Eli Lilly Shares Surge on Weight-Loss Drug Momentum. Is It Time to Buy the Stock?

The stock terms of Eli Lilly (NYSE: LLY) jumped past week aft the drugmaker reported beardown income of its GLP-1 weight-loss drugs and issued upbeat 2026 guidance. The banal is present up much than 30% implicit the past year.

Let's instrumentality a person look astatine Eli Lilly's latest results and prospects to spot if the stock's momentum tin continue.

Where to put $1,000 close now? Our expert squad conscionable revealed what they judge are the 10 champion stocks to bargain close now, erstwhile you articulation Stock Advisor. See the stocks »

Lilly's GLP-1 drugs proceed to beryllium the company's biggest maturation driver. In Q4, income of Mounjaro surged 110% to $7.4 billion, portion Zepbound gross soared 123% from $1.9 cardinal a twelvemonth agone to $4.3 billion. Its third-largest drug, Verzenio (treats bosom cancer), saw income emergence 3% to $1.6 billion.

Mounjaro and Zepbound person the aforesaid progressive ingredient, tirzepatide, but the Food and Drug Administration (FDA) has approved them for antithetic usage cases. Mounjaro is approved to assistance little the humor glucose levels successful adults with benignant 2 diabetes, portion Zepbound is approved to dainty value nonaccomplishment successful obese adults oregon overweight adults who person astatine slightest 1 related ailment, similar precocious cholesterol. That said, some drugs are mostly prescribed off-label to assistance radical suffer weight.

Overall, Lilly grew its Q4 gross by 43% to $19.29 billion, portion adjusted net per stock (EPS) jumped 42% to $7.54. The results cruised past expert expectations, arsenic compiled by LSEG, for adjusted EPS of $6.67 connected income of $17.96 billion.

Looking ahead, the institution guided for 2026 gross of betwixt $80 cardinal and $83 billion, representing 25% maturation astatine the midpoint. It forecasted adjusted EPS to scope from $33.50 to $35. Its projections were good up of the consensus, which was looking for EPS of $33.23 connected income of $77.72 billion.

Lilly's robust outlook for 2026 stems from the expected beardown continued request for some Mounjaro and Zepbound, which could beryllium bolstered by the drugs being covered by Medicare aboriginal this year. Meanwhile, the institution expects its adjacent large GLP-1 blockbuster drug, orforglipron, to beryllium approved for obesity successful Q2.

Given that orforglipron is simply a pill taken orally alternatively of by injection, Lilly has a large accidental to greatly grow the already immense marketplace for GLP-1 drugs, arsenic galore radical don't similar jabbing themselves with needles. Orforglipron besides doesn't request specialized injection pens oregon acold retention and transport, truthful it should beryllium capable to beryllium ramped up much rapidly than earlier injectable drugs.