Elanco Animal Health beats Q2 revenue estimates, raises FY guidance

Elanco Animal Health Incorporated

07/08/2025 11:36

Overview

Elanco Q2 2025 revenue rises 5% yr/yr, beating analysts' expectations

Adjusted EPS, net income and EBITDA also beat consensus

Co raises full-year revenue guidance, improves net leverage ratio target

Outlook

Elanco raises full-year revenue guidance to $4,570-$4,620 mln

Company increases innovation revenue target by $60 mln to $720-$800 mln

Elanco expects adjusted EBITDA of $850-$890 mln for 2025

Company anticipates tailwind to revenue from favorable foreign exchange rates

Result Drivers

PET HEALTH GROWTH - U.S. Pet Health revenue increased by 11%, driven by new products like Credelio Quattro, AdTab, and Zenrelia

FARM ANIMAL RECOVERY - Farm Animal revenue decreased 2% due to aqua business sale but grew 6% organically, aided by accelerated purchases in China

INNOVATION CONTRIBUTIONS - Innovation revenue target raised, reflecting contributions from Credelio Quattro, Experior, AdTab, and Zenrelia

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Beat
$1.24 bln
$1.19 bln (10 Analysts)
Q2 Adjusted EPS
Beat
$0.26
$0.2 (11 Analysts)
Q2 EPS
$0.02
Q2 Adjusted Net Income
Beat
$131 mln
$99.40 mln (8 Analysts)
Q2 Net Income
$11 mln
Q2 Adjusted EBITDA
Beat
$238 mln
$214.30 mln (10 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 10 "strong buy" or "buy", 5 "hold" and no "sell" or "strong sell"

The average consensus recommendation for the pharmaceuticals peer group is "buy"

Wall Street's median 12-month price target for Elanco Animal Health Inc is $17.00, about 17.9% above its August 6 closing price of $13.95

The stock recently traded at 15 times the next 12-month earnings vs. a P/E of 11 three months ago

Press Release: ID:nPn2tzn7ja

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)