Elanco Animal Health Incorporated (NYSE:ELAN) reported a double-digit surge in fourth-quarter revenue, fueled by the accelerating rollout of its "Big 6" blockbuster-potential products.
The company raised its 2026 innovation revenue target to $1.15 billion, signaling confidence in its ability to capture market share in the competitive pet health and livestock sectors.
Fourth-quarter revenue reached $1.14 billion, an increase of 12% on a reported basis and 9% in organic constant currency.
This performance capped a fiscal year that saw total sales rise to $4.72 billion.
Innovation revenue—a key metric for the company’s turnaround—exceeded expectations at $892 million for the year, largely driven by strong adoption of new parasiticide and dermatology treatments.
Despite the top-line growth, Elanco reported a net loss of $276 million for the quarter and $232 million for the full year.
The deficit was primarily attributed to an authorized $175 million restructuring plan, "Elanco Ascend," which includes global headcount reductions and the closure of facilities in Kansas City and Monheim, Germany.
These moves are intended to expand margins and reallocate resources toward R&D.