- Revenue: Grew 48% compared to Q2 2025, driven by Zepbound and Mounjaro.
- Gross Margin: 86.3% of revenue, an increase of approximately 1.3 percentage points versus the same quarter last year.
- Marketing, Selling and Administrative Expenses: Increased 25% due to investments in promotional activities.
- R&D Expenses: Increased 14%, driven by continued investment in the pipeline.
- Non-GAAP Performance Margin: 54.8%, an increase of 9 percentage points from Q2 2025.
- Non-GAAP Earnings Per Share: $8.38, including acquired IPR&D charges of $3.3, compared to $6.31 in Q2 2025.
- US Revenue: Increased 33%, primarily driven by volume growth of Zepbound and Mounjaro.
- Europe Revenue: Grew 55% in constant currency, driven by Mounjaro volume growth and a $250 million charge and milestone payment.
- Japan Revenue: Grew 30% in constant currency, driven by Mounjaro and Kisunla.
- China Revenue: Grew 93% in constant currency, driven by Mounjaro uptake.
- Rest of World Revenue: Grew 136% in constant currency, driven by Mounjaro in Latin America and Asia.
- EBGLYSS Worldwide Sales: More than doubled compared to Q2 2025.
- Jaypirca Worldwide Sales: Increased 56% compared to Q2 2025.
- Mounjaro and Zepbound Combined Revenue: $14.9 billion, contributing $6.3 billion of growth compared to Q2 2025.
- Full Year 2026 Revenue Guidance: Raised to between $85 billion and $87 billion.
- Full Year 2026 Non-GAAP Performance Margin Guidance: Expected between 49% and 50.5%.
- Full Year 2026 Non-GAAP Earnings Per Share Guidance: Expected between $35.50 and $36.50.
Release Date: August 05, 2026
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Revenue grew 48% year-over-year in Q2 2026, driven by strong performance across all key products and geographies, leading to a raised full-year guidance.
- The US launch of Foundayo is gaining momentum, with total prescriptions doubling in the last month and new patient starts reaching nearly 1 in 4, supported by expanded commercial access and direct-to-consumer marketing.
- Positive Phase 3 results for retatrutide (TRIUMPH program) showed profound weight loss approaching bariatric surgery levels, with a complete data package for global registrations in obesity, sleep apnea, and knee osteoarthritis pain.
- The Medicare GLP-1 Bridge program launched on July 1, expanding coverage to 20 million eligible Americans and increasing access to obesity medicines by 35%, with early feedback positive and an inflection in prescriptions.
- Strong pipeline progress across therapeutic areas, including FDA approval for EBGLYSS maintenance dosing, EU approval for Jaypirca in CLL, and positive CHMP opinion for once-weekly insulin efsitora alfa.
- International expansion is accelerating, with Mounjaro revenue growing 55% in Europe, 30% in Japan, and 93% in China, and Foundayo receiving approvals in UAE, Saudi Arabia, and Mexico.
- Business development activity added promising assets in vaccines (Curevo, LimmaTech, Vaccine Company) and psychiatry (AtaiBeckley), expanding into emerging therapeutic areas with high unmet need.
- Gross margin improved to 86.3% in Q2, up 1.3 percentage points year-over-year, driven by favorable product mix and improved production costs.
- Non-GAAP EPS of $8.38 beat expectations, and the company raised its full-year EPS guidance to $35.50-$36.50, reflecting strong operational performance.
- The company's incretin portfolio maintains market leadership, with Lilly medicines accounting for 6 out of 10 total prescriptions in the US obesity market and 7 out of 10 injectable prescriptions.
Negative Points
- US price declined by 9% (excluding one-time adjustments) in Q2, driven by Zepbound and Mounjaro, reflecting increased rebates and discounts, which could pressure future margins.
- The Foundayo US launch has been slower than anticipated, with the company acknowledging a gradual ramp-up and only recent inflection in prescriptions, despite significant promotional investment.
- The company faces ongoing litigation with the FDA over the regulatory pathway for retatrutide, which could delay its submission and approval timeline, with a BLA filing not expected until Q1 2027.
- International growth is increasingly dependent on market expansion rather than new country launches, as the initial bolus of launches has already occurred, potentially slowing growth rates.
- The company expects seasonality effects in Q3 (Europe vacations) and Q4 (US Type 2 diabetes) that could moderate growth in the second half of the year.
- Medical exception usage for Zepbound, which has been a driver of higher net pricing, is expected to decline as CVS returns to formulary, leading to lower prices that will need to be offset by volume growth.
- The company's aggressive M&A activity, including acquisitions in vaccines and psychiatry, carries integration risks and may dilute focus from core therapeutic areas.
- Competitive pressures are emerging, particularly from generic semaglutide in markets like India and Brazil, although early data shows Mounjaro continues to grow, but supply constraints from competitors could shift dynamics.
- The company's guidance implies a deceleration in revenue growth in the second half of 2026, partly due to one-time rebate adjustments and base effects, which may disappoint investors expecting sustained momentum.
- Foundayo's international rollout is still in early stages, with most major market launches not expected until 2027, and reimbursement for Type 2 diabetes will take time, limiting near-term ex-US revenue contribution.
