In 2025, Eli Lilly and Company delivered an impressive financial performance, underscoring its leadership position in the global pharmaceutical industry and robust growth momentum. The company released its fourth-quarter and full-year financial results on February 4, revealing total revenue of $65.179 billion for the year, a 45% increase from $45.043 billion in 2024. Fourth-quarter revenue reached $19.292 billion, up 43% year-over-year. This remarkable performance was primarily driven by strong sales of key products such as Mounjaro and Zepbound. Non-GAAP earnings per share (EPS) for the year reached $24.21, an 86% increase, with fourth-quarter EPS at $7.54, up 42%. The company also issued an optimistic financial outlook for 2026, forecasting revenue between $80 billion and $83 billion, with non-GAAP EPS ranging from $33.50 to $35.00. CEO David A. Ricks stated that 2025 was a pivotal year for Eli Lilly, as the company expanded manufacturing capabilities, launched new products, and enhanced market access, reaching millions of patients. This article will comprehensively analyze Eli Lilly’s 2025 performance, focusing on financial results, product performance, R&D advancements, regulatory milestones, and future outlook.
In 2025, Eli Lilly reported total revenue of $65.179 billion, a 45% increase from $45.043 billion in 2024. Fourth-quarter revenue reached $19.292 billion, up 43%, with strong sequential growth. The main driver of this increase was a 46% growth in sales, partially offset by a 5% decrease in actual prices. U.S. market revenue grew by 43% to $12.9 billion, driven mainly by Zepbound and Mounjaro, while international revenue increased 43% to $6.4 billion, with a 38% increase in sales and a 4% positive impact from exchange rates.
On the profitability side, Eli Lilly reported a net income of $20.64 billion for the year, a 95% increase, while non-GAAP net income reached $21.768 billion, an 85% increase. Diluted EPS for the year was $22.95, up 96%, and non-GAAP diluted EPS was $24.21, up 86%. For the fourth quarter, net income was $6.636 billion, up 50%, and non-GAAP net income was $6.771 billion, up 41%. Fourth-quarter EPS came in at $7.39, an increase of 51%, while non-GAAP EPS was $7.54, a 42% increase.
The company showed excellent margin performance, with a full-year gross margin of 83.0% (reported basis) and 83.8% (non-GAAP basis). In the fourth quarter, gross margins were 82.5% (reported basis) and 83.2% (non-GAAP basis), reflecting improved production efficiency and product mix optimization. Operating expenses grew, with R&D spending up 21% to $13.337 billion (20.5% of revenue) and marketing and administration expenses increasing by 29% to $11.094 billion, supporting product launches and promotions.
Cash flow remained strong, supporting a 15% increase in dividends to $6.00 per share. The weighted average shares outstanding decreased slightly to 899 million (diluted), compared to 904 million in 2024, which boosted EPS.
Non-GAAP results exclude one-time items, offering a clearer picture of operational performance. Adjustments included amortization of intangible assets ($488 million), asset impairment and restructuring costs ($484 million), gains and losses from equity investments (-$33 million), and the impact of U.S. tax law changes ($350 million). The effective tax rate rose from 16.5% in 2024 to 19.8%, primarily due to U.S. tax law changes and shifts in profit distribution across jurisdictions.
Eli Lilly’s growth was mainly driven by Mounjaro and Zepbound, which contributed significantly to the revenue increase in 2025:
Mounjaro (Tirzepatide): The drug generated $22.965 billion in revenue for the year, a 99% increase, with fourth-quarter sales reaching $7.409 billion, up 110%. U.S. revenue grew 57% to $4.1 billion, driven by strong demand, while international sales rose to $3.3 billion, reflecting successful global expansion.
Zepbound (Tirzepatide for Obesity): Zepbound generated $13.542 billion in revenue, a 175% increase for the year, with fourth-quarter sales of $4.261 billion, up 123%. U.S. performance was particularly strong, solidifying its leadership in the obesity treatment market.
Verzenio (Abemaciclib): Verzenio saw $5.723 billion in annual revenue, an 8% increase, with fourth-quarter sales of $1.604 billion, up 3%. U.S. market sales dropped 4% to $997 million, but international markets grew by 18% to $608 million, partially offsetting the decline.
