Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
Eli Lilly & Co., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
The analyzed period reveals a trajectory of substantial margin expansion and improved capital efficiency, characterized by a distinct V-shaped recovery in profitability ratios starting in late 2023 and peaking in early 2026.
- Gross Profit Margin
- A consistent and steady upward trend is observed, with the margin rising from 74.40% in March 2022 to 83.63% by September 2026. This persistent growth indicates strong pricing power and an increasing ability to manage the cost of goods sold over the long term.
- Operating and Net Profit Margins
- Both metrics exhibited significant volatility. A downward trend occurred throughout 2022 and 2023, with the operating margin reaching a low of 18.42% in September 2023 and the net profit margin bottoming at 15.36% in December 2023. Following this trough, a period of aggressive expansion ensued; the operating margin surged to a peak of 43.63% in March 2026, while the net profit margin peaked at 34.99% during the same quarter. This pattern suggests a phase of heavy investment or increased operational costs followed by significant operating leverage.
- Return on Equity (ROE)
- ROE demonstrated high volatility, mirroring the fluctuations seen in net margins. After starting at 65.69% in March 2022, it declined to a low of 44.46% in September 2023. A subsequent recovery led to a peak of 81.02% in March 2026, before moderating to 68.49% by September 2026. The overall movement reflects a strong capacity to generate profits from shareholders' equity, despite periodic contractions.
- Return on Assets (ROA)
- ROA followed a similar trend to the other profitability ratios, declining from 13.06% in early 2022 to a low of 8.19% in December 2023. A sustained recovery followed, with ROA climbing to a peak of 21.68% in March 2026. The increase in ROA during the latter half of the period indicates improved asset utilization and higher efficiency in generating earnings from the company's asset base.
In summary, the data indicates that while operational and net profitability faced headwinds through 2023, the subsequent growth phase led to record highs in margins and returns by early 2026. The stability of the gross profit margin served as a foundation for the eventual acceleration in operating and net income efficiency.
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Gross Profit Margin
Eli Lilly & Co., gross profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Gross margin | 20,464) | 19,706) | 16,222) | 15,920) | 14,593) | 13,110) | 10,504) | 11,129) | 9,268) | 9,133) | 7,095) | 7,565) | 7,639) | 6,505) | 5,333) | 5,754) | 5,363) | 5,058) | 5,738) | ||||||
| Revenue | 24,397) | 22,974) | 19,799) | 19,292) | 17,601) | 15,558) | 12,729) | 13,533) | 11,439) | 11,303) | 8,768) | 9,353) | 9,499) | 8,312) | 6,960) | 7,302) | 6,942) | 6,488) | 7,810) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Gross profit margin1 | 83.63% | 83.40% | 82.83% | 83.04% | 83.03% | 82.64% | 81.70% | 81.31% | 80.91% | 80.75% | 80.16% | 79.25% | 78.67% | 77.77% | 77.67% | 76.77% | 75.61% | 75.98% | 74.40% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 73.72% | 71.48% | 70.68% | 70.24% | 69.74% | 70.93% | 70.69% | 69.99% | 67.21% | 62.75% | 62.28% | 62.42% | 65.76% | 68.91% | 69.43% | 70.00% | 69.62% | 70.48% | 69.53% | ||||||
| Amgen Inc. | 69.41% | 67.97% | 66.72% | 65.75% | 64.71% | 62.99% | 61.48% | 59.85% | 58.71% | 61.56% | 64.76% | 68.60% | 72.35% | 72.87% | 73.65% | 74.17% | 73.99% | 74.00% | 73.30% | ||||||
