Eli Lilly on Thursday disclosed first-quarter earnings and revenue that greatly exceeded projections and raised its full-year sales forecast by $2 billion, as the demand for its leading weight loss drug Zepbound and diabetes medication Mounjaro surged once more.

The pharmaceutical powerhouse now anticipates 2026 revenue to range between $82 billion and $85 billion, an increase from an earlier estimate of $80 billion to $83 billion.

Lilly also predicts that its full-year adjusted profit will fall between $35.50 and $37 per share, compared to prior guidance of $33.50 to $35 per share.

Strong demand for Zepbound and Mounjaro has contributed to several robust quarters for Lilly despite reduced prices for these drugs in the United States.

Mounjaro generated $8.66 billion in sales for the quarter, marking a 125% increase from the same period last year. This performance exceeded the $7.26 billion that analysts forecasted for the quarter, according to StreetAccount.

Zepbound, which was launched about three years ago, recorded $4.16 billion in U.S. revenue for the first quarter. This figure is up 80% from the previous year, as demand for the medication also grew despite a decline in realized prices. Analysts had expected $4.04 billion in U.S. sales for Zepbound, as per StreetAccount.

Here’s how Eli Lilly’s first-quarter results compared with Wall Street expectations based on an analyst survey by LSEG:

• Earnings per share: $8.55 adjusted vs. $6.66 expected
• Revenue: $19.80 billion vs. $17.62 billion expected

The company reported fourth-quarter revenue of $19.80 billion, a 56% increase from the same period last year.

U.S. revenue rose 43% to $12.1 billion. Eli Lilly attributed this growth to a 49% increase in volume — or the number of prescriptions or units sold — for its products, primarily Mounjaro and Zepbound. This was partially countered by lower realized prices for Zepbound and another drug for psoriatic arthritis and other conditions, according to the company.

The pharmaceutical behemoth recorded net income of $7.4 billion, equivalent to $8.26 per share, for the first quarter, compared to net income of $2.76 billion, or $3.06 per share, a year prior.

Excluding one-time items related to the value of intangible assets and other adjustments, Eli Lilly reported earnings of $8.55 per share for the first quarter.

The company’s recently approved GLP-1 pill for obesity, Foundayo, was launched in the second quarter, so its sales will not be included in Thursday’s report.

Nonetheless, the pill’s introduction is expected to be a major topic during Lilly’s first-quarter earnings call. Executives will likely encounter questions regarding whether Foundayo can achieve the same level of momentum as the competing Wegovy pill from Novo Nordisk, which had the advantage of a three-month lead in the U.S. market.

It is premature to evaluate the success of Lilly’s pill. However, initial prescription data indicate its early rollout has been “modest,” according to a note from Leerink Partners analyst David Risinger last week.

In February, Lilly expressed optimism about benefiting from Foundayo’s launch, Medicare coverage of obesity medications starting later this year, and sustained global demand for Mounjaro and Zepbound. However, the company anticipates facing pricing pressures, influenced by a drug pricing agreement with President Donald Trump and decreased cash-pay prices for Zepbound, among other factors.

Still, Lilly CEO Dave Ricks stated in an interview in late April that he expects lower prices to boost prescription volumes in the U.S. He also projected that global GLP-1 usage will rise from about 20 million patients at the end of last year to 30 million by the end of 2026.

Merck announced on Thursday first-quarter figures that exceeded projections due to strong interest in its cancer treatment Keytruda and several recent products.

The pharmaceutical leader also refined its sales forecast for 2026 and increased its adjusted profit projections, partly owing to favorable core business performance and currency benefits.

Merck expects its revenue for 2026 to fall between $65.8 billion and $67 billion, tightening the lower end of the range from $65.5 billion. The company anticipates adjusted earnings to range from $5.04 to $5.16 per share, an increase from the prior forecast of $5 to $5.15 per share.

Merck experienced a quarterly loss; however, it attributed a $3.62 per share charge to its acquisition of Cidara Therapeutics, a biotech firm focused on a flu preventive medication.

Merck has engaged in a series of acquisitions to counter the generic competition expected for several medications, including Type 2 diabetes medications Januvia and Janumet later this year, and Keytruda in 2028.

The following compares the first-quarter results released by Merck with analyst expectations compiled by LSEG:

• Adjusted loss per share: $1.28 versus $1.51 anticipated
• Revenue: $16.29 billion versus $15.82 billion expected

The company recorded a net loss of $4.24 billion, or $1.72 per share, for the quarter, in contrast to a net income of $5.08 billion, or $2.01 per share, for the same period last year.

When excluding acquisition and restructuring expenses, Merck reported a first-quarter loss of $1.28 per share.

Merck generated $16.29 billion in revenue for the quarter, reflecting a 5% increase compared to the same period last year.

Merck’s pharmaceutical division, which produces a variety of medications, achieved $14.35 billion in revenue in the first quarter, a 5% rise compared to the previous year’s similar timeframe.

Sales for Keytruda exceeded $8.03 billion for the quarter, marking a 12% increase from the same quarter last year. Analysts had forecast revenue of $7.78 billion, as per StreetAccount estimates.

The growth in Keytruda sales was partially driven by increased utilization for early-stage cancers and robust demand for treating metastatic cancers, according to the company.

The newly approved injectable version of Keytruda contributed $128 million in sales during the first quarter. This formulation is crucial for Merck’s strategy to mitigate potential revenue decreases once the original intravenous formulation loses its patent protection.

Additionally, Merck’s new drug Winrevair, utilized for treating a rare and severe lung condition, recorded $525 million in sales for the quarter, reflecting an 88% surge from the same quarter a year ago.

Analysts had anticipated the drug would yield $487 million, according to StreetAccount estimates.

This drug’s growth, which launched in mid-2024, is attributed to increasing adoption in the U.S. along with its early entry into select international markets.

Merck has continued to face challenges with sales of Gardasil, a vaccine aimed at preventing HPV-related cancers, the most prevalent sexually transmitted infection in the U.S.

In February last year, Merck disclosed plans to suspend shipments of Gardasil to China starting that month. For the first quarter of 2026, the company noted continued weak demand for the vaccine in China, alongside reduced sales in Japan and the U.S., partially due to “unfavorable public-sector purchasing trends.”

Gardasil achieved sales of $1.07 billion for the quarter, down 19% compared to the same quarter last year. Nonetheless, this figure exceeded the $1.05 billion analysts had projected, as per StreetAccount.

Merck’s animal health sector, offering vaccines and treatments for pets and livestock, reported nearly $1.79 billion in sales, marking a 13% increase from the same period a year prior. The company indicated this reflects heightened demand for products aimed at livestock and companion animals.