Health Care · NYSE: LLY
Eli Lilly: how the business works
Eli Lilly discovers, makes and sells medicines, mostly for diabetes and obesity, in about 90 countries, with revenue of $65.2 billion in FY2025.
By Hardik Bhandare · Checked against filings:
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Eli Lilly and Company · Indianapolis, Indiana · Founded 1876
Last updated
- Revenue, FY2025
- $65.2B
- Operating income, FY2025 (earnings release)
- $26.3B
- Net income, FY2025
- $20.6B
- Employees, end of 2025
- About 50,000
- Founded
- 1876
The short version
Eli Lilly in 5 points
1 · What it sells
Eli Lilly sells medicines in about 90 countries, and two brands, Mounjaro and Zepbound, were 56% of its $65.2 billion of FY2025 revenue.
2 · Who pays it
Lilly does not report revenue by final payer and three US wholesalers each bought 16 to 24 percent; by location, in FY2025 the US paid 66.7% of revenue, Europe 17.7%, Japan 3.3%, China 3.0% and the rest of the world 9.3%.
3 · What it keeps from $100
Of every $100 of FY2025 revenue, Lilly kept $31.7 as net income, after $0.9 of net non-operating costs and $4.5 of acquired research, a deal cost that reached $17.1 in Q3 FY2026; operating income, stated in its earnings release, was $40.4.
4 · Where the operating profit comes from
Lilly reports one segment and no profit by product, so its $26.3 billion of FY2025 operating income has no official split, though cardiometabolic medicines brought in 74.0% of revenue.
5 · The one thing to watch
In Q3 FY2026 higher volume added 53% to Lilly's revenue while lower prices took off 15%, with price down 7% in the US and 29% outside it.
Sources: From Lilly's FY2025 10-K, Q3 FY2026 10-Q and earnings releases · checked
See the full receipt and the management scorecard below
01Where the money goes · FY2025
Where does $100 of Eli Lilly's money go?
Eli Lilly · FY2025
Receipt for every $100
| Research and development | $20.5 |
|---|---|
| Cost of making medicines | $17.0 |
| Marketing, selling and admin | $17.0 |
| Research bought from others (acquired IPR&D) | $4.5 |
| Special charges and net other costs | $1.6 |
| Income tax | $7.8 |
| Kept as net income | $31.7 |
| Total | $100 |
Each line = amount ÷ total money in × 100. Lines may not add to exactly $100 because of rounding.
How this is worked out
Cityfort calculation from FY2025 10-K. Of every $100 of revenue in FY2025: each line = line ÷ $65.2 billion × 100. Net other items were a cost, so no other income is added. Rounded lines add to $100.1.
Each week: one company explained in 5 points, picked by earnings date.
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02The business in one line
What does Eli Lilly do?
Wholesalers and other buyers pay Eli Lilly for its medicines; most of the money goes on research, marketing and making them, and what is left is profit.
- In FY2025 two brands, Mounjaro and Zepbound, were 56% of revenue, and customers in the US were 66.7%.
- Rebates, discounts and returns took $62.1 billion off US sales in FY2025 before revenue was counted. Operating income, stated in the earnings release, was $26.3 billion, and net income was $20.6 billion.
03Who pays it
Who pays Eli Lilly?
Customers in the US
67%
of revenue
66.7% of FY2025 revenue ($43.5 billion). Most products reach pharmacies, doctors and hospitals through wholesalers. Benefit managers, insurers, employers and government programs negotiate rebates. Shares here are by location, because Lilly does not report revenue by final payer.
Customers in Europe
18%
of revenue
17.7% of FY2025 revenue ($11.6 billion).
Customers in Japan
3%
of revenue
3.3% of FY2025 revenue ($2.1 billion).
Customers in China
3%
of revenue
3.0% of FY2025 revenue ($2.0 billion).
Customers in the rest of the world
9%
of revenue
9.3% of FY2025 revenue ($6.1 billion).
- Customers in the US67%
- Customers in Europe18%
- Customers in Japan3%
- Customers in China3%
- Customers in the rest of the world9%
How spread out the customers are
McKesson, Cencora and Cardinal Health were each 16% to 24% of revenue in each of FY2023 to FY2025, and each 20% to 29% of receivables; Lilly gives no exact share. No other customer passed 10%. US rebates, discounts and returns took $62.1 billion off sales in FY2025, up from $41.5 billion in FY2024. Lilly gives no split by insurer, Medicare, Medicaid or cash, and no dollar figure for LillyDirect.
04Why it makes money
Why does Eli Lilly make money?
Medicines cost far less to make than they bring in, and research and marketing costs grew more slowly than revenue from FY2023 to FY2025.
Lilly kept $83.0 of gross profit per $100 of FY2025 revenue, up from $79.2 in FY2023. Research plus marketing and admin fell from $49.0 per $100 to $37.5 over those years. Prices fell in FY2025, so volume drove that revenue growth.
