The beat-and-raise quarter with broad-based growth across all species and accelerating innovation momentum is a strong positive catalyst. Watch for Q2 guidance ($1.30-$1.325B revenue, $0.25-$0.28 adjusted EPS) as a near-term check on execution. The improved net leverage target (3.0x-3.2x) and Elanco Ascend savings trajectory support further margin expansion. Monitor Befrena commercialization in Q2 and the AHV International integration.
Price Chart
Executive Summary
Elanco reported Q1 2026 adjusted EPS of $0.40, beating the $0.34 consensus by 17.6%, on revenue of $1.371B (+15% YoY, +10% organic constant currency), exceeding the $1.28B consensus. The company raised full-year 2026 guidance across all key metrics: revenue to $5.01-$5.085B, adjusted EBITDA to $975M-$1.005B, and adjusted EPS to $1.03-$1.09, driven by accelerating innovation portfolio momentum (Zenrelia blockbuster, Credelio Quattro share gains) and Elanco Ascend productivity savings.
Key Financial Metrics
Key Facts
- Q1 2026 revenue $1.371B, +15% YoY reported, +10% organic constant currency, vs consensus $1.28B
- Adjusted EPS $0.40 vs consensus $0.34 (+17.6% beat) and vs $0.37 in Q1 2025 (+8% YoY)
- Adjusted EBITDA $334M, +21% YoY; margin expanded to 24.5% from 23.1%
- Raised FY2026 guidance: revenue to $5.01-$5.085B (from $4.95-$5.02B), adjusted EBITDA to $975M-$1.005B, adjusted EPS to $1.03-$1.09
- Innovation revenue target raised to $1.2B; Zenrelia reached trailing 4-quarter blockbuster status
- Net leverage ratio improved to 3.5x from 3.6x at year-end 2025; year-end target improved to 3.0x-3.2x
- Closed acquisition of AHV International on April 30, 2026
Financial Impact
Q1 revenue beat consensus by ~$91M (7.1%); adjusted EPS beat by $0.06 (17.6%)
Risk Factors
- GAAP net income declined 15% YoY to $57M due to higher interest expense and restructuring charges
- Adjusted gross margin contracted 40bps to 57.0% on product mix and inflation
- Operating cash flow was only $13M in Q1, though improved from -$4M a year ago
- Elevated net debt of $3.335B and leverage of 3.5x still above long-term target of 2.0x-2.5x
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001739104-26-000027 |
| Document: elan-20260506.htm | 0001739104-26-000027 |
| Document: 0001739104-26-000027-index-headers.html | 0001739104-26-000027 |
| Document: 0001739104-26-000027-index.html | 0001739104-26-000027 |
| Document: 0001739104-26-000027.txt | 0001739104-26-000027 |
| 8-K Data (Synthetic) | 0001739104-26-000027 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Sep 11, 2026 21d ago | Press Release | $23.17 $22.42 | ▼ −3.24% | ▼ −3.02% | $22.14 (−4.45%) |
Aug 21, 2026 6w ago | Insider Cluster | $23.97 $24.11 | ▲ +0.58% | ▲ +0.11% | $22.14 (−7.63%) |
Aug 21, 2026 6w ago | Insider Cluster | $23.97 $24.11 | ▲ +0.58% | ▲ +0.11% | $22.14 (−7.63%) |
Aug 18, 2026 6w ago | Insider Cluster | $23.63 $25.09 | ▲ +6.19% | ▲ +6.39% | $22.14 (−6.30%) |
Aug 13, 2026 7w ago | Insider Cluster | $22.51 $23.56 | ▲ +4.66% | ▲ +6.63% | $22.14 (−1.64%) |
Aug 10, 2026 7w ago | Insider Cluster | $22.73 $23.64 | ▲ +4.00% | ▲ +4.41% | $22.14 (−2.60%) |
Aug 5, 2026 8w ago | 8-K | $26.22 $22.04 | ▼ −15.95% | ▼ −16.30% | $22.14 (−15.56%) |
Jun 29, 2026 13w ago | Court Ruling | $24.74 $25.13 | ▲ +1.58% | ▲ +0.19% | $22.14 (−10.51%) |
May 19, 2026 19w ago | Insider Cluster | $23.61 $24.58 | ▲ +4.11% | ▲ +3.64% | $22.14 (−6.22%) |
May 19, 2026 19w ago | Insider Cluster | $20.83 $23.69 | ▲ +13.74% | ▲ +12.50% | $22.14 (+6.30%) |
US Market Status
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