Eli Lilly’s stock valuation is relatively high among large pharmaceutical companies, at approximately 29 times expected earnings for the next 12 months. This premium reflects market expectations that demand for its GLP-1 drugs will remain exceptionally strong. The company projects 2026 revenue between $82 million and $85 million, representing 28% growth at the midpoint; earnings per share are expected to range from $35.5 to $37, a 49.7% increase at the midpoint.
At the end of last year, Eli Lilly (LLY) became the first pharmaceutical company to surpass a $1 trillion market capitalization, driven by its empire of GLP-1 drugs for diabetes and weight loss. Although pharmaceutical stocks have struggled overall in 2026, Eli Lilly’s share price has risen more than 45% over the past year. Over the last three months, its modest 2% gain has also outperformed competitors.
This Indianapolis-based healthcare company has multiple catalysts expected to continue driving its stock growth, including the expansion of GLP-1 business revenues, a willingness to invest cash through acquisitions to improve its R&D pipeline, and the continued growth of high-margin specialty drugs. Below is a detailed analysis of these three factors.
The primary engine behind Eli Lilly’s substantial revenue growth is Mounjaro, whose active ingredient is tirzepatide. Sold both as Mounjaro for treating type 2 diabetes and as Zepbound for obesity, the drug drove first-quarter revenue up more than 56% year-over-year to $19.8 billion, while earnings per share (EPS) rose to $8.55, a 156% increase compared to the same period last year.
These figures have yet to reflect the impact of Foundayo, a once-daily oral GLP-1 medication. The U.S. Food and Drug Administration approved Foundayo on April 1 for use in adults with weight-related medical issues. This therapy will appeal to users who dislike injections, and its manufacturing cost may be lower than that of injectables.
Additionally, a growing number of pharmacy benefit managers are restoring Zepbound as a preferred drug, thereby making it accessible to more users.
On May 26, Eli Lilly announced it would spend $3.83 billion to acquire three biotechnology companies, gaining multiple promising pipeline candidates. This includes a $1.5 billion acquisition of Curevo, obtaining amezosvatein, a vaccine candidate for preventing shingles in adults; a $780 million acquisition of LimmaTech Biologics, known for its vaccine pipeline targeting biological pathogens, particularly LTB-SA7, a vaccine aimed at the primary cause of surgical site infections; and a $1.55 billion acquisition of Vaccine Company, known for its vaccines targeting multiple viral pathogens, most notably an unnamed drug targeting the Epstein-Barr virus.
In April of this year, Eli Lilly also spent $2.3 billion to acquire Ajax Therapeutics, which is known for its promising therapies for rare chronic blood cancers.
Eli Lilly’s stock has considerable upward momentum, and the company’s ability to increase access to GLP-1 drugs also provides the revenue needed to develop its ever-expanding product portfolio.