Operating income per $100 of revenue
$18.9$40.4
FY2023 to FY2025
- Lilly discovers or buys a medicine
- Patents limit direct copies for years
- Volume grows through wholesalers and LillyDirect
- Cost of sales was about $17 per $100 of revenue in FY2025
- Cash pays for more research, deals and plants
↺ Step 5 feeds back into step 1.
05Business segments · FY2025
Which businesses make up Eli Lilly?
Cardiometabolic health
74%Mounjaro, Zepbound, Trulicity, Jardiance and insulins. Lilly reports one segment, so these are therapy areas from its revenue note, with no profit figure for any of them.
Revenue $48.2B
Oncology
14%Cancer medicines, led by Verzenio at $5.7 billion.
Revenue $9.4B
Immunology
8%Immune-condition medicines, led by Taltz at $3.6 billion.
Revenue $5.2B
Neuroscience
2%Brain medicines such as Emgality and Kisunla. FY2023 ($2.9 billion) included $1.4 billion, mainly the gain from selling the olanzapine rights.
Revenue $1.4B
Other
1%Other products and revenue. The chart starts at FY2023, the earliest year in the FY2025 10-K's table.
Revenue $943M
How the mix changed
- Cardiometabolic health
- Oncology
- Immunology
- Neuroscience
- Other
Revenue by segment, FY2023 to FY2025.
US$
See the numbers
06The numbers · Consolidated · US$
How has Eli Lilly done?
Revenue
$65.2BFY2025
Revenue rose every year, from $28.3 billion in FY2021 to $65.2 billion in FY2025, and Q3 FY2026 revenue of $24.4 billion rose 39% from a year earlier, including about $900 million of named benefits such as $410 million of Jardiance milestones (none remain); FY2023 included about $2.0 billion from selling product rights.
US$
See the numbers
Net profit
$20.6BFY2025
Net income was $20.6 billion in FY2025 and operating income $26.3 billion, a line that appears in Lilly's earnings releases and not in its 10-K statements; in Q3 FY2026 net income rose 16%, with acquired research at $4.2 billion against $656 million a year earlier.
US$
See the numbers
Profit kept per $100 of revenue
$31.7FY2025
Net income per $100 of revenue was $31.7 in FY2025, after $0.7 of special charges and $0.9 of net interest and other costs, and operating income per $100 was $40.4, up from $28.6 in FY2024; EBITDA here is operating income plus depreciation and amortization, with FY2021 and FY2022 operating income a Cityfort calculation from FY2023 10-K, using the 10-K's lines.
$ of profit per $100 of revenue (net margin)
See the numbers
Free cash flow
$9.0BFY2025
Free cash flow here is cash from operations minus purchases of property and equipment ($9.0 billion in FY2025); it does not deduct purchases of acquired research ($3.0 billion) or acquisitions ($661 million), and FY2021 and FY2022 cash flow reflect a later reclassification of milestone payments.
US$ · cash from operations minus spending on plants and equipment
See the numbers
See all yearly numbers
EBITDA here = operating income plus depreciation and amortization (from the cash flow statement). Fiscal years are the company's own (December 31; Lilly's fiscal year is the calendar year, so Q3 FY2026 is July to September 2026). Net profit is the share belonging to the company's owners.
Learn: Stock-based compensation and dilution: pay that becomes shares
07Who runs it
Who runs Eli Lilly, and did they deliver?
David A. Ricks
Chair, President and CEO · since 2017
Holds both the chair and CEO roles. FY2025 total pay was $36,698,337, or 293 times the median employee's $125,100.
Lucas Montarce
Executive Vice President and CFO · since 2024
CFO since Sep 9, 2024 and at Lilly since 2001. He followed Anat Ashkenazi, who resigned in 2024. FY2025 total pay was $8,483,315.
What they said, and what happened
4 delivered · 3 too early to tell
Said on Feb 6, 2025
FY2025 revenue of $58.0 billion to $61.0 billion.
DeliveredWhat happened
FY2025 revenue was $65.2 billion, after Lilly raised its range during the year.
Said on Oct 30, 2025
Submit orforglipron for obesity to regulators "by the end of the year".
DeliveredWhat happened
The Q4 FY2025 release lists US, Japan and EU submissions. The FDA approved it as Foundayo, and it launched in the US in Q2 2026.
Said on Feb 12, 2026
Medicare access to discounted obesity medicines by Jul 1, 2026.
DeliveredWhat happened
The 10-Q says access runs from Jul 1, 2026 through Dec 31, 2027.
Said on Feb 12, 2026
Capital spending "meaningfully higher" in the near term.
DeliveredWhat happened
Purchases of property and equipment were $8.4 billion in the first nine months of 2026, against $5.3 billion a year earlier.
Said on Feb 4, 2026
FY2026 revenue of $80 billion to $83 billion.
Too early to tellWhat happened
Lilly raised the range to $91 billion to $92 billion on Oct 29, 2026. Revenue was $67.2 billion for nine months.
