LLY · Q2 FY2026
ELI LILLY & Co Q2 FY2026 earnings analysis
By SageNoodle ResearchBullish
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $22.97B | $15.56B (yr ago) | Beat |
| EPS | $7.94 | $6.29 (yr ago) | Beat |
| Free Cash Flow | $10.69B | $3.09B (yr ago) | Beat |
| Gross Margin | Not disclosed | Not disclosed (yr ago) | Miss |
| Operating Margin | 40.2% pre-tax margin | 43.6% pre-tax margin (yr ago) | Miss |
What changed
Q2 FY2026 revenue increased 47.6% year over year to $22.97 billion, while EPS rose 26.2% to $7.94 and table-derived free cash flow increased to $10.69 billion. Pre-tax margin declined 3.4 percentage points to 40.2%, showing that earnings did not keep pace with revenue despite substantial operating scale.
Impact on the investment thesis
There is no prior SageNoodle fair value to revise. This update establishes fair value at $1,132.40 per share: the quarter strengthens the growth case, but the lower pre-tax margin and a 37.7x trailing P/E leave the shares fairly valued at $1,123.