Eli Lilly and Company (LLY) raised its full-year 2026 revenue outlook for a second consecutive quarter, lifting the range to $85.0 billion to $87.0 billion after worldwide sales reached $23.0 billion in the second quarter.

The Indianapolis medicine company reported continued strong revenue performance in the quarter, even as year-over-year growth slowed. Revenue rose 48% from a year earlier, after 56% growth in the first quarter and 43% in the fourth quarter of 2025.

Volume still carried the top line. Worldwide volume rose 60%, while realized prices fell 13%, matching the first-quarter price decline. Key Products revenue grew to $15.7 billion, led by Mounjaro and Zepbound. Key Products in Immunology, Oncology, and Neuroscience grew 121%.

Mounjaro worldwide revenue increased 91% to $9.9 billion. U.S. Mounjaro rose 45% to $4.8 billion. Revenue outside the U.S. rose 172% to $5.2 billion, driven primarily by volume and partially offset by lower realized prices after Mounjaro’s addition to China’s National Reimbursement Drug List. U.S. Zepbound revenue increased 44% to $4.9 billion, driven primarily by demand and partially offset by lower realized prices, including previously announced cash-pay reductions.

U.S. revenue rose 33% to $14.4 billion, slower than 43% growth in both the first quarter and the fourth quarter of 2025. U.S. volume rose 37%. U.S. realized prices fell 3%. Revenue outside the U.S. increased 80% to $8.6 billion. Ex-U.S. volume rose 113%. Ex-U.S. realized prices fell 36%, driven primarily by Mounjaro’s NRDL listing. Jardiance revenue outside the U.S. included a $250 million sales-based milestone tied to the Boehringer Ingelheim collaboration.

Gross margin as a percentage of revenue was 85.8% reported, up 1.5 percentage points from a year earlier. The increase was driven primarily by improved cost of production and favorable product mix, partially offset by lower realized prices. Research and development expenses increased 14% to $3.8 billion, or 17% of revenue. Marketing, selling, and administrative expenses increased 25% to $3.4 billion.

Reported earnings were $7.94 a share, and non-GAAP earnings were $8.38 a share. Both figures included $3.03 of acquired in-process research and development charges, compared with $0.14 a share a year earlier. The $2.8 billion of IPR&D charges related primarily to the acquisitions of Orna Therapeutics and Ajax Therapeutics. Asset impairment, restructuring, and other special charges were $703 million, tied primarily to the closings of Kelonia Therapeutics and Centessa Pharmaceuticals. The effective tax rate was 23.3%.

Lilly completed those four acquisitions in the second quarter. Subsequent to quarter-end, it completed three acquisitions to build an infectious disease portfolio and agreed to acquire AtaiBeckley. It also committed an additional $4.5 billion to expand Indiana manufacturing sites.

The company raised performance-margin guidance to 49.0% to 50.5% from 47.0% to 48.5%. Underlying non-GAAP EPS guidance was raised by $2.78 at the midpoint, more than offset by the $3.03 of second-quarter IPR&D, producing an updated range of $35.50 to $36.50.

Regulatory progress included U.S. FDA approval of Ebglyss for one maintenance dose every eight weeks in moderate-to-severe atopic dermatitis and European Commission approval of Jaypirca as monotherapy for adults with chronic lymphocytic leukemia across all lines of therapy. Lilly submitted orforglipron for type 2 diabetes in the U.S. Pipeline updates included positive data from three additional Phase 3 trials of retatrutide in obesity. The clinical data package is now complete to support global registrations for obesity, obstructive sleep apnea, and knee osteoarthritis pain, with plans to submit a Biologics License Application to the U.S. FDA in the first quarter of 2027.