TLDR
- Eli Lilly Stock Tanks 14% Despite Surging Sales from Zepbound, Mounjaro
- Zepbound, Mounjaro Boost Revenue 38%, But Investors Dump Eli Lilly Shares
- Eli Lilly Crashes 14% Post-Earnings, Even With Raised 2025 Guidance
- Blockbuster Drugs Soar, Yet Eli Lilly Stock Plunges on Profit-Taking Fears
- Eli Lilly Slides After Strong Q2, Higher Tax Rate Spooks the Market
Eli Lilly(LLY) shares plunged 14.14% on August 7, closing at $640.86 after opening near $746. The sharp decline occurred despite strong second-quarter results, with after-hours trading showing only a modest 0.58% recovery.
Market reaction sharply contrasted with the company’s reported 38% revenue growth driven by Zepbound and Mounjaro sales.
Revenue Surges as Zepbound and Mounjaro Drive Performance
Eli Lilly reported Q2 2025 revenue of $15.56 billion, up 38% from the same period last year. The growth came primarily from a 42% increase in volume, which outweighed the 6% decline in realized prices. Zepbound and Mounjaro accounted for a major portion of this gain, as demand remained strong in both U.S. and global markets.
Eli Lilly and Company, $LLY, Q2-25. Results:
📊 Adj. EPS: $6.31 🟢
💰 Revenue: $15.56B 🟢
📈 Net Income: $5.66B
🔎 Driven by volume growth from Zepbound and Mounjaro, Lilly raised its full-year revenue and EPS guidance. pic.twitter.com/X6yUdDhNz5— EarningsTime (@Earnings_Time) August 7, 2025
U.S. revenue grew 38% to $10.81 billion, with Zepbound rising 172% to $3.38 billion. Mounjaro contributed $3.30 billion domestically, reflecting a 37% increase despite price pressures. Revenue outside the U.S. rose 37% to $4.74 billion, as Mounjaro saw strong uptake and entered new international markets.
Gross margin improved to 84.3%, supported by better production costs and product mix, though offset by pricing headwinds. Non-GAAP gross margin reached 85%, with similar drivers. These results boosted net income by 91% to $5.66 billion on a reported basis, with EPS at $6.29.
Profitability and Guidance Improve But Market Reacts Sharply
Non-GAAP earnings per share climbed 61% to $6.31, including a $0.14 charge for acquired research expenses. The company raised its full-year revenue forecast to between $60 billion and $62 billion, a $1.5 billion increase. It also lifted non-GAAP EPS guidance to a range of $21.75 to $23.00.
Despite these upgrades, shares dropped significantly during regular trading hours. The selloff followed shortly after market open, suggesting a swift and broad response. Analysts noted the stock had seen a long rally, and profit-taking may have triggered the reaction.
The company’s increased guidance factored in stronger-than-expected demand and manufacturing expansion. However, the market also digested news of a higher projected 2025 effective tax rate of 19%. This change came in response to recent U.S. tax law adjustments expected to impact Q3 earnings.
Pipeline Momentum and Business Expansion Continue
Eli Lilly highlighted progress across its pipeline, including positive trial results for orforglipron and Mounjaro’s cardiovascular benefits. Additional success came from Jaypirca’s head-to-head results versus Imbruvica in treating CLL and SLL. These updates aligned with ongoing investments in research and late-stage development.
Recent acquisitions of SiteOne Therapeutics and Verve Therapeutics further supported future innovation strategies. R&D spending increased 23% to $3.34 billion, reflecting continued emphasis on advancing treatments. Marketing and administrative expenses also rose 30%, tied to launches and promotional activity.
The company remains focused on long-term growth, citing strong performance margins and expanded production capacity. It emphasized continued momentum across cardiometabolic and oncology portfolios. While the stock faced pressure, underlying fundamentals and future outlook remained robust.
