Eli Lilly (LLY) delivered a standout performance in the first quarter of 2025, reporting revenue of $12.73 billion, a sharp 45% increase from the prior year, powered by soaring demand for its incretin-based therapies and robust growth across key therapeutic areas. GAAP net income rose 23% to $2.76 billion, with GAAP EPS climbing to $3.06, while non-GAAP net income and EPS came in at $3.00 billion and $3.34, respectively—both up 29% year-over-year.

The quarter's performance was anchored by exceptional momentum in flagship products. Mounjaro sales more than doubled to $3.84 billion, driven by strong uptake in both U.S. and international markets. Newly launched Zepbound generated $2.31 billion, establishing itself as the U.S. market leader in branded anti-obesity treatments. Verzenio also delivered solid results, rising 10% year-over-year to $1.16 billion, supported by strong international volume growth. Overall, revenue from a suite of key products—including Ebglyss, Jaypirca, Kisunla, Omvoh, and others—grew by $4.09 billion to $7.52 billion, highlighting the company’s diversified and expanding portfolio.

The primary growth driver was a 53% increase in volume, with pricing and foreign exchange exerting modest pressure. In the U.S., revenue surged 49%, led by a 57% rise in volume, while international sales climbed 38%, boosted by a $370 million one-time benefit from a Jardiance partnership amendment.

On the profitability front, Lilly improved its gross margin to 82.5%, up 1.6 percentage points, aided by favorable product mix and lower manufacturing costs. R&D investment rose 8% to $2.73 billion, underscoring the company’s commitment to pipeline innovation. However, acquired IPR&D charges spiked to $1.57 billion, largely due to the Scorpion Therapeutics acquisition, temporarily impacting EPS by $1.72. Additionally, a higher effective tax rate of 20.2% (up from 11.6%) reflected the non-deductible nature of these charges.

Despite this, Lilly reaffirmed its 2025 revenue guidance of $58.0 to $61.0 billion and narrowed its non-GAAP EPS outlook to $20.78 to $22.28, adjusting for the Q1 IPR&D impact. Management also expects performance margins of 40.5% to 42.5% (reported) and 41.5% to 43.5% (non-GAAP), with a tax rate now projected at 17%.

CEO Dave Ricks emphasized the company’s broad-based momentum, pointing to strong results from new launches and a promising pipeline, including positive Phase 3 data for orforglipron in Type 2 diabetes. Lilly is doubling down on manufacturing investments—with over $50 billion committed since 2020—and remains focused on maintaining leadership in the incretin market while preparing for further regulatory milestones in obesity treatments.

Overall, Lilly enters the remainder of 2025 with strong commercial execution, accelerating pipeline progress, and confidence in its long-term growth trajectory, even amid pricing headwinds and evolving market dynamics.