Eli Lilly price target raised to $1,300 after second-quarter growth

CNBC’s Investing Club raised its Eli Lilly price target to $1,300 from $1,200 after the drugmaker delivered rapid second-quarter growth and increased its 2026 outlook. The club retained its hold-equivalent rating of 2, meaning the target is its investment view, not a forecast issued by Lilly.

For investors, the report underscored the scale of demand for Lilly’s biggest medicines while also showing that pricing remains a factor. Lilly said sales growth was driven by higher volumes of Mounjaro and Zepbound, partly offset by lower realized prices.

What did Eli Lilly report for the second quarter of 2026?

Lilly reported revenue of $22.974 billion for the quarter, a 48% increase from a year earlier. Reported earnings per share were $7.94, up 26%, while non-GAAP earnings per share were $8.38, up 33%, according to the company.

The comparison needs context: both the reported and non-GAAP per-share figures included $3.03 in acquired in-process research and development charges. The comparable charge was $0.14 per share in the second quarter of 2025, Lilly said.

The company said worldwide volume increased 60% during the quarter, while realized prices fell 13%. U.S. revenue rose 33% to $14.4 billion, and revenue outside the U.S. increased 80% to $8.6 billion. Lilly attributed U.S. volume growth primarily to Mounjaro and Zepbound, and international volume growth primarily to Mounjaro.

Guidance moved higher again

Lilly increased its full-year revenue outlook to $85 billion to $87 billion and set full-year non-GAAP EPS guidance at $35.50 to $36.50. After the first quarter, the company had projected revenue of $82 billion to $85 billion. That lifts the midpoint of the revenue range by $2.5 billion, from $83.5 billion to $86 billion.

The company reported $19.799 billion of revenue in the first quarter, which was followed by the $22.974 billion second-quarter total. Both quarters were driven by volume gains that Lilly said were partly offset by lower realized prices.

Products and pipeline remain in focus

CNBC’s Investing Club said the quarterly performance of injectable medicines Mounjaro and Zepbound exceeded expectations. Mounjaro is sold for diabetes in the U.S., while Zepbound is sold for obesity. Both contain tirzepatide, according to CNBC.

The club also pointed to an earlier-stage rollout for Foundayo, Lilly’s oral medicine. CNBC reported Foundayo revenue of $98 million in the quarter, below expectations, but said Chief Executive David Ricks described increasing prescriptions and awareness. The company’s release said it submitted orforglipron, the medicine marketed as Foundayo, for U.S. review in type 2 diabetes.

Lilly also reported positive results from three additional Phase 3 trials of retatrutide in obesity. It plans to submit a U.S. Biologics License Application for the drug in the first quarter of 2027, a filing that asks the Food and Drug Administration to approve a biologic medicine for sale.

The $1,300 price target reflects CNBC’s view following those results. Lilly’s own update is the higher revenue and earnings outlook, which will be tested against future sales, pricing and pipeline execution.

This story draws on original reporting from CNBC.