olivLaw · US equity research
Elanco Animal Health Incorporated ELAN
Pharmaceutical Preparations · SIC 2834 · Vertical: Pharmaceutical Preparations (SIC 2834)
Elanco Animal Health is a global animal health leader selling pet and farm animal products in more than 90 countries. The company's revenue reached 4,715 million USD in fiscal 2025, and in the second quarter of 2026 it raised its full-year outlook on the back of Zenrelia and Credelio Quattro.
At the close of 04 Nov 2026, Elanco Animal Health Incorporated (ELAN) stock was 25.31 USD (+3.01% on the day), with market capitalisation 12.6 bn USD, beta 1.29, 52-week range 19.80–26.84 USD. Latest reported quarter (Q2 2026): revenue of 1.4 bn USD (+10.2% YoY), net income of 54.0 m USD (+390.9% YoY), diluted EPS 0.11 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
Loading chart…
Technical reading
- RSI (14)
- 70.9
- overbought (≥ 70)
- Bollinger (20, 2)
- 21.62 – 24.64
- above the upper band · %B 1.22 · band width 13.1%
- SMA 50 / 200
- 23.13 / 23.80
- mixed trend
- MACD (12, 26, 9)
- 0.36 / 0.09
- MACD above signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | +12.4% | −1.1% | +13.5 pp | — |
| 3 months | −3.5% | −0.5% | −3.0 pp | — |
| 6 months | −3.3% | +4.4% | −7.7 pp | — |
| Year to date | +11.8% | +12.3% | −0.5 pp | — |
| 1 year | +12.5% | +13.5% | −1.1 pp | +19.3% |
| 3 years | +163.4% | +76.4% | +87.0 pp | +13.0% |
| 5 years | −25.8% | +63.7% | −89.4 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q2 2026 · 30 Jun 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 1.0 bn | 1.0 bn | 1.2 bn | 1.2 bn | 1.1 bn | 1.1 bn | 1.4 bn | 1.4 bn |
| Cost of revenue | 492.0 m | 501.0 m | 509.0 m | 528.0 m | 530.0 m | 555.0 m | 586.0 m | 570.0 m |
| Gross profit | 538.0 m | 519.0 m | 684.0 m | 713.0 m | 607.0 m | 589.0 m | 785.0 m | 798.0 m |
| Research & development | 87.0 m | 81.0 m | 94.0 m | 92.0 m | 89.0 m | 93.0 m | 97.0 m | 92.0 m |
| SG&A | 323.0 m | 300.0 m | 341.0 m | 400.0 m | 351.0 m | 338.0 m | 381.0 m | 449.0 m |
| Depreciation & amortisation | 170.0 m ≈ | 164.0 m | 161.0 m | 169.0 m ≈ | 176.0 m ≈ | 174.0 m | 172.0 m | 171.0 m ≈ |
| Interest expense | 58.0 m | — | — | — | — | — | — | — |
| Pre-tax income | 559.0 m | -51.0 m | 60.0 m | 25.0 m | -50.0 m | -259.0 m | 87.0 m | 56.0 m |
| Income tax | 195.0 m | -43.0 m | -7.0 m | 14.0 m | -16.0 m | 17.0 m | 30.0 m | 2.0 m |
| Net income | 364.0 m | -8.0 m | 67.0 m | 11.0 m | -34.0 m | -276.0 m | 57.0 m | 54.0 m |
| Diluted EPS | 0.73 | -0.02 ≈ | 0.13 | 0.02 | -0.07 | -0.57 ≈ | 0.11 | 0.11 |
| Operating cash flow | 162.0 m ≈ | 177.0 m | -4.0 m | 237.0 m ≈ | 219.0 m ≈ | 108.0 m | 13.0 m | 277.0 m ≈ |
| Capex | 42.0 m ≈ | 47.0 m | 65.0 m | 57.0 m ≈ | 92.0 m ≈ | 62.0 m | 51.0 m | 33.0 m ≈ |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Fiscal years
| Fiscal year | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.1 bn | 3.1 bn | 3.3 bn | 4.8 bn | 4.4 bn | 4.4 bn | 4.4 bn | 4.7 bn |
| Revenue YoY | +6.2% | +0.1% | +6.6% | +45.6% | −7.4% | +0.1% | +0.5% | +6.2% |
| Net income | 86.5 m | 68.0 m | -574.0 m | -483.0 m | -78.0 m | -1.2 bn | 338.0 m | -232.0 m |
| Net income YoY | unavailable | −21.4% | −944.1% | unavailable | unavailable | unavailable | unavailable | −168.6% |
| Diluted EPS | 0.28 | 0.18 | -1.30 | -0.99 | -0.16 | -2.50 | 0.68 | -0.47 |