Said on Aug 5, 2026
A US application for retatrutide in Q1 2027.
Too early to tellWhat happened
The planned date has not been reached.
Said on Oct 29, 2026
EloraTZP Phase 3 trials to start in Q4 2026.
Too early to tellWhat happened
The quarter has not ended.
08What could go wrong
What could go wrong for Eli Lilly?
- Concentration
A few medicines bring in most of the revenue
Mounjaro, Zepbound and Foundayo were 66% of revenue in the first nine months of 2026. Lilly says volume swings in these medicines can have a disproportionate effect on its results.
Watch The share of revenue from these three, stated in each 10-Q.
- Pricing
Prices are falling while volume rises
Lower prices took 15% off Q3 FY2026 revenue. Medicare negotiation covers Jardiance from 2026, and Trulicity and Verzenio from 2028; Lilly expects more products to be selected (10-Q, Oct 29, 2026).
Watch The price line in each release, and Medicare selections.
- Competition
Patents and generic challengers
Generic companies notified Lilly in July 2026 that they seek to sell versions of Mounjaro and Zepbound before some patents expire, and Lilly sued in August. Lilly says Trulicity will lose significant protections in the next few years (10-K, Feb 12, 2026).
Watch The Delaware cases, and Verzenio's patent trial in May 2028.
- Competition
Copies from compounders and others
Lilly says it continues to see counterfeit, misbranded and mass-compounded incretins (10-Q, Oct 29, 2026), which it says could divert sales and push net prices down (10-K, Feb 12, 2026).
Watch Lilly's statements on compounding in each 10-Q.
- Execution
Revenue depends on rebate estimates
Q3 FY2026 revenue had about $900 million of named benefits, including favorable rebate estimate changes. Those adjustments were 2% of US revenue in the quarter.
Watch Named benefits in each release, and the rebate liability.
- Debt
Deal charges swing profit, and debt has risen
Acquired research cost $4.2 billion in Q3 FY2026, or $17.1 per $100 of revenue. Debt reached $49.5 billion at Sep 30, 2026, up from $42.5 billion at Dec 31, 2025.
Watch Acquired IPR&D per share and net debt each quarter.
- Legal
Lawsuits over medicines and pricing
Plaintiffs have sued Lilly and others since August 2023, alleging injuries after purported use of incretin medicines including Mounjaro, Trulicity and Zepbound. Separate suits relate to insulin pricing. Lilly says it is predominantly self-insured.
Watch New accruals and rulings in the two coordinated federal proceedings in Pennsylvania.
- Execution
Supply and manufacturing commitments
Lilly depends on China-based suppliers for parts of its supply chain, and names tariffs as a risk. Purchases of property and equipment reached $8.4 billion in nine months.
Watch Capital spending, inventories and any tariff terms.
09Both sides
What do supporters and critics point to?
What supporters point to
- Revenue rose every year from FY2021 to FY2025, and it rose 39% in Q3 FY2026.
- Operating income per $100 of revenue rose from $18.9 in FY2023 to $40.4 in FY2025.
- The US compound patent on tirzepatide has an estimated expiry of 2036.
- Free cash flow was $8.2 billion in Q3 FY2026, against $6.7 billion a year earlier.
- Lilly raised its FY2026 revenue range to $91 billion to $92 billion on Oct 29, 2026.
What critics point to
- Mounjaro, Zepbound and Foundayo were 66% of revenue in the first nine months of 2026.
- Prices took 15% off revenue in Q3 FY2026, and 29% outside the US.
- Generic companies have filed to sell versions of Mounjaro and Zepbound before some patents expire.
- Net debt rose from $35.2 billion to $44.6 billion in the nine months to Sep 30, 2026.
- Plaintiffs allege injuries after purported use of incretin medicines, in two coordinated federal proceedings and in state courts.
10What to watch next
What should you watch next at Eli Lilly?
Next event
Q4 FY2026 results
Date not announced yet.
Volume against price
In Q3 FY2026 volume added 53% to revenue and price took off 15%. In the US price took off 7%, and outside it 29%.
Acquired research charges
These were $4.57 per share in Q3 FY2026. Lilly's Oct 29, 2026 non-GAAPThe company's own "adjusted" numbers, not the official (GAAP) ones. Always read them next to the official figure. Learn more EPS range leaves out any after Sep 30, and Merida closed in October for up to $2.9 billion including milestones.
Foundayo and Medicare access
Foundayo brought in $184 million in Q3 FY2026, its first full quarter. Lilly names uptake in new channels and in Medicare as near-term factors for its results (10-Q, Oct 29, 2026).
