Eli Lilly stock surged after the company reported Q1 2025 revenue of $12.73 billion, a 45% year-over-year increase fueled by blockbuster sales of Mounjaro and Zepbound.
The Eli Lilly stock surge was primarily driven by skyrocketing sales of its blockbuster drugs Mounjaro and Zepbound, which continue to dominate the weight-loss and diabetes treatment markets.
Shares of LLY rose 1.55% in response to the strong quarterly earnings and promising pipeline news, reinforcing its position as a top performer in the pharmaceutical sector.
Growth Powered by In-Demand Treatments
According to the company’s press release, volume growth rose 53% globally, especially in the U.S., where revenue climbed 49% to $8.49 billion. Mounjaro and Zepbound led the charge, contributing significantly to the $4.09 billion increase in revenue from Lilly’s key products.
Outside the U.S., revenue jumped 38%, helped by strong demand for Mounjaro and a one-time $370 million benefit from Jardiance, due to a collaboration agreement restructuring with Boehringer Ingelheim.
Bottom Line: Strong Profits Despite Pricing Pressure
- Reported net income: $2.76 billion (up 23%)
- Non-GAAP net income: $3.00 billion (up 29%)
- Reported EPS: $3.06
- Non-GAAP EPS: $3.34
These results include $1.72 per share in acquired R&D charges, but even with those factored in, Lilly exceeded analyst expectations.
The company reaffirmed full-year 2025 revenue guidance between $58 billion and $61 billion, indicating confidence in continued demand and growth.
Pipeline Milestones: Orforglipron Takes the Spotlight
Beyond financials, Eli Lilly’s pipeline is making serious headlines. The company reported positive Phase 3 trial results for orforglipron, its oral GLP-1 agonist designed to treat Type 2 diabetes and obesity. This is the first of seven late-stage trials, and the early success sets the tone for what could become a game-changing product in oral weight-loss medication.
The progress underscores Lilly’s push to remain at the forefront of incretin therapies, a class of drugs revolutionizing treatment for metabolic conditions.
Manufacturing Expansion: Scaling Up for Global Demand
With demand showing no signs of slowing, Lilly is planning ahead. CEO David Ricks confirmed that the company is accelerating its manufacturing capacity, including plans to build four new production facilities globally. This move aims to ensure supply stability as prescriptions for Mounjaro and Zepbound continue to soar.
What It Means for Investors
Lilly’s stellar Q1 report strengthens its bullish outlook and confirms the GLP-1 gold rush is far from over. Mounjaro and Zepbound are doing the heavy lifting, but the successful orforglipron trial hints at even more upside ahead, especially in the growing market for oral weight-loss drugs.
With its share price already riding high and a rock-solid pipeline backing its valuation, LLY continues to be a stock to watch in the pharma space.