| Diluted EPS YoY | unavailable | −35.7% | −822.2% | unavailable | unavailable | unavailable | unavailable | −169.1% |
| net % | 2.8% | 2.2% | -17.5% | -10.1% | -1.8% | -27.9% | 7.6% | -4.9% |
| Free cash flow | 352.8 m | 84.0 m | -176.0 m | 324.0 m | 281.0 m | 131.0 m | 394.0 m | 284.0 m |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2025 · 31 Dec 2025
- Cash
- 545.0 m USD
- Financial debt
- 3.8 bn USD
- Net debt
- 3.3 bn USD
- Equity
- 6.5 bn USD
- Total assets
- 13.4 bn USD
- Debt / equity
- 0.59x
- Current ratio
- 2.17x
- ROE
- -3.7%
- ROA
- -1.8%
- FCF margin
- 6.0%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 3.3 bn | 4.8 bn | 4.4 bn | 4.4 bn | 4.4 bn | 4.7 bn | SEC (XBRL)· 24 Feb 2026verified |
| Cost of revenue | 1.7 bn | 2.1 bn | 1.9 bn | 1.9 bn | 2.0 bn | 2.1 bn | SEC (XBRL)· 24 Feb 2026verified |
| Gross profit | 1.6 bn ≈ | 2.6 bn ≈ | 2.5 bn ≈ | 2.5 bn | 2.4 bn | 2.6 bn | SEC (XBRL)· 24 Feb 2026verified |
| Research & development | 329.0 m | 369.0 m | 321.0 m | 327.0 m | 344.0 m | 368.0 m | SEC (XBRL)· 24 Feb 2026verified |
| SG&A | 997.0 m | 1.4 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Depreciation & amortisation | 517.0 m | 716.0 m | 682.0 m | 694.0 m | 662.0 m | 680.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Interest expense | 150.0 m | 236.0 m | 241.0 m | 277.0 m | — | — | SEC (XBRL)· 26 Feb 2024verified |
| Pre-tax income | -677.0 m | -571.0 m | -72.0 m | -1.2 bn | 488.0 m | -224.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Income tax | -103.0 m | -88.0 m | 6.0 m | 36.0 m | 150.0 m | 8.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Net income | -574.0 m | -483.0 m | -78.0 m | -1.2 bn | 338.0 m | -232.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Diluted EPS | -1.30 | -0.99 | -0.16 | -2.50 | 0.68 | -0.47 | SEC (XBRL)· 24 Feb 2026verified |
| Weighted average diluted shares | 441.4 m | 487.2 m | 488.3 m | 492.3 m | 497.3 m | 496.4 m | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 495.0 m | 638.0 m | 345.0 m | 352.0 m | 468.0 m | 545.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Receivables | 872.0 m | 833.0 m | 797.0 m | 842.0 m | 805.0 m | 873.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Inventories | 1.6 bn | 1.4 bn | 1.5 bn | 1.7 bn | 1.6 bn | 1.7 bn | SEC (XBRL)· 24 Feb 2026verified |
| Current assets | 3.4 bn | 3.3 bn | 3.3 bn | 3.4 bn | 3.2 bn | 3.5 bn | SEC (XBRL)· 24 Feb 2026verified |
| Property, plant & equipment, net | 1.3 bn | 1.1 bn | 999.0 m | 1.0 bn | 993.0 m | 1.4 bn | SEC (XBRL)· 06 May 2026verified |
| Goodwill | 6.2 bn | 6.2 bn | 6.0 bn | 5.1 bn | 4.4 bn | 4.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Intangibles (excl. goodwill) | 6.4 bn | 5.6 bn | 4.8 bn | 4.5 bn | 3.7 bn | 3.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Total assets | 17.7 bn | 16.5 bn | 15.5 bn | 14.4 bn | 12.6 bn | 13.4 bn | SEC (XBRL)· 24 Feb 2026verified |
| Accounts payable | 501.0 m | 416.0 m | 390.0 m | 270.0 m | 296.0 m | 368.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Short-term debt | 555.0 m | 294.0 m | 388.0 m | 38.0 m | 44.0 m | 74.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Long-term debt | 5.6 bn | 6.0 bn | 5.4 bn | 5.7 bn | 4.3 bn | 3.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Current liabilities | 2.1 bn | 1.6 bn | 1.7 bn | 1.2 bn | 1.3 bn | 1.6 bn | SEC (XBRL)· 24 Feb 2026verified |
