Eli Lilly and Company (LLY)
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Eli Lilly is the most valuable pharmaceutical company in the world: $65.2 billion in revenue in 2025 (plus 45 percent), $20.6 billion in net income, and another plus 56 percent in the first quarter of 2026 — carried by the weight-loss and diabetes drugs Mounjaro and Zepbound. Our value scanner built on Joel Greenblatt's Magic Formula lists the stock among its hits. We read the annual report (10-K) and the latest quarterly report (10-Q): both blockbusters are one and the same compound — tirzepatide, lately 65 percent of revenue —, the U.S. government is already setting prices for the first Lilly products, and the patent clock is ticking at the predecessor Trulicity. Not investment advice — just a look at how much weight a single domino can carry.
Basics
Performance
Valuation
Profitability
Balance Sheet & Safety
Growth
Quality & Screener
AI Rating
–Not yet rated — we only show a category once an SEC-backed file with at least two cited passages is available. How the Rating Is Built
Highlighted are things our editorial team noticed: green = stands out as strong, red = deserves a closer look. No single metric is a verdict on its own — always read it in context.
Quarterly Figures
| Quarter | EPS (Earnings Per Share) | EPS YoY (%) | Sales ($M) | Sales YoY (%) | Net Margin (%) | OCF ($M) | FCF ($M) |
|---|---|---|---|---|---|---|---|
| 2024: Q4 | 4.88 | 101.60 | 13,533 | 44.70 | 32.60 | 2,474 | 727 |
| 2025: Q1 | 3.06 | 23.50 | 12,729 | 45.20 | 21.70 | 1,666 | -1,601 |
| 2025: Q2 | 6.29 | 91.70 | 15,558 | 37.60 | 36.40 | 3,087 | 1,283 |
| 2025: Q3 | 6.21 | 479.30 | 17,601 | 53.90 | 31.70 | 8,836 | 8,612 |
| 2025: Q4 | 7.39 | 51.30 | 19,292 | 42.60 | 34.40 | 3,225 | 678 |
| 2026: Q1 | 8.26 | 169.40 | 19,799 | 55.50 | 37.40 | 5,333 | 3,007 |
- EPS (Earnings Per Share):
- Quarterly profit divided by the total share count — how much of the profit works out to a single share.
- YoY (Year over Year):
- Change versus the same quarter a year ago — this is how you compare without seasonal distortion (e.g. the holiday shopping season).
- Sales:
- All revenue for the quarter, before any costs are deducted — the top line of the income statement.
- Net Margin:
- What percentage of sales is left over as profit in the end. Negative means the company is posting a loss.
- OCF (Operating Cash Flow):
- The cash that actually flows into the till from the core business during the quarter — harder to dress up than book profit.
- FCF (Free Cash Flow):
- Operating cash flow minus capital expenditures — the money that's genuinely free to use, say for paying down debt, buybacks, or dividends.
Assessment: Opportunities & Risks
Revenue plus 45 percent in 2025 ($65.2 billion), plus 56 percent in Q1 2026 — the fastest growth in big pharma. The pipeline delivers: Foundayo (the first weight-loss pill) approved in April 2026, behind it retatrutide, eloralintide and broad indication expansions for tirzepatide (10-K 2025; 10-Q as of March 31, 2026).
83 percent gross margin, EBIT margin about 49 percent, $16.8 billion operating cash flow in 2025, Piotroski 8 of 9, Altman-Z 7.3, fundamental rating A — the value-scanner hit rests on real earning power (data as of July 8, 2026).
Mounjaro and Zepbound are the same compound (tirzepatide) and stood for 56 percent of revenue in 2025 and 65 percent in Q1 2026; the top-6 products for 82 percent. The company's own risk factor warns of "significant and sudden" stock-price declines on bad news about these products (10-K 2025).
Government-set prices hit Jardiance from 2026 (minus 66 percent), Trulicity and Verzenio from 2028 — more products expected per Lilly, with accelerated revenue erosion before exclusivities expire. Trulicity loses its U.S. compound patent in 2027 and shows live how fast revenues fall ($7.1 to $4.3 billion since 2023); tirzepatide's U.S. data exclusivity ends in 2027, and copies remain a running theme (10-K 2025; 10-Q as of March 31, 2026).
About $1,006 billion in market value, P/E about 43, P/B about 32 (data as of July 8, 2026) — on the 2027 consensus estimate the P/E falls to about 25, provided growth holds. Debt rose within five quarters from $33.6 to $43.4 billion; the dividend (yield ~0.6 percent) and buybacks run in parallel with the giant factory build-out.
Eli Lilly is the rare case in which the halo effect is almost right: the best growth in big pharma, outstanding margins, a delivering pipeline and balance-sheet grades straight from the textbook. But the trillion-dollar valuation prices in a decade of continued success — and the company's own mandatory filings document three structural dents: 65 percent of revenue hangs on a single molecule, the government is already setting prices for the first Lilly products and expressly expects to select more, and the patent clock is running — audibly at Trulicity, until 2036 at tirzepatide, with U.S. data exclusivity only until 2027. Quality is not the question here; the price of that quality is. Not investment advice.
- Price and valuation figures dated July 8, 2026 (about $1,128 per share, about $1,006 billion in market value); analyses are evergreen, daily prices are not a buy argument.
- The Q1 2026 figures ($19.8 billion in revenue, $7.4 billion in net income) are three-month values; growth rates refer to the prior-year quarter. The Mounjaro/Zepbound U.S. revenue for Q1 2026 also contains a favorable one-off effect from adjusted rebate estimates (10-Q as of March 31, 2026).
- Analyst estimates (about $36 and $44 in adjusted earnings per share for 2026 and 2027; 31 professionals, consensus toward "buy") are forecasts, not facts — and with politically negotiated prices, especially prone to revision.
- Scanner membership: local evaluation with data as of July 8, 2026 (Greenblatt, Levermann, Zweig, EBIT-margin ranking, Altman-Z); checked live on July 14, 2026 — Greenblatt confirmed, additionally dividend and growth scanners.
About the Company
Eli Lilly and Company erforscht, entwickelt, fertigt und vermarktet humanmedizinische Arzneimittel in den USA, Europa, China, Japan und international. Das Unternehmen bietet kardiometabolische Produkte an, darunter Basaglar, Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200 und weitere.
| IPO Year | 1978 |
|---|---|
| Next Earnings | 6. Aug 2026 |
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Data as of: July 2, 2026 · Source: fundamental data & SEC filings (annual and quarterly reports, 10-K/10-Q)
Note: pure fact-based analysis, not investment advice and not a solicitation to buy or sell. All figures without guarantee.