Elanco Animal Health (ELAN) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue grew 10% year-over-year to $1.368 billion, with 8% organic constant currency growth, led by strong U.S. Pet Health and Farm Animal segments and blockbuster innovation products like Zenrelia and Credelio Quattro.

• Adjusted EBITDA rose 21% to $288 million, adjusted EPS increased 31% to $0.34, and adjusted net income reached $174 million.

• Market share gains were achieved across U.S. Pet Health and Farm Animal, supported by innovation and strong price and volume contributions.

• Net leverage ratio improved to 3.1x at quarter-end, targeting approximately 3.0x by year-end.

• Acquisition of AHV International expanded the ruminant portfolio and is expected to contribute to growth.

Financial highlights

• Q2 2026 revenue: $1.368 billion (up 10% year-over-year); organic constant currency growth: 8%.

• Adjusted EBITDA: $288 million (up 21% year-over-year); adjusted EBITDA margin: 21.2%.

• Adjusted EPS: $0.34 (up 31% year-over-year); reported EPS: $0.11.

• Gross margin improved to 58.3% (up 80 bps year-over-year); gross profit reached $798 million.

• Cash and cash equivalents at June 30, 2026: $530 million.

Outlook and guidance

• Full-year 2026 revenue guidance raised to $5.09–$5.14 billion (6–7% organic constant currency growth); adjusted EBITDA: $1.01–$1.035 billion (13% growth at midpoint); adjusted EPS: $1.10–$1.16 (20% growth at midpoint).

• Q3 2026 guidance: revenue $1.195–$1.22 billion, adjusted EBITDA $200–$215 million, adjusted EPS $0.19–$0.22.

• Innovation revenue target raised to $1.25 billion for 2026.

• Year-end net leverage ratio target improved to ~3.0x adjusted EBITDA.

• AHV acquisition expected to drive farm animal segment growth, with greater impact in 2027.