Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Eli Lilly & Co., consolidated income statement
US$ in millions
Based on: 10-K (reporting date: 2025-12-31), 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31).
The income statement reveals a period of substantial growth, particularly in the later years presented. Revenue demonstrates a consistent upward trajectory, accelerating significantly from 2023 onwards. While cost of sales also increases, the rate of increase is generally lower than that of revenue, contributing to expanding gross margins.
- Revenue Growth
- Revenue increased from US$28.318 billion in 2021 to US$65.179 billion in 2025, representing a cumulative growth of over 130%. The most significant growth occurred between 2023 and 2025, with revenue increasing by approximately 91%.
- Gross Profitability
- Gross margin follows the revenue trend, rising from US$21.006 billion in 2021 to US$54.127 billion in 2025. This indicates improving efficiency in managing the cost of sales relative to revenue generation. The gross margin percentage also appears to improve over time, suggesting enhanced pricing power or cost control.
- Operating Expenses
- Research and development (R&D) expenses, marketing, selling, and administrative expenses, and acquired in-process R&D all exhibit increasing trends. The growth in R&D is particularly notable, suggesting a continued commitment to innovation. While these expenses increase in absolute terms, their growth is generally contained relative to the substantial revenue increases, contributing to improved operating income.
- Operating Income
- Operating income demonstrates a fluctuating pattern initially, with a peak in 2022, followed by a dip in 2023, and then a strong resurgence. From 2023 to 2025, operating income more than quadruples, rising from US$6.458 billion to US$26.302 billion. This substantial increase is driven by the accelerated revenue growth and effective management of operating expenses.
- Non-Operating Items
- Interest expense on borrowings consistently increases throughout the period, reflecting potentially higher debt levels or interest rates. Other income and other net income show variability, with fluctuations in both positive and negative values. These items have a relatively smaller impact on overall profitability compared to core operating activities.
- Net Income
- Net income mirrors the trend in operating income, increasing from US$5.582 billion in 2021 to US$20.640 billion in 2025. The increase is substantial, indicating improved overall profitability. Income taxes also increase, as expected, with rising income levels. The effective tax rate appears to fluctuate, with a notable increase in 2023 and 2025.
Overall, the income statement portrays a company experiencing significant revenue growth and improving profitability, particularly in the latter part of the analyzed period. The increasing investment in R&D suggests a focus on future innovation, while the effective management of operating expenses contributes to the expansion of operating and net income.