# ELI Lilly And Company (LLY)

> Lilly discovers, makes, and sells prescription medicines for diseases including diabetes, obesity, cancer, and inflammatory conditions.

- Exchange: NYSE · Sector: Healthcare · Industry: Drug Manufacturers General
- Headquarters: Indianapolis, Indiana, United States
- Founded: 1876
- Employees: approximately 50,000 (December 31, 2025)
- SEC CIK: 0000059478 ([filings on EDGAR](https://www.sec.gov/cgi-bin/browse-edgar?action=getcompany&CIK=0000059478))
- Full page: https://inspectstocks.com/stocks/lly
- Data as of: price 2026-09-28; newest filing used 2026-08-05; latest fiscal period ended 2026-06-30

## Grade

**A+** on the growth-and-cash rubric, 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Revenue growing overall | passed | $79.7B | $29.5B |
| Revenue growing recently | passed | $79.7B | $65.2B |
| Free cash flow positive | passed | $18.2B |  |
| Free cash flow growing overall | passed | $18.2B | $3.7B |
| Free cash flow growing recently | passed | $18.2B | $9B |

Business quality (the + / − mark): 5 of 5 checks passed.

| Check | Result | Now | Before |
| --- | --- | --- | --- |
| Profitable | passed | 33.5% |  |
| Healthy profit margin | passed | 33.5% |  |
| Good return on equity | passed | 100.7% |  |
| Debt under control | passed | 1.65 |  |
| Turns sales into cash | passed | 22.8% |  |

How the grade works: the letter counts failed checks (none → A, one → B, two → C, three → D, four or more → F). It is built from SEC filings only — the share price never enters it — and describes the business, not whether the stock is worth buying.

## Key figures

In US dollars, as filed.

| Measure | Value |
| --- | --- |
| Revenue, trailing twelve months | $79.7B |
| Net income, trailing twelve months | $26.7B |
| Free cash flow, trailing twelve months | $18.2B |
| Net margin | 33.5% |
| Return on equity | 100.7% |
| Debt to equity | 1.65 |
| Diluted EPS, trailing twelve months | $29.80 |
| Share price | $1,185.69 |
| Market value | $1.12T |
| Price / earnings | 39.8x |
| Price / sales | 14.0x |

## What the business does

Lilly researches, develops, manufactures, and sells human medicines in the United States and around the world. Its medicines treat conditions including type 2 diabetes, obesity, cancer, inflammatory diseases, migraine, and Alzheimer's disease. It also works with other companies on research, development, and marketing of some medicines.

### How it makes money

- **Human pharmaceutical products** (100% (year ended December 31, 2025)) — Lilly reports one business segment: human medicines. It earns revenue mainly by selling prescription medicines to wholesalers and other customers; some revenue also comes from collaborations and other arrangements.

### Products

- **Mounjaro** — A medicine used with diet and exercise to improve blood sugar control in adults with type 2 diabetes.
- **Zepbound** — A medicine for adults with obesity, or overweight with a weight-related health condition. It is also approved for certain adults with obesity and moderate to severe sleep apnea.
- **Foundayo (orforglipron)** — An oral medicine approved in the United States for obesity. Lilly has also submitted it for review as a treatment for type 2 diabetes.
- **Verzenio** — A medicine used alone or with hormone treatment for certain adults with hormone receptor-positive breast cancer.
- **Jardiance** — A medicine used for type 2 diabetes and to reduce certain risks related to heart failure and chronic kidney disease. Lilly markets it in collaboration with Boehringer Ingelheim.
- **Trulicity** — A medicine for type 2 diabetes in adults and some children, and to reduce the risk of certain heart problems in some adults with type 2 diabetes.

### Customers

- In the United States, McKesson, Cencora, and Cardinal Health buy and distribute Lilly medicines to pharmacies, hospitals, physicians, and other providers.
- Private insurers and pharmacy benefit managers negotiate rebates and decide which medicines their health plans cover and on what terms.
- Government health programs and public health systems buy or reimburse medicines, and may set conditions for patient access.
- Patients generally receive Lilly medicines through prescriptions filled at pharmacies. In some places, LillyDirect helps connect patients with independent care providers and third-party pharmacies that dispense selected medicines.
- Outside the United States, Lilly sells through its own sales teams in many countries and uses local distribution or promotion partners in some markets.

### Competitors

- Novo Nordisk (NVO) — Diabetes and obesity medicines, including oral semaglutide, which Lilly executives discussed as a competing product.
- AstraZeneca (AZN) — Diabetes medicines, including Farxiga, and medicines used in cancer treatment.
- Pfizer (PFE) — Breast cancer medicines, including Ibrance, which competes in a treatment area where Lilly sells Verzenio.

### What it depends on

- Mounjaro and Zepbound together accounted for 65% of total revenue (six months ended June 30, 2026, high), making results dependent on those medicines and the market for incretin treatments.
- Lilly sells most U.S. medicines through wholesalers; McKesson, Cencora, and Cardinal Health each accounted for a significant percentage of consolidated revenue in 2025.
- Some manufacturing materials come from a single source, and Lilly also uses outside companies for parts of medicine and device manufacturing. The company says it and the pharmaceutical industry depend on China-based suppliers for portions of the supply chain.
- Medicine sales depend on regulatory approval and continued compliance with rules for manufacturing quality, safety, marketing, pricing, and reimbursement.

### What could go wrong

- A large share of revenue comes from Mounjaro and Zepbound. Competing medicines, limits on insurance coverage, or changes in patient demand could reduce sales of these products.
- Government price-setting, rebates, and insurance coverage decisions can reduce the prices Lilly receives or limit access. The United States selected Jardiance for Medicare price-setting effective in 2026 and selected Trulicity and Verzenio for 2028.
- Research and development can fail to produce enough medicines that reach patients and earn sales. When patents or other protections expire, generic or similar medicines can quickly reduce sales of Lilly's products.

## More on this company

- [Overview](https://inspectstocks.com/stocks/lly)
- [Financial statements](https://inspectstocks.com/stocks/lly/financials)
- [Competitors](https://inspectstocks.com/stocks/lly/peers)
- [Earnings](https://inspectstocks.com/stocks/lly/earnings)

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Source: InspectStocks, built from the company’s own SEC filings. This describes a business — it is not investment advice and not a recommendation to buy or sell anything.