Eli Lilly's Strong Q4 2025 Results Amid Market Competition
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4d ago
0mins
Should l Buy LLY?
Source: Benzinga
Eli Lilly's stock fell 7.75% as it crossed below the 5-day SMA, reflecting broader market weakness with the Nasdaq-100 down 1.57% and the S&P 500 down 1.45%.
Despite the stock decline, Eli Lilly reported strong Q4 2025 financial results, achieving a 43% year-over-year revenue increase to $19.29 billion, driven by a 46% rise in volume. The company also projected 2026 revenue between $80 billion and $83 billion, showcasing confidence in future growth amid intensifying competition in the obesity drug market, particularly against Novo Nordisk.
The implications of these results suggest that while Eli Lilly faces competitive pressures, its robust financial performance and strategic investments position it well for future growth, potentially mitigating the impact of market fluctuations.
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Analyst Views on LLY
Wall Street analysts forecast LLY stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for LLY is 1192 USD with a low forecast of 950.00 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
18 Buy
2 Hold
0 Sell
Strong Buy
Current: 1058.180
Low
950.00
Averages
1192
High
1500
Current: 1058.180
Low
950.00
Averages
1192
High
1500
About LLY
Eli Lilly and Company is a medicine company, which discovers, develops, manufactures, markets, and sells pharmaceutical products worldwide. Its cardiometabolic health products include Basaglar; Humalog, Humalog Mix 75/25, Humalog U-100, Humalog U-200, Humalog Mix 50/50, insulin lispro, and others; Humulin, Humulin 70/30, and others; Jardiance; Mounjaro; Trulicity; Zepbound; VERVE-102; VERVE-201, and VERVE-301. Its oncology products include Cyramza, Erbitux, Tyvyt, and Verzenio. Its immunology products include Ebglyss, Olumiant, Omvoh, and Taltz. Its neuroscience products include Emgality and Kisunla. The Company is also engaged in radiopharmaceutical discovery, development, and manufacturing efforts, and clinical and pre-clinical radioligand therapies in development for the treatment of cancer. It is also developing an oral small molecule inhibitor of a4b7 integrin for inflammatory bowel disease (IBD). It is evaluating its novel gene therapy candidate, ixoberogene soroparvovec.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Eli Lilly Reports 43% Revenue Growth in Q4 Driven by GLP-1 Products
- Significant Revenue Growth: Eli Lilly's Q4 2025 revenue reached $19.3 billion, marking a 43% year-over-year increase, primarily driven by the robust performance of its GLP-1 products, indicating sustained growth potential in the market.
- Doubling of GLP-1 Sales: Sales of Mounjaro and Zepbound surged by 110% and 123%, respectively, totaling $11.7 billion and accounting for over 60% of the company's total revenue, highlighting the company's heavy reliance on these two drugs.
- Increased Competitive Risks: As other pharmaceutical companies invest billions in developing competing GLP-1 products, Eli Lilly faces heightened market share risks that could impact its future revenue growth and stock performance.
- Valuation Concerns: With a market cap of approximately $950 billion and a price-to-earnings ratio of 46, Eli Lilly's high valuation reflects market expectations for future growth, but also subjects its stock to potential short-term declines, necessitating careful risk assessment by investors.
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Eli Lilly's GLP-1 Drugs Drive Growth
- Significant Revenue Growth: Eli Lilly reported fourth-quarter revenue of $19.3 billion for 2025, reflecting a 43% year-over-year increase, showcasing strong performance in the GLP-1 drug sector, particularly with Mounjaro and Zepbound driving future financial health.
- Mounjaro and Zepbound Performance: Mounjaro's sales surged by 110% to $7.4 billion, while Zepbound grew even faster at 123%, reaching nearly $4.3 billion, indicating robust market demand for these drugs that could further boost company revenues.
- Market Share Risks: Although these two drugs account for over 60% of total revenue, intensifying competition with other companies investing heavily in similar products poses a threat to Eli Lilly's market share, necessitating investor vigilance regarding this dynamic.