| Total liabilities | 9.2 bn | 9.0 bn | 8.2 bn | 8.1 bn | 6.5 bn | 6.8 bn | SEC (XBRL)· 24 Feb 2026verified |
| Equity | 8.5 bn † | 7.5 bn † | 7.3 bn † | 6.2 bn † | 6.1 bn † | 6.5 bn † | SEC (XBRL)· 24 Feb 2026verified |
† equity attributable to the parent's shareholders: in these years the issuer no longer reports the total including non-controlling interests.
Cash flow · USD
| Line | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | -41.0 m | 483.0 m | 452.0 m | 271.0 m | 541.0 m | 560.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Capex | 135.0 m | 159.0 m | 171.0 m | 140.0 m | 147.0 m | 276.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Free cash flow | -176.0 m ≈ | 324.0 m ≈ | 281.0 m ≈ | 131.0 m ≈ | 394.0 m ≈ | 284.0 m ≈ | SEC (XBRL)· 24 Feb 2026derived |
| Investing cash flow | -4.8 bn | -530.0 m | -179.0 m | -169.0 m | 1.2 bn | -279.0 m | SEC (XBRL)· 24 Feb 2026verified |
| Financing cash flow | 5.0 bn | 210.0 m | -549.0 m | -83.0 m | -1.5 bn | -275.0 m | SEC (XBRL)· 24 Feb 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
- indicators available: 4 of at least 6
- score weight coverage: 27.1% of at least 60%
- valuation methods computed: 0 of at least 1
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 12.6 bn USD
Key indicators
Coverage and freshness
Score by group
27% · Insufficient data
Estimated value range
unavailable — no valuation method could be computed
Valuation assumptions are editorial choices, not measured; beta is not measured.
Valuation methods
- DCF (discounted cash flow)unavailable · the reported interest expense is far older than the latest period (the filer changed its XBRL tag): a stale figure is not used
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/Eunavailable · the base of the ratio is not positive
- Dividend discount (DDM)unavailable · the company pays no dividend: a dividend model needs an explicit initiation assumption
no valuation method could be computed
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Insufficient data
Minimum-evidence gate: indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%; valuation methods computed: 0 of at least 1
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | -4.0% | 47 (vs peers) | 23% |
| FCF conversion · Quality | unavailable | unavailable | — |
| Revenue CAGR 3Y · Growth | 2.2% | 19 (on a fixed band) | 31% |
| EPS CAGR 3Y · Growth | unavailable | unavailable | — |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.1x | 100 (on a fixed band) | 15% |
| P/E (TTM) · Valuation | unavailable | unavailable | — |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 3.0% | 37 (on a fixed band) | 31% |
| Shareholder yield (distributions) · Returns | unavailable | unavailable | — |
| Payout ratio (FCF) · Returns | unavailable | unavailable | — |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth· partial19/100 · 1/2 factors with a value
- Quality· partial47/100 · 1/3 factors with a value
- Returns· partialunavailable · 0/2 factors with a value
- Valuation· partial37/100 · 1/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
Elanco Animal Health Incorporated (ELAN). Latest full fiscal year: 2025; data up to 2026-06-30.
