AI Takeaway
Eli Lilly delivered an exceptional Q1 2026, with revenue surging 55.5% YoY to $19.8B and net income soaring 168.1% to $7.4B, driven by continued explosive demand for its GLP-1 and diabetes/obesity portfolio.
Revenue
$19.8B
++55.54% YoY
EPS (Basic)
$8.27
++169.38% YoY
Filed · Source: SEC EDGAR 10-Q filing
Revenue jumped from $12.7B in Q1 2025 to $19.8B in Q1 2026, a 55.5% YoY increase, reflecting strong commercial momentum across Lilly's key therapeutic franchises, particularly in diabetes and obesity treatments.
Source: Source: 10-Q Income Statement, Q1 2026
Net income grew 168.1% YoY to $7.4B, with net margin expanding dramatically to 37.4% from approximately 21.7% in the prior year period, indicating significant operating leverage as revenue scales faster than costs.
Source: Source: 10-Q Income Statement, Q1 2026
Cost of revenue rose 60.8% YoY to $3.6B, slightly faster than revenue growth of 55.5%, suggesting some manufacturing scale-up costs, though gross profit still expanded substantially in absolute terms.
Source: Source: 10-Q Income Statement, Q1 2026
2 more insights available
Upgrade to unlockLilly's ability to meet surging demand for its GLP-1 products depends heavily on rapid manufacturing scale-up. Cost of revenue grew 60.8% YoY, faster than revenue, suggesting ongoing production ramp costs. Any delays or failures in capacity expansion could limit revenue growth and damage market share.
Source: Source: 10-Q Income Statement & Cash Flow Statement, Q1 2026
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $8.55 versus the $6.73 analyst consensus — a +27.0% beat for Q1 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $19.8B | $12.73B | +55.54% |
Cost of Revenue | $3.58B | $2.23B | +60.76% |
Net Income | $7.4B | $2.76B | +168.07% |
EPS (Basic) | $8.27 | $3.07 | +169.38% |
EPS (Diluted) | $8.26 | $3.06 | +169.93% |
SG&A Expense | $2.93B | $2.47B | +18.88% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $116.58B | $89.39B | +30.41% |
Current Assets | $54.84B | $41.26B | +32.90% |
Current Liabilities | $36.63B | $30.07B | +21.84% |
Stockholders' Equity | $31.2B | $15.76B | +97.90% |
Cash & Equivalents | $5.28B | $3.09B | +70.76% |
Long-Term Debt | $39.37B | $34.5B | +14.12% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $5.33B | $1.67B | +220.11% |
Investing Cash Flow | $-3.92B | $-3.35B | -16.79% |
Financing Cash Flow | $-3.47B | $1.38B | -351.45% |
Dividends Paid | $1.55B | $1.35B | +15.01% |
Share Buybacks | $2.36B | $1.2B | +96.33% |
D&A | $509M | $463M | +9.94% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 37.4% | — | — |
ROE | 23.7% | — | — |
ROA | 6.3% | — | — |
Current Ratio | $1.497 | — | — |
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Eli Lilly reported Q1 2026 revenue of $19.8B, up 55.5% from $12.7B in Q1 2025. Net income was $7.4B, a 168.1% increase YoY, with diluted EPS of $8.26 versus $3.06 in the prior year period.
Lilly's Q1 2026 revenue surge of 55.5% YoY to $19.8B was primarily driven by continued explosive demand for its GLP-1 diabetes and obesity treatments. The company also demonstrated strong operating leverage, with SG&A growing only 18.9% against 55.5% revenue growth, resulting in net margin expanding to 37.4%.
Lilly's financial health is strong, with operating cash flow of $5.3B (up 220% YoY), a current ratio of 1.50, and stockholders' equity nearly doubling to $31.2B. However, long-term debt stands at $39.4B and the company is aggressively deploying capital through $2.4B in buybacks and $1.5B in dividends in a single quarter.
Key risks include manufacturing capacity constraints as cost of revenue grew faster than revenue (60.8% vs 55.5%), high product concentration in GLP-1 drugs, and a long-term debt load of $39.4B. Pricing pressure from payers and government programs on GLP-1 drugs also represents a medium-term risk to margins.
Yes, Lilly's diluted EPS grew 169.9% YoY to $8.26 in Q1 2026, compared to $3.06 in Q1 2025. This growth was driven by both the 168.1% surge in net income and the company's active share repurchase program, which spent $2.4B on buybacks in the quarter.