Eli Lilly and Company (LLY) AI Stock Analysis

Eli Lilly and Company is a global pharmaceutical company focused on discovering, developing, and delivering life-saving medicines worldwide. Founded in 1876, the company operates across key therapeutic areas including diabetes, oncology, immunology, neuroscience, and osteoporosis. In diabetes care, it provides insulin therapies such as Humalog, Humulin, and Basaglar. Its oncology portfolio includes treatments such as Alimta for non-small cell lung cancer and Cyramza for gastric, colorectal, and lung cancers. In autoimmune diseases, Eli Lilly offers medications including Taltz and Olumiant, while its neuroscience portfolio includes Cymbalta for depressive disorders and Emgality for migraine prevention.

Eli Lilly experienced substantial top-line acceleration over recent years, with annual revenue growing from $28.32B in FY2021 to $28.54B in FY2022, $34.12B in FY2023, $45.04B in FY2024, and $65.18B in FY2025, reflecting a 5-year revenue CAGR of 21.6%. Profitability expanded significantly alongside top-line gains, as gross margin reached 83.0% and operating margin rose to 45.6% in FY2025. Net income increased from $5.58B in FY2021 to $20.64B in FY2025, with diluted EPS expanding to $24.21. For the latest quarter ending June 30, 2026, quarterly revenue grew 47.7% year-over-year, while quarterly earnings grew 26.2%. Trailing twelve months revenue stands at $79.67B with an operating margin of 54.2%.

As of June 30, 2026, Eli Lilly held $8.95B in cash and short-term investments against total debt of $54.91B, resulting in net debt of $45.96B. The company maintains a current ratio of 1.35 and a debt-to-equity ratio of 1.62 against shareholders' equity of $33.88B. In FY2025, operating cash flow reached $16.81B and free cash flow stood at $8.97B. Capital allocation during FY2025 included $7.84B in capital expenditures, $5.38B in dividends paid, and $4.11B in share buybacks, which contributed to a 5-year share count reduction of 6.3%.

Eli Lilly trades at a trailing P/E of 42.2x and a forward P/E of 24.4x, both above the median of its S&P 500 Healthcare peers of 27.2x and 16.5x, respectively. Its price-to-sales ratio of 14.1x and EV-to-EBITDA of 25.7x compare to sector peer medians of 3.4x and 15.0x. Over the past 1-year period, the stock delivered a return of 54.4%, outperforming the 16.8% return for the S&P 500 benchmark. Over 5 years, the stock returned 452.9% compared to 83.0% for the index.

Eli Lilly provides an annual forward dividend of $6.92 per share, representing a dividend yield of 0.55% and a payout ratio of 21.2%. The company has paid consecutive dividends for 55 years and recorded a 5-year annualized dividend growth rate of 15.2%. Its most recent ex-dividend date occurred on August 14, 2026.

Wall Street coverage includes 20 Strong Buy, 6 Buy, 3 Hold, 1 Sell, and 1 Strong Sell recommendations. The mean price target of $1328.05 implies upside of 5.7% relative to the last close of $1257.03. For the fiscal year ending December 31, 2026, consensus estimates project revenue of $88.50B and EPS of $35.02, representing 44.6% EPS growth. Eli Lilly beat EPS estimates in each of the last 4 quarters, with its next earnings date scheduled for October 29, 2026.

This page is an AI-written research summary of Eli Lilly and Company (LLY). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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