Key products, including Mounjaro, Zepbound, and others like Ebglyss, Inluriyo, Jaypirca, Kisunla, Omvoh, and Verzenio, together accounted for $13.8 billion in fourth-quarter sales, representing 71.5% of total revenue, reflecting both product concentration and synergistic effects within the portfolio.
Eli Lilly’s product portfolio remains well-balanced, with growth potential across various therapeutic areas. Diabetes and obesity treatments, especially Mounjaro and Zepbound, are key growth engines, while oncology products like Verzenio provide stable contributions. The company maximizes the value of its products through lifecycle management and expanding indications. Although actual prices fell by 5%, the 46% increase in sales volume more than offset this decline, demonstrating the effectiveness of its volume-driven strategy.
In 2025, Eli Lilly made several breakthroughs in its research pipeline:
Combination Therapy Milestones: A phase 3 trial of Taltz (ixekizumab) combined with Zepbound for active psoriatic arthritis and obesity patients showed excellent results, paving the way for new combination treatments.
Oral Therapy Advancements: The oral GLP-1 receptor agonist orforglipron demonstrated in phase 3 trials that patients switching from injectable GLP-1 treatments to the oral version could effectively maintain weight loss.
New Molecular Entities: Retatrutide (a triple agonist) showed an average weight loss of 71.2 pounds in a phase 3 trial and significantly alleviated osteoarthritis pain. The selective amyloid polypeptide agonist eloralintide demonstrated good weight loss results and tolerability in a phase 2 trial.
Oncology Developments: Jaypirca (pirtobrutinib) improved progression-free survival by 80% in first-line CLL/SLL patients. Sofetabart mipitecan, an investigational treatment for soft tissue sarcoma, received breakthrough therapy designation from the FDA.
These innovations highlight Eli Lilly’s leadership in metabolic diseases and oncology, with a pipeline poised to drive future growth.
Eli Lilly achieved key regulatory milestones:
FDA Approval: The FDA approved the Kwikpen formulation of Tirzepatide, enhancing ease of use for patients. The indication for Jaypirca was expanded to include patients with treated CLL/SLL.
Filing Submissions: Eli Lilly submitted orforglipron for approval in the U.S., Japan, and the EU for obesity and type 2 diabetes. These filings lay the foundation for future commercialization, with expected revenue contributions in 2026-2027.
Eli Lilly is actively expanding its manufacturing capabilities to meet growing demand:
A $6 billion investment to build an active pharmaceutical ingredient production facility in Alabama.
A $3 billion investment in Europe to establish an oral dosage form manufacturing plant.
New injectable and device production facilities in Pennsylvania, along with the Lilly Gateway Labs R&D center in Philadelphia.
These investments ensure product supply and support long-term growth.
Eli Lilly strengthened its pipeline and platforms through strategic partnerships and acquisitions:
A collaboration with NVIDIA to build an AI lab for transforming drug discovery.
The acquisition of Ventyx Biosciences to enhance its oral inflammation disease pipeline.
The acquisition of Adverum to expand its gene therapy capabilities.
A partnership with the U.S. government to increase the accessibility of obesity medications.
These initiatives reflect Eli Lilly’s commitment to driving innovation both internally and externally.
Eli Lilly is forecasting strong growth for 2026:
Revenue: Expected to reach $80 billion to $83 billion, a 23-28% increase year-over-year.
Non-GAAP EPS: Expected to be $33.50 to $35.00, reflecting a 38-45% increase.
Operating Margin: Expected to be between 46.0% and 47.5%, demonstrating enhanced operational efficiency.
Tax Rate: Expected to remain stable at 18% to 19%.
Growth drivers include continued volume expansion of Mounjaro and Zepbound, new drug launches like orforglipron, and further market expansion. CEO David A. Ricks highlighted that 2026 marks the 150th anniversary of Eli Lilly’s founding, and with a strong pipeline and platforms like LillyDirect, the company is poised to reach more patients and expand its global impact.
Despite risks such as pricing pressures, increased competition, and regulatory uncertainties, Eli Lilly is well-positioned to navigate these challenges through innovation and operational efficiencies.
