Market Overview - Pre-market futures have shown a recovery from early lows, influenced by Q4 earnings reports and private-sector job numbers, with the Dow up by 142 points and the S&P 500 up by 10 points, while the Nasdaq is down by 66 points [1] Employment Data - Private-sector payrolls for January reported by ADP came in at +22K, significantly below expectations, and down from a revised +37K the previous month, marking the first back-to-back monthly job gains since April and May of the previous year [2] - Services employment accounted for most of the private-sector hires, with +21K in services compared to only +1K in goods-producing sectors; Healthcare Services led with +74K hires, followed by Financial Services with +14K and Construction with +9K, while Professional & Business Services lost -57K jobs [3] - ADP Chief Economist noted that hiring trends are following consumer demand rather than technology advancements, indicating a disconnect between stock market performance and private-sector job growth [4] Sector Insights - The job gains in the Construction sector may hint at increased labor demand due to data-center buildouts, although it is considered premature to draw definitive conclusions [5] - A new ADP methodology revealed a downward adjustment of -212K fewer hires for the private sector in 2025, reducing total expected hires from +771K in 2024 to +398K in 2025, which may provide a clearer picture of the labor market [6] Earnings Reports - Eli Lilly & Co. reported a +7.9% earnings surprise with earnings of $7.54 per share and revenues of $19.29 billion, driven by strong performance in diabetes and weight loss drugs [8] - AbbVie reported earnings of $2.71 per share, exceeding estimates of $2.66, while Novartis reported $2.03 per share, beating consensus by 4 cents; however, AbbVie shares fell by -3% despite the positive earnings [9] - Phillips 66 reported earnings of $2.47 per share, surpassing expectations of $2.11 and significantly improving from a loss of -$0.15 per share in the same quarter last year, with shares up by +1.3% in pre-market trading [10]

Core Viewpoint - The article discusses the competitive landscape between Eli Lilly and Novo Nordisk, highlighting their positions within the pharmaceutical industry and the potential for investment opportunities in these companies [1]. Group 1: Company Analysis - Eli Lilly (LLY) and Novo Nordisk (NVO) are compared as archrivals in the pharmaceutical sector, with a focus on their market strategies and financial performance [1]. - The analysis aims to identify potential high-return investments, specifically targeting small- and mid-cap companies in the life sciences sector [1]. Group 2: Investment Focus - The author emphasizes a fundamental analysis approach to uncover potential "5–10 baggers," indicating a focus on companies that could significantly increase in value [1]. - The investment strategy includes a focus on early-commercial-stage life sciences companies, insurers, homebuilders, and select consumer-facing businesses [1].

Core Insights - Eli Lilly and Company (LLY) reported strong fourth-quarter 2025 results, with adjusted earnings per share (EPS) of $7.54, exceeding the Zacks Consensus Estimate of $6.99, and a year-over-year earnings increase of 42% [1] - Revenues reached $19.3 billion, a 43% increase year over year, driven by the success of GLP-1 drugs Mounjaro and Zepbound, surpassing the Zacks Consensus Estimate of $17.87 billion [1] Revenue Drivers - Mounjaro generated sales of $7.41 billion, up 110% year over year, exceeding the Zacks Consensus Estimate of $6.65 billion [2] - Zepbound recorded sales of $4.26 billion, a 123% increase year over year, also beating the Zacks Consensus Estimate of $3.87 billion [3] Competitive Landscape - Mounjaro and Zepbound face competition from Novo Nordisk's semaglutide products, with Novo Nordisk reporting a decline in its Diabetes and Obesity Care segment sales due to competitive pressure from Lilly's offerings [4] - Despite competitive dynamics, Mounjaro and Zepbound are expected to maintain strong demand in 2026 [13] Other Drug Performance - Trulicity generated $1.04 billion in revenue, down 17% year over year, but still beating the Zacks Consensus Estimate of $1.0 billion [5] - Jardiance sales fell 36% to $768 million, missing the Zacks Consensus Estimate of $776 million [5] - Taltz brought in $1.05 billion, up 10% year over year, exceeding the Zacks Consensus Estimate of $955 million [6] - Verzenio generated $1.60 billion, up 3% year over year, but missed the Zacks Consensus Estimate of $1.62 billion [6] Full-Year Performance - For the full year 2025, Eli Lilly's sales rose 45% to $65.2 billion, significantly beating the Zacks Consensus Estimate of $63.54 billion [10] - Adjusted earnings for 2025 were $24.21 per share, an 86% increase year over year, surpassing the Zacks Consensus Estimate of $23.74 [10] 2026 Outlook - Eli Lilly expects 2026 revenues in the range of $80 billion to $83 billion, higher than the Zacks Consensus Estimate of $77.5 billion [11] - EPS for 2026 is projected to be between $33.50 and $35.00, exceeding the Zacks Consensus Estimate of $33.24 [11] Market Reaction - Following the positive quarterly earnings and optimistic 2026 outlook, Lilly's shares rose approximately 9% in pre-market trading [14] - Over the past year, Lilly's stock has increased by 19.2%, outperforming the industry average of 17.1% [14] Strategic Initiatives - Lilly is investing in obesity treatments and has several new molecules in clinical development, including orforglipron, an oral GLP-1 small molecule [16][17] - The company is diversifying its portfolio beyond GLP-1 drugs into cardiovascular, oncology, and neuroscience areas, including recent acquisitions to enhance its capabilities in oral small-molecule therapies [19]

