LLY Q2 Earnings Call Raises Outlook as Foundayo Gains Traction

Eli Lilly and Company LLY used its Q2 2026 earnings call to pair a higher revenue outlook with broader access for its obesity portfolio. Management highlighted accelerating Foundayo adoption, early Medicare Bridge traction and a planned 2027 retatrutide filing.

Non-GAAP earnings of $8.38 per share topped the Zacks Consensus Estimate of $6.01. Revenues of $22.97 billion also exceeded the $20.26 billion estimate.

Eli Lilly and Company Price, Consensus and EPS Surprise

Eli Lilly and Company price-consensus-eps-surprise-chart | Eli Lilly and Company Quote

LLY Raises Its Revenue Outlook

Chief financial officer Lucas Montarce increased the 2026 revenue outlook to $85-$87 billion from $82-$85 billion, reflecting stronger Key Product performance in the first half.

The updated non-GAAP EPS range is $35.50-$36.50. Underlying guidance increased by $2.78 per share at the midpoint before $3.03 of acquired IPR&D charges, while the performance-margin range rose two percentage points to 49-50.5%.

A Jefferies analyst questioned the second-half cadence. Montarce cited rebate adjustments, tougher comparisons from prior international launches, European seasonality and fourth-quarter diabetes patterns.

Lilly Sees Foundayo Adoption Accelerate

A Goldman Sachs analyst asked about the U.S. launch curve. President of Lilly USA and Global Customer Capabilities Ilya Yuffa said Foundayo prescriptions nearly doubled in the final week of July from a month earlier.

The U.S. prescriber base expanded to 36,000 from 8,000. Yuffa said nearly one in four new incretin starts were moving to Foundayo as access, sampling and consumer promotion expanded.

International President Patrik Jonsson said the UAE launch showed that oral therapy can bring treatment-naive patients into the category. Major international launches are planned for 2027, with more than 40 markets under review.

LLY Uses Medicare to Widen Obesity Access

Chairman and chief executive officer David Ricks said the Medicare GLP-1 Bridge program opened coverage to 20 million eligible Americans at a $50 monthly out-of-pocket cost.

A JPMorgan analyst asked about the rollout. Yuffa said 60% to 70% of Bridge users were new to treatment and about 80% selected injectable therapy, although both Zepbound and Foundayo showed an early prescription inflection.

Yuffa said Lilly is supporting the program through physician, pharmacy and consumer education. LillyDirect can also fulfill Bridge prescriptions.

Lilly Advances Retatrutide Toward Filing

Chief scientific and product Officer Daniel Skovronsky said three Phase 3 trials completed the clinical data package for obesity, obstructive sleep apnea and knee osteoarthritis pain.

A Bernstein analyst asked about the regulatory pathway. Ricks said Lilly plans to submit retatrutide in the United States in the first quarter of 2027 under the biologics pathway, with additional chemistry, manufacturing and controls work underway.

Cardiometabolic health president Kenneth Custer said the highest doses approached bariatric-surgery levels of weight loss. Lilly is also studying retatrutide in metabolic liver disease and chronic lower-back pain.

LLY Manages Pricing as Volume Expands

Mounjaro and Zepbound generated a combined $14.9 billion in quarterly revenues. U.S. price declined 3%, or 9% excluding rebate and discount adjustments.

An Evercore ISI analyst pressed management on net pricing. Montarce said broader CVS access beginning in the fourth quarter will reduce pricing tied to medical exceptions, with the effect included in guidance and expected to be offset by volume.

International president Patrik Jonsson said Lilly held about 55% of the incretin market outside the United States and gained almost two percentage points sequentially. Future growth will depend increasingly on market expansion rather than share gains.

Lilly Broadens Growth Beyond Incretins

Ricks emphasized progress in oncology, immunology and neuroscience, where Key Product revenues more than doubled from the prior-year quarter.

Skovronsky highlighted Jaypirca, Ebglyss, Kisunla and Inluriyo, while acquisitions added programs in psychiatry, sleep disorders, infectious disease and in vivo cell therapy.

Ricks also highlighted manufacturing expansion in Indiana and Ireland. Those investments are intended to support current launches and a pipeline with more than 40 Phase 3 programs.

LLY Keeps Execution at the Center

Management's tone was confident but focused on execution. Priorities include widening access, scaling Foundayo globally, completing the retatrutide filing and bringing manufacturing capacity online.

The call also showed a broader growth agenda beyond obesity, supported by internal research, acquisitions and commercial expansion across multiple therapeutic areas.

Zacks Signals Remain Balanced

LLY carries a Zacks Rank #3 (Hold), with a Growth Score of B, Value Score of C, Momentum Score of A and a VGM Score of B. The readings indicate stronger growth and combined style characteristics than value or momentum.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

A Zacks Rank #3 reflects a neutral near-term earnings-revision signal. The Rank can change as analysts revise estimates following the reported results.

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