Eli Lilly's stock surged 6% after the pharmaceutical company increased its annual profit projection, according to reports.
Strong demand for its diabetes and weight-loss medications led to this expansion, while Mounjaro's sales increased by 91% to record-high figures for the quarter. Before Wall Street opened, the scrip was worth $1,177.79, a 5.57% increase.
Despite price pressure and growing competition from Novo Nordisk, which introduced an oral form of its weight-loss medication, Wegovy, in the United States earlier this year, the robust results should reassure investors that demand for Lilly's GLP-1 medicines is resilient, according to a report by Reuters.
Mounjaro, a medication for diabetes, saw a 91% increase in sales to $9.94 billion, surpassing analysts' projections, while Zepbound, a medication for obesity, took in $4.93 billion as opposed to $4.73 billion. In the most recent quarter, the two medications made up 64.7% of Lilly's revenue.
Although lower realised prices somewhat offset those gains, strong demand increased sales volumes across worldwide markets, with Mounjaro driving growth outside the United States and both Mounjaro and Zepbound boosting US sales, according to Lilly.
The lucrative obesity sector is dominated by Novo and Lilly. While Novo's recently introduced Wegovy medication is rapidly finding traction in its U.S. rollout, Lilly hit a $1 trillion valuation last year.
According to research firm IQVIA, the worldwide market for obesity medications reached $66 billion in 2025. By 2030, analysts predict it will surpass $100 billion in the United States alone.
Sales of Lilly's recently introduced once-daily obesity drug, Foundayo, came in at $98 million, less than the average of $105.6 million predicted by analysts. In contrast to its earlier estimate of $82 billion to $85 billion, Lilly now anticipates revenue of $85 billion to $87 billion.
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Due to expenses associated with commercial activity during the quarter, Lilly reduced the upper end of its full-year profit expectation.
From its previous estimate of $35.50 to $37, it now anticipates adjusted full-year earnings per share of $35.50 to $36.50 in 2026. A $34.20 profit per share was anticipated by analysts.
According to data compiled by LSEG, adjusted earnings for the quarter ended June 30 came in at $8.38 per share, compared with analysts' average estimate of $6.01.
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