The year\u2019s strong sales told only part of the story. More significantly, Eli Lilly hit a new level of financial performance<\/a> as its growth actually began to accelerate.<\/p>\n Let\u2019s start with the latest quarter. Revenue shot up 48% compared to the same period in 2025. The company\u2019s incretin drugs, Mounjaro and Zepbound, combined for $14.9 billion in revenue in a single quarter. But look at the bigger picture: over the last 12 months, revenue growth hit 50%. That\u2019s a significant step up from the company\u2019s 3-year average growth rate of 39%. When a company this large finds a way to grow faster, you pay attention. Management was confident enough to raise its full-year revenue forecast by $3 billion on the low end.<\/p>\n But Isn\u2019t This Just A One-Trick Pony?<\/b><\/p>\n A fair question. When one franchise drives the numbers this hard, you look for what\u2019s next. Over the past year, Lilly provided an answer. The company announced positive results from 3 Phase 3 trials for its next-generation obesity treatment, retatrutide. The data showed what management called \u201cprofound levels of weight loss,\u201d with one trial demonstrating results \u201capproaching bariatric surgery levels.\u201d That single development significantly strengthens Lilly\u2019s long-term pipeline, indicating potential beyond its current portfolio. The company also went shopping, announcing acquisitions like CrossBridge Bio and AtaiBeckley to build out its pipeline in other areas.<\/p>\n The market for these drugs is large, with management noting that treatment for obesity is still in the \u201cmid-single digit\u201d range of penetration. But the addressable market also got a huge boost this year. On July 1, the Medicare GLP-1 Bridge program launched, giving \u201c20 million eligible Americans insurance coverage for GLP-1s for obesity.\u201d That single program meant \u201c35% more people now have coverage for our obesity medicines in the United States.\u201d It was a clear signal that access, a major barrier to growth, was starting to fall.<\/p>\n What About The Profitability Of That Growth?<\/b><\/p>\n This might be the most overlooked part of the story. It\u2019s one thing to grow revenue; it\u2019s another to do it this profitably. Lilly\u2019s operating margin now stands at 50%, a huge leap from its 3-year average of 39%. This explosion in profitability raises its own questions, and we recently analyzed whether Eli Lilly can keep the margin<\/a> you are now paying for. That high margin is partly supported by a net price on Zepbound that an analyst pegged at around $580 per prescription, well above its key competitor. That\u2019s a powerful lever for now, but also a point of focus for bears.<\/p>\n You\u2019ve paid for a perfect growth story, but even with management raising full-year guidance to $85\u2013$87 billion, that forecast implies a 30% to 34% growth rate\u2014a clear step down from the 50% pace delivered over the last twelve months.<\/p>\n Does This Run Have Staying Power?<\/b><\/p>\n Knowing why a stock ran is one thing; knowing whether the run has legs is another. The most durable moves are the ones a rising forecast is actually backing, rather than a good week of sentiment. Our Guidance Momentum screen<\/a> tracks the S&P 500 names where a raised outlook meets real price momentum, so you can judge which runs are built to last. If you would rather own the whole theme than ride this one winner, a healthcare ETF like XLV<\/a> holds the entire group.<\/p>\n How Do You Compound A Move Like This?<\/b><\/p>\n Catching the reason behind a run is a good skill; relying on catching the next one is a risky plan. Durable returns come from owning quality with discipline and letting the winners do the work over time, rather than betting the outcome on a single name and a single catalyst.<\/p>\n![](\"https:\/\/www.europesays.com\/ie\/wp-content\/uploads\/2026\/08\/1787727264_886_medications-tablets-medicine-cure-pharmaceutical-pharmacy-pharmacology-medical-medical-drugs-pills-p.jpeg\")
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\nHow Fast Is The Core Business Actually Growing?<\/b><\/p>\n