Raising Full Year Outlook and Innovation Target, Improving Year-End Net Leverage Ratio Target
- Second Quarter 2026 Financial Results:
- Revenue of $1,368 million, an increase of 10% year-over-year; 8% organic constant currency growth
- Reported Net Income of $54 million, Adjusted Net Income of $174 million
- Adjusted EBITDA of $288 million; Adjusted EBITDA Margin of 21.2%
- Reported EPS of $0.11, Adjusted EPS of $0.34
- Net leverage ratio of 3.1x Adjusted EBITDA
- Full Year 2026 Guidance:
- Raising innovation revenue target to $1.25 billion
- Raising revenue guidance to $5.09 billion to $5.14 billion, or 6% to 7% organic constant currency growth
- Raising Adjusted EBITDA to $1.01 billion to $1.035 billion, a year-over-year increase of 13% at midpoint
- Raising Adjusted EPS to $1.10 to $1.16, a year-over-year increase of 20% at midpoint
- Improving year-end net leverage ratio target to approximately 3.0x Adjusted EBITDA
Indianapolis, IN (August 5, 2026) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the second quarter of 2026, provided guidance for the third quarter of 2026, and updated guidance for the full year 2026.
"Elanco’s second quarter results demonstrate our momentum and leadership in the attractive animal health industry," stated Jeff Simmons, President and CEO of Elanco. "Organic constant currency revenue growth of 8% was led by U.S. Pet Health and U.S. Farm Animal each up 11%. We saw strong contributions from both price and volume, as consumer demand for our basket of innovation drove market share gains and stabilized our base business. Zenrelia — our newest blockbuster — was the single largest contributor to global Elanco growth, closely followed by Credelio Quattro. As we are raising our top- and bottom-line full-year outlook, including faster than planned margin expansion and net debt deleverage, our consistent delivery demonstrates our Innovation Portfolio Productivity (IPP) strategy is working. We also continue to expect a sustainable mid-single digit CAGR in animal health through the global drivers that matter most in pets and protein. Elanco is well positioned through our differentiated innovation, our comprehensive portfolio, our diverse go-to-market model, and our commercial execution, creating durable value for our customers, our shareholders, and the industry."
Select Business Highlights Since the Last Earnings Call
- Zenrelia™ achieved blockbuster status July YTD; efficacy driving use in approximately 18,000 U.S. clinics; U.S. JAK market share up 9 points year-over-year with gains versus Q1**; up to 40%+ JAK market share in key European markets, outperforming the competitive entrant***
- Credelio Quattro™ accelerated dollar share gains of broad-spectrum sales out U.S. vet clinics in Q2, up 4 points versus Q1**; penetrated over 50% of the U.S. clinic base, up approximately 3,000 clinics representing 10 points versus Q1; launched in Australia, Canada, and Japan to date
- Befrena™ shipped to nearly 1,400 U.S. clinics to date; ramping capacity to meet high customer demand 2x above expectations, with weekly increases in supply
- Global ruminants was Elanco's fastest growing species, up 12% in the quarter on an organic constant currency basis or 17% including AHV International and FX, as innovation fortified the company's beef and dairy portfolio
- The company released its 2025 Impact Report, celebrating Elanco's leadership with purpose, and culture of 'Going Beyond' for animals, customers, society, and its people
**Per Kynetec data
***Internal estimates based on multiple data sources
