Eli Lilly and Company (NYSE:LLY) Shares Gap Up Following Strong Earnings

Eli Lilly and Company (NYSE:LLY)’s stock price gapped up before the market opened on Wednesday after the company announced better than expected quarterly earnings. The stock had previously closed at $1,003.46, but opened at $1,075.12. Eli Lilly and Company shares last traded at $1,081.8480, with a volume of 1,494,382 shares trading hands.

The company reported $7.54 earnings per share for the quarter, topping the consensus estimate of $7.48 by $0.06. The company had revenue of $19.29 billion for the quarter, compared to analysts’ expectations of $17.85 billion. Eli Lilly and Company had a net margin of 31.66% and a return on equity of 112.50%. Eli Lilly and Company’s quarterly revenue was up 42.6% on a year-over-year basis. During the same quarter in the previous year, the business posted $5.32 earnings per share. Eli Lilly and Company has set its FY 2026 guidance at 33.500-35.000 EPS.

Eli Lilly and Company Increases Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Friday, February 13th will be paid a $1.73 dividend. This represents a $6.92 annualized dividend and a dividend yield of 0.7%. The ex-dividend date of this dividend is Friday, February 13th. This is a positive change from Eli Lilly and Company’s previous quarterly dividend of $1.50. Eli Lilly and Company’s dividend payout ratio is 29.35%.

Trending Headlines about Eli Lilly and Company

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

• Positive Sentiment: Strong Q4 beat and bullish 2026 guidance — Lilly reported a large revenue and EPS beat driven by Zepbound and Mounjaro, and issued FY2026 revenue and EPS guidance well above Street estimates, which triggered the initial rally. Eli Lilly shares soar after Q4 beat, strong forecast on weight-loss drugs
• Positive Sentiment: Analysts raising targets and reaffirming conviction — Multiple firms have bumped price targets and kept overweight/buy ratings after the results, reflecting confidence in GLP-1 demand and Lilly’s runway. JPMorgan price-target raise / coverage summary
• Positive Sentiment: Capacity expansion to support volume growth — Lilly announced a large manufacturing investment (>$3.5B) to boost production capacity, supporting the company’s “volume defense” against U.S. pricing pressure. Lilly to invest over $3.5B in new manufacturing facility
• Neutral Sentiment: Sector context: GLP-1 headlines lift some peers — Pfizer’s positive GLP-1 data and broader industry activity are expanding the market opportunity (good long-term signal) but also increasing near-term competition. Pfizer Pops on Q4 Results—But This May Be the Catalyst That Matters Most
• Neutral Sentiment: Growing divergence with Novo — Coverage notes that Lilly’s execution and capacity have shifted investor expectations relative to Novo Nordisk, which helps explain the recent re-rating. The Metabolic Split: Why Eli Lilly Soars as Novo Stumbles
• Negative Sentiment: Low-cost oral GLP-1 competition from Hims & Hers — News that Hims will offer a compounded oral semaglutide at ~$49/month undercut pricing expectations for branded oral therapies and prompted the post-rally selloff. This raises concerns about price resilience for upcoming oral launches (e.g., orforglipron). Novo Nordisk and Eli Lilly fall after Hims & Hers announce $49 copy of Wegovy pill
• Negative Sentiment: Legal/investor probes — Two investor-alerts/firm investigations (Scott+Scott and Kahn Swick & Foti) were announced regarding management decisions and the proposed Ventyx transaction, adding governance/legal noise that can weigh on sentiment. Scott+Scott investor alert Ventyx / KSF investor alert

Analyst Upgrades and Downgrades

Several research firms recently weighed in on LLY. The Goldman Sachs Group set a $1,260.00 price target on Eli Lilly and Company in a report on Thursday. JPMorgan Chase & Co. raised their target price on shares of Eli Lilly and Company from $1,150.00 to $1,300.00 and gave the stock an “overweight” rating in a report on Thursday. Deutsche Bank Aktiengesellschaft lifted their price target on shares of Eli Lilly and Company from $1,000.00 to $1,200.00 and gave the stock a “buy” rating in a research note on Wednesday, December 17th. Guggenheim decreased their price objective on shares of Eli Lilly and Company from $1,163.00 to $1,161.00 and set a “buy” rating for the company in a research note on Tuesday, January 20th. Finally, CICC Research boosted their target price on Eli Lilly and Company from $801.00 to $1,060.00 and gave the company a “neutral” rating in a research report on Thursday, November 13th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and six have assigned a Hold rating to the company. Based on data from MarketBeat.com, the company has an average rating of “Moderate Buy” and an average price target of $1,201.17.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently bought and sold shares of LLY. Lazard Freres Gestion S.A.S. lifted its stake in shares of Eli Lilly and Company by 114.3% in the 2nd quarter. Lazard Freres Gestion S.A.S. now owns 77,295 shares of the company’s stock valued at $60,253,000 after purchasing an additional 41,222 shares during the last quarter. Exencial Wealth Advisors LLC boosted its stake in shares of Eli Lilly and Company by 189.6% in the third quarter. Exencial Wealth Advisors LLC now owns 17,408 shares of the company’s stock valued at $13,283,000 after purchasing an additional 11,396 shares during the period. Rede Wealth LLC acquired a new position in shares of Eli Lilly and Company in the third quarter worth $487,000. Central Pacific Bank Trust Division grew its stake in Eli Lilly and Company by 25.8% during the 3rd quarter. Central Pacific Bank Trust Division now owns 8,990 shares of the company’s stock worth $6,859,000 after purchasing an additional 1,843 shares in the last quarter. Finally, Oak Family Advisors LLC acquired a new position in shares of Eli Lilly and Company during the third quarter worth about $1,979,000. Institutional investors own 82.53% of the company’s stock.

Eli Lilly and Company Stock Performance

The company has a market capitalization of $964.66 billion, a PE ratio of 44.46, a P/E/G ratio of 0.82 and a beta of 0.39. The stock’s 50-day simple moving average is $1,052.61 and its 200 day simple moving average is $896.17. The company has a debt-to-equity ratio of 1.71, a quick ratio of 1.24 and a current ratio of 1.55.

About Eli Lilly and Company

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.