Eli Lilly and Company capped off 2025 with surging fourth-quarter revenue and profits, underscoring rapid global demand for its diabetes and obesity medicines as the drugmaker enters its 150th year.

 

"2025 was an important year for Lilly," said David A. Ricks, Lilly's chair and CEO. "We reached millions more patients—launching Inluriyo, expanding Mounjaro and Kisunla globally, and submitting orforglipron for approval. 

 

"We expanded our manufacturing capacity, and through our U.S. government agreement, opened new access to obesity medicines. Entering our 150th year with a deep pipeline and platforms like LillyDirect, we're positioned to reach more patients than ever and expand our global health impact."

 

Worldwide revenue rose 43% year over year to $19.3 billion in the fourth quarter, driven by a 46% increase in volume that more than offset a 5% decline in realized prices. Revenue from key products climbed to $13.8 billion, led by blockbuster growth from Mounjaro and Zepbound.

 

US revenue increased 43% to $12.9 billion, fueled by a 50% jump in volume, partially offset by a 7% decline in realized prices. The company said both trends were driven by strong demand for Zepbound and Mounjaro.

 

Revenue outside the US also rose 43% to $6.4 billion, reflecting a 38% increase in volume and a modest 4% benefit from foreign exchange. Growth was led primarily by Mounjaro, though partially offset by Jardiance. International comparisons were affected by a one-time $300 million benefit tied to a collaboration amendment with Boehringer Ingelheim in the prior-year quarter.

 

Gross margin increased 43% to $15.9 billion, with gross margin reaching 82.5% of revenue, up 0.3 percentage points from a year earlier. Lilly cited favorable product mix and improved manufacturing costs, partially offset by lower realized prices.

 

Research and development spending rose 26% to $3.8 billion, representing 20% of revenue, as the company continued to invest heavily in early- and late-stage programs. Marketing, selling and administrative expenses climbed 29% to $3.1 billion, reflecting promotional support for current and upcoming product launches.

 

The effective tax rate increased to 19.7% from 12.5% a year earlier, driven by a less favorable geographic mix of earnings and the impact of U.S. tax law changes enacted earlier in 2025.

 

Net income jumped to $6.6 billion, or $7.39 per share, up from $4.4 billion, or $4.88 per share, in the same quarter last year. Results in both periods included charges related to acquired in-process research and development.

 

On a non-GAAP basis, net income rose to $6.8 billion and earnings per share increased to $7.54, compared with $4.8 billion and $5.32, respectively, in the prior-year quarter. Non-GAAP gross margin reached $16.0 billion, or 83.2% of revenue, unchanged as a percentage from the year before.

 

The company also issued financial guidance for 2026, signalling confidence that demand for its expanding portfolio will continue to drive growth.