Figures computed from the financial statements: revenue 4.7 bn USD in 2025; YoY growth 6.2%; net margin -4.0%; ROE -3.0%.
Valuation cannot be computed from the available data.
Insufficient data for a verdict (indicators available: 4 of at least 6; score weight coverage: 27.1% of at least 60%; valuation methods computed: 0 of at least 1).
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Current ratio: 2.1x
What contradicts it
- Revenue CAGR 3Y: 2.2%
Not assessed (insufficient data or a ratio without meaning): ROIC, FCF conversion, EPS CAGR 3Y, Net debt / EBITDA, Interest coverage, P/E (TTM), EV/EBITDA, Shareholder yield (distributions), Payout ratio (FCF).
Versus the vertical median
Pharmaceutical Preparations (SIC 2834) · same industry (4-digit SIC) · compared with 39 companies
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| LLYEli Lilly And Company | 1,334.0 bn | 46.0 | 86.1% | 31.9% | +44.7% | +32% / +140% |
| JNJJohnson & Johnson | 665.2 bn | 41.9 | 20.0% | 16.2% | +6.0% | +34% / +79% |
| ONCBeone Medicines Ltd. | 558.4 bn | 869.9 | 14.7% | 10.7% | +40.2% | +11% / +102% |
| ABBVAbbVie Inc. | 521.1 bn | 50.7 | — | 15.7% | +8.6% | +29% / +107% |
| MRKMerck & Co., Inc. | 370.7 bn | 154.7 | 5.1% | 3.6% | +1.3% | +43% / +47% |
| ABTAbbott Laboratories | 200.1 bn | 43.0 | 9.2% | 9.7% | +5.7% | −10% / +11% |
| PFEPfizer Inc | 175.5 bn | 43.9 | 4.4% | 6.3% | −1.6% | +20% / +1% |
| VRTXVertex Pharmaceuticals Inc | 139.2 bn | 35.3 | 20.8% | 30.7% | +8.9% | +27% / +55% |
| BMYBristol-Myers Squibb Company | 131.2 bn | 14.2 | 44.1% | 18.5% | −0.2% | +30% / +30% |
| TEVATeva Pharmaceutical Industries Limited | 48.8 bn | 97.4 | 6.6% | 3.6% | +4.3% | +56% / +326% |
| ZTSZoetis Inc. | 36.9 bn | 14.7 | 64.4% | 27.5% | +2.3% | −30% / −50% |
| ROIVRoivant Sciences Ltd. | 27.6 bn | — | -6.2% | -3,535.0% | −71.6% | +84% / +300% |
| RPRXRoyalty Pharma plc | 26.2 bn | 47.7 | 6.9% | 25.7% | +5.1% | +69% / +150% |
| UTHRUnited Therapeutics Corporation | 25.9 bn | 23.0 | 19.1% | 38.6% | +10.6% | +25% / +154% |
| INSMInsmed Inc | 24.1 bn | — | -72.5% | -39.9% | +66.7% | −47% / +340% |
| VTRSViatris Inc. | 22.1 bn | — | -23.6% | -23.9% | −3.0% | +80% / +109% |
| ALNYAlnylam Pharmaceuticals, Inc. | 21.6 bn | 8.1 | 126.6% | 52.8% | +65.2% | −64% / −4% |
| ELANElanco Animal Health Incorporated | 12.6 bn | — | -3.0% | -4.0% | +6.2% | +12% / +163% |
| TGTXTg Therapeutics, Inc. | 9.4 bn | 22.5 | 100.3% | 55.2% | +87.3% | +85% / +381% |
| BLRXBioLineRx Ltd | 4.9 bn | — | -12.8% | -171.7% | −95.9% | −46% / −97% |
| BHCBausch Health Companies Inc. | 3.1 bn | — | — | -7.6% | +6.7% | +31% / +17% |
| ANABAnaptysbio, Inc. | 1.4 bn | 11.5 | — | 82.4% | +157.0% | +71% / +404% |
| KURAKura Oncology, Inc. | 677.0 m | — | -167.7% | -384.3% | +25.2% | −37% / −21% |
| DMACDiaMedica Therapeutics Inc. | 580.8 m | — | -114.6% | — | unavailable | +25% / +341% |
| PHATPhathom Pharmaceuticals, Inc. | 461.7 m | — | — | -30.2% | +216.9% | −64% / −19% |
1- and 3-year price returns: for ELAN from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
The engine has no published run for this company yet.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 3 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
| 5 years | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable | insufficient data Total return unavailable · Per year unavailable |
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
In brief
Elanco Animal Health is a global animal health leader selling pet and farm animal products in more than 90 countries. The company's revenue reached 4,715 million USD in fiscal 2025 1, and in the second quarter of 2026 it raised its full-year outlook on the back of Zenrelia and Credelio Quattro 3.
