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In its third-quarter 2025 financial results, Eli Lilly and Company (NYSE: LLY) reported significant growth, driven by key products and strategic advancements in its R&D pipeline. The company also raised its full-year guidance, reflecting robust business performance and strategic initiatives.
 

Q3 Revenue and EPS Exceed Estimates on Obesity Drug Momentum

Eli Lilly’s third-quarter 2025 financial results revealed a remarkable 54% increase in revenue, reaching $17.60 billion, compared to $11.44 billion in Q3 2024. This growth was primarily driven by a 62% volume increase, fueled by strong demand for key products such as Mounjaro and Zepbound. The company’s reported earnings per share (EPS) surged to $6.21, a significant rise from $1.07 in the same period last year. On a non-GAAP basis, EPS reached $7.02, up from $1.18 in Q3 2024. These results exceeded the market expectations of an EPS of $6.02 and revenue of $16.01 billion.

Despite the strong performance, the company faced a 10% decrease in realized prices, which was partially offset by a favorable product mix. Gross margin increased by 57% to $14.59 billion, with gross margin as a percent of revenue improving to 82.9%. Research and development expenses rose by 27% to $3.47 billion, reflecting continued investments in the company’s early and late-stage portfolio. Marketing, selling, and administrative expenses also saw a 31% increase, driven by promotional efforts for ongoing and future launches.

In terms of net income, Eli Lilly reported $5.58 billion on a reported basis and $6.31 billion on a non-GAAP basis, compared to $970.3 million and $1.06 billion, respectively, in Q3 2024. The effective tax rate for the quarter was 22.8% on a reported basis and 17.7% on a non-GAAP basis, both impacted by non-deductible acquired IPR&D charges. The company’s strong financial performance in Q3 2025 was further highlighted by positive developments in its R&D pipeline, including successful Phase 3 trials and regulatory approvals.
 

Eli Lilly Raises 2025 Guidance on Continued Product Strength

Looking ahead, Eli Lilly has raised its full-year 2025 revenue guidance to be in the range of $63.0 billion to $63.5 billion, up from its previous estimate of $60.0 billion to $62.0 billion. This optimistic outlook is attributed to the strong performance across its portfolio and favorable foreign exchange rates. The company also increased its reported EPS guidance to be between $21.80 and $22.50, with non-GAAP EPS expected to range from $23.00 to $23.70.

The company’s performance margin is now anticipated to be between 43.5% and 44.5% on a reported basis and 45.0% to 46.0% on a non-GAAP basis, reflecting the increased revenue guidance. Other income (expense) on a reported basis is expected to be an expense in the range of $700 million to $600 million, due to a decrease in net losses on investments in equity securities. The estimated effective tax rate for 2025 remains unchanged at approximately 19% on a reported basis and 17% on a non-GAAP basis.

In addition to financial guidance, Eli Lilly highlighted its strategic initiatives, including the expansion of manufacturing facilities in Virginia, Texas, and Puerto Rico. The company is also focusing on advancing its R&D pipeline, with plans to submit orforglipron for global regulatory approval for obesity treatment by the end of the year. Regulatory progress included the U.S. FDA approval of Inluriyo for certain breast cancer patients and the European Commission’s marketing authorization for Kisunla in Alzheimer’s treatment. These strategic moves and regulatory advancements position Eli Lilly for continued growth and innovation in the pharmaceutical industry.

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