EARNINGS RESULTS · Q2 2026

Eli Lilly Q2 2026: Revenue Up 47.67%, Operating Margin 39.08%

Results for the quarter ended 2026-06-30 bring the business drivers and cash after investment into focus. Quarterly free cash flow was $7.76 bn. The dated assessment on 2026-10-08 was wait at a reference price of $1,188.72.

Eli Lilly · LLYPublished October 8, 2026Quarter ended June 30, 2026

Q2 2026: What the Quarter Delivered

Revenue: $22.97 bn
Revenue growth YoY: 47.7%
Operating income: $8.98 bn
Operating margin: 39.1%
Diluted EPS, GAAP: $7.94

Eli Lilly reported $22.97 bn of revenue in Q2 2026. Revenue rose 47.67% from the comparable prior-year quarter. Operating profit was $8.98 bn, with an operating margin of 39.08%. Reported diluted EPS was $7.94.

How Revenue Reached Operating Profit

The quarter's revenue and operating result imply an operating margin of 39.08%: $39.08 of operating profit for every $100 of revenue, before interest and tax.

Yet the margin history is uneven, and the latest compression cautions against extrapolating peak profitability.

What the Reported Earnings Include

Other non-operating income: -$0.08 bn
GAAP net income: $7.1 bn
Diluted weighted-average shares: 0.89 bn shares

Q2 2026 GAAP net income was $7.1 bn. Other non-operating income was -$0.08 bn.

Reported diluted earnings reflect operating performance, non-operating items and taxes; they are not synonymous with normalized recurring profit.

The declining diluted share base has supported per-share results, but it cannot substitute for sustained earnings generation.

Cash Left After Investment

Operating cash flow: $28.08 bn
OCF less cash PPE purchases, plus PPE sales: $18.19 bn
Quarterly operating cash flow: $10.69 bn
Cash purchases of other property, plant and equipment: $2.93 bn
Quarterly OCF less other PPE cash purchases: $7.76 bn

In Q2 2026, operating cash flow of $10.69 bn less cash capital expenditure of $2.93 bn left $7.76 bn of free cash flow. Operations funded cash investment and left cash after that spending.

Reported operating cash flow left substantial cash after the company's property investment, although quarterly cash conversion has been uneven.

The Verdict Recorded on 2026-10-08

Verdict Invest recorded wait on 2026-10-08, using a reference price of $1,188.72 dated 2026-10-07. This assessment relates to the Q2 2026 results, with a 12-month horizon and stated validity through 2026-11-07.

Confirmation to watch: Continued revenue expansion supported by reliable manufacturing supply and patient access.
Confirmation to watch: Operating leverage as revenue grows, without sacrificing research investment or understating recurring acquisition-related costs.
Confirmation to watch: Sustained cash generation after property investment, supporting financing needs and balance-sheet flexibility.
Risk to this assessment: Pricing or reimbursement pressure causes persistent deterioration in revenue growth and operating profitability.
Risk to this assessment: Manufacturing or regulatory problems prevent Lilly from converting demand into delivered products.
Risk to this assessment: Adverse patent or litigation outcomes materially impair product economics or absorb cash.
Risk to this assessment: Acquisition spending, property investment and financing demands persistently erode cash remaining for shareholders.