Market Overview - Pre-market futures have improved from early lows, influenced by Q4 earnings reports and private-sector job numbers, with the Dow up 142 points and the S&P 500 up 10 points, while the Nasdaq is down 66 points and the Russell 2000 is up 12 points [1] Private Sector Employment - Private-sector payrolls for January reported by ADP show an increase of only 22K, significantly below expectations, and down from a revised 37K the previous month, marking the first back-to-back monthly job gains since April and May of the previous year [2] - The services sector accounted for most of the job gains, adding 21K jobs, while goods-producing sectors only added 1K jobs. Healthcare Services led with 74K hires, followed by Financial Services with 14K and Construction with 9K. Professional & Business Services lost 57K jobs, and Manufacturing has not seen positive job growth since early 2024 [2][3] - A new ADP methodology indicates a downward revision of 212K fewer hires for the entire year of 2025, reducing total private-sector hires from 771K in 2024 to 398K in 2025 [4] Earnings Reports - Eli Lilly & Co. reported a 7.9% earnings surprise with earnings of $7.54 per share and revenues of $19.29 billion, also exceeding estimates by 7.9%, driven by strong performance in diabetes and weight loss drugs [6][7] - AbbVie reported earnings of $2.71 per share, beating estimates of $2.66, while Novartis reported $2.03 per share, surpassing consensus by 4 cents. Novartis shares rose 1.6%, while AbbVie shares fell 3% [7] - Phillips 66 reported earnings of $2.47 per share, exceeding expectations of $2.11 and significantly improving from a loss of $0.15 per share in the same quarter last year, with shares up 1.3% in pre-market trading [8]

Financial Data and Key Metrics Changes - In 2025, full-year revenue grew by 45% to $65.2 billion compared to 2024, with earnings per share increasing by 86% to $24.21 [6][10] - Q4 revenue increased by 43% compared to Q4 2024, with gross margin at 83.2%, consistent with Q4 2024 [10][11] - Non-GAAP performance margin was 47.2%, an increase of 4.2 percentage points compared to Q4 2024 [10] Business Line Data and Key Metrics Changes - Key products contributed over $13 billion to revenue in Q4, growing by 91% compared to Q4 2024 [12] - Kisunla became the U.S. market leader in amyloid-targeting therapy with over 50% share of total prescriptions, generating $109 million in revenue [12] - Zepbound revenue more than doubled compared to Q4 2024, maintaining nearly 70% share of new prescriptions in the branded obesity market [14] Market Data and Key Metrics Changes - U.S. revenue increased by 43% in Q4, driven by volume growth of Mounjaro and Zepbound, partially offset by a 7% decline in price [11] - International revenue growth was strong, with double-digit volume growth in Europe, Japan, and China, and volume doubling in the rest of the world due to Mounjaro's launch [11] Company Strategy and Development Direction - The company executed 39 business development transactions and is investing in artificial intelligence for drug discovery [7] - Plans to build multiple new manufacturing sites in the U.S. and Europe to expand manufacturing capacity [7] - The company anticipates launching Orforglipron for chronic weight management in the U.S. in Q2 2026, with a focus on expanding the addressable market [16] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the incretin analog market and expects continued robust growth in 2026 [16] - The company is preparing for potential challenges in Medicaid access but anticipates new states will add coverage in 2027 [17] - Management highlighted the importance of patient satisfaction and real-world efficacy for new product launches [42] Other Important Information - The company distributed $1.3 billion in dividends and $1.5 billion in share repurchases in 2025 [8] - The company has one of the largest clinical stage pipelines in its history, with 36 active phase III programs [18] Q&A Session Summary Question: Metrics for Orforglipron launch - Management indicated they will track market expansion and patient satisfaction as key success factors for Orforglipron [41][43] Question: Accelerated pathways for international approvals - Management expects most international launches for Orforglipron to occur in late 2026 to 2027, with some exceptions [47] Question: International Mounjaro growth - Management noted Q4 as a strong base for 2026 growth, with a focus on market expansion and reimbursement strategies [53][54] Question: Investment in immunology - Management is reinvesting proceeds from obesity opportunities to accelerate growth in immunology and other areas [60] Question: Medicare volume ramp and employer opt-ins - Management expects Medicare access to be granted by July 1, 2026, and anticipates a bolus of patients moving into the Medicare space [65][66] Question: Combo therapies with Zepbound - Management sees significant opportunities in combination therapies for immune diseases and is pursuing various studies [75]

