Elanco Animal Health (ELAN) Q3 2026 earnings summary

Executive summary

• Q3 revenue was $1.265B, up 11% reported and 9% organic constant currency; growth comprised 4% price and 5% volume.

• Adjusted EBITDA rose 23% to $243M and adjusted EPS rose 42% to $0.27; results exceeded guidance.

• Innovation revenue reached $328M, up 40% YoY; the FY2026 innovation target increased to $1.275B from $1.25B.

Financial highlights

• Adjusted gross margin was 56.1%, up 300 bps; reported gross margin was 56.9%, up 350 bps, and gross profit was $720M, up 19%.

• Adjusted operating expenses rose 12% to $492M, including $393M in marketing, selling and administrative costs and $99M in R&D.

• GAAP net income was $18M versus a $34M loss; adjusted net income was $136M versus $94M.

• Nine-month revenue was $4.004B, up 12%; adjusted EBITDA was $865M, up 21%, and adjusted EPS was $1.02.

Outlook and guidance

• FY2026 revenue guidance rose to $5.155B–$5.180B, implying ~8% organic constant-currency growth versus prior guidance of 6%–7%; adjusted EBITDA guidance is $1.050B–$1.065B.

• FY2026 adjusted EPS guidance increased to $1.17–$1.20; midpoint growth expectations are 17% for adjusted EBITDA and 26% for adjusted EPS.

• Q4 guidance: revenue $1.190B–$1.215B, organic constant-currency growth 4%–6%, adjusted EBITDA $185M–$200M and adjusted EPS $0.16–$0.19.

• 2027 expectations remain mid-single-digit organic constant-currency revenue growth, high-single-digit adjusted EBITDA growth and low-double-digit adjusted EPS growth.

• FY2026 adjusted gross-margin expansion is expected at 100 bps; 2027 tailwinds include innovation scale-up, with competition, generics and margin mix among headwinds.