Transcript: Eli Lilly Q2 2026 Earnings Conference Call

Eli Lilly (NYSE: LLY ) held its second-quarter earnings conference call on Wednesday. Below is the complete transcript from the call. APIs provide real-time access to earnings call transcripts and financial data. Visit to learn more.

View the webcast at Summary Full Transcript OPERATOR Ladies and gentlemen, thank you for standing by and welcome to the Lilly Q2 2026 earnings conference call. At this time, all participants are on a listen-only mode. Later, we will be conducting a question-and-answer session and instructions will be given at that time. Should you request assistance during the call, please press star then zero and an operator will assist you offline.

I would now like to turn the conference over to your host, Mike Zappar, Senior Vice President of Investor Relations. Please go ahead. Mike Savar, Senior Vice President of Investor Relations Good morning. Thank you for joining us.

For Eli Lilly and Company's Q2 2026 earnings call, I'm Mike Savar, Senior Vice President of Investor Relations. Joining me on today's call are Dave Ricks, Lilly's chair and CEO; Lucas Montarsay, Chief Financial Officer; Dr. Dan Skavonsky, Chief Scientific and Product Officer; Adrian Brown, President of Lilly Immunology; Dr. Carol Ho, President of Lilly Neuroscience; Ilya Ufa, President of Lilly USA and Global Customer Capabilities; Jake Van Naer, President of Lilly Oncology and Head of Business Development; Patrick Johnson, President of Lilly International; and Ken Custer, President of Lilly Cardiometabolic Health.

During this call we anticipate making projections and forward-looking statements based on our current expectations. Our actual results could differ materially due to various factors, including those listed on slide 4. Additional information concerning factors that could cause actual results to differ materially is contained in our latest Form 10-K and subsequent filing with the SEC. The information we provide about our products and pipeline is for the benefit of the investment community.

It is not intended to be promotional or otherwise influence prescribing decisions. Our commentary today will focus on our non-GAAP financial measures. Now I'll turn the call over to Dave. David A.

Ricks, Chair and CEO Thanks, Mike. Q2 continued Lilly's strong momentum. We delivered robust revenue across all key products and major geographies. We raised our full-year annual guidance.

We advanced our pipeline across each of our therapeutic areas and expanded our pipeline through business development. On slide 5, we list key Q2 financial metrics and highlight progress related to our strategic deliverables. 8 billion. Within key products, our oncology, immunology and neuroscience medicines collectively grew 121% compared to the same quarter last year.

As we continue to expand our presence across the portfolio, the number of people taking incretins grew and Lilly's portfolio of medicines extended its leadership position. The US Foundeo launch continued to build momentum. After educating physicians and securing commercial access across all three major PBMs, in June we began broad direct-to-consumer marketing to raise consumer awareness. We completed the US submission of Founda for type 2 diabetes and expect regulatory action later this year.

We launched Foundeo for obesity in the UAE and we recently received approval in Saudi Arabia for obesity, and in Mexico for obesity and type 2 diabetes. S. Foundao is under regulatory review in over 40 additional countries and we look forward to additional approvals later this year.

We also achieved several key pipeline and regulatory milestones since our last call, including the US FDA approval of Eblis for maintenance dosing once every eight weeks in atopic dermatitis; the EU approval for Jperka in CLL across all lines of therapy; a positive CHMP opinion in the EU for insulin F CITOR alpha for type 2 diabetes under the trade name Onswic; and positive top-line results in three phase 3 retatrutide trials in obesity.

We added to our strong internal pipeline through business development, announcing agreements to acquire multiple companies to expand our presence in emerging therapeutic areas including Kirivo, Limitek Biologics and the Vaccine Company, building a platform of potential new medicines to prevent infectious disease and their downstream complications, and we acquired Atai Burke Beckley, a company developing novel treatments for treatment-resistant depression and other mental conditions. We continued our manufacturing buildout and opened our first dedicated genetic medicine manufacturing facility in Lebanon, Indiana.

We also produced the first batch of commercial material at our new manufacturing site in Limerick, Ireland. 6 billion in share repurchases. Lastly, in partnership with the US government, we reached an important milestone to improve Medicare access to anti-obesity medicines as shown on slide 6. The Medicare GLP-1 bridge program launched on July 1, granting 20 million eligible Americans insurance coverage for GLP-1s for obesity at the low out-of-pocket price of $50 per month.

With this expansion, 35% more people now have coverage for our obesity medicines in the United States. While still early, feedback from patients and physicians has been quite positive. com showing the progress we made in 2025 on our sustainability priorities. Notably, we reached approximately 40 million people in resource-limited settings, exceeding our original goal of reaching 30 million by 2030.