11Key dates
What are the key dates for Eli Lilly?
| Event | Date | Source |
|---|---|---|
| Dividend record date ($1.73 a share) | Form 10-Q for Q3 FY2026 (ended Sep 30, 2026) | |
| Investment Community MeetingPlanned, per the Q1 FY2026 earnings release. | Earnings release, Q1 FY2026 (8-K Ex. 99.1) | |
| Dividend payment date | Form 10-Q for Q3 FY2026 (ended Sep 30, 2026) |
Learn: IPO lock-up agreements: what they are and when they end
12Key facts
Key facts about Eli Lilly
- What does Eli Lilly do?
- Eli Lilly discovers, develops, makes and sells medicines from Indianapolis, in about 90 countries. Eli Lilly's revenue was $65.2 billion in FY2025 (calendar 2025) and $24.4 billion in Q3 FY2026.
- How does Eli Lilly make money?
- Eli Lilly makes money by selling medicines, mostly through wholesalers in the US. In FY2025 Eli Lilly had $61.0 billion of net product revenue (93.5%) and $4.2 billion of collaboration and other revenue (6.5%).
- What is Eli Lilly's business model?
- Eli Lilly's business model is to discover or buy medicines, protect them with patents and sell them while that protection lasts. In FY2025 Eli Lilly kept $83.0 of gross profit per $100 of revenue and spent $20.5 per $100 on research and development.
- Is Eli Lilly profitable?
- Yes. Eli Lilly reported net income of $20.6 billion in FY2025 and operating income of $26.3 billion, the latter as stated in its earnings release. Eli Lilly's Q3 FY2026 net income was $6.5 billion, after $4.2 billion of acquired research charges.
- What is Eli Lilly's revenue by segment?
- Eli Lilly reports one segment and no profit by therapy area. Its FY2025 revenue was cardiometabolic health $48.2 billion (74.0%), oncology $9.4 billion (14.4%), immunology $5.2 billion (8.1%), neuroscience $1.4 billion (2.1%) and other $943 million (1.4%).
- Who are Eli Lilly's customers?
- Eli Lilly's largest direct customers are three US wholesalers: McKesson, Cencora and Cardinal Health, each 16% to 24% of revenue in each of FY2023 to FY2025. Eli Lilly does not report revenue by final payer, such as insurers, Medicare, Medicaid or people paying cash.
- Who owns Eli Lilly?
- Eli Lilly has one class of stock with one vote per share. Filings show Lilly Endowment at 9.6% (Sep 30, 2026), BlackRock at 6.8% (Dec 31, 2023) and Vanguard Capital Management at 6.48% (Mar 31, 2026). PNC's reported 5.4% (filed Feb 7, 2025) is mostly 50 million shares in Eli Lilly's own compensation trust. Directors and officers as a group held about 0.14% (Feb 25, 2026).
- What are Mounjaro and Zepbound?
- Mounjaro and Zepbound are Eli Lilly's brands of tirzepatide. Eli Lilly's FY2025 10-K lists Mounjaro for adults with type 2 diabetes and Zepbound for adults with obesity, or overweight with a weight-related condition. In FY2025 Mounjaro brought in $23.0 billion and Zepbound $13.5 billion.
- What is Eli Lilly's oncology business?
- Eli Lilly's oncology medicines brought in $9.4 billion in FY2025, or 14.4% of revenue. The largest is Verzenio, for certain breast cancers, with $5.7 billion in FY2025 and $1.5 billion in Q3 FY2026.
- What is Eli Lilly's immunology business?
- Eli Lilly's immunology medicines brought in $5.2 billion in FY2025, or 8.1% of revenue. The largest is Taltz, listed for conditions including plaque psoriasis, with $3.6 billion in FY2025 and $856 million in Q3 FY2026.
Go deeper
More detail from the same filings. Open any section.
13What it sells
13What it sells
What does Eli Lilly sell?
Mounjaro
Listed for adults with type 2 diabetes, with diet and exercise, to improve blood sugar control. Lilly's Oct 29, 2026 release reports FDA approval of a use to reduce cardiovascular risk in adults with type 2 diabetes. Revenue was $23.0 billion in FY2025 and $10.7 billion in Q3 FY2026.
Zepbound
The same active ingredient as Mounjaro, tirzepatide. Listed, with diet and activity, for adults with obesity, or overweight with a weight-related condition, and for moderate to severe sleep apnea in adults with obesity. Revenue was $13.5 billion in FY2025.
Foundayo
Orforglipron, which the FDA approved for obesity and Lilly launched in the US in Q2 2026. Revenue was $184 million in Q3 FY2026.
Other diabetes medicines
Trulicity ($4.3 billion in FY2025), Jardiance with partner Boehringer Ingelheim ($3.4 billion) and insulins such as Humalog and Humulin, within $4.0 billion of other cardiometabolic revenue.
Cancer medicines
Verzenio, for certain breast cancers, had $5.7 billion of FY2025 revenue. Others include Jaypirca, Retevmo and Inluriyo. Oncology totaled $9.4 billion.
Immune and brain medicines
Taltz, listed for plaque psoriasis and psoriatic arthritis among others, had $3.6 billion of FY2025 revenue. Immunology totaled $5.2 billion and neuroscience, including Kisunla for early symptomatic Alzheimer's disease, $1.4 billion.
