LLY Eli Lilly reported a 45% year over year jump in Q1 revenue, hitting $12.7 billion matching expectations—driven largely by blockbuster GLP-1 drugs Mounjaro ($3.8B) and Zepbound ($2.3B). However, EPS came in at $3.34, missing by $0.12 due to a $1.6 billion acquired R&D charge. As a result, management lowered full-year non-GAAP EPS guidance to $20.78–22.28, down from the prior $22.50–24.00 range.Gross margin improved to 83.5%, and U.S. GLP-1 sales continued to dominate growth, even as Verzenio sales stayed flat and Zepbound faced mixed sentiment tied to a heart failure label update. Still, market sentiment turned negative when CVS Caremark dropped Zepbound from its standard formulary in favor of Novo Nordisk’s Wegovy, raising access concerns despite Lilly’s reassurances. CEO Dave Ricks defended the company’s competitive edge in efficacy, supply, and the oral GLP-1 pipeline, highlighting Orforglipron’s positive trial results.
