Eli Lilly Shares Surge 10% as Weight-Loss Drug Sales Drive Profits to Nearly Double
Shares of Eli Lilly and Company (NYSE: LLY) surged more than 10% on Wednesday, closing at a record $1,107.12, after the pharmaceutical giant reported that its annual profit nearly doubled, powered by the meteoric rise of its weight-loss and diabetes drugs.
The company announced that net income for the year skyrocketed 95% to $20.6 billion, up from $10.59 billion in the previous year. Revenue climbed 45% to $65 billion, driven overwhelmingly by the launch of Zepbound and sustained demand for Mounjaro. In the critical fourth quarter alone, net income jumped 50% year-over-year to $6.6 billion on revenue of $19.29 billion.
"The numbers are staggering, but they reflect a fundamental shift in the healthcare market," said Michael Reeves, a portfolio manager at Horizon Capital Advisors. "Lilly has successfully tapped into a massive, addressable population with chronic conditions, and demand shows no sign of slowing. This isn't just a quarterly beat; it's a validation of their long-term pipeline."
Bolstered by this performance, Eli Lilly provided an ambitious outlook, forecasting 2026 revenue in the range of $80 billion to $83 billion. This implies a growth rate of 23% to 28% from 2024 levels. The company also set its earnings per share guidance between $33.50 and $35.
Following the earnings release, Goldman Sachs reaffirmed its "Buy" rating on the stock and maintained a price target of $1,150, citing the company's dominant position in the lucrative GLP-1 drug market.
However, the stratospheric rise has sparked debate about market concentration and valuation. "This is pure euphoria, and it's distorting the entire healthcare sector," argued Sarah Chen, a healthcare policy analyst at the Consumer Watchdog Group, her tone sharp with criticism. "One company's windfall from drugs costing over $1,000 a month highlights everything wrong with pharmaceutical pricing. The stock surge is a symptom of a broken system, not just business success."
David Miller, a retail investor from Tampa, Florida, offered a more measured view: "As a long-term shareholder, I'm thrilled, of course. But the guidance for 2026 sets a very high bar. The question now is about execution and competition. Can they maintain this momentum for years?"
The results underscore Eli Lilly's transformation into a titan of the metabolic health sector, a position that is increasingly influencing broader market indices and investor portfolios.
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Disclosure: None. This article is based on publicly available information and was originally reported by Insider Monkey.