Eli Lilly vs Merck: Revenue, Profit and Business Model
Eli Lilly reported $65.2B of revenue in FY2025 and $20.6B of net income. Merck reported $65B of revenue in FY2025 and $18.3B of net income.
Latest financial snapshot
Financial summary
Eli Lilly
Revenue rose from $28.5 billion in 2022 to $45.0 billion in 2024 and $65.2 billion in 2025, while net income nearly doubled to $20.6 billion. Growth accelerated again in 2026: second-quarter revenue rose 48% to $23.0 billion, with Mounjaro at $9.94 billion (up 91%) and Zepbound at $4.93 billion. Lilly raised 2026 revenue guidance to $85-87 billion and non-GAAP EPS guidance to $35.50-36.50. Capital expenditures reached $7.8 billion in 2025 as Lilly expanded production capacity.
Merck
Merck reported $65.0 billion in 2025 sales, up 1% from $64.2 billion in 2024, and $18.3 billion in net income attributable to Merck. Keytruda/Keytruda Qlex grew 7% to $31.7 billion, offsetting a 39% Gardasil decline. Momentum continued in 2026: Q2 2026 sales rose 5% to $16.6 billion, with Keytruda at $8.4 billion (including $463 million from Keytruda Qlex), Winrevair up 75% to $588 million and Animal Health up 8% to $1.8 billion. A $2.31-per-share charge for the Terns acquisition produced a Q2 GAAP net loss of $1.3 billion. In August 2026 Merck raised its full-year 2026 sales outlook to $66.3 billion to $67.3 billion, with non-GAAP EPS of $2.66 to $2.76 after Terns-related charges.
Revenue and profit by year
Eli Lilly
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $65.2B | $20.6B | 31.7% | +44.7% | Source |
| FY2024 | $45B | $10.6B | 23.5% | +32.0% | Source |
| FY2023 | $34.1B | $5.2B | 15.4% | +19.6% | Source |
| FY2022 | $28.5B | $6.2B | 21.9% | +0.8% | Source |
| FY2021 | $28.3B | $5.6B | 19.7% | — | Source |
Merck
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $65B | $18.3B | 28.1% | +1.3% | Source |
| FY2024 | $64.2B | $17.1B | 26.7% | +6.7% | Source |
| FY2023 | $60.1B | $365M | 0.6% | +1.4% | Source |
| FY2022 | $59.3B | $14.5B | 24.5% | +21.7% | Source |
| FY2021 | $48.7B | $13B | 26.8% | +17.3% | Source |
| FY2020 | $41.5B | $7.1B | 17.0% | +6.1% | Source |
| FY2019 | $39.1B | $9.8B | 25.2% | -7.5% | Source |
| FY2018 | $42.3B | $6.2B | 14.7% | +5.4% | Source |
| FY2017 | $40.1B | $2.4B | 6.0% | +0.8% | Source |
| FY2016 | $39.8B | $3.9B | 9.8% | — | Source |
Where the revenue comes from
Eli Lilly
- Branded Prescription MedicinesPrimary
Sales of patent-protected medicines through wholesalers, pharmacies, health systems, and international channels.
- Collaborations and Licensing
Supporting
Milestones, royalties, and collaboration economics connected to research, development, and commercialization partnerships.
Merck
- Keytruda (pembrolizumab)
~US$31.7B in FY2025; approximately 49% of total company sales; highest-margin segment product
Keytruda is a humanized monoclonal antibody targeting the programmed death-1 (PD-1) receptor on T-cells, which restores
- Gardasil / Gardasil 9
~US$5.2B in FY2025 (down 39% from US$8.6B in FY2024); second-largest product; global market leader in HPV cancer prevention
Gardasil and its successor nine-valent formulation Gardasil 9 are prophylactic vaccines that prevent infection by the hu
- Winrevair (sotatercept)
~US$1.4B in FY2025 (US$419M in partial FY2024); fastest-growing new product; projected US$3-5B annual peak sales
Winrevair is a first-in-class activin signaling inhibitor approved by the FDA in March 2024 for the treatment of pulmona
- Januvia / Janumet (sitagliptin)
~US$2.5B in FY2025 (up 12% from US$2.3B in FY2024); mature franchise under competitive pressure from GLP-1 agents and generics
Januvia (sitagliptin) and the fixed-dose combination Janumet (sitagliptin plus metformin) are dipeptidyl peptidase-4 inh
Business model and strategy
Eli Lilly
How it makes money
Lilly makes money by discovering, developing, manufacturing and selling patent-protected prescription medicines. Revenue comes mainly from product sales to wholesalers, pharmacies and health systems, with net prices set through negotiations with insurers, pharmacy benefit managers and governments; collaboration and royalty income adds a smaller share.
