Eli Lilly and Co posted better-than-expected quarterly results and raised its full-year revenue forecast on Wednesday, banking on sustained demand for its blockbuster GLP-1 weight-loss and diabetes drugs, sending its shares up 5 per cent in premarket trading. The strong results are likely to reassure investors that demand for Lilly’s GLP-1 treatments remains resilient despite pricing pressure and intensifying competition from Novo Nordisk, which launched an oral version of its weight-loss drug, Wegovy, in the U.S. earlier this year. Lilly and Novo dominate the lucrative obesity market. Lilly surpassed a US$1 trillion valuation last year, while Novo’s newly launched Wegovy pill is quickly gaining traction in its U.S. rollout. The global market for obesity drugs reached US$66 billion in 2025, according to data firm IQVIA. Analysts expect it to hit over US$100 billion by 2030 in the U.S. alone. Investors have largely been focussing on sales of Lilly’s diabetes treatment, Mounjaro, and obesity drug, Zepbound, which together accounted for a 64.7 per cent share of the company’s revenue in the latest reported quarter. Sales of diabetes drug Mounjaro rose 91 per cent to US$9.94 billion, beating estimates, while Zepbound brought in US$4.93 billion, against expectations of US$4.73 billion. Sales of Foundayo, Lilly’s newly launched once-daily obesity pill, came in at US$98 million, missing analysts’ average expectation of US$105.6 million. Lilly now expects revenue of US$85 billion to US$87 billion, compared with its previous forecast of US$82 billion to US$85 billion. The revised forecast comes less than a day after rival Novo also raised its full-year profit and sales forecasts, banking on its oral pill to help claw back lost ground from Lilly in the lucrative obesity market. Lilly, however, slightly trimmed the top end of its full-year profit forecast, citing charges related to business activity in the quarter. It now expects 2026 adjusted full-year earnings per share of US$35.50 to US$36.50, from its prior forecast of US$35.50 to US$37. Analysts were expecting a profit of US$34.20 per share. Adjusted earnings came in at US$8.38 per share for the quarter ended June 30, compared with analysts’ average estimate of US$6.01, according to data compiled by LSEG. (Reporting by Mariam Sunny and Mrinalika Roy in Bengaluru; Editing by Anil D’Silva)
