Eli Lilly delivered a standout performance in the second quarter of 2025, surpassing analyst expectations thanks to surging sales of its GLP-1 drugs, particularly Mounjaro and Zepbound. These medications, widely used for weight loss and diabetes management, remained a key driver as the company’s quarterly revenue soared 38% year-over-year to $15.56 billion. Earnings per share shot up 92% to $6.29 on a reported basis, with strong underlying demand prompting Lilly to raise its full-year revenue outlook to between $60 billion and $62 billion. The company also increased its earnings guidance for the year.

Despite these impressive financials and operational momentum, Eli Lilly’s stock experienced a sharp drop of about 13% in pre-market trading following the announcement. The market’s negative reaction was largely attributed to results from the company’s latest GLP-1 pill trials. Investors showed concerns about the trial outcomes and their potential impact on Lilly’s future competitive standing, which overshadowed the otherwise robust quarterly performance.

Eli Lilly emphasized that it remains focused on meeting the unprecedented demand for its GLP-1 portfolio through strategic manufacturing expansions. The ongoing growth in Mounjaro and Zepbound prescriptions has reinforced Lilly’s position as a leader in the obesity and diabetes treatment markets.

Additionally, the company reported progress across several key pipeline programs, including positive results from its orforglipron trial in obesity and advancements in diabetes and oncology treatments. Lilly also completed acquisitions of SiteOne Therapeutics and Verve Therapeutics during the quarter, further strengthening its pipeline and long-term growth prospects.

Overall, while the earnings report highlighted Eli Lilly’s financial strength and market leadership, the mixed sentiment around the GLP-1 pill trial demonstrates the market’s heightened sensitivity to research updates in a highly competitive sector.