Eli Lilly and Company (NYSE:LLY) Trading 10.3% Higher on Better-Than-Expected Earnings

Eli Lilly and Company (NYSE:LLY) shares were up 10.3% during mid-day trading on Wednesday following a better than expected earnings announcement. The company traded as high as $1,114.00 and last traded at $1,107.13. Approximately 7,104,089 shares traded hands during mid-day trading, an increase of 120% from the average daily volume of 3,236,018 shares. The stock had previously closed at $1,003.46.

The company reported $7.54 earnings per share for the quarter, topping the consensus estimate of $7.48 by $0.06. Eli Lilly and Company had a net margin of 30.99% and a return on equity of 109.52%. The firm had revenue of $19.29 billion during the quarter, compared to the consensus estimate of $17.85 billion. During the same quarter in the prior year, the firm earned $5.32 EPS. The company’s revenue for the quarter was up 42.6% on a year-over-year basis. Eli Lilly and Company has set its FY 2026 guidance at 33.500-35.000 EPS.

Eli Lilly and Company Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Friday, February 13th will be paid a $1.73 dividend. The ex-dividend date of this dividend is Friday, February 13th. This represents a $6.92 annualized dividend and a yield of 0.6%. This is an increase from Eli Lilly and Company’s previous quarterly dividend of $1.50. Eli Lilly and Company’s dividend payout ratio is currently 29.35%.

Trending Headlines about Eli Lilly and Company

Here are the key news stories impacting Eli Lilly and Company this week:

• Positive Sentiment: Quarterly beat and aggressive 2026 guidance — LLY reported Q4 revenue of $19.29B and EPS of $7.54, topping estimates, and issued FY‑2026 guidance (EPS 33.50–35.00; revenue $80–83B) that exceeded consensus, a primary reason the stock is up. Read More.
• Positive Sentiment: GLP‑1 sales are the engine — Mounjaro and Zepbound volume surged (double‑digit billions in sales), driving the beat and underpinning 2026 growth expectations. Continued volume growth helps offset U.S. price pressure. Read More.
• Positive Sentiment: Competitive positioning vs. Novo Nordisk — Novo’s softer 2026 outlook has rotated investor flows into Lilly, reinforcing LLY’s market‑share and pipeline narrative. That relative outperformance is boosting sentiment. Read More.
• Positive Sentiment: Capacity investment reduces supply risk — Lilly is expanding manufacturing (including a $3.5B injectable site in Pennsylvania), supporting the company’s “volume defense” against U.S. pricing pressure and future growth. Read More.
• Neutral Sentiment: Pricing/headwind context — U.S. pricing pressures (e.g., MFN-style measures) remain real; Lilly expects volume to offset lower realized prices, but policy risk is ongoing and could affect net margins. Read More.
• Neutral Sentiment: Analyst/market reaction — Banks reaffirm buys and some raise targets after the beat, supporting momentum, but analysts also flag execution and margin watch‑points. Read More.
• Negative Sentiment: Valuation and pullback risk — Commentary warns LLY’s rally has priced in high expectations; some analysts and commentators list reasons a pullback is possible (valuation, policy risk, execution). That raises near‑term downside if growth misses. Read More.
• Negative Sentiment: Cost and R&D pressure — Rising R&D and scaling costs could compress margins even as sales grow; watch margin trends in upcoming quarters. Read More.

Analyst Ratings Changes

LLY has been the topic of a number of research reports. Morgan Stanley raised their target price on shares of Eli Lilly and Company from $1,171.00 to $1,290.00 and gave the stock an “overweight” rating in a research note on Monday, November 24th. JPMorgan Chase & Co. raised their price objective on shares of Eli Lilly and Company from $1,050.00 to $1,150.00 and gave the stock an “overweight” rating in a research report on Tuesday, November 18th. Wells Fargo & Company boosted their target price on shares of Eli Lilly and Company from $1,100.00 to $1,200.00 and gave the company an “overweight” rating in a report on Wednesday, December 10th. Wolfe Research increased their price target on shares of Eli Lilly and Company from $1,050.00 to $1,250.00 and gave the company an “outperform” rating in a research note on Wednesday, December 3rd. Finally, Leerink Partners set a $1,234.00 price target on shares of Eli Lilly and Company in a research report on Monday, January 5th. Three research analysts have rated the stock with a Strong Buy rating, eighteen have given a Buy rating and six have assigned a Hold rating to the company’s stock. Based on data from MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $1,162.75.

Institutional Inflows and Outflows

Hedge funds and other institutional investors have recently made changes to their positions in the business. Laurel Wealth Advisors LLC grew its holdings in Eli Lilly and Company by 78,621.2% during the 2nd quarter. Laurel Wealth Advisors LLC now owns 11,552,336 shares of the company’s stock worth $9,005,392,000 after acquiring an additional 11,537,661 shares in the last quarter. Norges Bank purchased a new stake in shares of Eli Lilly and Company during the 2nd quarter worth $8,827,714,000. Capital Research Global Investors grew its stake in shares of Eli Lilly and Company by 20.9% during the third quarter. Capital Research Global Investors now owns 25,088,371 shares of the company’s stock worth $19,141,787,000 after purchasing an additional 4,332,008 shares in the last quarter. Vanguard Group Inc. increased its holdings in Eli Lilly and Company by 1.5% in the second quarter. Vanguard Group Inc. now owns 80,407,430 shares of the company’s stock valued at $62,680,004,000 after buying an additional 1,183,038 shares during the last quarter. Finally, Amundi raised its stake in Eli Lilly and Company by 27.1% in the third quarter. Amundi now owns 4,525,902 shares of the company’s stock valued at $3,823,977,000 after buying an additional 964,675 shares in the last quarter. Hedge funds and other institutional investors own 82.53% of the company’s stock.

Eli Lilly and Company Price Performance

The stock has a fifty day simple moving average of $1,054.28 and a 200-day simple moving average of $893.81. The company has a market capitalization of $1.05 trillion, a PE ratio of 54.16, a P/E/G ratio of 0.79 and a beta of 0.39. The company has a current ratio of 1.55, a quick ratio of 1.24 and a debt-to-equity ratio of 1.71.

Eli Lilly and Company Company Profile

Eli Lilly and Company (NYSE: LLY) is a global pharmaceutical company founded in 1876 and headquartered in Indianapolis, Indiana. The company researches, develops, manufactures and commercializes a broad range of medicines and therapies for patients worldwide. Eli Lilly maintains operations and commercial presence across North America, Europe, Asia and other regions, serving both developed and emerging markets. The company has been led in recent years by President and Chief Executive Officer David A.