Elanco Lifts 2026 Outlook After Price Acceleration and Margin Expansion

The Tip Desk · November 6, 2026 · 4 min read

The animal-health company raised full-year revenue guidance to $5.155 billion to $5.18 billion after third-quarter organic constant currency growth of 9% and a 300-basis-point adjusted gross-margin expansion.

Elanco Animal Health Incorporated (ELAN) raised its full-year 2026 revenue outlook to $5.155 billion to $5.18 billion, or about 8% organic constant currency growth, after third-quarter organic constant currency growth of 9% and a 300-basis-point expansion in adjusted gross margin.

The animal-health company reported third-quarter revenue of $1.265 billion, up 11% from a year earlier. Organic constant currency growth had been 8% in the second quarter.

Price growth accelerated to 4% in the third quarter, exceeding the company’s expectation for acceleration, while volume remained at 5%. President and CEO Jeff Simmons said organic constant currency revenue growth was led by International Pet Health up 17% and U.S. Pet Health up 13%, with strong veterinarian and pet-owner demand for Zenrelia and Credelio Quattro.

Pet Health revenue was $608 million, up 14% on both a reported and organic constant currency basis. The year-over-year volume increase of 9% in the third quarter was primarily driven by strong demand for Zenrelia, Credelio Quattro and AdTab, the company said. Zenrelia achieved its largest revenue quarter ever in both the U.S. and International, with September its largest month ever. U.S. JAK market share grew 7 points year-over-year, and September was its highest share month ever.

Credelio Quattro U.S. share grew 9 points year-over-year, and September was its highest share month ever. Clinic penetration reached over 16,500 clinics, or about 55%, and the product became Elanco’s largest U.S. Pet Health branded product, surpassing Seresto in the United States. Credelio Quattro received a positive European Medicines Agency opinion for expansion into the EU, with a launch expected in the first quarter of 2027. Befrena access opened across clinics, with a full launch also expected in the first quarter of 2027.

Farm Animal revenue was $631 million, up 6% reported and 4% organic constant currency. Cattle revenue was $339 million, up 17% reported and 11% organic constant currency. Poultry revenue was $201 million, down 7% on both bases. Swine revenue was $91 million. Global ruminants remained the fastest-growing species, with revenue up 12% year-to-date on an organic constant currency basis, or 17% including AHV International and foreign exchange.

Gross profit was $720 million and gross margin was 56.9%, up 350 basis points from the third quarter of 2025. On an adjusted basis, gross profit was $699 million and gross margin was 56.1%, up 300 basis points, ahead of the company’s expectations. The company said the increase was primarily driven by increased pricing and favorable mix from U.S. Pet Health and global ruminants.

Adjusted EBITDA was $243 million, up 23% from a year earlier, with a margin of 19.5% versus 17.5%. Adjusted EPS was $0.27. Reported net income was $18 million, or $0.04 a share, versus a net loss of $34 million, or $0.07 a share, a year earlier. Adjusted net income was $136 million, up 45%. Asset impairment, restructuring and other special charges were $3 million, compared with $25 million in the third quarter of 2025.

Cash provided by operations was $216 million. As of September 30, 2026, the net leverage ratio was 2.9x adjusted EBITDA, down 0.7x from December 31, 2025. The company said reaching that milestone earlier than anticipated unlocks accelerated capital allocation flexibility.

Elanco raised full-year 2026 Adjusted EBITDA guidance to $1.05 billion to $1.065 billion, a 17% year-over-year increase at the midpoint, and Adjusted EPS guidance to $1.17 to $1.20, a 26% increase at the midpoint. The innovation revenue target was raised to $1.275 billion. The year-end net leverage ratio target was improved to approximately 2.9x. Adjusted gross margin guidance for 2026 was raised to 55.8% to 56.0%, a 100-basis-point increase versus 2025, compared with the prior expectation of 50 basis points of improvement.

For the fourth quarter of 2026, the company guided 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, with 4% to 6% revenue growth excluding foreign exchange, AHV International and sold royalty and milestone items.

For 2027, Elanco said it continues to expect results in line with its December 2025 Investor Day annual algorithm: mid-single digit organic constant currency revenue growth, high-single digit Adjusted EBITDA growth, and low-double digit Adjusted EPS growth, building on expected full-year 2026 outperformance.