- Valuation Considerations: With a market cap of approximately $950 billion and a price-to-earnings ratio of 46, Eli Lilly's high valuation reflects investor expectations for substantial future growth, but it also suggests potential short-term price correction risks, prompting careful evaluation of holding strategies.
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- FDA Regulatory Action: The FDA's plans to crack down on Hims & Hers, potentially limiting access to ingredients for manufacturing Ozempic copies, triggered a positive market response over the weekend, further boosting Eli Lilly's stock price.
- Reduced Competitive Threat: Hims & Hers' decision to halt the sale of its Ozempic copycat alleviates competitive pressure on Eli Lilly, particularly regarding its pricing strategy for Zepbound and Mounjaro, thereby reinforcing Lilly's market position.
- Legal Action Impact: Novo Nordisk's lawsuit against Hims & Hers, seeking to prevent the sale of copycat drugs, not only protects Novo's market share but also indirectly benefits Eli Lilly by enhancing the competitive edge of its higher-priced products in the market.
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- Patent Lawsuit: Novo Nordisk has filed a lawsuit against Hims & Hers, accusing the telehealth platform of infringing its rights to a key U.S. patent related to its weight loss therapy, semaglutide, claiming that HIMS unlawfully mass-marketed unapproved versions of semaglutide drugs, including the newly launched oral obesity treatment, Wegovy.
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- Legal Battle Between Hims and Novo: Novo Nordisk is suing Hims & Hers over alleged copycat versions of its Wegovy obesity drug, leading Hims to announce the withdrawal of its product, which caused its shares to drop over 20% before the market opened.
See More
Eli Lilly Reports 43% Revenue Growth in Q4 Driven by GLP-1 Products
- Significant Revenue Growth: Eli Lilly's Q4 2025 revenue reached $19.3 billion, marking a 43% year-over-year increase, primarily driven by the robust performance of its GLP-1 products, indicating sustained growth potential in the market.
- Doubling of GLP-1 Sales: Sales of Mounjaro and Zepbound surged by 110% and 123%, respectively, totaling $11.7 billion and accounting for over 60% of the company's total revenue, highlighting the company's heavy reliance on these two drugs.
- Increased Competitive Risks: As other pharmaceutical companies invest billions in developing competing GLP-1 products, Eli Lilly faces heightened market share risks that could impact its future revenue growth and stock performance.
- Valuation Concerns: With a market cap of approximately $950 billion and a price-to-earnings ratio of 46, Eli Lilly's high valuation reflects market expectations for future growth, but also subjects its stock to potential short-term declines, necessitating careful risk assessment by investors.
See More
Eli Lilly's GLP-1 Drugs Drive Growth
- Significant Revenue Growth: Eli Lilly reported fourth-quarter revenue of $19.3 billion for 2025, reflecting a 43% year-over-year increase, showcasing strong performance in the GLP-1 drug sector, particularly with Mounjaro and Zepbound driving future financial health.
- Mounjaro and Zepbound Performance: Mounjaro's sales surged by 110% to $7.4 billion, while Zepbound grew even faster at 123%, reaching nearly $4.3 billion, indicating robust market demand for these drugs that could further boost company revenues.
- Market Share Risks: Although these two drugs account for over 60% of total revenue, intensifying competition with other companies investing heavily in similar products poses a threat to Eli Lilly's market share, necessitating investor vigilance regarding this dynamic.
- Valuation Considerations: With a market cap of approximately $950 billion and a price-to-earnings ratio of 46, Eli Lilly's high valuation reflects investor expectations for substantial future growth, but it also suggests potential short-term price correction risks, prompting careful evaluation of holding strategies.
See More
Eli Lilly Stock Bounces Back 2.4% After FDA Action Against Hims & Hers
- Stock Recovery: Eli Lilly (LLY) shares rebounded 2.4% by 9:50 a.m. ET on Monday, reflecting a recovery in market confidence after last week's decline due to Hims & Hers' announcement of an Ozempic lookalike, indicating resilience in its core product offerings.