Think of it like this
A patent works like a lease with an end date: while it runs, rivals generally cannot copy the active ingredient, and when it ends, generic copies can follow.
What it does
- Does: Discovers, develops, makes and markets human medicines in one reported segment
- Does: Sells in about 90 countries, with plants in the US, Europe and Asia
- Does: Buys other companies and drug programs, $18.2 billion of them in the first nine months of 2026
- Does: Offers LillyDirect, an online platform that delivers select medicines to patients
What it does not do
- Does not: Report profit by product or therapy area
- Does not: Dispense medicines itself on LillyDirect: third-party pharmacies do that
- Does not: Own the olanzapine portfolio or Baqsimi rights, which it sold in 2023
14How the money flows
14How the money flows · FY2025
How does money flow through Eli Lilly?
Money in
- Net product revenue$61.0B
- Collaboration and other revenue$4.2B
The company
Eli Lilly
$65.2B came in
Money out
- Cost of making medicines (cost of sales)$11.1B
- Research and development$13.3B
- Marketing, selling and admin$11.1B
- Research bought from others (acquired IPR&D)$2.9B
- Special charges and net interest and other costs$1.1B
- Income tax$5.1B
- Net income$20.6B
- Buyers paid Lilly $65.2 billion in FY2025: $61.0 billion for products and $4.2 billion from collaborations and other deals.
- That figure comes after rebates, discounts and returns took $62.1 billion off US sales.
- Making the medicines cost $11.1 billion, research took $13.3 billion, and marketing, selling and admin took $11.1 billion.
- Research projects bought from other companies cost $2.9 billion; special charges and net other costs added $1.1 billion.
- After $5.1 billion of income tax, $20.6 billion was left as net income.
15What it needs to run
15What it needs to run
What does Eli Lilly need to run?
Research
$13.3 billion of research and development in FY2025, of which $8.5 billion was late-stage (Phase 3) trials. About 12,000 of Lilly's roughly 50,000 employees work in research.
Plants
Purchases of property and equipment were $7.8 billion in FY2025 and $8.4 billion in the first nine months of 2026. New sites named include North Carolina, Wisconsin, Indiana, Virginia, Texas, Ireland and Germany.
Patents
The US compound patent on tirzepatide, sold as Mounjaro and Zepbound, has an estimated expiry of 2036. Lilly says later patents may extend protection, and exclusivity is hard to predict.
Suppliers
Lilly depends on China-based suppliers for parts of its supply chain. Agreements for medicines in development could require up to about $10 billion if minimums are not bought.
Borrowed money
Debt was $49.5 billion at Sep 30, 2026, up from $33.6 billion at Dec 31, 2024.
16Where it sells
16Where it sells · FY2025
Where does Eli Lilly sell?
- United States67%
- Europe18%
- Rest of world9%
- Japan3%
- China3%
17Competitors and what protects it
17Competitors and what protects it
Who does Eli Lilly compete with?
Novo Nordisk
Named with Lilly as a defendant in US lawsuits over incretin medicines, the class that includes Mounjaro, Trulicity and Zepbound, and in Lilly's prior peer group.
Cipla
Filed to sell a generic version of Verzenio before the compound patent expires. Lilly sued in June 2026, and trial is scheduled for May 2028.
What protects the business
Each strength is scored 1 (weak) to 5 (strong) for the business, with the reason. It is not a rating of the share.
- Patents on the main medicines4 of 5
The US compound patent on tirzepatide has an estimated expiry of 2036, but generic filers notified Lilly in July 2026 that they seek approval before some or all listed patents expire.
- Research spending4 of 5
Lilly spent $13.3 billion on research and development in FY2025, 20.5% of revenue, plus $2.9 billion on acquired research.
- Manufacturing build-out3 of 5
Purchases of property and equipment reached $7.8 billion in FY2025, up from $1.3 billion in FY2021. Lilly also depends on China-based suppliers.
- Pricing power2 of 5
Lower prices cut revenue by 6% in FY2025 and by 14% in the first nine months of 2026, while volume rose.
Weak spot
Reliance on a few medicines
Mounjaro, Zepbound and Foundayo were 66% of revenue in the first nine months of 2026. Lilly says limits on health-plan coverage of obesity medicines affect its sales volumes.
18Where growth could come from
18Where growth could come from
Where could Eli Lilly's growth come from?
Lilly said in its Q3 FY2026 earnings release (Oct 29, 2026) that it expects FY2026 revenue of $91 billion to $92 billion. On Feb 4, 2026 it had said $80 billion to $83 billion.
Mounjaro
WorkingUp 65% in Q3 FY2026
Revenue was $10.7 billion. Sales outside the US rose 93% to $5.7 billion, more than the $5.0 billion in the US.
Status: Working, on track against what the company said.
