What Happened?
Shares of global pharmaceutical company Eli Lilly (NYSE: LLY) jumped 3.1% in the morning session after the company reported a "beat and raise" quarter.
Specifically, Eli Lilly blew past analysts’ revenue and EPS expectations, showing both better-than-expected growth and operating leverage thanks to Zepbound and Mounjaro sales. Looking ahead, its full-year revenue guidance was lifted and exceeded Wall Street’s estimates. Zooming out, we think this was a strong quarter with ample reasons for investors to remain positive.
After the initial pop the shares cooled down to $847.92, up 4.2% from previous close.
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What Is The Market Telling Us
Eli Lilly’s shares are somewhat volatile and have had 11 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.
The previous big move we wrote about was 13 days ago when the stock dropped 3.5% as political comments introduced significant uncertainty regarding the future pricing of the company’s weight-loss and diabetes drugs, Zepbound and Mounjaro. The drop occurred after President Donald Trump suggested that the price for the GLP-1 drug category, which Eli Lilly dominates alongside Novo Nordisk, could soon be "much lower," citing a target price drastically below current list prices. While the administration clarified that formal negotiations under the Inflation Reduction Act (IRA) had not yet concluded for this class of drugs, the stock's reaction suggests some investors were agitated by the rhetoric, which is part of a broader, sustained effort to reduce out-of-pocket expenses for Americans.
Eli Lilly is up 9.1% since the beginning of the year, and at $847.92 per share, it is trading close to its 52-week high of $929.72 from March 2025. Investors who bought $1,000 worth of Eli Lilly’s shares 5 years ago would now be looking at an investment worth $6,508.
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