Eli Lilly is considered ripe for a stock split, with its share price recently surpassing $1,000 and even reaching $1,200, a significant increase of nearly 35% from late April through July 17. The company's strong performance is largely attributed to its success in the weight-loss drug market, particularly with Mounjaro and the recently launched Foundayo, an oral weight-loss drug. Additionally, their extra-powerful weight-loss candidate, retatrutide, has shown strong phase 3 trial results, further boosting investor confidence.
In the first quarter of 2026, Mounjaro alone generated $8.662 billion, a 125% year-over-year increase, contributing significantly to Eli Lilly's revenue. The company raised its full-year 2026 revenue guidance to $82.0 billion-$85.0 billion from an earlier $80.0 billion-$83.0 billion, and non-GAAP EPS guidance to $35.50-$37.00. This financial strength and market leadership in obesity and metabolic health, despite GLP-1 drug penetration remaining in the mid-single digits among the eligible U.S. population, suggest substantial future growth potential.
While a stock split does not inherently change a company's market value or serve as a direct catalyst for stock performance, it can make shares more accessible to individual investors, potentially broadening the investor base. Eli Lilly has a history of 2-for-1 stock splits, though the most recent was almost 30 years ago in 1997. The current leadership, however, might see a split as a strategic move to convey confidence in future growth and attract investors who are hesitant about a $1,000+ per share price.
Analysts have an average price target of $1,220.39 for Eli Lilly, with a consensus of strong buys. Board-level directors have also been buying shares at progressively higher prices, indicating internal confidence. The company's valuation, at roughly 33x forward earnings, positions it as a growth compounder, and its commitment of over $55 billion towards manufacturing expansion since 2020 underscores its aggressive growth strategy.
