5% performance margin. It expects EPS of 35.50 to 36.50. On October 7, Lilly estimated a 4.2 billion acquired-research charge for the September quarter. The charge was 4.57 per share to GAAP and non-GAAP EPS.
| Period guided | Low | High | Date given | |
|---|---|---|---|---|
| Revenue | Year to Dec 2026 | 85 | 87 | Aug 5, 2026 |
| Performance Margin | Year to Dec 2026 | 49.0% | 50.5% | Aug 5, 2026 |
| Tax Rate | Year to Dec 2026 | 18.0% | 19.0% | Aug 5, 2026 |
| Earnings per Share | Year to Dec 2026 | 35.50 | 36.50 | Aug 5, 2026 |
| Acquired IPR&D charges | Quarter to Sep 2026 | 4.2 | 4.2 | Oct 7, 2026 |
| GAAP and non-GAAP earnings per share charge | Quarter to Sep 2026 | 4.57 | 4.57 | Oct 7, 2026 |
Did Lilly keep its past promises?
The annual bonus measures product revenue, earnings per share and pipeline progress. Long-term awards measure share-price performance and total shareholder return against peers. The 2025 bonus paid 218% of target, while stock awards completing their performance period paid 200%. Lilly’s original 2025 revenue forecast was US$58.0 billion to US$61.0 billion; it ultimately reported US$65.179 billion. That is a clear achievement against the initial promise.
What is Lilly's revenue and profit trend?
Net income reached $7,095 million and diluted EPS reached $7.94. Both rose from a year earlier, yet both fell from March, showing how transaction timing can interrupt the earnings trend. Operating cash was $10,690 million and capital spending was $2,933 million, leaving calculated quarterly free cash flow of $7,757 million. That is encouraging, but one quarter should not be multiplied mechanically across a year.
| Quarter to Jun 2026 | Quarter to Mar 2026 | Quarter to Dec 2025 | Quarter to Sep 2025 | Quarter to Jun 2025 | Quarter to Mar 2025 | Quarter to Dec 2024 | Quarter to Sep 2024 | |
|---|---|---|---|---|---|---|---|---|
| Revenue | 22,974 | 19,799 | 19,292 | 17,600.8 | 15,558 | 12,729 | 13,533 | 11,439.1 |
| Gross margin (calculated) | 85.8% | 81.9% | 82.5% | 82.9% | 84.3% | 82.5% | 82.2% | 81.0% |
| Operating income | 8,978 | 8,915 | 8,373 | 7,365.4 | 6,867 | 3,695 | 5,149 | 1,526.4 |
| Net income | 7,095 | 7,396 | 6,636 | 5,582.5 | 5,661 | 2,759 | 4,410 | 970.3 |
| EPS, diluted | 7.94 | 8.26 | 7.39 | 6.21 | 6.29 | 3.06 | 4.88 | 1.07 |
| Cash from operations | 10,690 | 5,333 | 3,224.6 | 8,835.4 | 3,087 | 1,666 | 2,473.9 | 3,711.9 |
What should I watch in Lilly's next results?
The first checkpoint is the October 29, 2026, third-quarter earnings call. It should clarify the acquired-research charge and show whether sales volume, realized prices and operating cash remain strong.