LLY
Eli Lilly and Company
Healthcare · Drug Manufacturers - General · United States · Stock
Score Breakdown
Scored for Dividend Income profile
Sub-scores are 0–20 each; Model Score is weighted by your selected investment goal. How it works →
Why Ranked Here
- The model awarded perfect scores for both growth and profitability, reflecting the near-doubling of net income and EPS alongside elite operating and net margins in FY2025.
- Strong dividend and momentum scores further supported the composite rating, with four consecutive quarters of rising revenue and operating income and an unbroken multi-year dividend growth trend at a conservative payout ratio.
- The composite score of 80.1 and a Strong Candidate label reflect the combination of exceptional fundamentals across most factors, partially offset by a modest financial health discount due to the 1.6 debt-to-equity ratio and a zero theme score.
Why Not Higher
- The financial health score was modestly discounted due to the FY2025 debt-to-equity ratio of 1.6, preventing a perfect score in that factor despite the company's $112.5 billion total asset base.
- The theme factor contributed zero points despite Eli Lilly's direct assignment to the Diabetes / GLP-1 / Metabolic Health macro theme, representing a meaningful gap in the composite score.
Data Confidence
9 / 10
Very High — full data coverage
Why This Score
Grounded in figures from this company's SEC EDGAR filings — not a restatement of the score itself.
Revenue grew from FY2024's $45,043,000,000 to FY2025's $65,179,000,000, a gain of +44.7%. Net income rose +94.9% over the same period, from FY2024's $10,590,000,000 to FY2025's $20,640,000,000, while diluted EPS expanded +96.0% from FY2024's $11.71 to FY2025's $22.95.
The model rewarded the combination of exceptional top-line expansion and near-doubling of both net income and earnings per share from FY2024 to FY2025, reflecting broad-based acceleration across all three key growth metrics.
In FY2025, Eli Lilly posted an operating margin of 39.5%, a net margin of 31.7%, and a return on assets of 18.4%.
The model rewarded these figures as evidence of highly efficient conversion of revenue into operating and net profit, alongside strong asset productivity, all of which place the company at an elite profitability tier.
In FY2025, Eli Lilly carried a debt-to-equity ratio of 1.6 against a total asset base of $112,476,000,000.
The model appears to have modestly discounted the score relative to the top tier, likely reflecting the leverage level indicated by the FY2025 debt-to-equity ratio of 1.6, even as the company's large asset base signals substantial scale.
Revenue rose sequentially across the last four reported quarters: $15,557,700,000 in 2025Q2, $17,600,800,000 in 2025Q3, $19,291,500,000 in 2025Q4, and $19,799,000,000 in 2026Q1. Operating income followed the same upward path, from $6,776,400,000 in 2025Q2 to $8,850,000,000 in 2026Q1, and net income climbed from $5,660,500,000 in 2025Q2 to $7,396,000,000 in 2026Q1.
The model rewarded the consistent quarter-over-quarter acceleration in revenue, operating income, and net income across all four periods, reflecting sustained and broadening business momentum rather than a one-quarter spike.
Dividends per share have grown each year from FY2022's $4.07 to FY2023's $4.69, FY2024's $5.40, and FY2025's $6.23, while the FY2025 dividend payout ratio stood at 26.1% of net income.
The model rewarded the unbroken multi-year dividend growth trend alongside a conservative payout ratio in FY2025, which signals that the dividend is well-covered by earnings and has room to continue growing.
Eli Lilly is assigned to the macro themes of Diabetes / GLP-1 / Metabolic Health.
Although the company is directly assigned to one of the most prominent current macro themes, this assignment did not translate into a positive score under the model's current methodology for this component.
Research Summary
AI-generated analysis reflects data and conditions as of the report date shown above. Verify any specific figures through primary sources before acting on this analysis.
Eli Lilly delivered extraordinary financial results in FY2025, with revenue surging 44.7% to $65.2 billion and net income nearly doubling to $20.6 billion, driving diluted EPS up 96.0% to $22.95. Profitability metrics are elite, with a 39.5% operating margin, 31.7% net margin, and 18.4% return on assets. Sequential quarterly momentum has been unbroken, with revenue climbing from $15.6 billion in 2025Q2 to $19.8 billion in 2026Q1, and the company's dividend has grown every year from $4.07 in FY2022 to $6.23 in FY2025 at a conservative 26.1% payout ratio. The primary financial health consideration is a debt-to-equity ratio of 1.6, which introduces modest leverage against an otherwise exceptional financial profile.
Plain English
Eli Lilly basically doubled its profits in one year, keeps growing every single quarter, and pays a rising dividend it can easily afford — the main thing to watch is that it carries a meaningful amount of debt relative to its equity.
Bull Case vs. Bear Case
Bull Case
- Revenue grew 44.7% year-over-year to $65.2 billion in FY2025, while net income rose nearly 95% and diluted EPS nearly doubled to $22.95, reflecting broad-based acceleration across all key growth metrics.
- Operating margins of 39.5% and a net margin of 31.7% in FY2025 place Eli Lilly at an elite profitability tier, demonstrating highly efficient conversion of revenue into profit.
- Quarterly momentum has been consistent and unbroken, with revenue rising from $15.6 billion in 2025Q2 to $19.8 billion in 2026Q1 and operating income climbing from $6.8 billion to $8.9 billion over the same span.
Bear Case
- The FY2025 debt-to-equity ratio of 1.6 introduces a meaningful level of financial leverage, which modestly constrains the financial health score relative to the top tier.
- The theme factor scored zero despite Eli Lilly's direct assignment to the prominent Diabetes / GLP-1 / Metabolic Health macro theme, indicating that thematic alignment alone did not translate into model credit under the current methodology.
- While the payout ratio of 26.1% is conservative, the dividend growth trajectory depends on sustaining the exceptional earnings growth seen in FY2025, which may be difficult to repeat at the same pace.
What Could Change the Picture
Bullish Triggers
- A sustained reduction in the debt-to-equity ratio below 1.0 while maintaining current revenue and earnings growth rates would strengthen the financial health profile and could push the overall score higher.
- Continued sequential quarterly revenue and earnings acceleration beyond the 2026Q1 levels already reported would further validate the durability of the current growth trajectory.
Bearish Triggers
- A reversal or deceleration in the consistent quarter-over-quarter revenue and operating income growth trend — which has been unbroken across the last four reported quarters — would be a meaningful negative signal.
- A significant increase in the debt-to-equity ratio beyond the current 1.6 level, particularly if accompanied by slower earnings growth, would raise concerns about financial health and dividend sustainability.
Risk Profile
Medium RiskThe primary financial risk is the FY2025 debt-to-equity ratio of 1.6, which reflects meaningful leverage against the company's $112.5 billion asset base. Operationally, the momentum profile has been consistently positive across the last four quarters, but any interruption to the sequential growth trend in revenue or operating income would represent a shift in the current trajectory.
This report is for educational and research purposes only. It does not constitute financial, investment, legal, or tax advice — always conduct your own due diligence before making investment decisions.