research report · LLY

Eli Lilly & Co

Johannes Vermeer, Woman Holding a Balance, c. 1664, detail · National Gallery of Art

Viridis’s deep research report, written Oct 31, 2026 from its quarterly report (10-Q for the quarter ended Sep 30, 2026, filed Oct 29, 2026). Written and checked with Anthropic’s Claude models.

your email, no card; what you get

business trajectory

Improving

better on balance: sales, margins, cash or competitive position

financial resilience

Strong

can meet its obligations and fund its plan for two years with money it can count on, with room

Judgments of the business from its filings, not of its shares: no valuation, no advice.

bottom line

Lilly's business got stronger this quarter. Third-quarter revenue rose 39% to $24.4B on 53% higher volume, and nine-month operating cash flow doubled to $27.4B. The strength rests on one drug family: tirzepatide (sold as Mounjaro and Zepbound) plus the pill Foundayo made 66% of nine-month revenue. About $900M of the quarter's revenue will not recur. Operating cash comfortably covers factory building and shareholder payouts, but $18.2B of deals in nine months was paid for partly with $7.0B of added debt. That borrowing was a choice, not a sign of strain.

what changed this quarter

  • Revenue was $24,397M vs $17,601M (+39%). Net income was $6,451M vs $5,583M (+16%). Diluted earnings per share (EPS) were $7.22 vs $6.21, after $4.57 per share of charges for acquired in-process research and development (IPR&D).
  • 2026 guidance: revenue raised to $91–92B from $85–87B. Non-GAAP EPS moved to $35.00–36.00 from $35.50–36.50; an underlying raise was more than offset by the Q3 research charges.
  • About $900M of Q3 revenue came from one-time benefits, chiefly a $410M final Jardiance milestone and favorable changes to rebate estimates.
  • AtaiBeckley closed in Q3, and Merida Biosciences closed in October for up to $2.9B.
  • Lilly received notice in July 2026 that generic makers had filed to copy Mounjaro and/or Zepbound; Lilly sued them in August.

in the full report

Its findings, each with the evidence, the strongest counterpoint and what would prove it wrong:

  • Tirzepatide volume is outrunning price cuts, and the company leans on it more each quarter
  • The headline quarter is flattered by items that will not repeat, and guidance implies a flat finish
  • Operating cash covers factories and payouts, but debt is paying for the deals
  • Net price keeps falling as volume shifts to government and lower-priced channels

Then its finances, the quality of its earnings, its management, the case for and against, and what to watch, its claims cited to the filings and checked against them.

read it whole

Your email and the code we send it, no card. The report then opens: a free account has 2 free reports a month from the library, the reports already written. Already have a Viridis account? Use its email, and the report goes on it. You also see what LLY files, free: its deadlines and its red flags.

Subscribe: your plan’s reports work on any company that files with the SEC, written for you if nobody has asked yet, and each new one on the companies you choose comes as they file.

In Claude or ChatGPT, ask: “What does Viridis's report on LLY say?” Add Viridis to Claude, or to ChatGPT.