Eli Lilly: 'Strong Buy' On Retatrutide Obesity Drug And EBGLYSS Maintenance Label Expansion

Eli Lilly and Company delivered a monumental Q2 2026, with revenues up 48% to $23 billion, driven by MOUNJARO and ZEPBOUND. I maintain a 'Strong Buy' rating on the company, citing robust double-digit growth in key drugs and successful pipeline expansion, including positive phase 3 retatrutide data. EBGLYSS achieved 131% YoY sales growth and secured a label expansion, offering the only 6-dose annual maintenance regimen for moderate-to-severe AD. LLY raised 2026 revenue guidance to $85–$87 billion, strengthened by market share gains in U.S. incretin analogs and continued pipeline momentum.