Eli Lilly: 3% of U.S. revenue (about $430m) came from revising rebate estimates on earlier shipments — rebate liability $21.1bn, prices −3% in the U.S. and −36% abroad
Q2 2026 10-Q: revenue $23.0bn (+48%), net income $7.1bn (+25%). Volume rose 60% while price fell 13%, a decline 'partially offset' by adjustments to prior-period rebate estimates. The sales rebates and discounts liability grew from $17.4bn to $21.1bn in six months. Acquired IPR&D expense $2.8bn in the quarter; three infectious-disease companies bought in July for up to $3.9bn
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Eli Lilly Form 10-Q for Q2 2026: statement of operations, balance sheet (sales rebates and discounts), revenue note (changes in estimates), acquisitions note (Kelonia, Centessa, Ventyx; three infectious-disease companies in July), MD&A revenue drivers (volume, price), Mounjaro and Zepbound pricing, risk factors (pricing agreements, Medicare Bridge)
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Eli Lilly (LLY) reported revenue of $22,974m for the second quarter of 2026, up 48%, and net income of $7,095m. One line in the revenue note of the 10-Q filed on August 5 says that 3% of U.S. revenue came from revising rebate estimates on earlier shipments — up from 1% a year earlier.
What happened
Eli Lilly (LLY) sells the diabetes and obesity medicines Mounjaro and Zepbound.
Its Q2 2026 quarterly report (10-Q) shows revenue of $22,974m, up 48% from $15,558m a year earlier, and net income of $7,095m (+25%). Mounjaro contributed $9,943m and Zepbound $4,928m; together they were 65% of first-half revenue.
The revenue-recognition note contains this sentence: adjustments to revenue from changes in estimates of U.S. returns, rebates and discounts on products shipped in previous periods were 3% of U.S. revenue in the quarter and 2% in the first half (1% and less than 1% a year earlier). Three percent of Q2 U.S. revenue of $14,413m is about $430m; the same ratio a year earlier was about $110m.
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We find the numbers that are in the filing but not in the news, and analyze what they mean, how big they are and what to watch next quarter — with the arithmetic and quarterly metrics. Cancel any time.
It is a normal change in accounting estimate, and the 10-Q discloses the ratio. But the ratio rose from 1% a year earlier to 3% and may not recur. This article reports the ratio, the amount, and how much the rebate liability grew over the same period; the criteria for judging it are in the subscriber section.
How did revenue rise 48% while prices fell?
Volume rose 60% (U.S. +37%, outside the U.S. +113%). Mounjaro and Zepbound were 65% of first-half revenue.
Why is acquired IPR&D so large?
In Q2 the company expensed $2,776m for compound acquisitions including Orna and Ajax. Separately, Kelonia (June 25), Centessa (June 24) and Ventyx (March 4) were treated as business combinations, adding $11.7bn of IPR&D intangibles and $2.9bn of goodwill; in July it acquired three infectious-disease companies for up to $3.9bn.
Where can I verify these numbers?
On SEC EDGAR: Eli Lilly's Q2 2026 Form 10-Q (accession 0000059478-26-000081), the change-in-estimate paragraph of the revenue note, sales rebates and discounts on the balance sheet, the MD&A revenue-driver table and the acquisitions note.
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Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
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Eli Lilly Form 10-Q for Q2 2026: statement of operations, balance sheet (sales rebates and discounts), revenue note (changes in estimates), acquisitions note (Kelonia, Centessa, Ventyx; three infectious-disease companies in July), MD&A revenue drivers (volume, price), Mounjaro and Zepbound pricing, risk factors (pricing agreements, Medicare Bridge) · SEC EDGAR · This article is not investment advice. Disclaimer
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