Elanco Animal Health announced an increase in its full-year 2026 financial guidance following a strong second quarter. The company now projects revenue to be between $5.09 billion and $5.14 billion, an increase from the previous range of $5.01 billion to $5.085 billion. This updated revenue guidance excludes royalty revenue that was sold to a third party. Adjusted EBITDA expectations were also raised, now anticipated to be between $1.01 billion and $1.035 billion, up from $975 million to $1.005 billion.
Adjusted earnings per share (EPS) are now expected to be in the range of $1.10 to $1.16, a boost from the prior guidance of $1.03 to $1.09. Bob VanHimbergen, Executive Vice President and CFO of Elanco, attributed the improved outlook to the company's strong second-quarter performance, which allows for continued investment in innovative products, leading to market share gains and overall industry expansion.
Elanco’s second-quarter results demonstrated faster-than-expected margin expansion, partly due to early progress on its Elanco Ascend productivity initiatives, which are on track to generate $200 million to $250 million in adjusted EBITDA net savings by 2030. The company's net leverage ratio stood at 3.1x at the end of the quarter, moving closer to its target of below 3x next year, a milestone expected to unlock greater capital allocation flexibility. The company expects revenue growth of 6% to 7% for the full year, excluding certain impacts, and anticipates an accelerating contribution from price compared to 2025.