Financial Data and Key Metrics Changes - In 2025, Eli Lilly's full-year revenue reached $65.2 billion, a 45% increase compared to 2024, with earnings per share growing by 86% to $24.21 [10][5] - Q4 revenue grew 43% compared to Q4 2024, with a gross margin of 83.2%, consistent with Q4 2024 [10][11] - Non-GAAP performance margin was 47.2%, an increase of 4.2 percentage points compared to Q4 2024 [10] Business Line Data and Key Metrics Changes - Key products contributed over $13 billion to revenue in Q4, growing by 91% compared to Q4 2024 [12] - Kisunla became the U.S. market leader in amyloid-targeting therapy with over 50% market share, generating $109 million in revenue [12] - Zepbound revenue more than doubled compared to Q4 2024, maintaining nearly 70% share of new prescriptions in the branded obesity market [15] Market Data and Key Metrics Changes - U.S. revenue increased 43% in Q4, driven by volume growth of Mounjaro and Zepbound, partially offset by a 7% decline in price [11] - International revenue growth was strong, with double-digit volume growth in Europe, Japan, and China, and volume doubling in the rest of the world due to Mounjaro's launch [11][12] Company Strategy and Development Direction - The company executed 39 business development transactions and is investing in AI to enhance drug discovery [7] - Plans to build multiple new manufacturing sites in the U.S. and Europe to expand production capacity [7] - The company aims to launch Orforglipron for chronic weight management in the U.S. in Q2 2026, with expectations for significant market expansion [17] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the growth trajectory of the incretin analog market, anticipating continued robust growth in 2026 [17] - The company expects revenue to be between $80 billion and $83 billion in 2026, a 25% increase compared to 2025 [16] - Management acknowledged potential pricing pressures but believes volume growth will offset these challenges over time [17] Other Important Information - The company distributed $1.3 billion in dividends and $1.5 billion in share repurchases in 2025 [8] - The number of patients engaging with Lilly Direct increased to over 1 million in 2025 [8] Q&A Session Summary Question: Metrics for Orforglipron Launch - Management discussed tracking market expansion and patient satisfaction as key metrics for Orforglipron's success [39][41] Question: Accelerated Approval Pathways for Orforglipron - Management indicated that most international launches for Orforglipron are expected in late 2026 to 2027, with some exceptions [45][47] Question: International Mounjaro Growth - Management noted that Q4 serves as a base for 2026 growth, with a focus on market expansion and reimbursement strategies [50][53] Question: Investment in Immunology - Management highlighted ongoing investments in immunology and the potential for combination therapies to enhance treatment outcomes [56][59] Question: Medicare Volume Ramp Impact - Management expects Medicare access to significantly impact volume growth starting July 1, 2026, with a bolus of patients transitioning to Medicare [62][64]

