Eli Lilly (LLY) slashed its full-year earnings outlook on Thursday due to acquisition-related charges, while the drugmaker's first-quarter results surpassed market expectations.

The company now anticipates adjusted earnings to be in a range of $20.78 to $22.28 per share for 2025, down from its previous projections of $22.50 to $24. The lowered guidance was driven by acquired in-process research and development charges of $1.57 billion in the first quarter related to the company's acquisition of a cancer product from Scorpion Therapeutics. The current consensus on FactSet is for non-GAAP EPS of $22.22.

Shares of the company fell 5.1% in the most recent premarket activity.

Eli Lilly continues to expect revenue of $58 billion to $61 billion for the current year, while the Street is looking for $59.72 billion. The firm said its full-year guidance reflects the existing tariff and trade environment as of Thursday, and doesn't take into account any changes in policies that could impact business.

Last month, US President Donald Trump announced sweeping new tariffs on imports, including from China. Trump later declared a 90-day pause on certain duties for non-retaliating countries. The Trump administration has reached out to China to begin discussions on tariffs, Bloomberg News reported Thursday.

For the quarter ended March 31, Eli Lilly's adjusted EPS jumped 29% year over year to $3.34 and topped the average analyst estimate on FactSet of $3.26. Revenue surged to $12.73 billion from $8.77 billion in the prior-year period, surpassing the Street's view for $12.67 billion.

"Lilly had a solid start to the year, with 45% year-over-year revenue growth driven by strong sales of Mounjaro and Zepbound," Chief Executive David Ricks said in a statement. "To support global demand for our newest medicines, we're accelerating our manufacturing investments, as underscored by our recent announcement to build four new facilities."

The company said in February that it plans to construct four new pharmaceutical manufacturing plants in the US this year.

Sales in the US soared 49% to $8.49 billion, boosted by a 57% gain in volume, partially offset by lower prices. Revenue from non-US markets rose 38% to $4.24 billion amid a 46% increase in volume.

Revenue from the firm's diabetes treatment, Mounjaro, more than doubled to $3.84 billion, buoyed by robust demand in the US. Sales of weight-loss drug Zepbound spiked to $2.31 billion from $517.4 million in the 2024 quarter. Breast cancer treatment Verzenio logged revenue growth of 10% to $1.16 billion.