| Bristol-Myers Squibb Co. | 69.24% | 70.16% | 70.46% | 71.08% | 69.50% | 70.29% | 70.47% | 71.08% | 74.91% | 75.38% | 75.71% | 76.24% | 76.54% | 77.01% | 77.68% | 78.04% | 78.82% | 79.13% | 79.62% | ||||||
| Danaher Corp. | 58.59% | 58.51% | 58.94% | 59.11% | 59.53% | 59.66% | 59.74% | 59.50% | 59.37% | 59.27% | 58.39% | 58.74% | 58.77% | 59.17% | 60.22% | 60.21% | 60.65% | 60.77% | 60.77% | ||||||
| Gilead Sciences Inc. | 79.79% | 79.15% | 79.01% | 78.44% | 78.31% | 78.42% | 78.17% | 78.15% | 75.98% | 75.56% | 75.62% | 75.87% | 78.66% | 79.27% | 78.94% | 79.03% | 74.31% | 75.30% | 75.50% | ||||||
| Johnson & Johnson | 67.56% | 67.91% | 67.82% | 67.88% | 68.08% | 67.92% | 68.30% | 69.07% | 69.05% | 69.06% | 69.20% | 68.82% | 68.54% | 68.06% | 67.34% | 67.26% | 67.43% | 67.86% | 67.97% | ||||||
| Merck & Co. Inc. | 71.75% | 72.97% | 73.91% | 74.80% | 77.18% | 76.60% | 76.42% | 76.32% | 75.82% | 75.25% | 74.37% | 73.17% | 72.86% | 72.96% | 72.43% | 70.63% | 70.49% | 70.41% | 70.72% | ||||||
| Pfizer Inc. | 73.38% | 73.18% | 73.51% | 74.33% | 73.39% | 72.12% | 72.28% | 71.94% | 67.73% | 58.18% | 58.09% | 58.10% | 60.97% | 69.61% | 68.61% | 65.77% | 65.53% | 62.18% | 60.35% | ||||||
| Regeneron Pharmaceuticals Inc. | 85.77% | 84.86% | 84.55% | 85.35% | 85.39% | 85.57% | 85.79% | 86.13% | 86.12% | 86.16% | 86.32% | 86.16% | 85.96% | 86.42% | 86.96% | 87.18% | 85.39% | 84.97% | 84.65% | ||||||
| Thermo Fisher Scientific Inc. | 41.08% | 40.80% | 40.78% | 40.93% | 41.27% | 41.18% | 41.34% | 41.28% | 40.77% | 40.76% | 40.40% | 39.90% | 39.87% | 39.75% | 40.28% | 42.24% | 44.42% | 46.63% | 48.37% | ||||||
| Vertex Pharmaceuticals Inc. | 85.53% | 86.00% | 86.24% | 86.24% | 86.28% | 86.11% | 86.03% | 86.11% | 86.12% | 86.45% | 86.86% | 87.21% | 87.80% | 87.92% | 88.04% | 87.90% | 88.00% | 88.13% | 87.95% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Gross profit margin = 100
× (Gross marginQ3 2026
+ Gross marginQ2 2026
+ Gross marginQ1 2026
+ Gross marginQ4 2025)
÷ (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
= 100 × (20,464 + 19,706 + 16,222 + 15,920)
÷ (24,397 + 22,974 + 19,799 + 19,292)
= 83.63%
2 Click competitor name to see calculations.
The financial performance indicates a sustained and consistent expansion in profitability from March 2022 through September 2026. This period is characterized by simultaneous growth in total revenue and a steady increase in the gross profit margin percentage, suggesting strong operating leverage and an improvement in the cost structure relative to sales.
- Gross Profit Margin Trend
- The gross profit margin exhibits a continuous upward trajectory, rising from 74.40% in March 2022 to 83.63% by September 2026. This represents a total expansion of 9.23 percentage points over the analyzed timeframe. The growth is incremental and stable, with the margin surpassing the 80% threshold in March 2024 and maintaining that level through the remainder of the period.
- Revenue and Absolute Gross Margin Growth
- Revenue grew substantially from $7.81 billion in the first quarter of 2022 to $24.40 billion by the third quarter of 2026. During this same interval, the absolute gross margin increased from $5.74 billion to $20.46 billion. The fact that the absolute gross margin grew at a faster rate than total revenue confirms the expansion of the profit margin percentage.
- Operational Efficiency and Scalability
- The steady climb in the gross profit margin suggests enhanced pricing power or significant efficiencies gained in the cost of goods sold as production scaled. The most pronounced period of margin acceleration occurred between December 2022 (76.77%) and March 2024 (80.16%), after which the margin began to stabilize in the 82% to 83% range.
