Elanco Animal Health reported second-quarter 2026 results with revenue of $1,368 million, up 10% year‑over‑year (8% organic constant currency), and raised full‑year guidance for revenue, adjusted EBITDA and adjusted EPS. Reported net income was $54 million and adjusted net income was $174 million; adjusted diluted EPS for the quarter was $0.34. The company improved its year‑end net leverage target and increased its innovation revenue and margin outlook for 2026.

Financial Highlights

  • Revenue: $1,368 million in Q2 2026, a 10% increase versus Q2 2025 (8% organic constant currency growth).
  • Gross profit: $798 million in Q2 2026; reported gross margin of 58.3% and adjusted gross margin of 58.1% (up ~80 bps year‑over‑year).
  • Reported net income: $54 million for Q2 2026; Reported EPS: $0.11 (diluted).
  • Adjusted net income: $174 million for Q2 2026; Adjusted diluted EPS: $0.34.
  • Adjusted EBITDA: $288 million for Q2 2026 (Adjusted EBITDA margin: 21.2%); net leverage ratio: 3.1x trailing twelve‑month adjusted EBITDA as of June 30, 2026.

Business Highlights

  • Innovation momentum: Zenrelia achieved blockbuster status year‑to‑date and was the largest contributor to global growth; Credelio Quattro also drove strong clinic dollar share gains and expanded clinic penetration in the U.S.
  • Segment performance: U.S. Pet Health and U.S. Farm Animal both grew organically, each up 11% year‑over‑year on an organic constant currency basis; global ruminants was the fastest growing species, up 12% organically in the quarter.
  • Product launches and supply: Befrena has shipped to nearly 1,400 U.S. clinics with capacity being ramped to meet demand ~2x above expectations; Credelio Quattro launched in Australia, Canada and Japan.
  • Strategic actions: Company continues Elanco Ascend productivity initiatives targeting $200–$250 million in adjusted EBITDA net savings by 2030 and noted faster‑than‑expected margin expansion driven by mix and pricing.

Original SEC Filing:

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