LLY · Earnings call · 2026Q3T · Full report

Gross Margin Drivers

ELI LILLY & Co · 2026-10-29 · Importance 25 · Surprise 32

Gross margin as a percentage of revenue increased 80 basis points year over year to 84.4% in Q3 2026. Favorable product mix and improved cost of production drove the increase. Lower realized prices partially offset those benefits, while U.S. price declined 7% and would have declined 10% excluding a favorable adjustment to rebate and discount estimates.

Key facts

• Gross margin as a percentage of revenue increased 80 basis points to 84.4%; favorable product mix and improved production costs were partly offset by lower realized prices.