Eli Lilly and Co. (NYSE:LLY) reported better-than-expected third-quarter earnings on Thursday and boosted its annual forecast, sending the stock higher.
The U.S. weight loss drug giant reported quarterly revenue of $17.60 billion, up 54% year over year, beating the consensus of $16.02 billion. This growth was driven by a 62% increase in volume, partially offset by a 10% decrease due to lower realized prices.
The company reported an adjusted earnings per share of $7.02, a sharp jump from $1.18 a year ago, beating the consensus of $5.70.
Analyst Take
Goldman Sachs on Friday wrote, "Headed into 2026, we continue to see LLY as optimally positioned into the launch of orforglipron, which represents one of the most significant new product cycles across our entire biopharma coverage."
Asad Haider maintains a Buy rating and raised the price forecast from $879 to $951.
Goldman analyst expects lumpiness in outside U.S. Mounjaro sales to continue.
The analyst comments that the company's implied FY25 guidance of $63.0-$63.5 billion likely bakes in some level of conservatism and implies a potential sequential step down in outside U.S. Mounjaro revenue of $3 billion from the third quarter.
Amid rising M&A activity and soaring premiums for next-generation obesity assets, Eli Lilly management said the company is already well-positioned with strong programs across all key targets.
While rivals seek to strengthen their obesity pipelines, Lilly remains focused on defending and expanding its lead.
Goldman Sachs said Lilly's broad portfolio across current and emerging obesity treatments underpins its bullish outlook on the stock.
BofA Securities rates Eli Lilly as Buy, reflecting its outsized/durable growth potential versus peers, and the very full catalyst path at a reasonable valuation.
Analyst Tim Anderson admits several moving parts to the Eli Lilly story, and binary event risk, both near- and intermediate-term.
BofA says, "LLY undisputably remains in pole position in obesity." The analyst raised the price forecast from $900 to $950.
Discussing M&A and competitor dynamics, Eli Lilly told BofA that it has robust programs against many targets.
Competition is expected, but nothing so far changes confidence in Eli Lilly's portfolio. BofA adds that the company remains highly scaled and focused on innovation and execution, even as market dynamics and noise from rivals increase.
LLY Price Action: Eli Lilly shares were up 2.39% at $864.70 at the time of publication on Friday, according to Benzinga Pro data.
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