- FDA Regulatory Action: The FDA's plans to crack down on Hims & Hers, potentially limiting access to ingredients for manufacturing Ozempic copies, triggered a positive market response over the weekend, further boosting Eli Lilly's stock price.
- Reduced Competitive Threat: Hims & Hers' decision to halt the sale of its Ozempic copycat alleviates competitive pressure on Eli Lilly, particularly regarding its pricing strategy for Zepbound and Mounjaro, thereby reinforcing Lilly's market position.
- Legal Action Impact: Novo Nordisk's lawsuit against Hims & Hers, seeking to prevent the sale of copycat drugs, not only protects Novo's market share but also indirectly benefits Eli Lilly by enhancing the competitive edge of its higher-priced products in the market.
See More
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- Microsoft Downgrade: Melius Research downgraded Microsoft from buy to hold, citing that CEO Satya Nadella has lost the AI narrative and that the stock appears overpriced based on new free cash flow estimates, which may undermine investor confidence.
- Eli Lilly Acquires Orna: Eli Lilly announced the acquisition of biotech firm Orna Therapeutics for up to $2.4 billion, leading to a premarket surge in Eli Lilly and rival Novo Nordisk shares, indicating a positive market response towards biotech investments.
- Kroger's New CEO: Kroger's stock advanced nearly 7% in premarket trading after reports indicated that former Walmart executive Greg Foran will be appointed as the new CEO, having previously led Walmart's U.S. division for six years, suggesting a strategic shift for Kroger.
- Robinhood Upgrade: Wolfe Research upgraded Robinhood from hold to buy, despite the stock's recent decline amid a major cryptocurrency sell-off, as analysts believe its future potential remains strong, which could attract renewed investor interest.
See More
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- Acquisition Deal: Eli Lilly has agreed to acquire biotechnology company Orna Therapeutics for up to $2.4 billion in cash, which includes an upfront payment and subsequent payments tied to clinical development milestones, providing Lilly with a broad platform for innovation in genetic medicine and in vivo cell engineering.
- Patent Lawsuit: Novo Nordisk has filed a lawsuit against Hims & Hers, accusing the telehealth platform of infringing its rights to a key U.S. patent related to its weight loss therapy, semaglutide, claiming that HIMS unlawfully mass-marketed unapproved versions of semaglutide drugs, including the newly launched oral obesity treatment, Wegovy.
- Renewable Energy Agreements: TotalEnergies has signed two long-term power purchase agreements to deliver 1 GW of solar capacity to supply Google’s data centers in Texas, which is expected to provide 28 TWh of renewable electricity over 15 years, further solidifying its position in the renewable energy market.
- Earnings Beat: Apollo Global Management reported Q4 results with an adjusted EPS of $2.47, surpassing the average analyst estimate of $2.04, and showing growth from $2.17 in Q3 and $2.22 in Q4 2024, reflecting robust lending growth and increased management fees.
See More
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- Market Surge: The Dow Jones Industrial Average surged over 1,200 points on Friday, surpassing the 50,000 mark for the first time, closing the week up 2.5%, indicating a strong recovery in market sentiment despite earlier tech stock sell-offs.
- Bitcoin Rebound: Bitcoin rebounded above $70,000 on Friday, recovering from a sharp drop that nearly brought it below $60,000, reflecting a renewed confidence in the cryptocurrency market, although it remains over 50% off its all-time high.
- Super Bowl Advertising Boom: During the Super Bowl, NBC's average price for a 30-second ad reached $8 million, with some slots exceeding $10 million, highlighting strong demand in the advertising market, particularly from AI companies.
- Legal Battle Between Hims and Novo: Novo Nordisk is suing Hims & Hers over alleged copycat versions of its Wegovy obesity drug, leading Hims to announce the withdrawal of its product, which caused its shares to drop over 20% before the market opened.
See More
