LLY · 10-Q · 2026Q1 · Full report

Operating Expense Trends

ELI LILLY & Co · 2026-04-30 · Importance 73 · Surprise 66 · Contradicted

Research and development expense was $3,510 million for the three months ended March 31, 2026 versus $2,734 million in the prior-year quarter, an increase of 28% driven by continued investments in the early and late-stage portfolio (an absolute increase of $776 million). Marketing, selling, and administrative expense was $2,934 million versus $2,468 million in the prior-year quarter, a 19% increase driven primarily by promotional efforts supporting ongoing and planned launches (an absolute increase of $466 million). Acquired IPR&D charges reported $1,572 million in 2026 (versus a $63 million credit in 2025), with 2025 charges primarily related to the acquisition of Scorpion Therapeutics' PI3Kα inhibitor program STX-478. The increases in R&D and acquired IPR&D materially influenced net income comparisons between periods.

Key facts

• Research and development expenses for the three months ended March 31, 2026: $3,510 million; for the three months ended March 31, 2025: $2,734 million; R&D expenses increased 28 percent. source
• Marketing, selling, and administrative expenses for the three months ended March 31, 2026: $2,934 million; for the three months ended March 31, 2025: $2,468 million; marketing, selling, and administrative expenses increased 19 percent. source

Impact estimates