Elanco Animal Health Q2 Earnings Call Highlights

Elanco reported revenue of $1.368 billion, up 10% year over year, while adjusted EBITDA rose 21% to $288 million and adjusted EPS increased 31% to $0.34.

U.S. and international pet-health revenue increased 11% and 9% organically, respectively, led by Zenrelia and Credelio Quattro. Zenrelia surpassed 2.5 million dogs treated and reached more than 60% of U.S. veterinary clinics.

Elanco lifted its full-year organic constant-currency revenue growth forecast to 6%–7% and expects 2026 innovation revenue of approximately $1.25 billion, while reducing net leverage to 3.1 times.

Elanco Animal Health NYSE: ELAN reported second-quarter 2026 revenue of $1.368 billion, up 10% on a reported basis and 8% organically in constant currency, as demand for new pet-health products and strength in U.S. farm animal operations supported growth. Chief Executive Officer Jeff Simmons said the company exceeded the high end of its prior guidance for revenue, adjusted EBITDA and adjusted earnings per share. Elanco raised its full-year outlook for organic constant-currency revenue growth to 6% to 7%, from a prior range of 5% to 7%.

“Our strong year-to-date results underscore Elanco’s long-term opportunity,” Simmons said, pointing to product innovation, portfolio breadth and productivity initiatives as the company’s principal growth drivers.

U.S. pet health revenue increased 11% organically in constant currency during the quarter, while international pet health revenue rose 9%. Simmons said Elanco gained share across its four major U.S. pet-health categories: dermatology, parasiticides, osteoarthritis pain and vaccines.

Zenrelia, a dermatology treatment, and Credelio Quattro, a broad-spectrum parasiticide, were the largest contributors to Elanco’s quarterly growth, according to management. Zenrelia reached blockbuster status in July, Simmons said, and the company reported that more than 2.5 million dogs have been treated with the product. Zenrelia was available in approximately 18,000 U.S. veterinary clinics, representing more than 60% of the clinic base, with a reorder rate above 80%, Simmons said. The company said first-line use of Zenrelia had increased to more than 40% of users. Internationally, the product is now available in 47 countries.

Credelio Quattro gained four percentage points of market share in the second quarter following a three-point gain in the first quarter, according to Elanco. The product was carried by more than half of U.S. clinics at quarter-end, after adding roughly 3,000 clinics from the first quarter. Elanco also highlighted early demand for Befrena, a dermatology product that was soft-launched in May. Commercial product had shipped to about 1,400 U.S. clinics. However, management said supply remains constrained as manufacturing capacity is expanded, with unconstrained supply expected in early 2027.

In international over-the-counter parasiticides, AdTab sales increased more than 30%, management said. Simmons described AdTab as the fastest-growing brand in Europe’s approximately $600 million OTC ectoparasiticide category.

Elanco’s farm animal business grew 5% organically in constant currency. U.S. farm animal revenue rose 11%, with beef cattle leading growth and support from Experior. International farm animal revenue increased 2%, though management said results reflected shipment timing to the Middle Ea...