Eli Lilly delivered fourth-quarter adjusted earnings of $7.54 per share, surpassing the consensus of $6.67, while sales rose 43% year-over-year to $19.3 billion versus the $17.96 billion forecast. Volume gains in Mounjaro and Zepbound drove U.S. revenue up 43% to $12.9 billion, and international performance benefited from a one-time $300 million collaboration benefit tied to Jardiance. The weight-loss portfolio alone generated over $11 billion in revenue for the quarter, underscoring the company’s leadership in the obesity market.

Management issued full-year guidance calling for $80–83 billion in sales and $33.50–35.00 in adjusted earnings, both above Wall Street estimates of $77.62 billion and $33.23 per share. Although the fourth-quarter included a price reduction for Zepbound, executives warned that the full impact of that adjustment will become clearer next quarter. Cantor Fitzgerald reiterated an Overweight rating and raised its price forecast to $1,205, citing anticipated incretin sales of $57 billion and over 3 million prescriptions for the oral GLP-1 candidate by the end of 2026.

Scotiabank established a new price target of $1,300, implying roughly 25% upside, reflecting confidence in sustained growth despite intensified competition. Telehealth provider Hims & Hers plans to introduce a lower-cost version of the leading GLP-1 obesity treatment, creating pricing pressure on both market leaders. Even after an approximate 6% pullback following the announcement, Eli Lilly’s robust pipeline, expanding manufacturing capacity and successful volume strategies are expected to offset competitive threats and support longer-term valuation.