Key Takeaways
- Eli Lilly (LLY) raised its full-year 2026 revenue guidance to $85.0B–$87.0B following a massive Q2 beat driven by $14.8B in combined sales from weight-loss and diabetes drugs Mounjaro and Zepbound.
- CVS Health (CVS) shares surged after reporting Q2 revenue of $106.1B and raising its full-year adjusted EPS outlook to $7.90–$8.10, signaling a strong recovery in its insurance and pharmacy segments.
- Disney (DIS) topped Q3 profit estimates with an adjusted EPS of $2.06, while announcing an aggressive increase in its 2026 share repurchase target to at least $9B.
- Prudential (PRU) shares fell 13% following reports that China is widening its tax net to include offshore insurance products, potentially impacting a key growth market for global insurers.
Healthcare Giants Lead Market Momentum
Eli Lilly (LLY) delivered a standout second-quarter performance, reporting adjusted EPS of $8.38, nearly 40% above Wall Street estimates of $6.01. The results were fueled by explosive demand for its GLP-1 therapies; Mounjaro generated $9.9B in revenue while Zepbound brought in $4.93B. To keep pace with demand, the company committed an additional $4.5B to expand its manufacturing footprint and raised its annual revenue floor by $3B.
CVS Health (CVS) also outperformed expectations, posting Q2 revenue of $106.1B against the $99.97B anticipated by analysts. The company's Health Care Benefits segment showed significant margin improvement, prompting management to raise full-year cash flow projections to at least $11.5B. Similarly, Cencora (COR) edged out estimates with Q3 revenue of $84.8B and a narrowed, higher adjusted EPS guidance of $17.75 to $17.95.
Disney Focuses on Efficiency and Buybacks
The Walt Disney Company (DIS) reported a mixed third quarter, beating earnings expectations but slightly missing on revenue at $25.25B. While its Experiences segment saw revenue grow to $9.91B, the company noted it is "considering a variety of levers" to manage costs, including potential cuts in labor and SG&A expenses. Investors reacted positively to the news that Disney now targets at least $9B in share repurchases for fiscal 2026, up from previous plans.
Regulatory and Production Shifts
Prudential (PRU) faced heavy selling pressure after Caixin reported that Chinese authorities are extending a 20% personal income tax to offshore insurance dividends and prepaid interest. This move is seen as part of a broader effort by Beijing to close tax loopholes used by mainland residents. The news dragged down several Hong Kong-linked financial stocks on fears of slowed capital flows into offshore wealth products.
In the automotive sector, Toyota is reportedly aiming for a global production target of 10.5 million units in 2027, according to Nikkei. This comes as the automaker balances a transition toward electric vehicles, with a goal of producing 1 million EVs annually by that same year, even as it navigates production adjustments for its traditional internal combustion models.
Housing and Tech Updates
U.S. mortgage activity remained sluggish for the week ending July 31, with MBA Mortgage Applications falling 2.9%. The average contract rate for a 30-year fixed mortgage ticked up to 6.81%, continuing to weigh on purchase and refinance demand.
In technology, Wells Fargo issued a major price target hike for Advanced Micro Devices (AMD), raising it to $700 from $615. The upgrade reflects growing confidence in AMD's server CPU market share gains and its expanding role as a secondary provider in the global AI infrastructure build-out.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.