Eli Lilly and Company (LLY) raised the midpoint of its 2026 full-year revenue outlook by $5.5 billion to a range of $91.0 billion to $92.0 billion after third-quarter sales of $24.4 billion, a 39% increase from a year earlier.

The Indianapolis medicine company said the lift followed a quarter that exceeded prior expectations, with worldwide volume up 53% and realized prices down 15%. That growth rate slowed from 48% in the second quarter and 56% in the first quarter. Volume growth also eased, from 60% in the second quarter and 65% in the first, while the price decline widened from 13% in both of those periods.

Chair and Chief Executive David A. Ricks said revenue growth was driven by global consumer demand for Mounjaro and Zepbound, global launches of Foundayo, expanded U.S. coverage for obesity care, and a doubling of the newest products in oncology, immunology and neuroscience. Third-quarter revenue included about $900 million of benefits, primarily $410 million of Jardiance milestones, with no further milestones remaining, and favorable adjustments to rebate and discount estimates.

Key Products revenue reached $17.1 billion. Mounjaro worldwide sales rose 65% to $10.7 billion, with U.S. Mounjaro up 41% to $5.0 billion and sales outside the U.S. up 93% to $5.7 billion. U.S. Zepbound revenue increased 48% to $5.3 billion. Key Products in Immunology, Oncology and Neuroscience grew 100%, slower than 121% in the second quarter and 160% in the first.

U.S. revenue rose 34% to $15.1 billion, with volume up 41% and realized prices down 7%. Revenue outside the U.S. increased 47% to $9.3 billion, with volume up 76% and realized prices down 29%. The company said the volume increase outside the U.S. was driven by Mounjaro, and that lower realized prices there were driven primarily by Mounjaro’s inclusion on China’s National Reimbursement Drug List. Jardiance sales outside the U.S. included $410 million of sales-based milestones tied to the Boehringer Ingelheim collaboration.

Gross margin increased 40% to $20.5 billion, or 83.9% of revenue, versus 82.9% a year earlier. The company attributed the margin-rate gain primarily to favorable product mix and improved cost of production, partially offset by lower realized prices. Research and development expenses rose 23% to $4.2 billion, or 17% of revenue. Marketing, selling and administrative expenses increased 14% to $3.1 billion.

The company recognized acquired in-process research and development charges of $4.2 billion, compared with $656 million a year earlier, related primarily to the acquisitions of AtaiBeckley Inc. and Curevo Inc. Reported earnings per share rose 16% to $7.22 and non-GAAP earnings per share rose 7% to $7.48. Both measures included $4.57 of acquired IPR&D charges versus $0.71 a year earlier. The effective tax rate was 23.3%.

Lilly completed the AtaiBeckley acquisition in the third quarter to advance therapies for treatment-resistant depression and other mental health conditions. Subsequent to quarter end, it completed the acquisition of Merida Biosciences for autoimmune and allergic diseases.

The company also raised performance-margin guidance to 52.0% to 52.5% from 49.0% to 50.5%. Underlying non-GAAP EPS guidance was raised $4.07 at the midpoint, more than offset by the $4.57 of third-quarter acquired IPR&D, leaving an updated range of $35.00 to $36.00. Guidance does not include acquired IPR&D incurred after September 30, 2026.

U.S. Food and Drug Administration approvals in the period included Mounjaro to reduce cardiovascular risk in adults with type 2 diabetes, Onswik as a once-weekly basal insulin, Inluriyo with Verzenio in a defined breast-cancer population, and an expanded Jaypirca indication in untreated chronic lymphocytic leukemia or small lymphocytic lymphoma. Pipeline updates included head-to-head Phase 3 results for retatrutide versus Ozempic 2 mg in type 2 diabetes and Phase 2 results for EloraTZP in obesity and type 2 diabetes, with Phase 3 trials planned to start in the fourth quarter of 2026.