ELAN earnings analysis
What we found in ELAN's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Strong Revenue Growth
- Q1 2026 revenue reached $1,371 million, up 15% from $1,193 million in Q1 2025.
- Stable Gross Margin
- Gross profit increased by $101 million, maintaining a flat gross margin at 57.3%.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.11
- Gross margin
- 57.3%
- Segment
- Pet Health
- Segment
- Farm Animal
What they said about what is next.
Management raised full-year revenue guidance based on confidence from innovation-led growth.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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