Elanco Animal Health (NYSE:ELAN) Announces Earnings Results

Elanco Animal Health (NYSE:ELAN) issued its quarterly earnings results on Tuesday. The company reported $0.13 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.11 by $0.02, FiscalAI reports. Elanco Animal Health had a positive return on equity of 7.14% and a negative net margin of 4.92%.The company had revenue of $1.14 billion for the quarter, compared to the consensus estimate of $1.09 billion. During the same period last year, the business posted $0.14 earnings per share. The firm’s revenue was up 12.2% compared to the same quarter last year. Elanco Animal Health updated its Q1 2026 guidance to 0.330-0.36 EPS and its FY 2026 guidance to 1.000-1.060 EPS.

Here are the key takeaways from Elanco Animal Health’s conference call:

• Elanco reported 9% organic constant‑currency revenue growth in Q4, beat the high end of guidance for revenue, Adjusted EBITDA and Adjusted EPS, and marked its 10th consecutive quarter of underlying growth.
• Management raised its 2026 innovation outlook to $1.15 billion (at least $250 million incremental) after 2025 innovation revenue of $892 million and expects the “Big Six” to double from 2025 to 2028.
• Commercial momentum centers on Credelio Quattro and Zenrelia—Quattro is described as the fastest blockbuster gaining US broad‑spectrum share with international rollout beginning, while Zenrelia has captured double‑digit JAK share in the US and strong >30%/40% shares in Japan and Brazil.
• Balance‑sheet progress—net leverage fell to 3.6x at year‑end with a targeted 3.1–3.3x by the end of 2026, continued debt paydown plans, and a priority on deleveraging even while pursuing bolt‑on deals like AHV.
• Near‑term headwinds include a Q4 Adjusted EPS decline (7% to $0.13), reduced Q4 cash from operations ($108M vs. $177M prior year), a higher effective tax rate and inflation/manufacturing/inventory cost flow‑through that press on margins despite guidance for modest gross‑margin improvement in 2026.

Elanco Animal Health Price Performance

Shares of ELAN stock traded down $0.10 during trading hours on Thursday, hitting $26.74. 940,301 shares of the company’s stock were exchanged, compared to its average volume of 4,672,055. The stock’s 50-day moving average is $24.07 and its 200-day moving average is $21.66. The company has a debt-to-equity ratio of 0.59, a current ratio of 2.40 and a quick ratio of 1.23. Elanco Animal Health has a 52 week low of $8.02 and a 52 week high of $27.72. The stock has a market cap of $13.29 billion, a price-to-earnings ratio of -55.74, a price-to-earnings-growth ratio of 3.92 and a beta of 1.87.

Trending Headlines about Elanco Animal Health

Here are the key news stories impacting Elanco Animal Health this week:

• Positive Sentiment: Q4 results beat consensus with revenue and EPS upside and management raised 2026 revenue/guidance targets — the report and call underscored double-digit revenue growth and a clearer innovation revenue trajectory. Earnings Highlights
• Positive Sentiment: Company cited product launches (“Big 6”) and innovation momentum as drivers; coverage notes the earnings beat followed new product rollouts that could lift sales further. Product Launches Article
• Positive Sentiment: Leerink Partners raised its price target to $30 and kept an outperform view, signaling bullish analyst conviction that supports further upside. Leerink PT Raise
• Positive Sentiment: KeyCorp raised its target to $29 and maintained an overweight stance, another incremental analyst upgrade backing the upbeat narrative. KeyCorp PT Raise
• Positive Sentiment: Short interest fell ~20.7% month-over-month to ~18.4M shares (≈3.7% of float), reducing short-pressure and supporting upward price momentum.
• Neutral Sentiment: Morgan Stanley published a positive-leaning forecast/commentary on ELAN (coverage note), which may help sentiment but the firm’s overall stance has been mixed recently. Morgan Stanley Forecast
• Neutral Sentiment: CEO Jeff Simmons did a one-on-one interview with Jim Cramer, increasing visibility and investor access to management’s messaging. CEO Interview
• Negative Sentiment: Some analysts and coverage flagged margin pressure despite the top-line beat — commentary that caused near-term share slippage after the print. Margin Concerns Report
• Negative Sentiment: Morgan Stanley’s earlier note (price target ~$24, equal-weight) still implies limited upside from some desks, creating mixed analyst signals for investors weighing longer-term conviction. Analyst Note

