ELI LILLY & Co

We believe our available cash and cash equivalents, together with our ability to generate operating cash flow and our access to short-term and long-term borrowings, are sufficient to fund our existing and planned capital requirements. For a discussion of our capital requirements, see "Management's Discussion and Analysis of Results of Operations and Financial Condition" in Part II, Item 7 of our Annual Report on Form 10-K for the year ended December 31, 2025.

We are making investments in global facilities to manufacture existing and future products. These investments, and other capital investments that support our operations, have increased our capital expenditures and will result in higher capital expenditures in the near term.

Cash and cash equivalents decreased to $4.9 billion as of September 30, 2026, compared with $7.3 billion as of December 31, 2025. Refer to the consolidated condensed statements of cash flows for additional information on the significant sources and uses of cash for the nine months ended September 30, 2026 and 2025.

In addition to our cash and cash equivalents, we held total investments of $4.1 billion and $2.9 billion as of September 30, 2026 and December 31, 2025, respectively. As of September 30, 2026, we had approximately $862 million of unfunded commitments to invest in venture capital funds, which we anticipate will be paid over a period of up to 10 years. See Note 8 to the consolidated condensed financial statements for additional information.

In May 2026, we issued long-term debt totaling $9.0 billion and used the net cash proceeds from this offering for general corporate purposes, including the repayment of outstanding commercial paper and the funding of a portion of the upfront cash consideration and related fees and expenses payable in connection with our acquisitions of Centessa and Kelonia. See Note 8 to the consolidated condensed financial statements for additional information.

During the nine months ended September 30, 2026, we paid $18.2 billion related to business development activity, primarily driven by the acquisitions of Centessa, Kelonia, AtaiBeckley, Orna, Ventyx, Curevo, and Ajax. In October 2026, we acquired Merida for up to $2.9 billion in aggregate, inclusive of an upfront payment and additional potential payments based upon the achievement of certain clinical and regulatory milestones. See Note 4 to the consolidated condensed financial statements for additional information.

As of September 30, 2026, total debt was $49.5 billion, an increase of $7.0 billion compared with $42.5 billion as of December 31, 2025.

As of September 30, 2026, we had a total of $10.1 billion of unused committed bank credit facilities, $10.0 billion of which is available to support our commercial paper program. See Note 8 to the consolidated condensed financial statements for additional information. We believe that amounts accessible through existing commercial paper markets or other sources should be adequate to fund short-term borrowing needs.

During the nine months ended September 30, 2026, we repurchased $4.3 billion of shares under our $15.0 billion share repurchase program authorized in December 2024. As of September 30, 2026, we had$6.6 billion remaining under this program.

During the nine months ended September 30, 2026, we paid dividends of $4.6 billion, or $5.19 per share, to our shareholders. In October 2026, we declared a dividend for the fourth quarter of 2026 of $1.73 per share of outstanding common stock. The dividend of approximately $1.5 billion is payable on December 10, 2026 to shareholders of record at the close of business on November 13, 2026.

Both domestically and abroad, we monitor the potential impacts of the economic environment and international tension and conflicts; the creditworthiness of our wholesalers and other customers, including foreign government-backed agencies and suppliers; the uncertain impact of healthcare legislation; various international government funding levels; and fluctuations in interest rates, foreign currency exchange rates (see "Executive Overview—Other Matters—Foreign Currency Exchange Rates"), and fair values of equity securities.