ELI LILLY & Co 10-Q

Financial Statements (unaudited)

Item 1. Financial Statements Consolidated Condensed Statements of Operations (Unaudited) ELI LILLY AND COMPANY (Dollars and shares in millions, except per-share data) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Revenue $ 22,974 $ 15,558 $ 42,773 $ 28,286 Costs, expenses, and other: Cost of sales 3,268 2,448 6,845 4,672 Research and development 3,819 3,336 7,329 6,070 Marketing, selling, and administrative 3,430 2,753 6,364 5,221 Acquired in-process research and development 2,776 154 3,360 1,726 Asset impairment, restructuring, and other special charges 703 — 982 35 Other–net, (income) expense ( 269 ) 90 ( 204 ) 329 13,727 8,781 24,676 18,053 Income before income taxes 9,247 6,777 18,097 10,233 Income taxes 2,152 1,116 3,606 1,813 Net income $ 7,095 $ 5,661 $ 14,491 $ 8,420 Earnings per share: Basic $ 7.95 $ 6.30 $ 16.22 $ 9.37 Diluted $ 7.94 $ 6.29 $ 16.19 $ 9.35 Shares used in calculation of earnings per share: Basic 892.4 897.9 893.5 898.3 Diluted 893.7 899.8 894.8 900.2 See notes to consolidated condensed financial statements. 5 Consolidated Condensed Statements of Comprehensive Income (Unaudited) ELI LILLY AND COMPANY (Dollars in millions) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 2026 2025 Net income $ 7,095 $ 5,661 $ 14,491 $ 8,420 Other comprehensive income, net of tax 72 59 119 606 Comprehensive income $ 7,167 $ 5,720 $ 14,610 $ 9,026 See notes to consolidated condensed financial statements. 6 Consolidated Condensed Balance Sheets ELI LILLY AND COMPANY (Dollars in millions) June 30, 2026 December 31, 2025 Assets (Unaudited) Current Assets Cash and cash equivalents $ 8,950 $ 7,268 Accounts receivable 20,083 17,760 Other receivables 3,392 2,395 Inventories 16,793 13,744 Prepaid expenses 15,368 14,315 Other current assets 86 147 Total current assets 64,672 55,629 Noncurrent Assets Investments 3,856 2,802 Goodwill 8,849 5,898 Other intangibles, net 18,110 6,521 Deferred tax assets 10,028 9,959 Property and equipment, net of accumulated depreciation of $ 13,103 (2026) and $ 12,560 (2025) 29,286 24,675 Other noncurrent assets 7,482 6,992 Total assets $ 142,283 $ 112,476 Liabilities and Equity Current Liabilities Short-term borrowings and current maturities of long-term debt $ 7,050 $ 1,635 Accounts payable 6,112 5,379 Employee compensation 1,798 2,375 Sales rebates and discounts 21,122 17,382 Other curren