Eli Lilly (LLY) Stock: $20B in Deals and a New Oral GLP-1 — What’s Next?

TLDR

• LLY stock opened at $1,208.37, up 14.4% year to date, outperforming the S&P 500
• Mounjaro and Zepbound account for nearly 65% of total Q1 2026 revenues
• Lilly launched oral GLP-1 drug Foundayo and expects GLP-1 contribution to exceed 65% in Q2
• Q1 EPS came in at $8.55, beating estimates of $6.97, on revenue of $19.80 billion — up 55.5% year over year
• Lilly announced over $20 billion in acquisitions and partnerships in 2026 to diversify beyond GLP-1

Eli Lilly (LLY) stock opened at $1,208.37 on Friday, sitting near its 52-week high of $1,238.00. The stock is up 14.4% year to date, beating both the broader pharma industry’s 11.6% gain and the S&P 500.

Eli Lilly and Company, LLY

The company reported Q1 2026 earnings of $8.55 per share, well above the $6.97 consensus estimate. Revenue came in at $19.80 billion, topping expectations of $17.82 billion and up 55.5% from the same period last year.

Mounjaro and Zepbound, Lilly’s GLP-1 blockbusters, drove much of that growth. Together they made up nearly 65% of total Q1 revenues. With the recent U.S. launch of Foundayo — Lilly’s oral GLP-1 for obesity — that number is expected to climb past 65% in Q2.

Foundayo puts Lilly back in direct competition with Novo Nordisk (NVO), which launched an oral version of Wegovy in January 2026, giving it a brief head start.

Diversifying Beyond GLP-1

Lilly isn’t sitting still on the diversification front. The company has been steadily building out a portfolio of non-GLP-1 drugs to reduce its reliance on the obesity franchise.

Omvoh targets inflammatory bowel disease, Jaypirca covers certain blood cancers, Ebglyss is approved for atopic dermatitis, Kisunla targets early Alzheimer’s, and Inluriyo was launched for metastatic breast cancer.

Jaypirca has been a particular bright spot. The FDA expanded its label in late 2025 for patients with relapsed or refractory CLL/SLL. Europe’s CHMP has since recommended broader approval across all lines of CLL therapy, with a final European Commission decision still pending.

Lilly is also awaiting a similar FDA label-expansion decision for Jaypirca later this year. If approved, it would open up a larger patient population in the U.S.

On the M&A side, Lilly committed more than $20 billion in 2026 deals spanning oncology, neuroscience, cardiovascular disease, gene editing, and vaccines. That’s a serious bet on long-term diversification.

Valuation and Analyst Views

At current prices, LLY trades at 30.67 times forward earnings — above the industry average of 18.76 but below its own five-year mean of 34.56. The market cap sits at $1.14 trillion.

Full-year 2026 EPS estimates have moved higher over the past 60 days, from $33.86 to $35.67. For 2027, estimates rose from $42.56 to $44.61.

Institutional ownership stands at 82.53%. World Investment Advisors increased its stake by 12.1% in Q1 2026, adding 2,936 shares to bring its total to 27,134.

Analyst sentiment remains broadly positive. Goldman Sachs has a buy rating with a $1,283 price target. Jefferies recently lifted its target to $1,350, also with a buy. Morgan Stanley reiterated overweight in June.

Of 30 analysts tracked by MarketBeat, 23 rate it a buy, with a consensus target of $1,235.07.

The one outlier: HSBC downgraded the stock to reduce in March, with a price target of $850.

Lilly’s FY 2026 guidance calls for EPS of $35.50 to $37.00, with the sell-side consensus currently at $35.74.

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