Analyst Ratings Changes

A number of brokerages have weighed in on ELAN. KeyCorp increased their price target on shares of Elanco Animal Health from $27.00 to $29.00 and gave the company an “overweight” rating in a report on Wednesday. Barclays began coverage on Elanco Animal Health in a report on Tuesday, December 9th. They issued an “overweight” rating and a $30.00 price target for the company. UBS Group raised their price objective on Elanco Animal Health from $27.00 to $30.00 and gave the stock a “buy” rating in a research report on Thursday, January 29th. Wall Street Zen upgraded Elanco Animal Health from a “buy” rating to a “strong-buy” rating in a research note on Monday, January 19th. Finally, Leerink Partners increased their price objective on shares of Elanco Animal Health from $26.00 to $30.00 and gave the company an “outperform” rating in a research note on Tuesday. One analyst has rated the stock with a Strong Buy rating, eight have issued a Buy rating, two have assigned a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $27.67.

Insider Activity at Elanco Animal Health

In related news, CEO Jeffrey N. Simmons bought 22,000 shares of Elanco Animal Health stock in a transaction dated Thursday, December 11th. The shares were bought at an average cost of $21.75 per share, for a total transaction of $478,500.00. Following the completion of the transaction, the chief executive officer owned 167,000 shares of the company’s stock, valued at approximately $3,632,250. This trade represents a 15.17% increase in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available through the SEC website. Also, Director Lawrence Erik Kurzius purchased 10,000 shares of the stock in a transaction that occurred on Friday, December 12th. The stock was bought at an average cost of $21.30 per share, with a total value of $213,000.00. Following the acquisition, the director owned 131,773 shares of the company’s stock, valued at $2,806,764.90. This represents a 8.21% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Over the last 90 days, insiders have bought 43,450 shares of company stock worth $937,883. 0.89% of the stock is owned by insiders.

Institutional Trading of Elanco Animal Health

A number of hedge funds and other institutional investors have recently added to or reduced their stakes in the company. NewEdge Advisors LLC increased its holdings in Elanco Animal Health by 133.7% during the 4th quarter. NewEdge Advisors LLC now owns 1,096 shares of the company’s stock worth $25,000 after purchasing an additional 627 shares in the last quarter. Uniplan Investment Counsel Inc. acquired a new position in Elanco Animal Health during the fourth quarter worth $41,000. UMB Bank n.a. increased its stake in Elanco Animal Health by 31.9% in the 4th quarter. UMB Bank n.a. now owns 5,609 shares of the company’s stock valued at $127,000 after buying an additional 1,358 shares during the last quarter. Geneos Wealth Management Inc. lifted its position in Elanco Animal Health by 53.7% during the 2nd quarter. Geneos Wealth Management Inc. now owns 5,954 shares of the company’s stock worth $85,000 after buying an additional 2,080 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. grew its holdings in shares of Elanco Animal Health by 2,532.0% in the 3rd quarter. Northwestern Mutual Wealth Management Co. now owns 6,343 shares of the company’s stock valued at $128,000 after acquiring an additional 6,102 shares in the last quarter. 97.48% of the stock is currently owned by institutional investors and hedge funds.

About Elanco Animal Health

Elanco Animal Health Inc is a global leader in animal health dedicated to improving food and companion animal well-being. The company develops, manufactures and markets a range of products, including parasiticides, vaccines, antibiotics and feed additives designed to prevent and treat disease in livestock and pets. Elanco’s portfolio spans both food-producing animals—such as cattle, swine, poultry and aquaculture—and companion animals, with offerings that support parasite control, pain management and infectious disease prevention.

Originally founded as the animal health division of Eli Lilly and Company in the mid-20th century, Elanco was spun off into an independent publicly traded company in 2018.