Zepbound
WorkingUp 49% in Q3 FY2026
Revenue was $5.4 billion, nearly all in the US. Medicare beneficiaries gained discounted access to obesity medicines from Jul 1, 2026 through Dec 31, 2027.
Status: Working, on track against what the company said.
Foundayo
New$184 million in Q3 FY2026
Launched in the US in Q2 2026 for obesity. Lilly has also submitted orforglipron for type 2 diabetes in the US and Japan.
Status: New, recently announced.
Outside the US
MixedVolume +76%, price -29%
Those are the effects on Q3 FY2026 revenue outside the US. Lilly ties the price drop mainly to Mounjaro joining China's national reimbursement list.
Status: Mixed, partly on track.
Retatrutide
EarlyUS filing planned Q1 2027
Lilly said on Aug 5, 2026 that it plans this application. Its 10-Q says Phase 3 trials in obesity and type 2 diabetes met their primary endpoints.
Status: Early, too early to judge.
Bought-in programs
New$18.2 billion in nine months
Lilly paid this for business development in the first nine months of 2026, including Centessa, Kelonia and AtaiBeckley. None of these programs is reported as a revenue line.
Status: New, recently announced.
Status compares progress with what the company itself said it would do: Working = on track against what the company said; Mixed = partly on track; Behind = behind the company's own plan; New = recently announced; Early = too early to judge.
19The company's own measures (non-GAAP)
19The company's own measures · FY2023 to FY2025, Q3 FY2026 and the nine months to Sep 30, 2026
What do Eli Lilly's own measures show?
Official (GAAP): Net income, FY2025
$20.6B
Company's own measure: Non-GAAP net income, FY2025
$21.8B
Lilly leaves out amortization of intangibles, impairment, restructuring and special charges, net gains or losses on equity investments and a US tax law change, with related tax effects. It keeps acquired IPR&D in, so the measure moves with deals.
Official (GAAP): Diluted EPS, FY2025
$22.95
Company's own measure: Non-GAAP diluted EPS, FY2025
$24.21
Same exclusions, per share.
Official (GAAP): Diluted EPS, FY2024
$11.71
Company's own measure: Non-GAAP diluted EPS, FY2024
$12.99
Same type of exclusions, per share.
Official (GAAP): Diluted EPS, FY2023
$5.80
Company's own measure: Non-GAAP diluted EPS, FY2023
$6.32
Same type of exclusions, per share.
Official (GAAP): Net income, Q3 FY2026
$6.5B
Company's own measure: Non-GAAP net income, Q3 FY2026
$6.7B
Up 6% from a year earlier on Lilly's measure, against 16% for net income.
Official (GAAP): Diluted EPS, Q3 FY2026
$7.22
Company's own measure: Non-GAAP diluted EPS, Q3 FY2026
$7.48
The bridge adds $0.11 of amortization and $0.18 of special charges and removes $0.04 of equity gains. It keeps $4.57 per share of acquired IPR&D.
Official (GAAP): Diluted EPS, nine months to Sep 30, 2026
$23.42
Company's own measure: Non-GAAP diluted EPS, nine months to Sep 30, 2026
$24.41
On Oct 29, 2026 Lilly said it expects FY2026 non-GAAP EPS of $35.00 to $36.00, leaving out acquired IPR&D after Sep 30, 2026, and a performance margin of 52.0% to 52.5%. That margin is gross margin minus research and marketing costs, over revenue; its FY2025 version also deducted impairment and other charges.
These are the company's own measures, defined by the company. They are not comparable across companies, and they are not added together. Each sits beside the nearest official (GAAP) figure.
Sources
Earnings release, Q4 FY2025 (8-K Ex. 99.1); Earnings release, Q4 FY2024 (8-K Ex. 99.1); Earnings release, Q3 FY2026 (8-K Ex. 99.1) and 2 more
Learn: Non-GAAP measures: what a company's "adjusted" numbers leave out
20Financial strength and debt
20Financial strength · Sep 30, 2026
How much debt does Eli Lilly have?
- Total debt$49.5B
- Cash and investments$4.9B
- Net debt (debt minus cash)$44.6B
- Net worth (shareholders' money)$40.3B
- Debt to equity
- 1.2×
- $ of debt for every $1 of shareholders' money
- Debt excludes leases. Net debt counts only cash and cash equivalents; Lilly also held about $4.1 billion of investments. Net debt is a Cityfort calculation from Q3 FY2026 10-Q.
- In the first nine months of 2026 Lilly spent $18.2 billion on business development, and goodwill rose from $5.9 billion to $9.9 billion.
- Other intangible assets rose from $6.5 billion to $18.1 billion over the same nine months.
- Inventories were $18.2 billion at Sep 30, 2026, up from $13.7 billion at Dec 31, 2025.
- Lilly completed $9.0 billion of notes in May 2026. At Dec 31, 2025 it had $10.1 billion of unused committed bank lines.
