Eli Lilly (LLY) Raises 2026 Revenue Guidance, Is The Stock Still A Bargain?

Eli Lilly (LLY) just raised its 2026 revenue guidance to a range of US$85b to US$87b, up from US$82b to US$85b. The company paired this outlook update with detailed second quarter earnings.

See our latest analysis for Eli Lilly.

Eli Lilly's latest guidance and earnings sit against a backdrop of strong recent momentum, with the share price up 19.44% over 90 days and a year-to-date share price return of 9.24%, while the 1-year total shareholder return is 69.36%.

If you are looking beyond Eli Lilly and want to see what else is moving in healthcare and AI drug development, it is worth checking out 42 healthcare AI stocks.

Eli Lilly is now guiding to higher 2026 revenue on top of a huge share price run, which leaves current buyers weighing rich expectations against a stronger earnings base. Does the risk reward still tilt in their favour?

Most Popular Narrative: 20.1% Undervalued

According to the most followed narrative on Eli Lilly, a fair value of $1,477 sits well above the last close at $1,180.16, which frames the recent guidance upgrade in a different light for anyone focused on valuation.

Eli Lilly already runs one of the fastest-growing drug businesses on earth, and its most powerful drug is not even approved yet.

The pricing headwinds are real, but they are happening to a company with manufacturing scale, regulatory depth, and a next-generation compound that has already beaten the highest analyst expectations in Phase 3.

Read the complete narrative. Read the complete narrative.

Curious what sits behind that higher fair value for Eli Lilly? The narrative leans on strong earnings expansion, firm margins and a future profit multiple more often associated with faster growing sectors.

Result: Fair Value of $1,477 (UNDERVALUED)

Have a read of the narrative in full and understand what's behind the forecasts.

However, Eli Lilly faces real pressure if obesity drug pricing tightens further or if any safety or efficacy issues emerge in key late stage trials.

Find out about the key risks to this Eli Lilly narrative.

Next Steps

Feeling torn between the optimism and concerns around Eli Lilly? Take a closer look at both sides, weigh the trade offs for yourself, and review the 3 key rewards and 1 important warning sign.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

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