Eli Lilly reported fourth-quarter adjusted EPS of $7.54, surpassing the consensus estimate of $6.67, while revenue climbed 43% year-over-year to $19.3 billion, exceeding analysts’ forecast of $17.96 billion. Management issued full-year 2026 guidance calling for sales between $80 billion and $83 billion and adjusted EPS of $33.50 to $35.00, representing growth rates of approximately 25% and 17% respectively versus fiscal 2025. The forecast reflects continued momentum in its weight-loss franchise and positions the company to capture incremental market share as global demand for GLP-1 therapies accelerates.

Telehealth provider Hims & Hers announced plans to launch a cost-effective alternative to Lilly’s flagship weight-loss drug, applying a novel formulation and delivery mechanism that it claims avoids existing patents. This announcement triggered a near 6% pullback in Lilly’s share performance, while Novo Nordisk shares fell roughly 7%. Although semaglutide patent protection remains in place through 2032, the arrival of lower-price substitutes underscores the threat of margin compression and intensifying price competition in key markets.

Following the strong quarterly beat, Cantor Fitzgerald maintained its Overweight rating and lifted its 12-month price target to $1,205 from $985, citing projected incretin sales of $57 billion for fiscal 2026—an increase of $16 billion over the prior year—and anticipating over 3 million prescriptions for Lilly’s forthcoming GLP-1 candidate, orforglipron. Scotiabank also raised its target to $1,300, implying more than 25% upside, and emphasized Lilly’s robust manufacturing capacity expansion as a catalyst for sustained volume growth despite potential pricing pressures.