Elanco Animal Health (NYSE:ELAN) Releases Quarterly Earnings Results, Beats Expectations By $0.07 EPS

Elanco Animal Health (NYSE:ELAN) released its quarterly earnings data on Wednesday. The company reported $0.34 earnings per share for the quarter, beating the consensus estimate of $0.27 by $0.07, FiscalAI reports. Elanco Animal Health had a positive return on equity of 8.12% and a negative net margin of 3.96%.The company had revenue of $1.37 billion for the quarter, compared to analyst estimates of $1.31 billion. During the same period in the prior year, the company posted $0.26 EPS. The company’s revenue was up 10.2% compared to the same quarter last year. Elanco Animal Health updated its Q3 2026 guidance to 0.190-0.220 EPS and its FY 2026 guidance to 1.100-1.160 EPS.

Here are the key takeaways from Elanco Animal Health’s conference call:

• Elanco reported 8% organic constant-currency revenue growth in Q2, with U.S. pet health and U.S. farm animal each up 11%; adjusted EBITDA rose 21% and adjusted EPS increased 31% year over year.
• Strong demand for Zenrelia and Credelio Quattro drove innovation revenue to $340 million in the quarter, prompting the company to raise its 2026 innovation revenue target to approximately $1.25 billion.
• Elanco raised full-year guidance to 6%-7% organic constant-currency revenue growth, $1.01-$1.035 billion of adjusted EBITDA, and $1.10-$1.16 of adjusted EPS; it also lowered its expected year-end net leverage ratio to approximately three times.
• Zenrelia treated more than 2.5 million dogs, reached 47 countries, and achieved first-line use in more than 40% of users, while Quattro expanded to over half of U.S. veterinary clinics; Befrena demand is reportedly exceeding expectations, though supply is expected to remain constrained until early 2027.
• Elanco plans to increase operating expenses by investing in direct-to-consumer marketing and product launches, with Q3 expenses expected to rise about 11% in constant currency; management also cited ongoing inflation and a seasonally more second-half-weighted margin profile.

Elanco Animal Health Price Performance

Elanco Animal Health stock traded down $1.61 on Friday, reaching $22.59. The company’s stock had a trading volume of 14,701,962 shares, compared to its average volume of 5,537,653. The company has a debt-to-equity ratio of 0.60, a quick ratio of 1.12 and a current ratio of 2.16. The company has a market cap of $11.28 billion, a price-to-earnings ratio of -54.96, a PEG ratio of 1.73 and a beta of 1.67. The business’s fifty day moving average price is $24.73 and its 200 day moving average price is $24.10. Elanco Animal Health has a twelve month low of $16.15 and a twelve month high of $27.98.

Analyst Upgrades and Downgrades

ELAN has been the topic of several recent analyst reports. Piper Sandler reaffirmed an “overweight” rating on shares of Elanco Animal Health in a research note on Monday, June 29th. Wall Street Zen cut Elanco Animal Health from a “strong-buy” rating to a “buy” rating in a report on Sunday, May 24th. UBS Group lifted their price objective on Elanco Animal Health from $31.00 to $33.00 and gave the company a “buy” rating in a report on Thursday. JPMorgan Chase & Co. boosted their target price on shares of Elanco Animal Health from $28.00 to $30.00 and gave the company an “overweight” rating in a research note on Thursday, May 7th. Finally, KeyCorp upped their target price on shares of Elanco Animal Health from $29.00 to $30.00 and gave the stock an “overweight” rating in a report on Thursday. One investment analyst has rated the stock with a Strong Buy rating, nine have assigned a Buy rating, two have issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and an average target price of $29.09.

Insider Buying and Selling at Elanco Animal Health

In other Elanco Animal Health news, insider Rajeev A. Modi bought 4,911 shares of the stock in a transaction dated Friday, May 15th. The stock was bought at an average cost of $20.35 per share, for a total transaction of $99,938.85. Following the completion of the purchase, the insider owned 160,812 shares in the company, valued at $3,272,524.20. This represents a 3.15% increase in their position. The acquisition was disclosed in a document filed with the Securities & Exchange Commission, which is available through this hyperlink. Also, CEO Jeffrey N. Simmons purchased 4,971 shares of the business’s stock in a transaction that occurred on Friday, May 15th. The stock was acquired at an average cost of $20.09 per share, with a total value of $99,867.39. Following the completion of the acquisition, the chief executive officer directly owned 171,971 shares of the company’s stock, valued at $3,454,897.39. The trade was a 2.98% increase in their ownership of the stock. The SEC filing for this purchase provides additional information. 1.14% of the stock is currently owned by corporate insiders.

Hedge Funds Weigh In On Elanco Animal Health

Institutional investors have recently modified their holdings of the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. acquired a new stake in shares of Elanco Animal Health in the first quarter valued at approximately $2,065,000. Goldman Sachs Group Inc. lifted its holdings in Elanco Animal Health by 104.5% during the 1st quarter. Goldman Sachs Group Inc. now owns 4,787,394 shares of the company’s stock worth $50,268,000 after buying an additional 2,445,872 shares in the last quarter. Empowered Funds LLC boosted its position in Elanco Animal Health by 35.2% in the 1st quarter. Empowered Funds LLC now owns 15,835 shares of the company’s stock valued at $166,000 after buying an additional 4,121 shares during the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC boosted its position in Elanco Animal Health by 4.5% in the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,793,337 shares of the company’s stock valued at $18,830,000 after buying an additional 76,408 shares during the last quarter. Finally, Arrowstreet Capital Limited Partnership increased its stake in shares of Elanco Animal Health by 2,006.9% in the 2nd quarter. Arrowstreet Capital Limited Partnership now owns 310,383 shares of the company’s stock valued at $4,432,000 after buying an additional 295,651 shares during the period. 97.48% of the stock is owned by institutional investors.

Elanco Animal Health Company Profile

Elanco Animal Health Inc is a global leader in animal health dedicated to improving food and companion animal well-being. The company develops, manufactures and markets a range of products, including parasiticides, vaccines, antibiotics and feed additives designed to prevent and treat disease in livestock and pets. Elanco’s portfolio spans both food-producing animals—such as cattle, swine, poultry and aquaculture—and companion animals, with offerings that support parasite control, pain management and infectious disease prevention.

Originally founded as the animal health division of Eli Lilly and Company in the mid-20th century, Elanco was spun off into an independent publicly traded company in 2018.