SWOT
Strengths
- A diversified portfolio of hundreds of brands sold in more than 90 countries reduces dependence on any one market or product.
- Recent launches in pet health have lifted market share and volumes in the latest quarter.
- Debt reduction in recent quarters and raised guidance for adjusted margins and profit.
Weaknesses
- Dependence on a few products and product families that make up a large share of total revenue.
- Exposure to exchange rates, since a significant part of revenue is denominated in foreign currencies.
- Restructuring and R&D costs that could weigh on near-term profitability.
Opportunities
- Wider adoption of new products in U.S. veterinary clinics and other major markets.
- Productivity savings that could improve long-term margins if targets are met.
- Rising demand for ruminant and pet health products in emerging markets.
Threats
- Generic competition, especially after patents expire on important products.
- Antibiotic restrictions and shifting consumer preferences toward antibiotic-free protein.
- Uncertain trade policy and tariffs that could affect costs and supply chains.
Risks
- Competition and pricinghigh
Competitors with larger resources or generic products could force price cuts and discounts, which would weigh on revenue.
- Innovation failurehigh
If products in development fail to gain approval or veterinary adoption, research investments may not deliver the expected results.
- Antibiotic regulationmedium
Further bans or restrictions on antibiotic use in farm animals could reduce sales of some products.
- Farm animal disease outbreaksmedium
An outbreak of infectious disease could reduce demand for farm products and export volumes of animal protein.
- Currency and trade exposurelow
Currency swings and trade policy changes could alter revenue and costs, although the reported impact so far has been limited.
Investment thesis
What would need to be true (bull case)
- If recent products keep gaining share and margin guidance is delivered, the company could reduce debt faster than planned.
- Portfolio diversification across species and regions could support growth even when some categories face pressure.
- The productivity programme could generate meaningful savings through 2030, which could support profitability.
What would break the thesis
- If patent expiry brings strong generic competition, revenue and margins could fall more than expected.
- Antibiotic restrictions and slow adoption of some new products could limit growth in farm categories.
- Restructuring costs and marketing investment could keep profitability below expectations.
What to watch
- Sales trends for Zenrelia, Credelio Quattro and Befrena in U.S. clinicsQ3 2026
- Delivery against full-year 2026 guidance for revenue and adjusted EBITDA2026
- Reaching net leverage below 3x adjusted EBITDA2027
- Impact of antibiotic restrictions and trade policy on farm animal salesnext 10-K
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
The business
Elanco Animal Health Incorporated and its subsidiaries develop, manufacture and market products and services that prevent and treat disease in farm animals and pets. The company runs as a single segment in the animal health industry and sells roughly 200 brands through distributors, retailers, veterinarians and farm producers 1. Its strategy rests on three pillars: innovation, portfolio and productivity 1.