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Operating Profit Margin
Eli Lilly & Co., operating profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Operating income | 8,608) | 8,978) | 8,915) | 8,374) | 7,366) | 6,867) | 3,695) | 5,149) | 1,526) | 3,715) | 2,509) | 2,388) | 450) | 2,126) | 1,494) | 1,836) | 1,677) | 1,210) | 2,404) | ||||||
| Revenue | 24,397) | 22,974) | 19,799) | 19,292) | 17,601) | 15,558) | 12,729) | 13,533) | 11,439) | 11,303) | 8,768) | 9,353) | 9,499) | 8,312) | 6,960) | 7,302) | 6,942) | 6,488) | 7,810) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Operating profit margin1 | 40.34% | 42.22% | 43.63% | 40.35% | 38.84% | 32.37% | 28.74% | 28.64% | 24.81% | 23.28% | 20.80% | 18.92% | 18.42% | 24.17% | 22.45% | 24.97% | 24.65% | 25.50% | 25.94% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 32.16% | 26.20% | 24.41% | 24.65% | 15.16% | 18.80% | 17.56% | 16.22% | 24.89% | 22.31% | 23.50% | 23.49% | 27.32% | 31.03% | 28.49% | 31.21% | 30.59% | 30.33% | 32.68% | ||||||
| Amgen Inc. | 34.08% | 31.51% | 29.77% | 25.83% | 25.14% | 24.45% | 22.71% | 22.66% | 19.97% | 20.96% | 24.72% | 29.35% | 34.55% | 37.50% | 36.07% | 38.57% | 39.31% | 38.04% | 32.78% | ||||||
| Bristol-Myers Squibb Co. | 23.10% | 23.83% | 20.55% | 20.75% | 18.86% | 16.70% | 15.24% | -15.50% | -14.05% | -14.39% | -14.30% | 16.18% | 16.96% | 17.29% | 18.13% | 17.96% | 19.04% | 18.19% | 16.79% | ||||||
| Danaher Corp. | 20.38% | 20.42% | 19.21% | 19.09% | 19.01% | 18.39% | 20.26% | 20.37% | 20.11% | 21.22% | 21.05% | 21.77% | 23.83% | 25.06% | 27.02% | 27.61% | 27.35% | 25.44% | 25.23% | ||||||
| Gilead Sciences Inc. | -7.68% | -8.37% | 35.46% | 34.66% | 36.75% | 28.03% | 28.77% | 5.81% | 2.92% | 9.26% | 5.79% | 28.24% | 30.37% | 31.18% | 33.03% | 27.17% | 22.39% | 25.78% | 26.56% | ||||||
| Johnson & Johnson | 24.90% | 26.47% | 26.39% | 26.85% | 25.44% | 23.67% | 23.59% | 23.42% | 24.42% | 25.31% | 25.04% | 24.90% | 25.55% | 25.61% | 25.21% | 24.63% | 23.89% | 23.47% | 23.76% | ||||||
| Merck & Co. Inc. | 8.10% | 9.58% | 18.18% | 32.64% | 33.73% | 30.00% | 31.51% | 31.03% | 21.60% | 24.75% | 6.93% | 3.92% | 13.08% | 10.34% | 27.85% | 30.27% | 30.66% | 33.04% | 28.85% | ||||||
| Pfizer Inc. | 21.44% | 21.70% | 22.96% | 22.76% | 21.85% | 23.23% | 19.29% | 19.51% | 9.56% | -4.19% | -2.08% | 2.15% | 14.36% | 28.13% | 34.44% | 34.83% | 33.59% | 30.37% | 26.12% | ||||||
| Regeneron Pharmaceuticals Inc. | 28.79% | 24.74% | 24.32% | 24.95% | 25.89% | 27.02% | 27.20% | 28.10% | 28.69% | 28.95% | 29.40% | 30.85% | 32.23% | 34.20% | 35.79% | 38.93% | 45.45% | 48.19% | 55.08% | ||||||
| Thermo Fisher Scientific Inc. | 17.88% | 17.58% | 17.46% | 17.38% | 17.16% | 17.13% | 17.23% | 17.11% | 16.93% | 17.01% | 16.38% | 16.00% | 15.81% | 15.42% | 16.29% | 18.69% | 20.54% | 22.51% | 23.83% | ||||||
| Vertex Pharmaceuticals Inc. | 33.23% | 37.95% | 38.31% | 34.77% | 34.06% | 34.36% | -6.69% | -2.11% | -2.54% | -3.37% | 41.16% | 38.83% | 40.16% | 41.72% | 43.93% | 48.23% | 47.72% | 48.85% | 36.93% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Operating profit margin = 100
× (Operating incomeQ3 2026
+ Operating incomeQ2 2026
+ Operating incomeQ1 2026
+ Operating incomeQ4 2025)
÷ (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
= 100 × (8,608 + 8,978 + 8,915 + 8,374)
÷ (24,397 + 22,974 + 19,799 + 19,292)
= 40.34%
2 Click competitor name to see calculations.
The operating profit margin exhibits a non-linear trajectory characterized by an initial period of stability, a significant mid-term contraction, and a subsequent phase of aggressive expansion. While revenue demonstrated consistent long-term growth, the operating margin fluctuated, indicating varying degrees of operational efficiency and cost management relative to top-line expansion.
