Eli Lilly and Company (NYSE:LLY) Trading 10.3% Higher Following Strong Earnings

Eli Lilly and Company (NYSE:LLY)’s share price was 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. Approximately 7,104,089 shares changed 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 return on equity of 109.52% and a net margin of 30.99%.The firm had revenue of $19.29 billion for the quarter, compared to the consensus estimate of $17.85 billion. During the same period in the previous year, the business earned $5.32 EPS. The firm’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 business also recently disclosed a quarterly dividend, which will be paid on Tuesday, March 10th. Stockholders of record on Friday, February 13th will be issued a dividend of $1.73 per share. This represents a $6.92 annualized dividend and a dividend yield of 0.6%. This is an increase from Eli Lilly and Company’s previous quarterly dividend of $1.50. The ex-dividend date is Friday, February 13th. Eli Lilly and Company’s dividend 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: Q4 beat and strong 2026 guidance — Lilly reported revenue of $19.3B and EPS above estimates, then guided FY‑26 revenue $80–83B and EPS 33.50–35.00, which underpins the stock rally. Reuters: Lilly sees 2026 profit above estimates
• Positive Sentiment: Surging GLP‑1 sales — Mounjaro and Zepbound volumes doubled+/grew strongly, allowing Lilly to offset U.S. pricing pressure through volume growth. This is the main revenue driver cited by management. CNBC: Lilly blows past quarterly estimates
• Positive Sentiment: Capacity investments support long-term supply advantage — Lilly announced a major $3.5B injectable facility (and broader greenfield buildout), reducing past supply constraints and supporting the volume strategy. MarketBeat: The Metabolic Split
• Neutral Sentiment: Analyst positioning — some firms reaffirm buy ratings and raise targets after the beat, which amplifies momentum but also cements expectations. MarketScreener: Goldman Sachs maintains buy
• Neutral Sentiment: Sector rotation vs. peers — Lilly’s upside is amplified by Novo Nordisk’s weaker guide (investors reallocating within GLP‑1 names), so part of the move reflects relative positioning. Investopedia: Stocks diverge
• Negative Sentiment: Valuation and pullback risk — several analysts/writers warn the stock is priced for perfection and a pullback is possible if execution/sales slow or guidance disappoints relative to very high expectations. Forbes: 3 reasons a pullback is likely
• Negative Sentiment: Pricing/regulatory headwinds remain — U.S. pricing measures (e.g., MFN-type pressures) are real; Lilly is using volume to offset price declines, but continued price compression is a recurring downside risk. Reuters: pricing headwinds noted
• Negative Sentiment: Competition is intensifying — Novo’s new oral and Pfizer/other entrants’ GLP‑1 programs are accelerating; long-term share and pricing could be pressured as more oral/cheaper options scale. MarketBeat: Pfizer GLP-1 results

Analyst Ratings Changes

LLY has been the topic of several research analyst reports. CICC Research boosted their target price on shares of Eli Lilly and Company from $801.00 to $1,060.00 and gave the stock a “neutral” rating in a research report on Thursday, November 13th. BMO Capital Markets reiterated an “outperform” rating on shares of Eli Lilly and Company in a research note on Wednesday, January 14th. Wall Street Zen lowered shares of Eli Lilly and Company from a “strong-buy” rating to a “buy” rating in a report on Saturday, January 31st. Zacks Research downgraded Eli Lilly and Company from a “strong-buy” rating to a “hold” rating in a research report on Friday, January 30th. Finally, Sanford C. Bernstein reaffirmed an “outperform” rating on shares of Eli Lilly and Company in a research report on Friday, December 19th. Three analysts have rated the stock with a Strong Buy rating, eighteen have assigned a Buy rating and six have given a Hold rating to the company. According to data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $1,162.75.

Institutional Investors Weigh In On Eli Lilly and Company

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Vanguard Group Inc. lifted its holdings in Eli Lilly and Company by 1.2% in the fourth quarter. Vanguard Group Inc. now owns 81,965,974 shares of the company’s stock valued at $88,087,193,000 after acquiring an additional 1,006,885 shares during the period. State Street Corp increased its holdings in shares of Eli Lilly and Company by 0.6% during the 3rd quarter. State Street Corp now owns 34,726,558 shares of the company’s stock valued at $26,496,364,000 after purchasing an additional 219,590 shares in the last quarter. Capital Research Global Investors increased its holdings in shares of Eli Lilly and Company by 20.9% during the 3rd quarter. Capital Research Global Investors now owns 25,088,371 shares of the company’s stock valued at $19,141,787,000 after purchasing an additional 4,332,008 shares in the last quarter. Wellington Management Group LLP lifted its stake in shares of Eli Lilly and Company by 4.1% in the 3rd quarter. Wellington Management Group LLP now owns 14,563,780 shares of the company’s stock valued at $11,112,164,000 after purchasing an additional 574,229 shares during the period. Finally, Laurel Wealth Advisors LLC boosted its holdings in Eli Lilly and Company by 78,621.2% during the second quarter. Laurel Wealth Advisors LLC now owns 11,552,336 shares of the company’s stock worth $9,005,392,000 after buying an additional 11,537,661 shares in the last quarter. 82.53% of the stock is owned by institutional investors and hedge funds.

Eli Lilly and Company Price Performance

The stock has a market capitalization of $1.05 trillion, a PE ratio of 54.16, a P/E/G ratio of 0.76 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 fifty day moving average is $1,054.31 and its 200-day moving average is $895.30.

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.