Revenue is concentrated in a few key products: the Advantage Family, Seresto, the Credelio Family, Rumensin and Maxiban / Monteban together represented about 38% of 2025 revenue 1. Seasonality matters, as a large share of parasiticide sales occurs in the first half of the year during the Northern Hemisphere flea and tick season 1.
The company was separated from Eli Lilly in 2019 and acquired Bayer Animal Health in 2020, expanding its portfolio and its balance between pet and farm animal products 1. R&D expenses totaled 368 million USD in 2025 1.
Segments
Pet health
The pet health segment for dogs and cats includes parasiticides, dermatology, vaccines and pain therapeutics. Zenrelia, a JAK inhibitor for pruritus and atopic dermatitis in dogs, and Credelio Quattro, a monthly chewable for dogs, were the main growth drivers in the second quarter of 2026 3.
Farm animal
The farm animal segment for cattle, poultry, swine and sheep focuses on efficiency, disease prevention, food safety and sustainability. Global ruminants was the fastest growing species in the second quarter of 2026 3, while Bovaer's adoption has slowed without earlier government incentives 2.
Market context
Management describes animal health as an attractive industry with a sustainable mid-single digit compound growth expectation, driven by pets and protein 3. The company sells in more than 90 countries, and the U.S. is its largest market at 47% of 2025 revenue 1.
Revenue is sensitive to exchange rates, as about half of revenue was denominated in foreign currencies in 2025 1. For 2026, guidance assumes a favourable foreign exchange contribution compared with 2025 3.
Trends
- Innovation in pet healthtailwind
New molecules and formulations have reshaped pet therapeutics, and recent launches have lifted market share in the U.S. and Europe 13. Growth could accelerate if veterinary clinic adoption continues.
- The 2025 restructuringmixed
The December 2025 restructuring plan aims to expand margins, optimise the global footprint and invest in innovation, with savings expected in 2026 and 2027 12. Restructuring costs may weigh on profitability temporarily.
- Antibiotic regulationheadwind
Restrictions on preventive antibiotic use in farm animals in the EU and Vietnam could reduce demand for some company products 1. Public pressure for antibiotic-free protein is a persistent factor.
- Trade policy and tariffsmixed
U.S. tariffs changed between 2025 and 2026, and animal health pharmaceuticals were largely exempt, though this exemption may not last 2. The company has filed for refunds of some previously paid tariffs 2.
Competitive position
The animal health industry is highly competitive, with standalone companies, large pharmaceutical divisions, nutrition producers and generic makers 1. Competition could intensify through consolidation, aggressive pricing and generic launches, such as a competitor's generic alternative to the Seresto collar in the U.S. in January 2026 1.
Larger competitors may have greater financial and marketing resources, which lets them shape distributor relationships 1. The company responds with innovation and new launches such as Befrena 3.
- Large pharmaceutical companies with animal health divisions
The source mentions competition from the animal health businesses of large pharmaceutical companies without naming them.
- Generic product makers
Generic competition is rising as patents expire, particularly for some Advantage Family products and Seresto.
- Producers of nutritional animal health products
Nutrition product suppliers are named as a separate competitive category.
- Specialty animal health companies
Specialty firms may have access to newer technologies and lower production costs.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report05 Aug 2026
- Current report05 Aug 2026Results of operations · Financial statements and exhibits
- Current report27 May 2026Shareholder vote
- Quarterly report06 May 2026
- Current report06 May 2026Results of operations · Financial statements and exhibits
- Proxy statement08 Apr 2026
- Annual report24 Feb 2026
- Current report24 Feb 2026Results of operations · Financial statements and exhibits
- Current report12 Jan 2026Regulation FD disclosure · Financial statements and exhibits
- Current report09 Dec 2025Exit or disposal costs · Regulation FD disclosure · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2025-12-31 · SEC / Elanco Animal Health Incorporated · 24 Feb 2026
- [2] Form 10-Q, quarter ended 2026-06-30 · SEC / Elanco Animal Health Incorporated · 05 Aug 2026
- [3] Form 8-K, results release (exhibit 99.1) · SEC / Elanco Animal Health Incorporated · 05 Aug 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.