Shares of Eli Lilly (NYSE: LLY) are hovering just under the $900 degree, inserting the corporate amongst high-priced shares the place stock split hypothesis usually builds.
While a cut up doesn’t change the basics of the underlying enterprise, it makes the inventory extra liquid and will increase its enchantment to a wider investor base. Stock splits usually replicate administration’s confidence in the corporate’s sustained long-term progress. That’s precisely what makes Eli Lilly stand out at present.
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Eli Lilly has emerged as a dominant pressure in weight problems and metabolic well being. Its incretin-based (GLP-1) medication, Mounjaro and Zepbound, are seeing a strong rise in affected person volumes, with progress more and more pushed by demand slightly than pricing. Mounjaro’s income surged 99% yr over yr to almost $23 billion, whereas Zepbound’s income soared 175% yr over yr to roughly $13.5 billion in 2025.
Despite sturdy adoption, GLP-1 drug penetration stays in the mid-single digits among the many eligible weight problems inhabitants in the U.S. This suggests vital room for Eli Lilly’s weight problems portfolio to develop in the longer term. The weight problems market might increase even additional, as the corporate prepares to launch oral GLP-1 remedy orforglipron, which might deliver in sufferers who’ve up to now prevented injectable remedies.
In fiscal 2025, Eli Lilly’s complete income surged 45% yr over yr to roughly $65.2 billion, whereas earnings per share rose 86% yr over yr to $24.2. The firm is guiding for fiscal 2026 income in the vary of $80 billion to $83 billion. While administration expects pricing of its key merchandise to tug income progress by low- to mid-teens share, quantity progress is about to greater than offset it. This highlights that the demand for Eli Lilly’s medication is each broad-based and sturdy.
Eli Lilly has dedicated over $55 billion towards manufacturing growth since 2020. The firm can be advancing 36 lively late-stage part 3 packages. Considering the inventory’s value appreciation and the corporate’s spectacular income tailwinds, Eli Lilly appears well-positioned for a potential inventory cut up in 2026.
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