- Initial Stability and Contraction (March 2022 – September 2023)
- Throughout 2022, the operating profit margin remained relatively stable, fluctuating within a narrow range between 24.65% and 25.94%. A downward trend emerged in the first half of 2023, resulting in a trough of 18.42% by September 30, 2023. This decline occurred despite a steady increase in revenue, suggesting that operating expenses escalated at a rate that outpaced revenue growth during this period.
- Recovery and Rapid Margin Expansion (December 2023 – March 2026)
- A strong recovery began in late 2023, with the margin climbing back to 20.80% by March 2024. This upward momentum accelerated sharply through 2025, with the margin exceeding 30% in the first quarter and reaching a peak of 43.63% by March 31, 2026. This expansion is marked by operating income growth that significantly outperformed revenue growth, reflecting substantial operating leverage and improved cost structures.
- Recent Normalization (June 2026 – September 2026)
- Following the peak in early 2026, a slight moderation in profitability is observed. The margin decreased to 42.22% in June 2026 and further to 40.34% by September 30, 2026. This correction occurred while revenue continued to reach record levels, peaking at 24,397 million, indicating a possible increase in operational expenditures or a change in the revenue mix impacting marginal returns.
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Net Profit Margin
Eli Lilly & Co., net profit margin calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income (loss) | 6,451) | 7,095) | 7,396) | 6,638) | 5,583) | 5,661) | 2,759) | 4,410) | 970) | 2,967) | 2,243) | 2,190) | (57) | 1,763) | 1,345) | 1,938) | 1,452) | 953) | 1,903) | ||||||
| Revenue | 24,397) | 22,974) | 19,799) | 19,292) | 17,601) | 15,558) | 12,729) | 13,533) | 11,439) | 11,303) | 8,768) | 9,353) | 9,499) | 8,312) | 6,960) | 7,302) | 6,942) | 6,488) | 7,810) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| Net profit margin1 | 31.90% | 33.53% | 34.99% | 31.67% | 30.99% | 25.91% | 22.66% | 23.51% | 20.48% | 18.86% | 17.08% | 15.36% | 15.55% | 22.01% | 20.54% | 21.88% | 20.63% | 19.58% | 20.90% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 15.67% | 9.80% | 5.79% | 6.91% | 4.00% | 6.45% | 7.31% | 7.59% | 9.22% | 9.71% | 11.02% | 8.95% | 11.81% | 15.50% | 13.37% | 20.39% | 23.19% | 22.04% | 22.00% | ||||||
| Amgen Inc. | 25.38% | 24.11% | 21.98% | 21.94% | 20.31% | 19.75% | 18.10% | 12.77% | 13.58% | 10.60% | 13.35% | 24.96% | 29.52% | 31.52% | 31.77% | 26.42% | 27.88% | 26.73% | 23.42% | ||||||
| Bristol-Myers Squibb Co. | 18.47% | 18.87% | 15.01% | 14.64% | 12.57% | 10.58% | 11.38% | -18.53% | -15.30% | -14.06% | -13.50% | 17.83% | 18.44% | 17.62% | 15.95% | 13.71% | 14.29% | 14.04% | 13.31% | ||||||
| Danaher Corp. | 16.91% | 15.95% | 14.89% | 14.71% | 14.43% | 14.21% | 15.81% | 16.33% | 16.39% | 17.83% | 18.54% | 19.94% | 22.89% | 22.80% | 23.32% | 22.91% | 21.65% | 20.61% | 21.32% | ||||||
| Gilead Sciences Inc. | -12.56% | -10.86% | 31.51% | 29.43% | 28.41% | 21.98% | 20.87% | 1.68% | 0.45% | 3.82% | 1.78% | 21.03% | 21.60% | 20.18% | 20.87% | 17.02% | 12.44% | 15.22% | 16.60% | ||||||
| Johnson & Johnson | 16.20% | 21.48% | 21.83% | 28.46% | 27.26% | 25.00% | 24.41% | 15.84% | 16.74% | 43.91% | 44.92% | 41.28% | 39.58% | 14.52% | 13.77% | 18.90% | 19.95% | 19.21% | 20.90% | ||||||
