Key Takeaways
- Eli Lilly (LLY) reported robust Q2 2025 earnings, with adjusted EPS of $6.31 significantly exceeding estimates of $3.92 to $5.46 and revenue of $15.56 billion surpassing expectations of $14.1 billion to $14.7 billion. This strong performance was largely driven by its weight-loss and diabetes drugs, Zepbound and Mounjaro, with Zepbound alone generating $3.38 billion in revenue against an estimated $3.07 billion.
- Despite the strong earnings, Eli Lilly's shares experienced a significant drop, with one report indicating an 11% decline, following negative investor reaction to Phase 3 trial results for its oral obesity drug, orforglipron. While the drug met primary and key secondary endpoints, the market appeared underwhelmed by the weight loss data compared to high expectations, leading to a rally in rival Novo Nordisk (NVO) shares.
- Kenvue (KVUE) announced Q2 2025 adjusted EPS of $0.29, slightly beating the estimated $0.28, though net sales of $3.84 billion fell short of the $3.86 billion estimate. The consumer health company also issued cautious guidance for the first half of fiscal year 2026, citing uncertainty around tariffs.
- Geopolitical developments continue to unfold, with an EU Commission spokesperson stating that "the ball is in the U.S. court" regarding a joint EU-U.S. tariffs statement, indicating ongoing trade discussions and potential for resolution.
- Ukrainian President Volodymyr Zelenskyy engaged in calls with European leaders, including German Chancellor Friedrich Merz, emphasizing the need for Europe to join peace talks and for Russia to agree to a ceasefire to achieve a dignified and lasting peace.
Eli Lilly (LLY) delivered impressive financial results for the second quarter of 2025, with adjusted earnings per share (EPS) reaching $6.31, significantly outperforming analyst estimates that ranged from $3.92 to $5.46. The pharmaceutical giant's revenue also surged to $15.56 billion, exceeding expectations of $14.1 billion to $14.7 billion. This strong top-line growth was primarily fueled by the exceptional performance of its key diabetes and weight-loss medications, Zepbound and Mounjaro. Zepbound alone contributed $3.38 billion in revenue, surpassing its $3.07 billion estimate, while Mounjaro revenue was reported at $5.19 billion. The company also raised its full-year revenue guidance to between $60.0 billion and $62.0 billion, up from the previous range of $58.0 billion to $61.0 billion, and adjusted EPS guidance to $21.75 to $23.00, from $20.78 to $22.28.
Despite the stellar earnings report, Eli Lilly's shares experienced a notable decline, dropping as much as 11%. This market reaction followed the release of Phase 3 trial results for its oral obesity drug, orforglipron. While the drug met all primary and key secondary endpoints, investors appeared underwhelmed by the weight loss data, especially when compared to the high market expectations for the promising new treatment. This development led to a rally in the shares of rival Novo Nordisk (NVO), which holds a dominant position in the GLP-1 obesity drug market.
In other corporate news, Kenvue (KVUE), the consumer health company, announced its Q2 2025 earnings. The company reported adjusted EPS of $0.29, slightly exceeding the estimated $0.28. However, net sales came in at $3.84 billion, falling just short of the $3.86 billion estimate. Kenvue also provided a cautious outlook for the first half of fiscal year 2026, citing uncertainty surrounding tariffs as a contributing factor to its adjusted EBITDA margin expectations of around 20%, down from approximately 23% in the prior-year period.
On the geopolitical front, discussions regarding EU-U.S. trade relations continue. An EU Commission spokesperson indicated that "the ball is in the U.S. court" concerning a joint statement on tariffs. This suggests that while significant progress has been made, with a "vast majority" of the text agreed upon, the onus is now on the U.S. to advance the process and finalize the agreement. The EU is pushing for the suspension of Section 232 tariffs and the withdrawal of sectoral tariffs, particularly impacting the European and German automotive industries.
Meanwhile, the conflict in Ukraine remains a central focus of international diplomacy. Ukrainian President Volodymyr Zelenskyy held a series of calls with European counterparts, including German Chancellor Friedrich Merz. Zelenskyy emphasized the critical need for Europe to actively participate in peace talks, stating that "Ukraine is not afraid of meetings and expects the same from Russia." He reiterated that a dignified and lasting peace requires Russia to take concrete steps towards a ceasefire and for a leader-level format to be established for effective negotiations. German Chancellor Merz, in earlier statements, had stressed the importance of Western unity on Ukraine and warned that diplomatic means for resolving the conflict were "exhausted," underscoring the need for continued support to Kyiv.
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.