Elanco raises 2026 guidance as U.S. Pet Health grows 13%

Elanco Animal Health reported third-quarter revenue of $1,265M, up 11% from a year earlier, and raised its 2026 revenue, EBITDA and EPS guidance after Pet Health sales grew 14% to $608M. CEO Jeff Simmons said U.S. Pet Health grew 13% and International Pet Health grew 17%, both on an organic constant currency basis.

The company said adjusted EPS was $0.27 against $0.19 a year earlier, and that reported net income was $18M after a $34M loss in the third quarter of 2025. Elanco has about 9,000 team members and sells products for both pets and farm animals.

Elanco lifts 2026 guidance after a 14% Pet Health quarter

Full-year revenue guidance rose to $5,155M to $5,180M from $5,090M to $5,140M in August. Adjusted EBITDA guidance moved to $1,050M to $1,065M from $1,010M to $1,035M, and adjusted EPS to $1.17 to $1.20 from $1.10 to $1.16, according to the second-quarter filing for the earlier range. Excluding currency, the AHV International acquisition and sold royalty revenue, Elanco now expects about 8% revenue growth, up from 6% to 7%.

Fourth-quarter guidance calls for revenue of $1,190M to $1,215M, adjusted EBITDA of $185M to $200M and adjusted EPS of $0.16 to $0.19. Simmons said the company is "raising full-year guidance to fully pass through the third quarter beat," and recommitted to an annual algorithm of mid-single digit organic constant currency revenue growth, high-single digit adjusted EBITDA growth and low-double digit adjusted EPS growth for 2027.

Farm Animal revenue was $631M, up 6%, with cattle up 17% to $339M and poultry down 7% to $201M. Total gross margin was 56.9%, and the adjusted figure of 56.1% was up 300 basis points.

Price and two launches carried the quarter

Price rose 4% across the company and 5% in Pet Health, with volume up 9% in Pet Health. In the second quarter, Elanco reported a 2% price increase in Pet Health, so the price contribution in the segment moved from 2% to 5% in one quarter. Simmons said the 5% price figure exceeded the company's expectation.

Zenrelia, the daily JAK inhibitor for canine itch, had its largest revenue quarter in both the U.S. and International. Elanco said U.S. JAK market share grew 7 points from a year earlier according to Kynetec data, and that 1,600 new clinics brought the U.S. total to about 19,000. In the second quarter the company had called Zenrelia the single largest contributor to global Elanco growth.

Credelio Quattro, the all-in-one canine parasiticide, gained 9 points of U.S. share, added 1,600 clinics and reached over 16,500 clinics, or about 55% of the U.S. base. Elanco said it is now its largest U.S. Pet Health branded product, ahead of Seresto, which brought in $49M in the quarter. The Advantage family contributed $115M. Elanco said Seresto was affected by a draw-down of retailer inventory in the U.S., with underlying performance in line with expectations.

Simmons said both products reached new market share highs in September, with "competitive activity having no fundamental impact" on their trajectory. He described the Zenrelia and Credelio Quattro gains as the result of what he called "best medicine" innovation.

Befrena and a European launch set up 2027

Elanco said Befrena, its anti-IL-31 antibody for canine itch, is now open to all clinics including corporate groups, with outstanding orders expected to be filled by the following week and a full launch planned for the first quarter of 2027. About 20% of clinics that bought Befrena had never used Zenrelia, which Elanco cited as proof that the portfolio effect is working. Our earlier report on the Befrena launch covered the dosing interval Elanco claims against Zoetis's Cytopoint.

Credelio Quattro also received a positive opinion from the European Medicines Agency, with an EU launch expected in the first quarter of 2027 ahead of the flea and tick season.

The results follow Zoetis reporting third-quarter U.S. companion animal revenue of $980M, down 8% from $1,069M, in its quarterly earnings filing. Zoetis attributed the decline to "competitive pressure in dermatology, as well as generic competition." Zoetis sells Apoquel and Cytopoint in dermatology and Simparica Trio against Credelio Quattro in parasiticides, and our second-quarter coverage of Zoetis tracked two guidance cuts earlier this year. The two companies reported opposite directions for U.S. results in those categories this quarter.

Elanco also lowered its net leverage ratio to 2.9x from 3.1x at the end of June, ahead of its year-end target of about 3.0x. CFO Bob VanHimbergen said reaching the milestone early "unlocks accelerated capital allocation flexibility." Elanco also announced a $25M venture fund this year and closed the AHV International acquisition on April 30th.

Elanco also named Jamie Preston as chief people officer effective November 3rd, succeeding Dave Kinard, who plans to retire at year end. The company reported its highest employee engagement since its IPO.

Elanco's stated plan for early 2027 is a full Befrena launch and a European Credelio Quattro launch, both in the first quarter.

Source: Elanco Animal Health via PR Newswire