We are now developing a new commitment to address the growing burden of diabetes and obesity in resource-limited settings worldwide and we'll share more details about this plan later this year. Now I'll turn the call over to Lucas to review our Q2 results. Lucas Montarce, EVP and CFO Thanks, Dave. As shown on Slide 7, Q2 was another strong quarter of financial performance.

Revenue grew 48% compared to Q2 2025, driven by Zepbound and Mounjaro, with strong momentum across all the carriers and geographies. 3 percentage points versus the same quarter last year. The change was driven primarily by favorable product mix and improved cost of production. Marketing, selling, and administrative expenses increased 25% as we invested in promotional activities to support current and planned product launches.

R&D expenses increased 14% driven by continued investment in our pipeline, including more than 40 active Phase 3 programs. 8%, an increase of 9 percentage points from Q2 2025 driven by revenue growth. 03. 14 of acquired IPR&D charges.

On Slide 8, we quantify the effect of price, rate, and volume on revenue growth. S. revenue increased 33% in Q2, primarily driven by volume growth, Zepbound and Mounjaro, as well as contributions from our immunology, oncology, and neuroscience portfolio. S.

price declined by 3% driven by Zepbound and Mounjaro. S. price benefited from a change to estimates for rebates and discounts. S.

price declined by 9%. Europe revenue grew 55% in constant currency driven by sustained strong volume growth of Mounjaro. Europe revenue also benefited from a $250 million Jardiance milestone payment. In Japan, revenue grew 30% in constant currency driven by Mounjaro and Kisunla.

In China, revenue grew by 93% in constant currency driven by the uptake of Mounjaro. And in the rest of the world, revenue grew 136% in constant currency driven by Mounjaro, primarily in Latin America and Asia. On Slide 9, we provide an update on the performance of our key products. Within immunology Ebglyss worldwide sales more than doubled compared to Q2 2025.

S. Ebglyss continued to gain share of new prescriptions, increasing by approximately 4 percentage points in the specialty dermatology market since last year. In oncology, Jaypirca had another strong quarter of growth and worldwide sales increased 56% compared to Q2 2025. As we continue to generate positive clinical trial data and expand the label, we believe Jaypirca has the potential to be a foundational therapy across multiple settings and regimens.

Within CLL, In Lurio continued strong uptake in the metastatic breast cancer oral SERD market. S. is leader in new prescriptions with more than 50% share. We look forward to the readout of EMBER-4 in the adjuvant setting to see if In Lurio can help even more people with breast cancer.

S. anti-amyloid targeted therapy market. Diagnostic testing momentum also continued to build and the number of p-Tau217 blood tests more than doubled compared to Q2 2025. This is translating to more people being diagnosed with Alzheimer’s disease and accessing treatment.

S. solid performance in China and Japan contributed to growth as well. 3 billion of growth compared to Q2 2025. S.

incretin analog market grew 31% compared to Q2 2025. The early uptake of oral GLP-1s has been encouraging, expanding the market of people who are taking incretin therapy. S. incretin analogs obesity market.

Total prescription grew by 78% in Q2 and the Lilly anti-obesity portfolio continues to lead. In Q2, approximately six out of ten total prescriptions and approximately seven out of ten injectable prescriptions were for a Lilly medicine. Self-pay continued to be an important segment within obesity and accounted for approximately 45% of total Zepbound prescriptions in Q2 and approximately 55% of new prescriptions. S.

type 2 diabetes incretin analogs market total prescriptions grew 9% compared to Q2 2025, reflecting a more mature market compared to obesity. The Lilly portfolio continues to lead here as well as more than six out of 10 prescriptions for an incretin were for a Lilly medicine. S. Lilly’s portfolio is also performing well in the incretin analogs market.

Slide 11 shows aggregate trends in the international incretin analogs market which has increased by 74% since the same period last year as measured by IQV gross sales. Lilly is the global market leader and we strengthened that position, gaining almost 2 percentage points of share compared to Q1 2026, reaching approximately 55%. K. and Mexico.

S. but with market share leadership already established, market expansion will be key to driving sustainable growth. We also saw incremental progress on securing reimbursed access as Mounjaro is now reimbursed for both type 2 diabetes and obesity in France. Slide 12 provides an update on the Fondeo launch and the cadence of anticipated upcoming catalysts.

S. launch is progressing well. Total prescriptions and share of new patients continue to grow as we are increasing our investment to drive brand awareness among physicians and consumers. The recent launch of the Medicare GLP-1 bridge program is an opportunity to expand the oral market, unlocking access for eligible seniors with a low out-of-pocket cost.

We are pleased to receive the first international approval for obesity in UAE and Saudi Arabia and in Mexico for obesity and type 2 diabetes. We look forward to potential approvals in additional markets this year. With more than 40 markets currently under regulatory review, we expect a global rollout in all major markets in 2027. We also expect readouts of many additional clinical trials.