Growth strategy
Lilly's growth strategy has three parts: expand incretin supply and indications, add oral and next-generation obesity medicines, and diversify through oncology, immunology, neuroscience and genetic medicine. Foundayo (orforglipron) was approved by the FDA on April 1, 2026 and launched through LillyDirect, telehealth and U.S. retail pharmacies. Retatrutide, a GIP/GLP-1/glucagon triple agonist, is in Phase 3.
Competitive advantage
Lilly's advantage combines a century of diabetes and peptide-hormone expertise with manufacturing scale few rivals can match. Tirzepatide's dual GIP/GLP-1 mechanism produced greater weight loss than semaglutide in the head-to-head SURMOUNT-5 trial, and Foundayo gives Lilly a small-molecule GLP-1 pill that can be taken without food or water restrictions and is easier to mass-produce than peptides.
Merck
How it makes money
Merck makes money by selling patent-protected prescription medicines, vaccines and animal health products. The Pharmaceutical segment produced about $58.1 billion of 2025 sales, led by Keytruda/Keytruda Qlex ($31.7 billion), Gardasil ($5.2 billion), Januvia/Janumet ($2.5 billion) and Winrevair ($1.4 billion).
Growth strategy
Merck's strategy is to use Keytruda cash flow to build a broader portfolio before 2028. It moved patients toward subcutaneous Keytruda Qlex (FDA-approved September 19, 2025), expanded Keytruda into earlier-stage cancers, and bought late-stage or commercial assets: Verona Pharma for about $10 billion (completed October 2025, adding COPD drug Ohtuvayre), Cidara Therapeutics for about $9.2 billion (completed January 202…
Competitive advantage
Merck's edge rests on the scale of its Keytruda clinical program, with more than 40 approved indications, plus a large biologics manufacturing network and a vaccine franchise built over decades. Each new Keytruda approval reuses the same oncology sales relationships and safety data, which lowers the cost of every additional indication.
Questions about Eli Lilly vs Merck
Which company has higher revenue — Eli Lilly and Company or Merck & Co., Inc.?
Eli Lilly and Company reported $65.2B (FY2025), while Merck & Co., Inc. reported $65.0B (FY2025). By last reported revenue, Eli Lilly and Company is the larger business, with Merck & Co., Inc. reporting a smaller revenue base.
What is the market cap of Eli Lilly and Company vs Merck & Co., Inc.?
Eli Lilly and Company's market capitalisation stands at $1.06T, while Merck & Co., Inc.'s is $368.3B. Eli Lilly and Company carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to Merck & Co., Inc..
Which is more financially efficient — Eli Lilly and Company or Merck & Co., Inc.?
Eli Lilly and Company generates $1.30M / employee in revenue per employee, while Merck & Co., Inc. generates $867k / employee. Eli Lilly and Company shows higher revenue efficiency per headcount, though this reflects business model differences — capital-light software companies routinely outperform labour-intensive manufacturers on this metric.
How do Eli Lilly and Company and Merck & Co., Inc. make money?
Eli Lilly and Company and Merck & Co., Inc. generate revenue in fundamentally different ways. Eli Lilly and Company: Lilly makes money by discovering, developing, manufacturing and selling patent-protected prescription medicines. Merck & Co., Inc.: Merck makes money by selling patent-protected prescription medicines, vaccines and animal health products.
Which company is valued higher relative to revenue — Eli Lilly and Company or Merck & Co., Inc.?
On a price-to-sales (P/S) basis, Eli Lilly and Company trades at 16.3x P/S and Merck & Co., Inc. at 5.7x P/S. Eli Lilly and Company commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Merck & Co., Inc.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Eli Lilly and Company bigger than Merck & Co., Inc.?
By last reported revenue, Eli Lilly and Company ($65.2B (FY2025)) is the larger company compared to Merck & Co., Inc. ($65.0B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Eli Lilly vs Merck overview