Aug 5 (Reuters) – Eli Lilly and Co posted better-than-expected quarterly results and raised its full-year revenue forecast on Wednesday, banking on sustained demand for its blockbuster GLP-1 weight-loss and diabetes drugs, sending its shares up 5% in premarket trading.
The strong results are likely to reassure investors that demand for Lilly’s GLP-1 treatments remains resilient despite pricing pressure and intensifying competition from Novo Nordisk, which launched an oral version of its weight-loss drug, Wegovy, in the U.S. earlier this year.
Lilly and Novo dominate the lucrative obesity market. Lilly surpassed a $1 trillion valuation last year, while Novo’s newly launched Wegovy pill is quickly gaining traction in its U.S. rollout.
The global market for obesity drugs reached $66 billion in 2025, according to data firm IQVIA. Analysts expect it to hit over $100 billion by 2030 in the U.S. alone.
Investors have largely been focussing on sales of Lilly’s diabetes treatment, Mounjaro, and obesity drug, Zepbound, which together accounted for a 64.7% share of the company’s revenue in the latest reported quarter.
Sales of diabetes drug Mounjaro rose 91% to $9.94 billion, beating estimates, while Zepbound brought in $4.93 billion, against expectations of $4.73 billion.
Sales of Foundayo, Lilly’s newly launched once-daily obesity pill, came in at $98 million, missing analysts’ average expectation of $105.6 million.
Lilly now expects revenue of $85 billion to $87 billion, compared with its previous forecast of $82 billion to $85 billion.
The revised forecast comes less than a day after rival Novo also raised its full-year profit and sales forecasts, banking on its oral pill to help claw back lost ground from Lilly in the lucrative obesity market.
Lilly, however, slightly trimmed the top end of its full-year profit forecast, citing charges related to business activity in the quarter.
It now expects 2026 adjusted full-year earnings per share of $35.50 to $36.50, from its prior forecast of $35.50 to $37. Analysts were expecting a profit of $34.20 per share.
Adjusted earnings came in at $8.38 per share for the quarter ended June 30, compared with analysts’ average estimate of $6.01, according to data compiled by LSEG.
(Reporting by Mariam Sunny and Mrinalika Roy in Bengaluru; Editing by Anil D’Silva)