- $3.0 billion of equity is deducted for the cost of the 50 million shares in Lilly's own employee benefit trust.
21Who owns it
21Who owns it · ownership as of Feb 25, 2026
Who owns Eli Lilly?
- Officers and directors (as a group), shares
- 0.1%
Share classes
Holders of 5% or more
From the company's proxy statement (DEF 14A), later Schedule 13G filings and the share counts on its latest annual or quarterly report. Each holder row shows the date of its own filing.
Sources
Form 10-Q for Q3 FY2026 (ended Sep 30, 2026); Form 10-K for fiscal year 2025 (ended Dec 31, 2025); Schedule 13G/A, Lilly Endowment Inc., event Sep 30, 2026 and 3 more
Learn: How to read a proxy statement (DEF 14A): Nvidia's 2026 proxy · Form 4 insider filings: who files, the codes and the footnotes
22What it does with profit
22What it does with profit
What does Eli Lilly do with its profit?
Dividend per share
$6.00FY2025
Dividend paid for each share, by financial year.
$ per share
See the numbers
Buyback · Dec 31, 2025
Bought $4.1 billion of its own shares during FY2025, up from $2.5 billion in FY2024.
$4.1B
Buyback · Sep 30, 2026
Bought $4.3 billion of its own shares in the first nine months of 2026, leaving $6.6 billion on its $15.0 billion program.
$4.3B
Money raised · Aug 18, 2025
Agreed to sell $6.75 billion of senior notes.
$6.8B
Money raised · May 20, 2026
Completed $9.0 billion of notes, due from 2028 to 2066.
$9.0B
23Governance signals
23Governance signals
What do Eli Lilly's governance filings show?
- Auditor
- Ernst & Young LLP, since 1940
- Auditor changes
- None in the period covered
- Audit qualifications
- None reported
- Related-party dealings
- Lilly's 2026 proxy says there were no related party transactions required to be reported for 2025.
- Credit rating
- No public credit rating found
Flags to know about
other · May 4, 2026
Staggered board
Directors serve three-year terms. In 2026, proposals to end this and to end supermajority voting got about 70.4% and 70.3% of outstanding shares (Cityfort calculation from 8-K filed May 7, 2026 and 2026 proxy statementThe yearly filing about shareholder votes, the board and executive pay. Learn more), short of the 80% required.
other · May 4, 2026
Chair and CEO are one person
David Ricks holds both roles, and Juan Luciano is lead independent director. A 2026 proposal for an independent chair failed, with 257,292,684 votes for and 505,068,416 against.
other
Rebate estimates in the audit
The auditor names Medicaid, managed care and Medicare rebate accruals as its critical audit matter for FY2025. Lilly says a 5% change in the liability moves revenue by about $897 million.
disclosure
No payer split or product profit
Lilly gives no revenue by final payer, no exact share for each wholesaler and no profit by product or therapy area.
other
Insider share rules
Lilly's policy bars directors and officers from hedging its stock or using it as collateral for a loan. The proxy says none of their reported stock is used that way.
regulatory
Average manufacturer price case
A person suing on the government's behalf alleged Lilly and Takeda should have treated certain distributor credits as price increases in average manufacturer prices. A jury found for that person in August 2022. The appeals court affirmed in September 2025, and Lilly recognized a charge.
24What the market paid
24What the market paid · price as of Oct 30, 2026
What did the market pay for Eli Lilly on Oct 30, 2026?
Price as of Oct 30, 2026 (shown for education; prices change daily).
Price as of Oct 30, 2026: Lilly closed at $1,417.54, from Nasdaq's historical price table; Lilly's shares are listed on the NYSE. The market value of about $1,262.7 billion (Cityfort calculation from the Oct 30, 2026 closing price, the Q3 FY2026 10-Q cover and the FY2025 10-K) uses 890.7 million shares: the 940.7 million on the 10-Q cover (Oct 26, 2026) minus 50 million in Lilly's own trust, which earnings per share also leaves out. Counting the trust shares gives about $1,333.5 billion. P/E is price ÷ earnings per share: 61.8 on FY2025 diluted EPS of $22.95, and 46.0 on $30.81 for the four quarters to Q3 FY2026. Lilly's $1.73 quarterly dividend is $6.92 over four quarters, or 0.49% of that price.
- Share price
- $1,417.54
- Market value (market cap)
- $1.26T
- P/E
- 61.8×
Source: Nasdaq historical quotes for LLY (closing price Oct 30, 2026); Form 10-Q for Q3 FY2026 (ended Sep 30, 2026); Form 10-K for fiscal year 2025 (ended Dec 31, 2025) and 4 more
25How it got here
25How it got here
How did Eli Lilly get here?
1876
Milestone
Founded in Indianapolis
Colonel Eli Lilly founded the drug business, and it was incorporated in Indiana in 1901.
2021
Milestone
COVID-19 antibodies
These brought in $2.2 billion in FY2021 and $2.0 billion in FY2022, about 7% to 8% of revenue.
