Lilly Raises Price Target as GLP‑1 Franchise Drives Record Results

Lilly (LLY) jumped to a record close after reporting a strong third‑quarter performance, propelled by continued momentum in its obesity and diabetes portfolio. Revenue rose 39% year‑over‑year to $24.4 billion, outpacing the LSEG consensus of $22.6 billion, while adjusted earnings per share increased 6.6% to $7.48, exceeding analyst expectations of $6.26. Adjusted gross margin improved to 84.4%, above the 82.7% consensus, and the company raised its full‑year 2026 revenue guidance to $91‑$92 billion from $85‑$87 billion. The robust results were led by its GLP‑1 medicines: Mounjaro’s sales climbed 65% to $10.7 billion, with international growth of 93% to $5.7 billion, and Zepbound revenue increased 49% to $5.35 billion, both beating estimates. Although oral Foundayo lagged behind consensus at $184 million, the drug continues to gain market share, now accounting for roughly 40% of new obesity‑pill prescriptions in the U.S. The company also highlighted progress under the Medicare Bridge program, with more than 500,000 seniors accessing Lilly therapies and seven out of ten new Bridge patients starting on a Lilly product. Executives affirmed expectations for sustained volume growth in the GLP‑1 market and unveiled a new price target of $1,500 per share, up from $1,300, while maintaining an Outperform rating. The upcoming investor day on December 7 will focus on pipeline assets such as retatrutide and eloralintide, which are positioned as next‑generation treatments. Overall, Lilly’s strong fundamentals and expanding access initiatives support a bullish outlook for the stock.

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