Eli Lilly and Company stock research
FY2026 Q1
Eli Lilly and (LLY) Gross Margin — Quarter Ended Mar 31, 2026
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin was lower than both periods, reflecting a higher share of cost of revenue within total revenue.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue and gross profit increased compared to both the prior quarter and the same quarter last year, while cost of revenue also rose. Gross margin was lower than both periods, reflecting a higher share of cost of revenue within total revenue.
- The most observable driver of the gross margin change is the increase in cost of revenue relative to revenue. This ratio rose compared to both the preceding quarter and the year-ago quarter, offsetting the benefit of higher revenue.
- Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all substantially higher, while gross margin was marginally lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
81.9%
Gross profit
$16.2B
Revenue
$19.8B
Cost of revenue
$3.6B
Quarter-over-quarter change
-0.6 pts
Year-over-year change
-0.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2025 | $15.6B | $13.1B | $2.4B | 84.3% |
| Sep 30, 2025 | $17.6B | $14.6B | $3.0B | 82.9% |
| Dec 31, 2025 | $19.3B | $15.9B | $3.4B | 82.5% |
| Mar 31, 2026 | $19.8B | $16.2B | $3.6B | 81.9% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
-0.6 pts
Year-over-year change
Mar 31, 2025
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most observable driver of the gross margin change is the increase in cost of revenue relative to revenue. This ratio rose compared to both the preceding quarter and the year-ago quarter, offsetting the benefit of higher revenue.
Compared to the immediately preceding quarter, revenue and gross profit were higher, but gross margin was slightly lower. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all substantially higher, while gross margin was marginally lower.
Monitor the trend in cost of revenue as a proportion of revenue, as it directly influences gross margin.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Eli Lilly and Company (LLY) | 81.9% |