10-K · February 24, 2026
Elanco describes a three-pronged strategy of Innovation, Portfolio and Productivity and positions itself as a global leader in pet health and farm animal products, with product approvals and launches (e.g., Befrena…
Earnings analysis · 10-Q
ELAN earnings analysis
Filed May 6, 2026 · Our reading of the company's report
The latest report
Elanco reported strong Q1 2026 results with revenue of $1,371 million, a 15% increase compared to $1,193 million in Q1 2025. However, EPS was lower than expectations at $0.11, missing the consensus estimate of $0.34,…
Read full summary
Elanco reported strong Q1 2026 results with revenue of $1,371 million, a 15% increase compared to $1,193 million in Q1 2025. However, EPS was lower than expectations at $0.11, missing the consensus estimate of $0.34, leading to a bearish sentiment outlook despite increased revenue due to strong organic growth in both its Pet Health and Farm Animal segments.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.11
- Gross margin
- 57.3%
- Segment
- Pet Health
- Segment
- Farm Animal
What stood out
-
Strong Revenue Growth
Q1 2026 revenue reached $1,371 million, up 15% from $1,193 million in Q1 2025.
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Stable Gross Margin
Gross profit increased by $101 million, maintaining a flat gross margin at 57.3%.
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Pet Health Segment Growth
Pet Health revenue rose 12% to $710 million, largely driven by new products.
-
Farm Animal Segment Up 18%
Farm Animal revenues increased 18% to $642 million, led by higher volumes across all species.
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Successful Acquisition
Completed acquisition of AHV International, expected to boost farm animal revenue starting in 2027.
-
Liquidity Position Strong
Cash and cash equivalents were $428 million with $750 million undrawn on the Revolving Credit Facility.
What to watch
-
EPS Misses Expectations
Reported EPS of $0.11 significantly missed consensus estimate of $0.34.
-
Increased Interest Expense
Interest expense surged 43% to $57 million due to rising liabilities associated with sale of future revenue.
-
Asset Impairment Charges
Incurred restructuring charges of $16 million, indicating operational adjustments and potential future costs.
Management's outlook
Management raised full-year revenue guidance based on confidence from innovation-led growth.
Earlier filings 4
10-Q · November 5, 2025
Elanco reported Q3 2025 revenue of $1,137.0M (up versus $1,030.0M in Q3 2024) and gross profit of $607M, but recorded a net loss of $34M (loss per diluted share $0.07). Operating profit was effectively breakeven…
10-Q · May 7, 2025
Elanco reported Q1 revenue of $1,193 million, essentially flat year-over-year (down $12 million) while gross margin was stable at ~57.3%. Operating margin expanded to 9.4% and net income rose to $67 million (vs $32…
10-Q · May 8, 2024
Elanco reported Q1 revenue of $1,205 million and diluted EPS of $0.06. Revenue and EPS declined versus the year-ago quarter (revenue down $52 million, EPS down $0.15) while operating cash flow recovered to $2 million…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.