# Eli Lilly and Company (LLY) — Financial Analysis

**Exchange:** NYSE  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/LLY/thesis · /stocks/LLY/memo

## Financial Snapshot

---
ticker: LLY
step: 04
generated: 2026-05-11
source: quick-research
---

### Eli Lilly and Company (LLY) — Financial Snapshot

#### Income Statement Summary

| Metric | FY2022 | FY2023 | FY2024 | FY2025 | YoY (25v24) |
|--------|--------|--------|--------|--------|-------------|
| Revenue | $28.5B | $34.1B | $45.0B | $65.2B | +44.7% |
| Gross Margin | ~75% | ~80% | ~81% | ~83% | +200 bps |
| Operating Margin | 23% | 17% | 32% | ~39% | +700 bps |
| Net Income | $6.2B | $5.2B | $10.6B | ~$22B | +108% |
| EPS (diluted) | $6.90 | $5.80 | $11.71 | ~$24.50 | +109% |

Note: FY2023 net income / margin compressed due to large in-process R&D writedowns from the Versanis and POINT Biopharma acquisitions; FY2024 expanded materially as those one-time charges rolled off and tirzepatide ramped.

#### Cash Flow & Balance Sheet (FY2025)

| Metric | Value |
|--------|-------|
| Operating Cash Flow | ~$15B |
| Capex | ~$11B (heavy manufacturing buildout) |
| Free Cash Flow | ~$4B (constrained by capex) |
| Cash & Investments | ~$5B |
| Total Debt | ~$33B |
| Net Debt | ~+$28B |

#### Key Ratios (approximate, May 2026)
- P/E: ~28x | EV/EBITDA: ~25x | FCF Yield: ~0.7% (suppressed by capex)
- Revenue Growth (TTM): ~45% | Gross Margin: ~83% | Operating Margin: ~39%
- Capex / Revenue: ~17% — Lilly is in the steepest manufacturing build cycle in big-pharma history

#### Growth Profile
Lilly has gone from ~$28B in revenue in 2022 to ~$65B in 2025 — a roughly 2.3x expansion in three years, almost entirely driven by the tirzepatide franchise (Mounjaro + Zepbound combined run-rate >$45B by end of 2025). The constraint has been supply, not demand: Lilly produced 1.6x more salable doses in H1 2025 vs. H1 2024. Operating leverage is now compounding meaningfully — gross margin remains in the low-80s and operating margin has expanded from 17% (2023, depressed by IPR&D charges) to ~39% (2025). Free cash flow is structurally suppressed by the $50B+ multi-year US manufacturing capex program.

#### Forward Estimates
**2026 guidance (issued Feb 2026): Revenue $80–83B (+25% YoY)**. Consensus FY2026 EPS: ~$31. Bull-side scenarios pencil in 2027 revenue >$100B if orforglipron (oral GLP-1) launches strongly in H2 2026 and Zepbound DTC volumes ramp. Bear-side scenarios bake in MFN pricing pressure on US obesity prices, slower-than-expected payer expansion, and 2030+ generic erosion of tirzepatide.

## Deeper Financial Analysis

The fundamental tier ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/LLY/fundamental

## Navigation

- Overview: /stocks/LLY
- Financials (this page): /stocks/LLY/financials
- Thesis: /stocks/LLY/thesis
- Investment Memo: /stocks/LLY/memo
- Coverage universe: /stocks