| Merck & Co. Inc. | 3.64% | 4.77% | 13.59% | 28.08% | 29.63% | 25.79% | 27.27% | 26.68% | 19.23% | 21.98% | 3.76% | 0.61% | 7.77% | 5.34% | 22.52% | 24.49% | 25.88% | 29.00% | 26.27% | ||||||
| Pfizer Inc. | 6.34% | 6.80% | 11.83% | 12.42% | 15.65% | 16.84% | 12.62% | 12.62% | 7.04% | -4.62% | -0.55% | 3.56% | 15.13% | 27.38% | 31.19% | 31.27% | 29.81% | 28.94% | 27.01% | ||||||
| Regeneron Pharmaceuticals Inc. | 28.51% | 27.86% | 29.65% | 31.41% | 32.13% | 31.37% | 31.94% | 31.07% | 33.61% | 32.04% | 29.45% | 30.14% | 30.47% | 33.93% | 33.81% | 35.64% | 39.17% | 39.97% | 48.06% | ||||||
| Thermo Fisher Scientific Inc. | 14.94% | 15.04% | 15.15% | 15.05% | 15.02% | 15.23% | 15.18% | 14.77% | 14.48% | 14.69% | 14.20% | 13.99% | 13.68% | 13.14% | 13.75% | 15.47% | 15.92% | 17.37% | 18.49% | ||||||
| Vertex Pharmaceuticals Inc. | 30.70% | 35.00% | 35.51% | 32.94% | 31.35% | 31.86% | -8.91% | -4.86% | -4.52% | -4.74% | 39.46% | 36.68% | 35.94% | 35.40% | 35.40% | 37.20% | 37.62% | 38.26% | 30.84% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
Net profit margin = 100
× (Net income (loss)Q3 2026
+ Net income (loss)Q2 2026
+ Net income (loss)Q1 2026
+ Net income (loss)Q4 2025)
÷ (RevenueQ3 2026
+ RevenueQ2 2026
+ RevenueQ1 2026
+ RevenueQ4 2025)
= 100 × (6,451 + 7,095 + 7,396 + 6,638)
÷ (24,397 + 22,974 + 19,799 + 19,292)
= 31.90%
2 Click competitor name to see calculations.
The net profit margin exhibits a long-term expansionary trajectory, characterized by an initial phase of stability, a mid-term contraction, and a subsequent period of significant growth and peak profitability.
- Initial Stability and Margin Compression (2022 - 2023)
- From March 2022 through June 2023, the net profit margin remained relatively stable, fluctuating within a narrow range between 19.58% and 22.01%. However, a notable contraction occurred in the second half of 2023, with margins declining to a period low of 15.36% by December 31, 2023. This decline coincided with a period of fluctuating net income despite rising revenues.
- Recovery and Expansion Phase (2024 - 2025)
- A strong recovery is observed starting in March 2024, with the net profit margin climbing steadily from 17.08% to 23.51% by the end of the year. This growth accelerated sharply throughout 2025, where the margin surpassed the 30% threshold in September 2025, reaching 30.99%, and ending the year at 31.67%. This indicates an increasing capacity to convert revenue into actual profit, likely driven by scaling efficiencies as revenue grew from approximately 8.7 billion to over 19 billion in this window.
- Peak Performance and Stabilization (2026)
- The net profit margin reached its peak of 34.99% in March 2026, representing the highest level of profitability across the analyzed period. A slight moderation followed in the subsequent quarters, with the margin adjusting to 33.53% in June and settling at 31.90% by September 30, 2026. Despite this slight dip, the profit margins in 2026 remained substantially higher than the baseline levels observed between 2022 and 2024.
- Relationship Between Revenue and Profitability
- There is a strong positive correlation between the scale of revenue and the net profit margin in the latter half of the timeline. As quarterly revenue expanded from 11.3 billion in June 2024 to 24.3 billion by September 2026, the net profit margin generally increased, suggesting that the growth was not merely organic but accompanied by improved operational leverage and cost efficiencies.
