Eli Lilly Q2 earnings beat expectations on Mounjaro, Zepbound sales, stock falls after obesity drug trial miss

Lilly stock latest news: Eli Lilly delivered a strong second-quarter earnings report Thursday, driven by continued momentum from its diabetes and weight loss drugs, Mounjaro and Zepbound, as per a report. The company also raised its full-year guidance, signaling confidence in its growth trajectory, however, LLY stocks fell in premarket trading after investors were underwhelmed by new data on its experimental obesity pill, as per a CNBC report.

Eli Lilly's Mounjaro and Zepbound Drive Strong Revenue Growth in Q2

The pharmaceutical giant reported adjusted earnings of $6.31 per share, well above LSEG analyst expectations of $5.57, as per the report. Revenue rose 38% from the same quarter last year to $15.56 billion, beating the $14.71 billion forecast, according to the CNBC report.

Much of the growth came from Mounjaro and Zepbound, both based on the compound tirzepatide, as per the CNBC report. Mounjaro brought in $5.2 billion in revenue, which was a 68% increase from a year ago, while Zepbound posted $3.38 billion, rising 172%, according to the report. Both drugs surpassed Wall Street’s expectations by a wide margin, as per CNBC.


Eli Lilly CEO David Ricks told CNBC’s Squawk Box that “I feel good about the value of the company. Investors have to decide what they think,” adding, “But Lilly is rolling, and you look at the beat and raise, strong growth on the back half, we’re excited about the future for our company and for patients who need our products,” as quoted in the report.

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Eli Lilly Raises Full-Year 2025 Guidance

Reflecting that momentum, Lilly raised its 2025 revenue outlook to a range of $60 billion to $62 billion, increasing from its previous forecast of $58 billion to $61 billion, as per the CNBC report. The company also raised its adjusted earnings per share guidance to between $21.75 and $23, compared to the earlier range of $20.78 to $22.28, according to the report.

LLY Stock Dips on Obesity Drug Trial Results

But the optimism was tempered by clinical trial results for orforglipron, Lilly’s oral obesity drug currently in late-stage testing, as per the CNBC report. While the highest dose helped patients lose more than 12% of their body weight, that figure fell short of lofty investor expectations, and as a result, the stock fell as much as 12% in early trading on Thursday, according to the CNBC report.

Despite the market reaction, Ricks defended the long-term outlook for Lilly’s obesity and diabetes portfolio, saying, “Tirzepatide, which is Mounjaro and Zepbound, will likely become the best-selling drug in the industry in its third year in the market,” adding, “And we’ve got a lot more coming in the pipeline," as quoted in the report.

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Drug Pricing and Tariff Policies Could Impact Outlook

The company also addressed potential policy headwinds. Lilly said its updated guidance accounts for the current tariffs on pharmaceuticals as of August 7 under US president Donald Trump, as per the CNBC report. However, it does not factor in the administration’s proposed new levies on drug imports, according to the report.

The White House also recently sent letters to drugmakers, including Lilly, urging them to lower US drug prices by September 29, as per the CNBC report. This follows an executive order Trump signed in May to revive the controversial “most favored nation” pricing policy, according to CNBC.

Eli Lilly's US Sales Surge

In the US, Lilly’s second-quarter sales totaled $10.81 billion, up 38% year over year, due to a 46% increase in volume in the number of prescriptions filled, as per the report. That growth was partially offset by lower average selling prices, according to the report.

Overall, the company reported a net income of $5.66 billion, or $6.29 per share, compared to $2.97 billion, or $3.28 per share, a year ago, as per the CNBC report.

FAQs

Why did Eli Lilly's stock fall even after strong earnings?
Investors were disappointed with the trial results for the company’s new oral obesity drug, orforglipron, which fell short of expectations despite strong overall performance, as per the CNBC report.

What drugs drove Eli Lilly’s revenue growth this quarter?
Mounjaro and Zepbound, both based on tirzepatide, were the main drivers, bringing in a combined $8.58 billion.