Why Eli Lilly Stock Jumped 40%?
Eli Lilly (LLY)’s stock surged 40%, fueled by a sharp earnings beat and fresh optimism from game-changing drug approvals and coverage expansions. With profits and valuations climbing, the market is buzzing—let’s unpack the breakthrough moves behind this rally.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 7302025 | 1262026 | Change | |
|---|---|---|---|
| Stock Price ($) | 757.3 | 1,062.8 | 40.3% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 49,003.2 | 53,258.1 | 8.7% |
| Net Income Margin (%) | 22.7% | 25.9% | 14.3% |
| P/E Multiple | 61.3 | 69.1 | 12.8% |
| Shares Outstanding (Mil) | 898.7 | 897.9 | 0.1% |
| Cumulative Contribution | 40.3% |
So what is happening here? The stock soared 40%, driven by an 8.7% revenue boost, a 14% jump in net margin, and a 13% lift in the P/E multiple. Let’s dive into the events behind these numbers.
Here Is Why Eli Lilly Stock Moved
- Q3 Earnings Beat: Oct 2025: Revenue up 54% YoY, EPS beat. Driven by Mounjaro & Zepbound sales.
- Donanemab Approval: FDA approved Alzheimer’s drug on Sep 11, 2025, expanding treatment options.
- Medicare Coverage: Late 2025 deal with US govt expanded Medicare coverage for obesity treatments.
- GLP-1 Supply Boost: By Jan 2026, manufacturing scaled, ending Mounjaro & Zepbound supply shortages.
- Oral GLP-1 Progress: Q3 2025: Positive Phase 3 results for orforglipron; global submissions planned.
Our Current Assesment Of LLY Stock
Opinion: We currently find LLY stock attractive but volatile. Why so? Have a look at the full story. Read Buy or Sell LLY Stock to see what drives our current opinion.
Risk: A good way to gauge risk in LLY is by checking how much it fell during major market downturns. It dropped about 43% in the Dot-Com Bubble and over 50% in the Global Financial Crisis. Even during less severe events like the 2018 Correction, Covid pandemic, and the recent Inflation Shock, the stock still dipped around 18-22%. So, while LLY might look solid on paper, history shows it’s not immune to sharp sell-offs when the market turns south.
LLY stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.