💊 What the company does
Eli Lilly is a global pharmaceutical leader focused on diabetes, obesity, oncology, immunology, and neuroscience.
Its current growth engine is GLP-1 medicines such as Mounjaro and Zepbound, which are transforming metabolic and obesity care worldwide.
📊 Financial Highlights
Revenue rose sharply year over year, driven by record global demand for Mounjaro and Zepbound.
Profitability expanded significantly, with net margin reaching 31.7%, the highest in company history.
Operating cash flow in the first nine months of FY2025 was strong enough to fund new factory investments and shareholder returns with only limited new borrowing.
⚠️ Key Risks
- Heavy reliance on a few blockbuster drugs — any safety, approval, or supply issue could impact results.
- Ongoing capacity expansion for GLP-1 products increases manufacturing complexity and potential delays.
- Regulatory and pricing pressures (such as U.S. Medicare negotiations) and intensifying competition from Novo Nordisk and others may affect margins.
🧭 MD&A (What management emphasized)
- Global GLP-1 demand remained strong, with accelerating adoption in Europe and Japan.
- Gross margin exceeded 80% thanks to high-margin product mix and cost discipline.
- Management focuses on expanding manufacturing, advancing late-stage pipelines (metabolic, oncology), and maintaining a balanced capital strategy between growth investment and shareholder returns.
✅ Takeaway
Eli Lilly’s Q3 2025 results show a company scaling rapidly around GLP-1 demand, with exceptional margins, strong cash generation, and disciplined reinvestment.
While policy and competition risks remain, management highlights continued capacity expansion and innovation momentum heading into FY2026.
📈 Key Profitability Ratios
| Ratio | Q3 FY2025 | Q3 FY2024 | 9M FY2025 | 9M FY2024 |
|---|---|---|---|---|
| Gross Margin (%) | 82.9 | 81.0 | 83.3 | 81.0 |
| Operating Margin (%) | 41.1 | 13.9 | 38.1 | 24.2 |
| Net Margin (%) | 31.7 | 8.5 | 30.5 | 19.6 |
Plain English:
Profitability skyrocketed thanks to the high-margin GLP-1 portfolio (Mounjaro & Zepbound).
Operating margin tripled YoY, and net margin broke the 30 % threshold —
a clear sign of strong pricing power, manufacturing scale, and tight cost control.
📝 Disclaimer
This article is intended for educational purposes only. It does not constitute financial, investment, or legal advice. All investment decisions involve risks, and readers should conduct their own research or consult with a licensed financial advisor.
👉 Eli Lilly and Company (LLY) Q3 2025 10-Q Analysis (Filed 2025) | Explained for Beginners