Lilly reported strong Q2 2025 financial results, including earnings per share up 92% (reported) and revenues rising 38% to $15.56 billion, both surpassing Wall Street estimates13.
Earnings guidance for 2025 was significantly raised, with revenue now expected between $60 billion and $62 billion and adjusted EPS in the range of $21.75 to $2313.
Despite this beat-and-raise quarter, investor sentiment was dampened by results from the Phase 3 trial for oral GLP-1 agonist orforglipron for obesity34.
Orforglipron achieved all primary and key secondary endpoints, showing average weight loss up to 27.3 lbs, but efficacy (12% weight loss) fell short of some analyst expectations, which were as high as 14.4%25.
Analysts expressed concerns about the drug’s efficacy relative to expected benchmarks and noted persistent gastrointestinal side effects after titration, an issue not seen with peptide GLP-1 drugs2.
Lilly remains confident in the commercial and clinical prospects of orforglipron and is preparing to submit the drug for global regulatory approval by the end of 202525.
The company’s strong financial performance and pipeline progress are currently being overshadowed by doubts about orforglipron, potentially creating an opening for smaller competitors in the obesity market24.
Sources:
1. https://www.prnewswire.com/news-releases/lilly-reports-second-quarter-2025-financial-results-and-raises-guidance-302524245.html
2. https://www.fiercebiotech.com/biotech/lilly-preps-oral-glp-1-regulatory-review-after-phase-3-shows-12-weight-loss
3. https://www.tipranks.com/news/lly-earnings-eli-lilly-sinks-despite-strong-q2-beats
4. https://insights.citeline.com/scrip/business/earnings/lilly-confident-in-orforglipron-despite-disappointing-phase-iii-data-SIVBXBVQV5HZZJN4TCFGU76AXU/
5. https://www.prnewswire.com/news-releases/lillys-oral-glp-1--orforglipron-delivers-weight-loss-of-up-to-an-average-of-27-3-lbs-in-first-of-two-pivotal-phase-3-trials-in-adults-with-obesity-302523649.html