2023
Business-model change
Sold older product rights; launched Zepbound
Selling olanzapine and Baqsimi rights added about $2.0 billion of revenue. Zepbound launched in the US in November.
2024
Milestone
Bought Morphic
This was the main part of $3.3 billion of acquired research in FY2024. Lucas Montarce became CFO that September.
2025
Business-model change
Revenue passed $65 billion; two brands reached 56%
FY2025 revenue rose 44.7%, with Mounjaro and Zepbound at 56% of it, even as prices fell 6%.
2025
Crisis
Appeals court upheld a pricing verdict
In September the appeals court affirmed the jury's 2022 verdict in the average manufacturer price case, and Lilly recognized a charge.
2025
Business-model change
Voluntary pricing agreements
Lilly reached preliminary terms with the US government in November, including lower Medicaid prices.
2026
Business-model change
Foundayo launched; Medicare access began
Foundayo launched in the US in Q2. Medicare beneficiaries gained discounted access to obesity medicines from Jul 1.
2026
Business-model change
$18.2 billion of deals in nine months
Lilly paid $18.2 billion for business development in nine months, including Centessa, Kelonia and AtaiBeckley.
26Sources and changes
Where every number on this page comes from
Sources (28 documents)
- S1Form 10-K for fiscal year 2025 (ended Dec 31, 2025) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Feb 12, 2026
- S2Form 10-K for fiscal year 2024 · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Feb 19, 2025
- S3Form 10-K for fiscal year 2023 · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Feb 21, 2024
- S4Form 10-K for fiscal year 2022 · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Feb 22, 2023
- S6Form 10-Q for Q3 FY2026 (ended Sep 30, 2026) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Oct 29, 2026
- S7Form 10-Q for Q2 FY2026 (ended Jun 30, 2026) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Aug 5, 2026
- S8Form 10-Q for Q1 FY2026 (ended Mar 31, 2026) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
- S9Form 10-Q for Q3 FY2025 (ended Sep 30, 2025) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Oct 30, 2025
- S10Form 10-Q for Q2 FY2025 (ended Jun 30, 2025) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Aug 7, 2025
- S11Form 10-Q for Q1 FY2025 (ended Mar 31, 2025) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · May 1, 2025
- S12Earnings release, Q3 FY2026 (8-K Ex. 99.1) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Oct 29, 2026
- S13Earnings release, Q2 FY2026 (8-K Ex. 99.1) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Aug 5, 2026
- S14Earnings release, Q1 FY2026 (8-K Ex. 99.1) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Apr 30, 2026
- S15Earnings release, Q4 FY2025 (8-K Ex. 99.1) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Feb 4, 2026
- S16Earnings release, Q3 FY2025 (8-K Ex. 99.1) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Oct 30, 2025
- S17Earnings release, Q2 FY2025 (8-K Ex. 99.1) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Aug 7, 2025
- S18Earnings release, Q1 FY2025 (8-K Ex. 99.1) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · May 1, 2025
- S19Earnings release, Q4 FY2024 (8-K Ex. 99.1) · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Feb 6, 2025
- S20Proxy statement (DEF 14A) for the 2026 annual meeting · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Mar 20, 2026
- S21Schedule 13G/A, Lilly Endowment Inc., event Sep 30, 2026 · Lilly Endowment Inc. (SEC EDGAR) · Tier 1: company or exchange filing · Oct 19, 2026
- S22Schedule 13G, Vanguard Capital Management, event Mar 31, 2026 · Vanguard Capital Management (SEC EDGAR) · Tier 1: company or exchange filing · May 1, 2026
- S23Schedule 13G/A, The Vanguard Group, event Mar 13, 2026 · The Vanguard Group (SEC EDGAR) · Tier 1: company or exchange filing · Mar 26, 2026
- S24Form 8-K Item 5.07, 2026 annual meeting vote results · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · May 7, 2026
- S25Form 8-K Item 8.01, senior notes offering completed May 20, 2026 · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · May 20, 2026
- S26Form 8-K Item 8.01, senior notes underwriting agreement Aug 18, 2025 · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Aug 20, 2025
- S28Form 8-K Item 5.02, Lucas Montarce elected CFO · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Sep 9, 2024
- S29Form 8-K Item 5.02, Anat Ashkenazi resigned as CFO; interim CFO named · Eli Lilly and Company (SEC EDGAR) · Tier 1: company or exchange filing · Jul 10, 2024
- S30Nasdaq historical quotes for LLY (closing price Oct 30, 2026) · Nasdaq · Tier 1: company or exchange filing · Oct 30, 2026
Changes to this page (v2 · Nov 1, 2026)
- v2 · Nov 1, 2026Standardized calculation labels to name the filing they come from; no figures changed. (editorial update, Q3 FY2026)
- v1 · Nov 1, 2026First version. (first version)
Numbers come only from tier 1 and tier 2 sources. Read how we research.
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