Elanco Animal Health Q3 earnings call highlights. Posted by Jeff Wilder on Nov 9th, 2026 Elanco Animal Health (NYSE:ELAN) raised its full-year outlook after third-quarter revenue rose 11%, driven by demand for its pet health products Zenrelia and Credelio Quattro and higher prices across its portfolio. The animal health company reported revenue of $1.265 billion, up 9% on an organic constant-currency basis. Volume contributed 5 percentage points of that growth and price contributed 4 points, Chief Financial Officer Bob VanHimbergen said on the earnings call. Adjusted earnings per share rose 42% to $0.27, while adjusted earnings before interest, taxes, depreciation and amortization increased 23% to $243 million. Adjusted gross margin expanded by 3 percentage points to 56.1%, helped by pricing, product mix and productivity improvements. Elanco exceeded the high end of its quarterly guidance for revenue, adjusted EBITDA and adjusted EPS, Chief Executive Officer Jeff Simmons said. The company also reduced gross debt by $216 million during the quarter, bringing its net leverage ratio to 2.9 times. Pet health products lead growth. Global pet health revenue grew 14% on an organic constant-currency basis, including 13% growth in the U.S. and 17% internationally. Simmons attributed much of the increase to Zenrelia and Credelio Quattro, both of which reached record U.S. market share in September. U.S. Zenrelia sales more than doubled from a year earlier, Simmons said. The product had reached approximately 19,000 veterinary clinics, or about two-thirds of the U.S. clinic base, while average sales per clinic increased 8% from the second quarter. Credelio Quattro's U.S. market share rose 9 percentage points year over year in the third quarter, and the product had reached about 55% of U.S. clinics, according to Simmons. He said Quattro became Elanco's largest U.S. pet health product on a trailing four-quarter basis, surpassing Seresto. Elanco expects to launch Quattro in Europe in the first quarter of 2027 after receiving a positive opinion for expansion into the European Union. International sales of AdTab, an over-the-counter parasiticide, grew more than 40% in the third quarter, Simmons said. The company generated $328 million in quarterly revenue from innovation products, up 40% from a year earlier, and raised its full-year innovation revenue target to $1.275 billion. Befrena launch and 2027 outlook. Elanco has opened access to Befrena to all customers, including large corporate accounts, and expects to fill outstanding orders by the following week, Simmons said. The company plans to move from a phased launch to a full-scale U.S. launch in the first quarter of 2027. Befrena did not materially contribute to third-quarter U.S. pet health growth, but Simmons said it could become the largest contributor to that business's growth next year. He said Elanco had produced more than 30 commercial batches, with larger-scale test lots and validation remaining as it ramps up production. For 2027, Elanco reiterated its targets for mid-single-digit organic constant-currency revenue growth, high-single-digit adjusted EBITDA growth and low-double-digit adjusted EPS growth. VanHimbergen said he expects pet health to outpace farm animal, with the latter returning to mid-single-digit growth against tougher comparisons. VanHimbergen said Befrena's volume growth will initially dilute gross margin, although he expects overall adjusted gross margin and EBITDA to improve in 2027. Inflation and regional farm animal cycles are among the other potential headwinds management identified. Elanco also expects Costco's non-renewal to affect its retail business primarily in the first quarter of 2027. Simmons said other distribution partners are expected to offset the impact and that Elanco expects retail growth overall next year. Higher full-year guidance. Elanco now expects 2026 revenue of $5.155 billion to $5.18 billion and organic constant-currency revenue growth of approximately 8%, up from its previous forecast of 6% to 7%. It raised its adjusted EPS outlook to $1.17 to $1.20, an increase of $0.06 at the midpoint. For the fourth quarter, the company forecast revenue of $1.19 billion to $1.215 billion, adjusted EBITDA of $185 million to $200 million and adjusted EPS of $0.16 to $0.19. It expects organic constant-currency revenue growth of 4% to 6%. VanHimbergen said Elanco remains ahead of schedule toward its cumulative $1 billion free cash flow target through 2028, with $362 million generated as of the end of the third quarter. He added that the company expects net leverage of approximately 2.9 times at year-end. About Elanco Animal Health (NYSE:ELAN). Elanco Animal Health Incorporated is a global animal health company that develops, manufactures and markets products for pets and food-producing animals. Its portfolio is designed to help prevent and treat disease, control parasites and support the health and productivity of animals. The company's products include vaccines, parasiticides, antibiotics, nutritional supplements and other prescription and over-the-counter therapies. Its companion animal offerings address conditions such as flea and tick infestations, internal parasites, osteoarthritis and dermatological disorders, while its farm animal products support the health of cattle, poultry, swine and aquaculture species. Elanco serves customers in markets around the world through relationships with veterinarians, animal owners, livestock producers, retailers and distributors.

