Eli Lilly reached a market value of $1 trillion on Friday, becoming the first healthcare and pharmaceutical company to enter a group usually led by major technology firms. The milestone highlights the company’s rapid growth, driven largely by its success in the weight-loss drug market.
Here are key reactions to Lilly joining the trillion-dollar club:
Mark Preskett, Senior Portfolio Manager at Morningstar Wealth
Preskett said the long-running uncertainty hanging over the healthcare sector is beginning to fade. He noted that the new Eli Lilly agreement, combined with President Donald Trump’s deal with Pfizer last month, provides investors with clearer expectations on drug pricing. He added that more agreements with large pharmaceutical companies are likely in the coming months and believes the rally in the sector still has room to run. According to Preskett, momentum is building and healthcare remains one of the most undervalued sectors for long-term investors.
Geoff Meacham, Analyst at Citi
Meacham said Lilly’s size, liquidity, and position as a mega-cap healthcare company make it a strong alternative to the “Magnificent Seven” tech stocks. With the recent pullback in technology shares and investors reassessing their exposure heading into 2026, healthcare is becoming more attractive after a year of underperformance. He emphasized that Lilly’s fundamentals stand out, with some of the fastest revenue and earnings growth in the industry.
Evan Seigerman, Analyst at BMO Capital Markets
Seigerman said Lilly’s current valuation reflects strong investor confidence in the long-term strength of its metabolic health portfolio. He added that the market appears to favor Lilly over Novo Nordisk in the global competition for obesity treatments. He also noted that money is moving into healthcare as some investors grow cautious about a potential AI-driven bubble in technology stocks.
Hank Smith, Director and Head of Investment Strategy at Haverford Trust
Smith said investors have always valued consistent earnings growth, and Eli Lilly is currently the only major pharmaceutical company delivering that level of performance.