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Return on Equity (ROE)
Eli Lilly & Co., ROE calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income (loss) | 6,451) | 7,095) | 7,396) | 6,638) | 5,583) | 5,661) | 2,759) | 4,410) | 970) | 2,967) | 2,243) | 2,190) | (57) | 1,763) | 1,345) | 1,938) | 1,452) | 953) | 1,903) | ||||||
| Total Eli Lilly and Company shareholders’ equity | 40,271) | 33,879) | 31,198) | 26,535) | 23,793) | 18,273) | 15,765) | 14,192) | 14,240) | 13,562) | 12,812) | 10,772) | 11,220) | 11,064) | 11,190) | 10,650) | 10,070) | 8,545) | 9,331) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROE1 | 68.49% | 78.84% | 81.02% | 77.78% | 77.38% | 75.52% | 70.45% | 74.62% | 58.78% | 54.14% | 47.91% | 48.65% | 44.46% | 58.73% | 50.82% | 58.64% | 59.91% | 66.61% | 65.69% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | — | — | — | — | — | — | 295.42% | 128.66% | 84.91% | 78.77% | 74.85% | 46.94% | 53.86% | 67.50% | 57.14% | 68.60% | 83.83% | 86.24% | 76.64% | ||||||
| Amgen Inc. | 65.43% | 74.80% | 84.87% | 89.06% | 72.82% | 89.11% | 95.59% | 69.59% | 56.20% | 52.83% | 74.93% | 107.78% | 98.82% | 117.67% | 148.04% | 178.97% | 187.11% | 271.85% | 624.78% | ||||||
| Bristol-Myers Squibb Co. | 39.49% | 41.59% | 36.25% | 38.19% | 32.55% | 28.96% | 31.16% | -54.78% | -42.34% | -38.44% | -37.28% | 27.27% | 28.57% | 24.91% | 22.97% | 20.37% | 20.44% | 20.30% | 19.79% | ||||||
| Danaher Corp. | 8.08% | 7.61% | 6.97% | 6.88% | 6.86% | 6.52% | 7.40% | 7.87% | 7.59% | 8.42% | 8.24% | 8.91% | 11.29% | 12.30% | 13.47% | 14.39% | 14.40% | 13.63% | 13.93% | ||||||
| Gilead Sciences Inc. | -29.62% | -27.39% | 39.19% | 37.48% | 37.65% | 32.08% | 31.13% | 2.48% | 0.69% | 5.77% | 2.77% | 24.81% | 26.33% | 25.92% | 26.59% | 21.62% | 15.82% | 20.44% | 22.66% | ||||||
| Johnson & Johnson | 19.74% | 24.76% | 25.92% | 32.87% | 31.69% | 28.88% | 27.92% | 19.68% | 20.93% | 53.14% | 54.95% | 51.11% | 48.61% | 17.37% | 17.95% | 23.36% | 25.68% | 24.05% | 26.54% | ||||||
| Merck & Co. Inc. | 5.46% | 7.57% | 19.48% | 34.70% | 36.71% | 33.49% | 36.07% | 36.96% | 27.30% | 31.52% | 5.71% | 0.97% | 11.17% | 8.04% | 27.82% | 31.57% | 34.32% | 38.34% | 34.68% | ||||||
| Pfizer Inc. | 4.53% | 5.09% | 8.31% | 8.99% | 10.59% | 12.12% | 8.73% | 9.11% | 4.61% | -2.96% | -0.33% | 2.38% | 10.81% | 21.68% | 28.77% | 32.79% | 32.14% | 33.61% | 30.29% | ||||||
| Regeneron Pharmaceuticals Inc. | 14.38% | 13.65% | 14.08% | 14.41% | 14.79% | 14.89% | 15.31% | 15.03% | 15.87% | 15.32% | 14.29% | 15.22% | 16.03% | 17.90% | 17.80% | 19.14% | 25.05% | 27.49% | 39.84% | ||||||
| Thermo Fisher Scientific Inc. | 12.91% | 13.23% | 13.19% | 12.55% | 12.88% | 13.03% | 13.19% | 12.78% | 12.52% | 13.12% | 13.26% | 12.83% | 13.11% | 13.08% | 14.26% | 15.80% | 16.15% | 17.59% | 18.56% | ||||||
| Vertex Pharmaceuticals Inc. | 19.02% | 21.76% | 22.41% | 21.18% | 21.22% | 21.18% | -5.99% | -3.26% | -3.07% | -3.32% | 21.67% | 20.59% | 21.01% | 21.75% | 22.59% | 23.88% | 25.12% | 26.77% | 22.47% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
ROE = 100
× (Net income (loss)Q3 2026
+ Net income (loss)Q2 2026
+ Net income (loss)Q1 2026
+ Net income (loss)Q4 2025)
÷ Total Eli Lilly and Company shareholders’ equity
= 100 × (6,451 + 7,095 + 7,396 + 6,638)
÷ 40,271 = 68.49%
2 Click competitor name to see calculations.
The analysis of profitability reveals a dynamic trajectory in return on equity (ROE), characterized by an initial period of contraction followed by a significant expansion and a subsequent late-stage correction. This trend is driven by the interplay between accelerating net income and a steadily expanding shareholders' equity base.
