What changed
$LLY — Develops and sells pharmaceutical drugs and treatments.
🎯 Q1 FY26 | Rev $20B | EPS $8.55 vs $6.79 🟢
💡 Consensus expected EPS of $6.79, but LLY delivered $8.55 (beat by 25.9%). Revenue surged 55.6% YoY to $19.8B. The market has not fully repriced the magnitude of the beat and the raised guidance. The sell-off post-earnings (if any) is likely a buying opportunity as the underlying demand for tirzepatide remains structurally underappreciated.
🏢 Business Quality: 9/10 | Valuation: fair
📉 Reward/Risk: Upside 20% to $1375 (based on 35x forward EPS of ~$39) vs downside 15% to $975 (if guidance disappoints or competition emerges). Ratio: 1.3:1.
🔮 Catalyst: Raised full-year guidance (specifics not in text but implied by 'raises full year guidance'). Watch for: (1) next quarterly report (Aug 2026) with continued tirzepatide script growth; (2) any FDA label expansion or new indication.
Also in play: $NVO $PFE $MRK $JNJ $ABBV $BMY