Financial Data and Key Metrics Changes - In 2025, full-year revenue reached $65.2 billion, a 45% increase compared to 2024, with earnings per share growing by 86% to $24.21 [4][8] - Q4 revenue grew 43% compared to Q4 2024, with gross margin at 83.2%, consistent with Q4 2024 [8][9] - Non-GAAP performance margin was 47.2%, an increase of 4.2 percentage points compared to Q4 2024 [8] Business Line Data and Key Metrics Changes - Key products contributed over $13 billion to revenue in Q4, growing by 91% compared to Q4 2024 [10] - Kisunla became the U.S. market leader in amyloid-targeting therapy with over 50% market share, generating $109 million in revenue [10] - Zepbound revenue more than doubled compared to Q4 2024, maintaining nearly 70% share of new prescriptions in the branded obesity market [12] Market Data and Key Metrics Changes - U.S. revenue increased 43% in Q4, driven by volume growth of Mounjaro and Zepbound, despite a 7% decline in price [9] - International revenue growth was strong, with double-digit volume growth in Europe, Japan, and China, and volume doubling in the rest of the world due to Mounjaro's launch [9][10] Company Strategy and Development Direction - The company executed 39 business development transactions and expanded its manufacturing footprint, committing over $55 billion since 2020 [5][6] - Plans to launch Orforglipron for chronic weight management in the U.S. in Q2 2026, with expectations for significant market expansion [15][16] - The company aims to leverage AI for drug discovery and has partnered with NVIDIA to enhance its capabilities [5] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth trajectory in the U.S. incretin analogs market and anticipated continued robust growth in 2026 [15] - The company expects revenue between $80 billion and $83 billion in 2026, a 25% increase from 2025, despite anticipated pricing pressures [13][16] - Management highlighted the importance of expanding access to obesity medications through Medicare and Medicaid [6][16] Other Important Information - The company distributed $1.3 billion in dividends and $1.5 billion in share repurchases in 2025 [6] - The leadership team was strengthened with the addition of two new executives [7] Q&A Session Summary Question: Metrics for Orforglipron's Launch - Management indicated they would track market expansion and patient satisfaction as key metrics for Orforglipron's success [39][40] Question: Accelerated Approval Pathways for Orforglipron - Management expects most international launches for Orforglipron to occur in late 2026 and 2027, with some exceptions [44] Question: International Mounjaro Growth - Management noted that Q4 served as a strong base for 2026 growth, with a focus on market expansion and reimbursement strategies [50] Question: Investment in Immunology - Management emphasized ongoing investments in immunology and the potential for combination therapies to enhance treatment outcomes [56] Question: Medicare Volume Ramp Impact - Management expects a significant number of patients to transition to Medicare, which will positively impact revenue growth [62][63] Question: Combination Therapies with Zepbound - Management is exploring various combination therapies to address immune diseases and obesity, with ongoing trials expected to yield promising results [71][72] Question: Pricing Dynamics in the Incretin Portfolio - Management discussed ongoing discussions with PBMs to expand access and the importance of affordability in driving utilization [76] Question: Importance of Obesity-Related Indications - Management sees growing evidence supporting the coverage of obesity medications for various comorbidities, which could enhance long-term market opportunities [82]

Eli Lilly And Co (NYSE:LLY) stock is up 7.7% to trade at $1,080.69 at last glance, after the pharmaceutical name reported a top- and bottom-line beat for the fourth quarter and issued an upbeat forecast for 2026. The company attributed the strong showing to Zepbound and Mounjaro sales. LLY is today pacing for for its best day since October as it tests overhead pressure at the $1,100 level, which has kept price action in check since a Jan. 8, record high of $1,113.98. The equity is bouncing off the rising 80 ...

About this content About Angela Harmantas Angela Harmantas is an Editor at Proactive. She has over 15 years of experience covering the equity markets in North America, with a particular focus on junior resource stocks. Angela has reported from numerous countries around the world, including Canada, the US, Australia, Brazil, Ghana, and South Africa for leading trade publications. Previously, she worked in investor relations and led the foreign direct investment program in Canada for the Swedish government ...

All right, joining me right now to talk about some of the stocks to watch and moves. Diane King Hall is with me and first up Diane, we're looking at Nphase and it was running right. >> Oh my goodness, eyepopping move here.I wasn't even expecting it to uh be this high out the gate. Up more than 31% off the back of its quarterly results. Uh let's go through the numbers for InPhase.Uh adjusted earnings per share came in at 71 cents. Uh Street was looking for 54 cents. So that's a big beat there.revenue coming ...