LLYNEUTRAL

LLY Gross Margin Analysis

85.8%

Higher than 89% of Healthcare sector peers

Updated 125h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of revenue left after paying direct costs to produce goods, and Eli Lilly’s 85.8% means it retains that much of each sales dollar before other expenses.

Sector Performance

89th percentile

LLY

85.8%

Sector Median

68.4%

Sector Avg

-59.4%

Prior Period

81.9%(Aug 2026)

↑ Improving

📊

Deep Analysis

Gross margin is the percentage of revenue left after paying direct costs to produce goods, and Eli Lilly’s 85.8% means it retains that much of each sales dollar before other expenses.

This is well above the healthcare sector median of 68.9%, placing Lilly in the 85th percentile of its peers. Trend data are limited: the year-over-year change is N/A, but the quarter-over-quarter change is +4.8%, reflecting a rise from 81.9% to 85.8% in the most recent period. The combination of a high margin and a recent upward move points to pricing power or cost control, but with only two data points, the durability of this improvement is uncertain. This strong level could reduce downside risk, yet the lack of a longer trend tempers any opportunity thesis. Overall, the metric supports the NEUTRAL verdict by confirming competitive profitability without providing enough clarity to shift the stock’s outlook upward or downward.

Frequently Asked Questions

What does the Gross Margin tell investors about LLY?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does LLY's Gross Margin compare to its sector?

LLY's Gross Margin of 85.8% compares to a Healthcare sector median of 68.4%, placing it in the 89th percentile.

Who are LLY's closest peers by Gross Margin?

The closest Healthcare peers by Gross Margin include: BLUE (68.4%), AMGN (68.2%), BSX (69.4%), TECH (66.9%), EXAS (70.1%).

📚

Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.