Elanco Animal Health reported third quarter 2026 sales of $1.27 billion and net income of $18 million, returning to positive earnings per share. Its shares rose 8.7% in one day and 15.1% over 30 days. Total shareholder return stands at 19.8% over one year and about 14x over three years, though it is still down 22.1% over five years. The most followed analyst view puts fair value at about $30.23 a share, against a latest close of $25.74. That would make the stock 15% undervalued, provided new products and margin plans lift earnings. Risks include unfavourable currency moves and weak farm animal markets, such as Asian swine.

Elanco Animal Health sees strong momentum heading into 2027. Stock score locked: want to see it? Benzinga Edge Rankings give you vital metrics on any stock - anytime. Elanco Animal Health Incorporated (NYSE:ELAN) delivered better-than-expected third-quarter financial results on strong demand and higher prices. The animal health company reported quarterly adjusted earnings of 27 cents per share, beating the consensus estimate of 20 cents. The company reported quarterly sales of $1.265 billion, up 11.3% year over year, beating the consensus estimate of $1.208 billion. Segment revenue breakdown. Pet Health revenue was $608 million, an increase of 14%. The 5% price increase exceeded the company's expectations. The year-over-year reported increase was primarily driven by a 3% increase in price during the period and a 2% contribution from the AHV acquisition. Executive commentary on pricing power and volume growth. "...we saw strong veterinarian and pet owner demand for what we believe is 'best medicine' innovation for our 'Big 6' growth led by Zenrelia and Credelio Quattro. Price accelerated to 4% growth, exceeding our expectations, while volume remained robust at 5%. Our durable top-line is fueled by a significant runway for share gains off a small base in large, growing, global markets," said Jeff Simmons, President and CEO of Elanco. Advertisment Price increased 4% in the quarter, led by global Pet Health at 5%, including strong sequential acceleration in U.S. Pet Health versus the second quarter, as Elanco's differentiated innovation drives marketplace value. Zenrelia and Credelio Quattro expand market share and clinic penetration. Zenrelia achieved its largest revenue quarter ever, in both the U.S. and International, with September its largest month ever. The company, in its earnings call, said Zenrelia made its largest-ever quarterly contribution to total company revenue. Simmons told investors that market demand drove U.S. sales to more than double in the quarter versus last year. Vet clinic penetration climbed to approximately 19,000, or two-thirds of the total clinic base, with steady month-to-month gains even as new competition entered. U.S. JAK market share increased 7 percentage points year over year, ending on a record high in September, driven by new users and sticky repeat orders and increased penetration in existing clinics. The average U.S. sales per clinic increased 8% sequentially, even with new clinics and a competitive entrant. Credelio Quattro U.S. share grew 9 points year-over-year; September was the largest sales month in the third quarter and its highest share month ever. Raised full-year 2026 guidance and fourth-quarter financial outlook. "Elanco is well positioned with momentum heading into 2027. We are recommitting to our annual algorithm of mid-single-digit organic constant currency revenue growth, high-single-digit adjusted EBITDA growth, and low-double-digit adjusted EPS growth...," Simmons said on Friday. Elanco Animal Health raised its fiscal 2026 adjusted earnings guidance from $1.10-$1.16 per share to $1.17-$1.20 per share, compared to the consensus of $1.13 per share. The company also raised its 2026 sales outlook from $5.090 billion-$5.140 billion to $5.155 billion-$5.180 billion versus the Wall Street estimate of $5.132 billion. The animal health company expects the fourth-quarter adjusted earnings of 16-19 cents vs. the 18 cents consensus estimate. Also, sales of $1.190 billion-$1.215 billion vs. a $1.193 billion consensus estimate. ELAN Price Action: Elanco Animal Health shares were up 6.55% at $25.23 at the time of publication on Friday, according to Benzinga Pro data.