LLY · 10-Q · 2026Q3 · Full report

Gross Margin Drivers

ELI LILLY & Co · 2026-10-29 · Importance 64 · Surprise 56

Gross margin increased to $20.464 billion in the third quarter of 2026 from $14.593 billion a year earlier, and to $56.392 billion for the first nine months from $38.207 billion. Gross margin as a percentage of revenue rose 1.0 percentage point to 83.9% in the quarter and 0.7 percentage point to 84.0% for the nine-month period. Improved production costs and favorable product mix drove the margin increases, partly offset by lower realized prices.

Key facts

• Gross margin as a percentage of revenue increased 1.0 percentage point and 0.7 percentage points for the three and nine months ended September 30, 2026, respectively, driven primarily by improved production costs and favorable product mix, partly offset by lower realized prices. source
• Gross margin as a percentage of revenue was 83.9% for the three months and 84.0% for the nine months ended September 30, 2026, compared with 82.9% and 83.3%, respectively, in 2025. source