Q & A Highlights
Q: Can you elaborate on the Foundayo launch in the US, the contributing factors to its slower-than-anticipated start, and when we might expect an inflection? Also, what are the early learnings from the UAE launch, especially regarding competitive dynamics with Novo's oral pill?
A: Ilya Yuffa (President, Lilly USA) stated that the company is making "meaningful progress" on Foundayo, focusing on physician education, access, and consumer awareness. Leading indicators are positive, with week-to-week growth in prescriptions. The last week of July showed an inflection point, with volume doubling from a month prior and new patient starts reaching nearly 1 in 4 for Foundayo. Patrik Jonsson (President, Lilly International) noted that the UAE launch had a strong start, with orals expanding the market and most patients being naive to incretin treatment. He cautioned that early data contains "a lot of noise" and is often sell-in data, but the company is pleased with the start and well-positioned on supply for future launches.
Q: What is the regulatory pathway for retatrutide, and what are the requirements and milestones ahead to ensure it is accepted as a Biologics License Application (BLA)? Will this classification be unique to retatrutide or apply to future incretins?
A: David Ricks (Chair and CEO) confirmed the company is pursuing a BLA pathway, believing retatrutide meets the criteria as a biologic. He acknowledged active litigation following a mixed court decision but expressed hope for a conclusion with the FDA. While all clinical data is gathered, additional CMC (Chemistry, Manufacturing, and Controls) data is needed. The company is in communication with the agency and will update investors on progress. Ricks highlighted the "unprecedented efficacy" of the triple-acting GLP-1 and the company's lead over competitors, with a submission planned for Q1 2027.
Q: Can you provide an update on the Medicare GLP-1 Bridge program rollout, including early learnings, the ramp curve, and any differences between oral and injectable uptake?
A: Ilya Yuffa (President, Lilly USA) reported that the program, which launched July 1, is expanding access to 35% more Americans. While it's early, the company is seeing a "pretty significant inflection point" in prescriptions for both Zepbound and Foundayo. The prior authorization process is working well. Approximately 80% of new patients are choosing injectables, but both are seeing new starts. Notably, 60-70% of patients are new to therapy, indicating the program is successfully reaching a previously underserved population.
Q: Given the strong Q2 results, the guidance seems to imply a deceleration in revenue growth for the second half of the year. Is this due to price, conservatism, or other factors?
A: Lucas Montarce (CFO) explained that the guidance reflects several factors. First, the company benefited from one-off prior-period adjustments for rebates and discounts in the US that won't repeat. Second, the comparison base in H2 2025 included the bolus of volume from Mounjaro's launch in new international markets, which won't recur. Third, the guidance factors in typical seasonality, such as European holidays in Q3 and US Type 2 diabetes seasonality in Q4. He emphasized that the company still expects significant dollar growth in the second half.
Q: How is the company thinking about its post-Verzenio strategy in breast cancer, and is an all-oral combination on the table?
A: Jacob Van Naarden (President, Lilly Oncology) stated that Lilly believes it has the best medicines for the three most important targets in breast cancer: estrogen receptor (imlunestrant/Inluriyo), CDK4/6 (Verzenio), and PI3 kinase alpha (tersolisib). The company has plans to combine all three. The Phase 3 EMBER-4 trial for Inluriyo in the adjuvant setting will read out next year. A Phase 3 program for tersolisib is about to begin, initially combined with endocrine therapies, but the vision is to eventually combine it with Inluriyo. The all-oral combination is a key part of the future strategy.
Q: Can you provide more color on the strong OUS launch of Mounjaro, including which regions are seeing the most growth and any early observations on the impact of generic semaglutide in markets like India?
A: Patrik Jonsson (President, Lilly International) highlighted strong performance across the globe, with market leadership in many countries. Key growth drivers include China, Korea, the UK, Mexico, and Germany. Regarding generic semaglutide, the company continues to see TRx growth for Mounjaro in India and Brazil even after generic launches, driven by strong differentiation and superiority data. He noted that generic companies have faced supply constraints, and the company's overall product portfolio positions it well for the future.
Q: How extensive is the sampling program for Foundayo, and is it having a dampening effect on the IQVIA prescription data? What is the current state of the US prescribing base?
A: Ilya Yuffa (President, Lilly USA) confirmed that the company has an extensive sampling program, providing the first 30 days of the first dose, similar to a typical oral small molecule launch. This is intended to get first-hand experience with the drug. The prescriber base has grown significantly, from 8,000 to 36,000 prescribers. The company is seeing continued progress on adoption, awareness, and perception of Foundayo's profile, and feels good about the inflection points ahead.
Q: Can you elaborate on the net pricing dynamics for Zepbound, particularly the sustainability of the medical exception channel and the impact of CVS returning to formulary?
A: Lucas Montarce (CFO) explained that the price per prescription is affected by the size of the scripts, which is a significant driver. He acknowledged that medical exception was a short-term channel used when CVS moved to a non-preferred status. The company's goal is to have open access for all patients, and with CVS back on formulary, the price will likely go down. This is already embedded in the company's guidance, and the expectation is that volume growth will more than offset the price decline.
Q: With the recent acquisitions in psychiatry and vaccines, are these areas that can scale, or are they more one-off opportunities?
A: Jacob Van Naarden (
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
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