Focus: U.S. Stocks Q4 2025 Earnings Reports Key Highlights

Eli Lilly's reported fourth-quarter results, revenue, and 2026 performance guidance all significantly exceeded market expectations, driven by surging demand for its blockbuster weight-loss drug Zepbound and diabetes treatment Mounjaro. This guidance presents a stark contrast to the outlook from competitor Novo-Nordisk A/S, which warned on Tuesday that its sales and profits could decline by as much as 13% this year due to price reductions in the U.S. and the expiration of patents for its core drugs. Eli Lilly is striving to solidify its dominant position in the booming market for GLP-1 class drugs, while Novo-Nordisk A/S's new weight-loss oral drug, Wegovy, is planned for a strong launch in the United States.

On September 23, 2025, the Eli Lilly logo was displayed at a press conference in Houston, Texas, USA. Eli Lilly released its financial report on Wednesday, with fourth-quarter results, revenue, and 2026 guidance all substantially beating market forecasts, primarily due to the continued explosive demand for its key drugs, Zepbound and Mounjaro. The pharmaceutical giant anticipates full-year 2026 revenue to reach between $80 billion and $83 billion. According to data from London Stock Exchange Group (LSEG), analysts had previously expected revenue of $77.62 billion. Eli Lilly also projected that its 2026 adjusted earnings per share would be in the range of $33.50 to $35.00. For comparison, LSEG data showed analysts had an average expectation of $33.23 per share. This optimistic outlook stands in sharp relief to that of competitor Novo-Nordisk A/S. Both companies previously reached landmark agreements with President Trump to significantly reduce prices for obesity and diabetes drugs, but Novo-Nordisk A/S is now facing pricing pressure in the U.S. market. Unlike Eli Lilly, Novo-Nordisk A/S warned on Tuesday that its sales and profits could fall by up to 13% this year, impacted by U.S. price declines and the expiration of market exclusivity for its core obesity and diabetes drugs in China, Brazil, and Canada. Simultaneously, the midpoint of Eli Lilly's revenue guidance implies a 25% sales growth for the current year. This robust forecast comes just days after Eli Lilly's CEO, Dave Ricks, stated in an exclusive interview with CNBC that he expects the impending inclusion of obesity treatment coverage under U.S. Medicare to expand the American market for these drugs this year, calling it a "significant growth multiplier" for the eligible patient population. In Wednesday's earnings presentation, Eli Lilly listed several factors expected to benefit it this year, including the implementation of Medicare coverage, continued strong global demand for Mounjaro and Zepbound, and the anticipated approval and launch of its oral GLP-1 weight-loss drug in the U.S. during the second quarter. However, Eli Lilly also noted that it expects a low-to-mid double-digit percentage decline in global prices due to factors including the price agreement with Trump, new direct pricing for Zepbound, and Medicaid price reductions for some older products. Eli Lilly is making a full-court press to cement its leadership in the flourishing GLP-1 drug market, while Novo-Nordisk A/S's new oral weight-loss drug, Wegovy, is planned for a forceful U.S. introduction. Presentation data showed that Eli Lilly's share of the U.S. obesity and diabetes drug market rose to 60.5% in the fourth quarter, a 2.6 percentage point increase from the previous quarter, before Wegovy's January launch; Novo-Nordisk A/S's market share during the same period was 39.1%. Mounjaro's revenue for the quarter reached $7.41 billion, a dramatic 110% surge compared to the prior year. U.S. sales accounted for $4.1 billion, a 57% year-over-year increase—although demand climbed, the actual realized price decreased. According to StreetAccount data, this performance exceeded analysts' expectations for the quarter. Zepbound, which has been on the market for approximately three years, generated U.S. revenue of $4.2 billion in the fourth quarter, a 122% year-over-year increase, also showing a pattern of rising demand coupled with a lower realized price. StreetAccount data indicated analysts had expected U.S. sales of $3.91 billion. According to an LSEG survey of analysts, Eli Lilly's fourth-quarter results compared to Wall Street expectations as follows:

Adjusted EPS: $7.54 vs. expectations of $6.67 Revenue: $19.29 billion vs. expectations of $17.96 billion

Eli Lilly's stock surged over 7% in pre-market trading. The company disclosed that fourth-quarter revenue reached $19.29 billion, a 43% increase year-over-year; U.S. revenue climbed to $12.9 billion. Eli Lilly stated this growth was primarily driven by a 50% increase in volume (prescription count/sales units) for products like Mounjaro and Zepbound, partially offset by lower realized prices. The pharmaceutical giant reported a fourth-quarter net income of $6.64 billion, or $7.39 per share, a significant increase from $4.41 billion ($4.88 per share) in the same period last year. Excluding one-time items related to intangible asset valuations and other adjustments, Eli Lilly's fourth-quarter earnings per share were $7.54. The agreements reached by Novo-Nordisk A/S and Eli Lilly with Trump are expected to ultimately increase prescription volumes but also weigh on total sales revenue. Under the agreements, Eli Lilly and Novo-Nordisk A/S agreed to lower prices for their drugs for Medicare and Medicaid beneficiaries in 2026 and to sell them at a discount directly to consumers via the TrumpRx direct-to-consumer platform, which has not yet been launched by the Trump administration. In return, both companies will receive three-year tariff exemptions. In an interview with CNBC last Friday, Eli Lilly's Ricks acknowledged that a "step-down in price" would occur early this year due to the drug pricing agreements, but he expressed confidence that volume growth for the company's drugs would accelerate in the second half of the year.