Up 36%, Is Eli Lilly Still a Buy?

• Eli Lilly is astatine the forefront of some diabetes and obesity medications.

• The pharmaceutical elephantine has offered beardown guidance for the extremity of 2025.

• Looking ahead, it seems apt that request successful these cardinal categories volition continue.

• 10 stocks we similar amended than Eli Lilly ›

When I past wrote astir Eli Lilly (NYSE: LLY) backmost successful September, the shares were lone somewhat affirmative for the year. My presumption astatine the clip was straightforward: This was a banal that conscionable astir each semipermanent capitalist should own. Since then, Eli Lilly has gone connected an awesome run, climbing much than 36%.

While I'm evidently blessed that the telephone worked out, the much important question present is whether the banal is inactive worthy buying aft specified a beardown move. Based connected caller results and guidance, I judge the reply is yes.

The halfway crushed for this optimism hasn't changed. Eli Lilly's momentum successful value nonaccomplishment and diabetes drugs remains exceptionally strong, and the company's third-quarter results item conscionable however almighty this inclination has become.

When I antecedently covered Eli Lilly, the institution was coming disconnected its second-quarter net report, which already showed awesome growth. Revenue accrued 38% twelvemonth implicit year, portion net per stock surged 92% to $6.92 per share. Those numbers unsocial would person been capable to warrant optimism, but the 3rd 4th lone strengthened the broader narrative.

In the 3rd quarter, Eli Lilly delivered year-over-year gross maturation of 54%, bringing full gross to $17.6 billion. Earnings per stock accrued successful a monumental magnitude during the quarter. Year implicit year, 3rd 4th net accrued from $1.07 per diluted stock successful Q3 2024, to a whopping $6.21 per diluted stock successful Q3 2025.

For astir large-cap companies, maturation of that magnitude would beryllium extraordinary. For a pharmaceutical elephantine of Eli Lilly's size, it underscores conscionable however transformative its existent merchandise portfolio has the imaginable to be. In all, nett income was up 127% twelvemonth implicit twelvemonth done the archetypal 3 quarters of 2025.

The main drivers down this surge proceed to beryllium the company's value nonaccomplishment and diabetes treatments. Mounjaro, 1 of Eli Lilly's flagship drugs, saw income summation by 94% done the archetypal 3 quarters of 2025, reaching $15.55 billion. That benignant of maturation is uncommon for a merchandise that is already operating astatine blockbuster scale.

Meanwhile, Zepbound, Eli Lilly's value loss-focused sister medicine to Mounjaro, has been ramping up adjacent faster. Sales jumped from conscionable implicit $3 cardinal successful the archetypal 3 quarters of 2024 to $9.28 cardinal successful the archetypal 3 quarters of 2025.