- Net Income Trends
- Earnings exhibited moderate volatility between 2022 and 2023, including a notable quarterly loss of 57 million US$ in September 2023. Following this trough, a period of aggressive growth commenced, with net income rising from 2.2 billion US$ in March 2024 to a peak of 7.4 billion US$ by March 2026. While earnings remained high through 2026, a slight downward trend is observed in the final two quarters, closing at 6.45 billion US$ in September 2026.
- Shareholders' Equity Expansion
- The equity base demonstrated consistent and accelerating growth throughout the period. Starting at 9.33 billion US$ in March 2022, the total equity increased to 40.27 billion US$ by September 2026. The most rapid expansion occurred between March 2025 and September 2026, where the equity base grew by approximately 14.5 billion US$, indicating significant capital accumulation.
- Return on Equity (ROE) Interpretation
- ROE fluctuated significantly, starting at 65.69% in March 2022 and declining to a low of 44.46% in September 2023, coinciding with the period of net income instability. A strong recovery phase followed, with ROE climbing steadily from 47.91% in March 2024 to a peak of 81.02% in March 2026. This peak reflects a period where net income growth significantly outpaced the growth of shareholders' equity. The final decline to 68.49% in September 2026 is attributed to the simultaneous occurrence of a decline in quarterly net income and a substantial increase in total equity, which diluted the overall return on the invested capital.
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Return on Assets (ROA)
Eli Lilly & Co., ROA calculation (quarterly data)
| Sep 30, 2026 | Jun 30, 2026 | Mar 31, 2026 | Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||||||||||||||||||||
| Net income (loss) | 6,451) | 7,095) | 7,396) | 6,638) | 5,583) | 5,661) | 2,759) | 4,410) | 970) | 2,967) | 2,243) | 2,190) | (57) | 1,763) | 1,345) | 1,938) | 1,452) | 953) | 1,903) | ||||||
| Total assets | 148,072) | 142,283) | 116,576) | 112,476) | 114,935) | 100,923) | 89,389) | 78,715) | 75,607) | 71,875) | 63,944) | 64,006) | 57,916) | 54,814) | 53,163) | 49,490) | 47,462) | 47,064) | 46,919) | ||||||
| Profitability Ratio | |||||||||||||||||||||||||
| ROA1 | 18.63% | 18.77% | 21.68% | 18.35% | 16.02% | 13.67% | 12.42% | 13.45% | 11.07% | 10.22% | 9.60% | 8.19% | 8.61% | 11.85% | 10.70% | 12.62% | 12.71% | 12.09% | 13.06% | ||||||
| Benchmarks | |||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||
| AbbVie Inc. | 7.00% | 4.67% | 2.66% | 3.15% | 1.78% | 2.74% | 3.08% | 3.17% | 3.57% | 3.76% | 4.03% | 3.61% | 4.78% | 6.42% | 5.64% | 8.53% | 9.49% | 8.83% | 8.71% | ||||||
| Amgen Inc. | 9.78% | 9.14% | 8.43% | 8.51% | 7.77% | 7.53% | 6.64% | 4.45% | 4.65% | 3.44% | 4.05% | 6.91% | 8.36% | 8.84% | 8.92% | 10.06% | 10.73% | 11.09% | 9.67% | ||||||
| Bristol-Myers Squibb Co. | 10.41% | 10.59% | 8.41% | 7.83% | 6.23% | 5.33% | 5.86% | -9.66% | -7.75% | -6.91% | -6.21% | 8.43% | 9.08% | 8.52% | 7.75% | 6.53% | 6.80% | 6.59% | 6.07% | ||||||
| Danaher Corp. | 4.64% | 4.33% | 4.42% | 4.33% | 4.38% | 4.18% | 4.76% | 5.03% | 4.83% | 5.35% | 5.28% | 5.64% | 6.74% | 7.49% | 8.15% | 8.55% | 8.35% | 7.76% | 7.74% | ||||||
| Gilead Sciences Inc. | -7.51% | -6.56% | 16.38% | 14.42% | 13.86% | 11.33% | 10.57% | 0.81% | 0.23% | 1.97% | 0.86% | 9.12% | 9.42% | 8.80% | 9.02% | 7.27% | 5.33% | 6.58% | 7.16% | ||||||
