Q3 2026 results
| Metric | Result | Change |
|---|---|---|
| Revenue growth | 39% | versus Q3 2025 |
| Gross margin | 84.4% | increased 80 basis points |
| Non-GAAP EPS | $7.48 | versus $7.02 in Q3 2025 |
| Non-GAAP performance margin | 54.2% | increased 5.9 percentage points |
| Mounjaro and Zepbound combined revenue | $16 billion | $6 billion growth versus Q3 2025 |
Guidance and outlook
- Full year 2026 revenue is expected to be between $91 billion and $92 billion.
- Non-GAAP performance margin is expected to be between 52% and 52.5%.
- Non-GAAP earnings per share are expected to be $35 to $36.
How management sounded
Positive (+7 on our -10 to +10 scale). Management raised full-year guidance and highlighted strong volume growth across key therapeutic areas, particularly in the incretin portfolio. Management sounded more upbeat than on 48% of the 190 calls we cover; most companies sound positive on their own calls, so the comparison says more than the label.
Q&A summary
Incretin market runway
Asked: Is the incretin opportunity larger than anticipated or just a pull-forward?
Answer: Management believes they are still scratching the surface, reaching only a small fraction of potential patients, suggesting a long-term growth runway.
Medicare Bridge program
Asked: What is the split between injectable and pill in the Medicare Bridge channel?
Answer: About 75% of patients in the Bridge program are choosing injectable therapy, and 80% of patients are naive to incretin therapy.
Foundayo launch
Asked: How is the Foundayo launch progressing internationally and in the U.S.?
Answer: The launch is in line with expectations, with strong uptake in new markets and 4 out of 10 new obesity patients in the U.S. choosing Foundayo.
Pipeline strategy
Asked: How does the company view the risk-reward balance of its M&A and pipeline strategy?
Answer: Management views risk as a tool to create value and is focused on acquiring great science and products rather than solving for a specific therapeutic area.
What to watch before the next call
- The upcoming Lilly Innovation Day on December 7, 2026.
- Regulatory action for Foundayo in type 2 diabetes expected in Q4.
- The readout of the EMBER-4 study in 2027.
- The transition of the Medicare GLP-1 Bridge program for the 2028 calendar year.
