Is Eli Lilly (LLY) Halal?
Screener: Yes — Eli Lilly passes Shariah screening as of October 2026. Its business (prescription pharmaceuticals — diabetes, obesity, oncology, immunology, neuroscience) is halal, its debt is 5.0% of market cap, and it reports net interest expense — it pays interest on its borrowings rather than earning it. Below: the full screening math and the caveats that could change the answer.
Gate 1: Business activity
Eli Lilly is a pharmaceutical company. Its Q2 2026 10-Q (quarter ended June 30, 2026) reports quarterly revenue of $22.974 billion ($42.773 billion for the first half), driven by diabetes and obesity medicines (Mounjaro, Zepbound, Trulicity), oncology, immunology, and neuroscience products. None of its core businesses are in prohibited industries (alcohol, gambling, conventional finance, weapons, adult entertainment, non-halal food).
The nuance investors ask about: pharma and alcohol. Some scholars discuss alcohol-based ingredients in medicines, but Lilly’s core business is prescription pharmaceuticals, not alcohol production or sale — screeners generally treat it as a halal business line. If ingredient-level purity matters to you, stricter methodologies differ — ask a qualified scholar.
Gate 2: Financial ratios
AAOIFI-style screening applies three ratio tests (thresholds shown; Dow Jones Islamic Market methodology uses 33% where AAOIFI uses 30% — the ceilings below use the stricter 30%):
| Ratio | Eli Lilly (Oct 2026) | Ceiling | Result |
|---|---|---|---|
| Total interest-bearing debt ÷ market cap | 5.0% ($54.91B debt on ~$1,093.6B market cap) | < 30% | PASS |
| Cash + short-term investments ÷ market cap | 0.8% ($8.95B cash on ~$1,093.6B market cap) | < 30% | PASS |
| Non-compliant income ÷ total revenue | ~0% (net interest expense of $527M in H1 2026 — the company is a net payer of interest, not an earner) | < 5% | PASS |
Figures: Q2 2026 10-Q (quarter ended June 30, 2026): revenue of $22.974B for the quarter and $42.773B for the first half; net interest expense of $274M for the quarter and $527M for the first half. Debt ($54.91B) and cash ($8.95B) per SEC company-facts data. Market cap from the September 30, 2026 close of $1,161.73 × ~941.36M shares outstanding.
Purification
Eli Lilly pays a quarterly dividend. Because the company reports net interest expense rather than interest income — it pays interest on its borrowings instead of earning it — the non-compliant share of revenue is effectively zero, so there is effectively nothing to purify on the dividend. If the numbers change, run the dividend through our purification calculator.
What could change the screener
- Debt-funded M&A. Lilly is an acquisitive company — at 5.0%, it has large headroom, but a major debt-funded acquisition would be worth re-checking.
- Rising interest income. Currently effectively zero; a much larger cash pile earning interest would show up in the 5% income screen first.
- Business-mix shifts. Any move into prohibited industries would need re-examination at gate one.
We re-screen on a quarterly cadence — the screener above reflects the latest published report and September 2026 market data.
How Canadians buy it
Eli Lilly trades only on the NYSE as LLY — there is no TSX listing, so you buy in USD. To convert cheaply, use Norbert’s gambit on Questrade rather than paying a broker’s conversion spread. LLY is available through Questrade and Wealthsimple’s self-directed accounts, and it can be held in a TFSA, RRSP, or FHSA — all wrappers are neutral to Shariah compliance. See our Questrade vs Wealthsimple comparison for the practical differences.
FAQ
Is Eli Lilly halal to invest in?
As of October 2026: yes, it passes Shariah screening — halal pharmaceutical business, 5.0% debt ratio, and net interest expense rather than interest income. This is a screening result, not a religious ruling: scholars differ and financials change every quarter.
Does Lilly earn interest on its cash?
No. Its Q2 2026 10-Q reports net interest expense of $274M for the quarter ($527M for the first half) — Lilly pays interest on its borrowings rather than earning it, so non-compliant income is effectively zero.
Do I need to purify Lilly’s dividend?
Lilly’s dividend comes from pharmaceutical revenue, and with effectively zero non-compliant income there is effectively nothing to purify. Re-check if the figures change; our purification calculator can run the math.
What if Lilly becomes non-compliant after I buy?
The common guidance: sell the holding (scholars differ on timing when it’s at a loss — ask a qualified scholar), purify the non-compliant share of any dividends received, and don’t offset other gains against it. Re-screen quarterly; we’ll update this page when the numbers move.
Screened with our two-gate Shariah screening methodology (business-activity gate, then AAOIFI-style financial ratios).