Eli Lilly grows 55 percent and becomes the most valuable drugmaker in the world

Eli Lilly generated revenue of 19.8 billion dollars in the first quarter of 2026, up 55.5 percent on the year before. The company owes that jump almost entirely to two treatments for diabetes and obesity.

Mounjaro and Zepbound together accounted for around 12.8 billion dollars in worldwide sales. In the United States revenue rose 43 percent to 12.1 billion dollars, with volume up 49 percent.

The company raised its revenue guidance for 2026 to 82 to 85 billion dollars.

Market value stands at around 1.16 trillion dollars according to reports. Eli Lilly has therefore crossed the one trillion mark and stands ahead of JPMorgan Chase, which is still below it at 965 billion dollars.

The short version

• Revenue rose 55.5 percent in the first quarter of 2026 to 19.8 billion dollars, of which around 12.8 billion came from two products.
• Market value is around 1.16 trillion dollars, and revenue guidance for 2026 was raised to 82 to 85 billion dollars.
• The price to earnings ratio stands at around 44, so a considerable part of the expectation is already in the price.

Analysts raise their targets

JPMorgan analyst Chris Schott lifted his price target to 1,400 dollars from 1,300 dollars and left the rating at overweight. The analyst consensus is a price target of 1,209.21 dollars, and around 80 percent of the covering houses are positive.

The asset management arm of JPMorgan has also bought in. Its latest filing with the American securities regulator shows a holding in Eli Lilly worth 2.93 billion dollars. It was the most striking new position in the portfolio.

Over six months the share gained 58 percent.

The valuation leaves little room

The price to earnings ratio stands at around 44. At a valuation of that kind a considerable part of the expected development is already in the price.

That is where the risk lies. Analysts point out that a high bar works in both directions. A single disappointing quarter can hit a share at record levels hard.

Three points are regarded as decisive. The international momentum of Mounjaro has to hold while copycat products come to market in individual countries. The tablet taken by mouth has to keep winning patients who have not used such a therapy before. And price pressure in the United States must not outrun the gains in volume.

Competitors are not close

What supports the position of the company so far are the results of the competition. Weak trial results from smaller rivals have shown, in the view of analysts, how hard the position of Eli Lilly is to attack. The industry speaks of a wide moat.

The market itself keeps growing. Estimates put the field of treatments for obesity at around 100 billion dollars by 2030, with Eli Lilly in the dominant role.

The pipeline includes a compound taken by mouth from the same class of substances that has been filed for approval.

Food groups are reacting too

How strongly these treatments work is now visible far beyond the pharmaceutical industry. Nestlé is using artificial intelligence to develop products aimed at the side effects of these drugs, among them items with collagen protein and a protein shake against muscle loss.

The technology chief of the Swiss group described the development to the news agency Reuters as a huge opportunity. The background is that millions of users eat less and differently under the influence of these drugs, which means falling volumes for makers of snacks and ready meals.

Frequently asked questions

Where does the growth at Eli Lilly come from

Almost entirely from two treatments for diabetes and obesity. Mounjaro and Zepbound together accounted for around 12.8 billion dollars in worldwide sales in the first quarter of 2026. In the United States revenue rose 43 percent with volume up 49 percent.

What risks does the market see

Three points are regarded as decisive. The international momentum of Mounjaro has to hold while copycat products come to market in individual countries. The tablet taken by mouth has to keep winning new patients. And price pressure in the United States must not outrun the gains in volume.

What does a price to earnings ratio of 44 mean

It means that a considerable part of the expected development is already in the price. A high bar works in both directions, and a single disappointing quarter can hit a share at record levels hard.

This analysis is for information only and is not investment advice.