US · NYSE · LLY
Eli Lilly (LLY) stock analysis: valuation and financials
Health Care · Biotechnology: Pharmaceutical Preparations
$1,184.01 +0.4% Price as of Oct 12, 2026
Best-in-class growth ($65.2B FY2025 revenue, +44.7%) and 83% gross margins, but $45.9B net debt and 41.7x P/E leave no margin of safety.
- Market cap
- $1.1T
- P/E
- 41.7x
- EV/Sales
- 14.6x
- FCF yield
- —
- 52-week range
- $799.57 – $1,280.34
- Next earnings
- Oct 29, 2026
Research as of Oct 13, 2026
Business quality scorecard
- Growth100
- Profitability100
- Cash flow73
- Balance sheet46
- Capital allocation74
- Innovation88
- Valuation37
0–100, computed from reported financials; higher is better, and a higher valuation score means cheaper.
How it makes money
Lilly sells patented prescription medicines to wholesalers, payers and patients in about 90 countries; net product revenue is 93.5% of FY2025 revenue at an 83.0% gross margin and is the profit engine, with Mounjaro and Zepbound alone at 56% of revenue.
Financials by year
| FY2021Jan–Dec 2021 | FY2022Jan–Dec 2022 | FY2023Jan–Dec 2023 | FY2024Jan–Dec 2024 | FY2025Jan–Dec 2025 | |
|---|---|---|---|---|---|
| Revenue | $28.3B | $28.5B | $34.1B | $45.0B | $65.2B |
| Revenue growth | +15.4% | +0.8% | +19.6% | +32.0% | +44.7% |
| Gross margin | 74.2% | 76.8% | 79.2% | 81.3% | 83.0% |
| Net income | $5.6B | $6.2B | $5.2B | $10.6B | $20.6B |
Amounts in USD · What is free cash flow?
Margins FY2025 gross margin 83.0% vs 81.3% FY2024 (+1.7pp); TTM 83.4%; Q2 FY2026 85.8% (+1.5pp y/y). Operating margin ~40.9% vs ~29.9% on 44.7% revenue growth. Mix and production cost gains, partly offset by lower realized prices.
- Cash flow WatchFY2025 operating cash flow $16.8B versus net income $20.6B, cash conversion 81.9%; TTM operating cash flow $28.1B exceeds TTM net income $26.7B, so the FY2025 shortfall has reversed.
- Debt ManageableTotal debt rose to $54.9B at Q2 FY2026 from $42.5B at FY2025-end; cash $9.0B leaves net debt $45.9B, debt/equity 1.62x and current ratio 1.35x.
Balance sheet
- Cash & short-term investments
- $8.9B
- Total debt
- $54.9B
- Net debt
- $46.0B
- Net debt / EBITDA
- —
- Current ratio
- 1.4x
As of Jun 30, 2026 · Amounts in USD · How to read a balance sheet
Management and track record
- Management StrongExecution: FY2025 revenue $65.2B, +44.7% y/y, net margin 31.7%, EPS growth 96.0%; three-year revenue CAGR 31.7%.
- Credibility HighFY2025 revenue guidance was raised three times, from $58.0B-$61.0B in May to $63.0B-$63.5B in October; actual FY2025 revenue of $65.18B exceeded the final range top by $1.7B, a 2.6% beat.
Of 6 guided figures checked: 6 beat, 0 in range, 0 missed.
The full report also covers
- Revenue, growth and outlook of each segment
- Moat and main competitors
- Key risks
- Capital allocation: where the free cash flow went
- What management promised, and what they delivered
- Scenario assumptions and sensitivities
- A source for every claim
- Ask AI about this company
The full report is for members.