LLY · 8-K · 20260805PR000077
Gross Margin Drivers
ELI LILLY & Co · 2026-08-05 · Importance 64 · Surprise 56 · No source text
Reported gross margin increased 50% to $19.706 billion in Q2 2026 from $13.110 billion in Q2 2025.,Reported gross margin as a percentage of revenue increased 1.5 percentage points to 85.8%.,Improved production costs and favorable product mix increased gross margin, while lower realized prices were a partial offset.,Non-GAAP gross margin increased to $19.831 billion, or 86.3% of revenue, up from 85.0% in Q2 2025.
Key facts
- Q2 2026 gross margin: $19,706 million, increased 50% versus prior year. source
- Non-GAAP gross margin for Q2 2026 was $19,831 million and non-GAAP gross margin as a percent of revenue was 86.3%, an increase of 1.3 percentage points versus prior year. source
- Gross margin as a percent of revenue was 85.8% in Q2 2026, an increase of 1.5 percentage points versus the same quarter last year. source
- The increase in gross margin was primarily driven by improved cost of production and favorable product mix, partially offset by lower realized prices. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| margin | positive | realized | +1.3% | Non-GAAP gross margin for Q2 2026 was $19,831 million and non-GAAP gross margin as a percent of revenue was 86.3%, an increase of 1.3… |
| margin | positive | realized | — | Q2 2026 gross margin: $19,706 million, increased 50% versus prior year. |