RBC Updates Estimates for Eli Lilly After 'Impressive' Q3 Results

01:12 AM EDT, 10/30/2026 (MT Newswires) -- RBC Capital Markets revised its model for Eli Lilly (LLY.SW, LLY.F), adjusting its earnings forecasts to reflect the pharmaceutical giant's third-quarter performance, updated full-year 2026 guidance, and recent trends. "LLY delivered another impressive quarter on strong GLP-1 sales, with the $5bn guidance raise significantly exceeding expectations. Despite lingering pricing concerns, results underscore that GLP-1 penetration and volume remain in early innings," analysts said Thursday. Eli Lilly reported a 39% year-on-year increase in third-quarter revenue to $24.40 billion, driven primarily by Mounjaro and Zepbound, while net income rose 16% to $6.45 billion. The company also updated its 2026 outlook to reflect robust underlying performance across its portfolio, including raising its revenue target range to $91 billion to $92 billion from the previous $85 billion to $87 billion. Against this backdrop, the research firm lifted the outperform-rated stock's price target to $1,600 from $1,500. RBC also increased its 2026 revenue and EPS forecasts to $91.21 billion and $35.36, respectively, from $89.77 billion and $33.47. For 2027, its revenue projection moved up to $108.19 billion from $105.53 billion, while the EPS estimate rose to $51.68 from $48.29. "We are bullish heading into the Innovation event (Dec 7th), where management will expand the narrative beyond obesity. While finding incremental buyers may be challenging given recent momentum, we believe the event could broaden the investor base as the company demonstrates additional value drivers," the note said.