The first readout in obstructive sleep apnea will come later this year and we have an additional five ongoing Phase 3 programs. Staying with Fondeo, as a small molecule that can be produced at scale, Fondeo has the potential to help millions of people improve their cardiometabolic health. Moving to Slide 14, we provide an updated 2026 financial guide. We have increased the low end of our revenue range by $3 billion and the high end by $2 billion, reflecting a strong underlying performance of our key products in the first half of 2026.

We now expect full-year revenue to be between $85 and $87 billion. 5%, an increase of 2 percentage points at the low and the high end of the performance margin range. 78 per share at the midpoint of our range. 03 impact of Q2 acquired IPR&D charges, we are pleased with our Q2 results and confident in our ability to deliver another year of industry-leading growth.

Now I will turn the call over to Dan to highlight our progress on R&D. Daniel Skovronsky, Executive Vice President and Chief Scientific and Product Officer Thanks, Lucas. Since our last earnings call, we've made significant progress across R&D with advances in each major therapeutic area. I'll begin with cardiometabolic health.

Starting with retatrutide, we announced positive results from three Phase 3 trials: TRIUMPH 1 in people with obesity or overweight, TRIUMPH 2 in people with type 2 diabetes and obesity or overweight, and TRIUMPH 3 in people with severe obesity and established cardiovascular disease with or without type 2 diabetes. Across the TRIUMPH program we've seen profound levels of weight loss and improvements in A1C, cardiovascular risk factors, osteoarthritis pain, and sleep apnea. With the recent completion of TRIUMPH 2 and TRIUMPH 3 trials, we now have the clinical data package to support global registrations in obesity, obstructive sleep apnea and knee osteoarthritis pain.

Slide 15 shows impressive and consistent weight loss across the TRIUMPH registrational program. In TRIUMPH 1 we saw weight loss approaching bariatric surgery levels at the highest doses and clinically meaningful efficacy at low doses with only one titration step. In patients with diabetes and obesity who typically struggle to lose weight, retatrutide delivered a magnitude of weight loss not previously seen with incretin therapy. We look forward to working with regulators as they evaluate this important new medicine and plan to submit in the US in Q1 2027 under the BLA pathway.

Turning to orforglipron, we have completed our US submission in type 2 diabetes supported by the ACHIEVE Phase 3 program. In June we presented detailed results from three of those trials, ACHIEVE 2, ACHIEVE 3 and ACHIEVE 5, at the American Diabetes Association Scientific Sessions. ACHIEVE 3 was the first head-to-head comparison of two oral GLP-1s and orforglipron delivered superior glycemic control and weight reduction against 7 mg and 14 mg oral semaglutide in patients with type 2 diabetes.

For the many people with type 2 diabetes who prefer an oral option and have difficulty reaching their glycemic targets, we believe orforglipron has the potential to be a foundational daily oral treatment. Also in cardiometabolic health, the CHMP adopted a positive opinion recommending EU approval of insulin efsitora alfa for patients with type 2 diabetes. The opinion was based on the Phase 3 program where once-weekly insulin efsitora alfa achieved reductions in A1C comparable to those of once-daily basal insulin. For people with type 2 diabetes who require insulin, a single weekly injection can simplify treatment and ease the burden of daily dosing.

We look forward to European approval in the coming months. We also shared clinical results from VERVE-102, our gene editing program in cardiovascular disease designed to inactivate the PCSK9 gene resulting in lowered LDL cholesterol. In the Phase 1b study, a single infusion reduced PCSK9 by 88% and LDL cholesterol by 62% at the highest dose. These early data are encouraging and suggest that we may be able to have a medicine delivered once, lasting cardiovascular benefit.

Moving to neuroscience, we announced an agreement to acquire Tybekli, which is advancing a pipeline of rapid-acting neuroplastogens for treatment-resistant depression and other mental health conditions. The lead asset, BPL003, has shown encouraging Phase 2b results. This remains one of the most significant unmet needs in psychiatry and we're encouraged by the potential of a rapid-acting therapy designed to deliver durable relief. We look forward to welcoming the ATAI Beckley team to Lilly.

With the Centessa acquisition now complete, we added Clemin orexin to the pipeline in Phase 2. Clemin orexin is a potential best-in-class orexin receptor 2 agonist being studied in a Phase 2/3 trial in central hypersomnias. Orexin biology plays an important role in regulating the sleep—wake cycle and sleep disorders are associated with many neurological, neurodegenerative and neuropsychiatric conditions. We believe with the Centessa pipeline we may have the potential to treat a broad range of diseases.