What happened
Eli Lilly (LLY) sells the diabetes and obesity medicines Mounjaro and Zepbound.
LLYEli Lilly·2026Q2 10-QPaidFiling score 50 · Moderate
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3% of Eli Lilly's US revenue came from revising rebate estimates on earlier shipments
Q2 2026 10-Q: revenue $23.0bn (+48%), net income $7.1bn. 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 in six months
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.
In plain terms
Eli Lilly recalculated what it will have to pay back on medicines already shipped. That adjustment comes to 3% of its US revenue for the quarter. It is far larger than a year earlier.
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50 Filing score · Moderate
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FAQ
Did the rebate adjustment inflate revenue?
It is a normal change in accounting estimate, and the 10-Q discloses the ratio.
How did revenue rise 48% while prices fell?
Volume rose 60% (U.S. +37%, outside the U.S. +113%).
Why is acquired IPR&D so large?
In Q2 the company expensed $2,776m for compound acquisitions including Orna and Ajax. The remaining figures and what they mean are in the subscriber section of this article.
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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- We read the filing on SEC EDGAR in full — statements, notes, MD&A. Press releases and news are not used as sources.
- Every figure is reconciled to its location in the filing and to XBRL data. One mismatch means no publication.
- An editor reviews before publication; any later change is recorded in the revision history.
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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