Elanco raises 2026 outlook as Q3 revenue grows 11% to $1.265 billion

Elanco Animal Health Incorporated (NYSE:ELAN) reported third-quarter 2026 revenue of $1.265 billion, representing an 11% increase from the prior-year period, as growth across its Pet Health and Farm Animal businesses supported improved financial performance.

Revenue increased 9% on an adjusted basis, excluding currency effects, the AHV acquisition and sold royalties and milestones. The company reported net income of $18 million, or $0.04 per diluted share, compared with a net loss of $34 million in the third quarter of 2025.

Adjusted EBITDA, a non-GAAP measure of operating profitability, increased 23% to $243 million, reflecting stronger operating performance across its business segments.

Elanco's Pet Health division generated $608 million in revenue, up 14% year over year, while Farm Animal revenue increased 6% to $631 million, highlighting continued demand across companion animal and livestock health markets.

The company raised its full-year 2026 revenue guidance to $5.155 billion–$5.18 billion, excluding sold royalties and milestones, and increased its adjusted earnings per share forecast to $1.17–$1.20.

Elanco also raised its innovation revenue target to $1.275 billion, reflecting its continued focus on developing and commercializing new animal health products.

For 2027, management maintained expectations for mid-single-digit organic constant-currency revenue growth, high-single-digit adjusted EBITDA growth and low-double-digit adjusted EPS growth. Net leverage stood at 2.9 times adjusted EBITDA at the end of the reported period.

Elanco Animal Health develops, manufactures and markets products for companion animals and livestock, including treatments for parasitic infections, infectious diseases and other animal health conditions.

Its business strategy focuses on product innovation, expanding its Pet Health portfolio, strengthening Farm Animal operations and improving profitability through operational efficiency and disciplined financial management.