LLY · 10-Q · 2026Q2 · Full report
Gross Margin Drivers
ELI LILLY & Co · 2026-08-05 · Importance 69 · Surprise 64 · In source text
Gross margin increased to $19,706 million in the second quarter of 2026 from $13,110 million, and to $35,928 million for the first six months from $23,614 million. Gross margin percentage rose 1.5 percentage points to 85.8% in the quarter and 0.5 percentage points to 84.0% for the six months. Improved production costs and favorable product mix drove the increases, while lower realized prices partially offset the benefit. The six-month margin improvement was primarily attributable to improved cost of production rather than pricing.
Key facts
- Gross margin for the three months ended June 30, 2026: $19,706 million and gross margin as a percent of revenue: 85.8%. source
- Gross margin as a percent of revenue increased 1.5 percentage points for the three months ended June 30, 2026, 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 | — | Gross margin for the three months ended June 30, 2026: $19,706 million and gross margin as a percent of revenue: 85.8%. |