Eli Lilly and CoLLY +7.13%98 Gross Margin % is 81.93% as of Mar. 2026, which is 5% above its 10-year median of 77.98. GuruFocus rates LLY with a GF Score™ of 98/100 and a GF Value™ of $1,409.61 (Modestly Undervalued). The stock has 6 warning signs investors should review. Among 938 Drug Manufacturers companies, Eli Lilly and Co ranks better than 94.56% on this metric.
The historical rank and industry rank for Eli Lilly and Co's Gross Margin % or its related term are showing as below:
LLY'
s Gross Margin % Range Over the Past 10 Years
Min: 73.09 Med: 77.98 Max: 83.04
Current: 82.83
During the past 13 years, the highestGross Margin % of Eli Lilly and Co was 83.04%. The lowest was 73.09%. And the median was 77.98%.
LLY's Gross Margin % is ranked better than 94.56% of 938
companies
in the Drug Manufacturers industry
Industry Median: 48.44
vs LLY: 82.83
Eli Lilly and Co had a gross margin of 81.93% for the quarter that ended in Mar. 2026 => Durable competitive advantage
The 5-Year average Growth Rate of Gross Margin for Eli Lilly and Co was 1.90% per year.
Eli Lilly and Co (NYSE:LLY) Gross Margin % Explanation
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Eli Lilly and Co had a gross margin of 81.93% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Eli Lilly and Co Gross Margin % Related Terms
Eli Lilly and Co Gross Margin % Historical Data
* Premium members only.
The historical data trend for Eli Lilly and Co's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Drug Manufacturers - General subindustry, Eli Lilly and Co's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Eli Lilly and Co Gross Margin % vs Drug Manufacturers Industry
For the Drug Manufacturers industry and Healthcare sector, Eli Lilly and Co's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Eli Lilly and Co's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Eli Lilly and Co (LLY) has a Gross Margin % of 81.93% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Eli Lilly and Co and its competitors. This is near median its historical median of 77.98. Over the past decade, Eli Lilly and Co's Gross Margin % has ranged from 73.09 to 83.04. According to the industry distribution chart, Eli Lilly and Co ranks #51 out of 938 companies in the Drug Manufacturers industry, placing it in the top 5.4%.
Is Eli Lilly and Co's Gross Margin % too high?
Eli Lilly and Co's current Gross Margin % of 81.93% is near median its 10-year median of 77.98. Over the past 10 years, this metric has ranged from a low of 73.09 to a high of 83.04. The Drug Manufacturers industry median Gross Margin % is 48.44. Eli Lilly and Co's value of 81.93% is 69.1% above this industry median. Based on the distribution chart, Eli Lilly and Co ranks #51 out of 938 companies in the Drug Manufacturers industry, which is in the top quartile — a strong position relative to peers. Overall, Eli Lilly and Co has a GF Score™ of 98/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Eli Lilly and Co's Gross Margin % compare to JNJ and ABBV?
According to the Drug Manufacturers industry distribution chart, Eli Lilly and Co ranks #51 out of 938 companies for Gross Margin %. This places Eli Lilly and Co in the top 5% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 48.44. Eli Lilly and Co's value of 81.93% is 69.1% above this benchmark. Historically, Eli Lilly and Co's own Gross Margin % has ranged from 73.09 to 83.04 over the past decade. While the company's 10-year median is 77.98 vs. the industry median of 48.44, Eli Lilly and Co has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Drug Manufacturers company?
The median Gross Margin % among Drug Manufacturers companies is 48.44, based on 938 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Eli Lilly and Co's current Gross Margin % of 81.93% is 69.1% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Eli Lilly and Co and its competitors. For the Drug Manufacturers industry, the median Gross Margin % is 48.44 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Eli Lilly and Co's current Gross Margin % is 81.93%, which is near median its own 10-year median of 77.98. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Eli Lilly and Co stock overvalued right now?
Based on GuruFocus' analysis, Eli Lilly and Co (LLY) is currently considered Modestly Undervalued. The stock's GF Value™ is $1,409.61, compared to a current price of $1,208.12 — trading 14.3% below its estimated fair value. The current Gross Margin % is 81.93%, which is near median its 10-year median of 77.98 and 69.1% above the Drug Manufacturers industry median of 48.44. Eli Lilly and Co's overall GF Score™ is 98/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Eli Lilly and Co (LLY), the current Gross Margin % is 81.93% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Eli Lilly and Co (LLY) Overvalued in 2026?
Based on GuruFocus' analysis, Eli Lilly and Co stock appears to be undervalued.
The current stock price of $1,208.12 is trading 14.3% below its estimated GF Value™ of $1,409.61.
GuruFocus considers Eli Lilly and Co to be Modestly Undervalued.
Key valuation signals for LLY:
Gross Margin %: 81.93% (near median its 10-year median of 77.98)
GF Value™: $1,409.61 vs. price of $1,208.12 (14.3% below fair value)
Industry Position: 69.1% above the Drug Manufacturers median (#51 of 938)
No single metric tells the full story. See the LLY stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Eli Lilly is a drug firm with a focus on neuroscience, cardiometabolic, cancer, and immunology. Lilly's key products include Verzenio and Jaypirca for cancer; Mounjaro, Zepbound, Foundayo, Jardiance, Trulicity, Humalog, and Humulin for cardiometabolic; and Taltz and Olumiant for immunology.
98GF Score
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