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

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

The company reported $7.54 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $7.48 by $0.06. The business had revenue of $19.29 billion for the quarter, compared to analysts’ expectations of $17.85 billion. Eli Lilly and Company had a return on equity of 112.50% and a net margin of 31.66%.The company’s quarterly revenue was up 42.6% on a year-over-year basis. During the same period in the previous year, the firm posted $5.32 EPS. 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 declared a quarterly dividend, which will be paid on Tuesday, March 10th. Investors of record on Friday, February 13th will be given a $1.73 dividend. This is a boost from Eli Lilly and Company’s previous quarterly dividend of $1.50. The ex-dividend date is Friday, February 13th. This represents a $6.92 annualized dividend and a dividend yield of 0.7%. Eli Lilly and Company’s payout ratio is currently 29.35%.

More Eli Lilly and Company News

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

Wall Street Analyst Weigh In

LLY has been the topic of several research analyst reports. Berenberg Bank lifted their target price on Eli Lilly and Company from $830.00 to $950.00 and gave the company a “hold” rating in a research note on Tuesday, December 2nd. JPMorgan Chase & Co. boosted their price objective on shares of Eli Lilly and Company from $1,150.00 to $1,300.00 and gave the company an “overweight” rating in a research report on Thursday. BMO Capital Markets reiterated an “outperform” rating and issued a $1,300.00 target price on shares of Eli Lilly and Company in a research report on Thursday. Weiss Ratings reissued a “buy (b-)” rating on shares of Eli Lilly and Company in a research note on Monday, December 22nd. Finally, Daiwa Capital Markets set a $1,230.00 price target on shares of Eli Lilly and Company and gave the stock a “buy” rating in a research note on Tuesday, December 16th. Two research analysts have rated the stock with a Strong Buy rating, nineteen have given a Buy rating and six have given a Hold rating to the company’s stock. According to MarketBeat, the company has an average rating of “Moderate Buy” and a consensus target price of $1,201.17.

Institutional Inflows and Outflows

Institutional investors and hedge funds have recently bought and sold shares of the company. Maryland Capital Advisors Inc. bought a new position in Eli Lilly and Company in the 4th quarter worth approximately $25,000. Sumitomo Mitsui Financial Group Inc. bought a new stake in shares of Eli Lilly and Company in the 2nd quarter worth approximately $27,000. Vermillion & White Wealth Management Group LLC grew its holdings in shares of Eli Lilly and Company by 84.2% during the 3rd quarter. Vermillion & White Wealth Management Group LLC now owns 35 shares of the company’s stock worth $27,000 after purchasing an additional 16 shares in the last quarter. Evolution Wealth Management Inc. bought a new stake in shares of Eli Lilly and Company during the second quarter valued at approximately $29,000. Finally, Steph & Co. raised its stake in shares of Eli Lilly and Company by 290.0% in the third quarter. Steph & Co. now owns 39 shares of the company’s stock valued at $30,000 after purchasing an additional 29 shares in the last quarter. Institutional investors and hedge funds own 82.53% of the company’s stock.

Eli Lilly and Company Price Performance

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

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.