Raising Full Year Outlook and Innovation Target, Improving Year-End Net Leverage Ratio Target
- First Quarter 2026 Financial Results:
- Revenue of $1,371 million, an increase of 15% year-over-year; 10% organic constant currency growth
- Reported Net Income of $57 million, Adjusted Net Income of $204 million
- Adjusted EBITDA of $334 million; Adjusted EBITDA Margin of 24.5%
- Reported EPS of $0.11, Adjusted EPS of $0.40
- Net leverage ratio of 3.5x Adjusted EBITDA
- Full Year 2026 Guidance:
- Raising innovation revenue target to $1.2 billion
- Raising revenue guidance to $5,010 million to $5,085 million, or 5% to 7% organic constant currency growth
- Raising Adjusted EBITDA to $975 million to $1,005 million, a year-over-year increase of 10% at midpoint
- Raising Adjusted EPS of $1.03 to $1.09, a year-over-year increase of 13% at midpoint
- Improving year-end net leverage ratio target to 3.0x to 3.2x Adjusted EBITDA
Indianapolis, IN (May 6, 2026) - Elanco Animal Health Incorporated (NYSE: ELAN) today reported financial results for the first quarter of 2026, provided guidance for the second quarter of 2026, and updated guidance for the full year 2026.
"Elanco's strong first quarter results demonstrate the significant momentum of our innovation-led strategy," said Jeff Simmons, President and CEO of Elanco. "Organic constant currency revenue growth of 10% reflects outperformance across our diverse portfolio, including Zenrelia reaching trailing 4-quarter blockbuster status, and Credelio Quattro achieving accelerating market share gains. All major species grew, driven by our basket of innovation and growth in our base business. We are improving our full year guidance across all key metrics, as our consistent execution is creating more ways for Elanco to win in this durable, attractive animal health industry."
Select Business Highlights Since the Last Earnings Call
- Credelio Quattro™ accelerated dollar share gains of broad-spectrum sales out of U.S. vet clinics in Q1, up 3 points versus Q4**; penetrated over 40% of the U.S. clinic base; 53% share in U.S. clinics that carry Quattro, up 13 points in Q1 versus Q4**; launched in Australia and approved in Canada, both in April
- Zenrelia™ achieved trailing 4-quarter blockbuster status; over 2 million dogs have been treated; efficacy driving use in over 50% of U.S. clinics with U.S. JAK market share up 5 points versus Q4**; over 50% share of JAK market in Brazil, over 35% share in Japan, and high-teens to 30%+ JAK market share in key European markets***
- Befrena™ phased launch approach on track, with product already shipped to early experience influencers and in use, and commercialization in the U.S. expected in Q2
- Added Costco and Dollar General as new retail customers for parasiticides in the U.S.
- Advantage® Collar for Dogs launched in April, providing four-month protection against fleas and ticks, available at pet specialty, dollar, grocery, and mass retailers
- Closed the previously announced acquisition of AHV International on April 30th
**Per Kynetec data
***Internal estimates based on multiple data sources