| Johnson & Johnson | 8.15% | 10.46% | 10.47% | 13.46% | 13.03% | 11.72% | 11.26% | 7.81% | 8.24% | 20.99% | 22.37% | 20.98% | 20.85% | 6.81% | 6.49% | 9.57% | 10.94% | 10.33% | 11.12% | ||||||
| Merck & Co. Inc. | 1.85% | 2.44% | 6.94% | 13.34% | 14.69% | 13.96% | 15.14% | 14.62% | 10.34% | 12.20% | 2.18% | 0.34% | 4.32% | 2.98% | 12.09% | 13.30% | 14.25% | 15.48% | 13.29% | ||||||
| Pfizer Inc. | 1.97% | 2.15% | 3.61% | 3.73% | 4.71% | 5.22% | 3.79% | 3.76% | 1.94% | -1.20% | -0.14% | 0.94% | 4.87% | 9.75% | 14.85% | 15.91% | 15.32% | 15.01% | 13.58% | ||||||
| Regeneron Pharmaceuticals Inc. | 10.85% | 10.37% | 10.82% | 11.11% | 11.40% | 11.67% | 11.98% | 11.69% | 12.43% | 11.98% | 11.22% | 11.95% | 12.41% | 14.02% | 13.91% | 14.85% | 19.40% | 20.90% | 30.11% | ||||||
| Thermo Fisher Scientific Inc. | 6.19% | 6.16% | 6.05% | 6.08% | 6.38% | 6.50% | 6.58% | 6.51% | 6.11% | 6.32% | 6.21% | 6.07% | 6.12% | 6.08% | 6.36% | 7.15% | 7.77% | 8.21% | 8.20% | ||||||
| Vertex Pharmaceuticals Inc. | 12.15% | 16.06% | 16.38% | 15.42% | 14.78% | 15.13% | -4.32% | -2.38% | -2.16% | -2.43% | 16.81% | 15.92% | 15.97% | 16.54% | 17.18% | 18.30% | 19.59% | 20.50% | 17.19% | ||||||
Based on: 10-Q (reporting date: 2026-09-30), 10-Q (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-K (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-Q (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31).
1 Q3 2026 Calculation
ROA = 100
× (Net income (loss)Q3 2026
+ Net income (loss)Q2 2026
+ Net income (loss)Q1 2026
+ Net income (loss)Q4 2025)
÷ Total assets
= 100 × (6,451 + 7,095 + 7,396 + 6,638)
÷ 148,072 = 18.63%
2 Click competitor name to see calculations.
An analysis of the financial trajectory from March 2022 through September 2026 reveals a period of significant asset expansion accompanied by a cyclical fluctuation and subsequent acceleration in asset utilization efficiency. While the asset base grew substantially, the return on assets (ROA) experienced a mid-period decline before reaching peak levels of profitability in 2026.
- Asset Base Expansion
- A consistent and aggressive increase in total assets is observed, rising from 46,919 million US$ in March 2022 to 148,072 million US$ by September 2026. This represents more than a threefold increase in the company's resource base over the analyzed period, indicating significant capital investment and balance sheet growth.
- Profitability and ROA Volatility
- The ROA remained relatively stable between 12.09% and 13.06% throughout 2022. However, a downward trend emerged in 2023, with ROA declining to a low of 8.19% by December 31, 2023. This decline is closely linked to a significant volatility in net income, most notably a net loss of 57 million US$ reported in September 2023, which severely impacted the efficiency ratio during that quarter.
- Efficiency Recovery and Peak Performance
- Starting in March 2024, a strong recovery phase is evident. ROA climbed steadily from 9.60% to a peak of 21.68% by March 2026. This surge indicates that the expanded asset base began generating disproportionately higher net income, with quarterly earnings rising from approximately 2,243 million US$ in early 2024 to over 7,000 million US$ in 2026.
- Terminal Stabilization
- Following the peak in early 2026, the ROA entered a phase of stabilization, maintaining a range between 18.63% and 18.77% through the final three quarters of the period. This suggests that the company achieved a new, higher equilibrium of operational efficiency despite the massive scale of its total assets.
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