Eli Lilly Q3 2025: Mounjaro & Zepbound Fuel 54% Revenue Surge

Pharmaceutical giant Eli Lilly & Co. has just released its financial results for the third quarter of 2025, and the numbers are nothing short of remarkable. In its latest 10-Q filing with the SEC, the company details a period of explosive growth, largely powered by its blockbuster cardiometabolic drugs. Let's break down the key figures and what they tell us about the company's performance.

A Revenue Surge Powered by Mounjaro and Zepbound

Eli Lilly reported total revenue of $17.6 billion for the third quarter, a staggering 54% increase from the $11.4 billion it posted in the same period last year. This growth wasn't just steady; it was a rocket launch fueled by two key products:

• Mounjaro, for type 2 diabetes, saw its sales more than double, jumping 109% to $6.5 billion.
• Zepbound, for weight loss, was an even bigger story, with sales skyrocketing 185% to $3.6 billion.

Combined, these two drugs accounted for over $10.1 billion in revenue, representing a remarkable 57% of the company's total for the quarter. This highlights a significant dependence on this class of medicine but also demonstrates Lilly's current dominance in the lucrative markets for diabetes and obesity.

The growth was global, with U.S. revenue climbing 45% and revenue outside the U.S. soaring by 74%, signaling strong international uptake and expansion.

The following flow diagram provides a visual breakdown of Eli Lilly's revenue sources and how they translate into net income for the quarter.

From Top-Line Growth to Bottom-Line Profit

This surge in revenue translated directly to the bottom line. Net income reached $5.6 billion, a massive leap from the $970 million reported in Q3 2024. Diluted earnings per share (EPS) followed suit, climbing to $6.21 from $1.07 a year ago.

So, how did they achieve this? While operating costs did rise, a key factor in the profit explosion was a significant decrease in a specific type of expense: Acquired In-Process Research and Development (IPR&D). This line item represents the cost of acquiring drug candidates that are still in development. In Q3 2025, this expense was $656 million, compared to a much larger $2.8 billion charge in the same quarter last year. This sharp year-over-year decrease provided a major boost to pre-tax income.

Meanwhile, the company continued to invest heavily in its future:

• Research and Development (R&D) expenses grew 27% to nearly $3.5 billion.
• Marketing, Selling, and Administrative costs increased 31% to $2.7 billion, reflecting the competitive landscape and efforts to support its major products.

Investing in the Future

Eli Lilly is not resting on its laurels. The filing highlights significant progress in its clinical development pipeline. Key updates include regulatory approvals in Europe for donanemab (Kisunla) for Alzheimer's disease and FDA approval for imlunestrant (Inluriyo) for a form of breast cancer. These developments are crucial for diversifying its product portfolio beyond the incretin medicines like Mounjaro and Zepbound.

The company also demonstrated confidence by returning capital to shareholders, repurchasing $708 million of its stock during the quarter. The board has authorized a $15 billion share repurchase program, of which over $12 billion remains available.

In summary, Eli Lilly's third-quarter results paint a picture of a company capitalizing on the immense success of its flagship products. The challenge ahead, as noted in its own risk factors, will be managing intense competition and ensuring its robust R&D pipeline continues to deliver the next generation of blockbuster drugs.