Eli Lilly shares have recovered approximately 15% from their mid-January trough, erasing most of December’s 12% pullback. The stock closed eight consecutive sessions above its 50-day moving average this week and is now trading just below a long-term buy point of 295, according to MarketSmith. Volume has picked up on up days by 20% versus the 50-day average, signaling renewed investor interest ahead of Thursday’s Q4 earnings release.

On January 20, Eli Lilly announced a partnership with Nvidia to deploy the latter’s AI supercomputing platform for de novo drug discovery. Under the multi-year deal, Lilly gains access to Nvidia’s DGX SuperPOD system, capable of 400 petaflops of AI performance, to accelerate target identification and optimize molecular design. Lilly expects the collaboration to compress early-stage discovery timelines by up to 30%, potentially advancing two to three novel candidates into IND-enabling studies over the next 24 months.

Lilly continues to extend its leadership in the GLP-1 and dual-agonist space. In December, the company released Phase 3 data showing its oral GLP-1 candidate maintained 90% of injection-achieved weight loss at 20 weeks post-switch. Meanwhile, its late-stage triple agonist retatrutide produced an average body-weight reduction of 28.4% at 68 weeks in the highest-dose arm, compared with 15.7% for the semaglutide injection control. Lilly plans to file retatrutide for obesity and type 2 diabetes indications in mid-2026, targeting a late-2027 launch.

Eli Lilly’s weight-loss franchise, led by Mounjaro and Zepbound, drove a 39% share gain in 2025 and lifted total revenues by 28% year-over-year to $43 billion. Obesity and diabetes therapies accounted for 52% of total sales, up from 39% in 2024. Management reaffirmed full-year 2026 EPS growth guidance of 20–24%, underpinned by projected mid-60% growth in Zepbound volumes and expansion of gross margins to 78% as manufacturing efficiencies scale.