Eli Lilly Surges Past Q1 Estimates, Acquires Three Biotechs for $3.83B
Eli Lilly reported first-quarter 2026 financial results that exceeded analyst expectations, while simultaneously announcing the acquisition of three biotechnology companies for a total of approximately $3.83 billion to expand into infectious disease research. The company also raised its full-year 2026 revenue and profit outlook.
First-Quarter Financial Results
Adjusted earnings per share for the first quarter of 2026 were $8.55, compared to the consensus analyst estimate of $6.66. Revenue reached $19.80 billion, surpassing the forecast of $17.62 billion.
Net income was $7.40 billion, or $8.26 per share, up from $2.76 billion, or $3.06 per share, in the same period of the previous year. Total revenue increased 56% year-over-year.
U.S. revenue rose 43% to $12.1 billion. This was driven by a 49% increase in volume, primarily from Mounjaro and Zepbound, partially offset by lower realized prices for Zepbound and another medication.
Product Revenue
- Mounjaro (diabetes): Worldwide revenue grew 125% to $8.66 billion, with U.S. sales of $4.2 billion. Analysts had expected global sales of $7.26 billion.
- Zepbound (obesity): U.S. revenue was $4.16 billion, an increase of 80% year-over-year. Analysts had expected $4.04 billion.
Market Position
According to Eli Lilly's earnings presentation, the company held a 60.1% share of the U.S. obesity and diabetes GLP-1 drug market in the first quarter. Novo Nordisk held 39.4%.
2026 Financial Outlook
The company raised its full-year adjusted profit forecast to $35.50–$37.00 per share, from the prior range of $33.50–$35.00. It also increased its 2026 revenue outlook to $82–$85 billion, up from $80–$83 billion.
New Product Launch
The company’s newly approved oral GLP-1 obesity drug, Foundayo, launched in the second quarter. Its sales were not included in the first-quarter report. According to a Leerink Partners analyst note, early prescription data indicate a modest initial rollout.
Acquisitions
Eli Lilly announced plans on Tuesday to acquire three companies for a total of approximately $3.83 billion in cash, aiming to expand research and development into infectious diseases.
- Curevo: Acquired for $1.5 billion. The company developed a vaccine for shingles prevention in adults using a synthetic adjuvant intended to improve tolerability and reduce side effects.
- LimmaTech Biologics: Acquired for $780 million. The company focuses on bacterial pathogens including sexually transmitted infections such as Neisseria gonorrhoeae and Chlamydia trachomatis, addressing antimicrobial drug resistance.
- Vaccine Company: Acquired for $1.55 billion. The company develops In Vivo Nanoparticle (IVN) technologies for delivering drugs, genetic material, or diagnostic sensors to combat viral pathogens like Epstein-Barr Virus.
Daniel M. Skovronsky, chief scientific and product officer and president of Eli Lilly, stated: "These acquisitions reflect a deliberate strategy to prevent disease at its source rather than treat its consequences."
Stock Movement
Eli Lilly's shares rose 1.3% in premarket trading following the acquisition announcement.