Elanco raises 2026 outlook as Zenrelia, Credelio Quattro drive growth, hits leverage target early
Elanco reported third quarter revenue of $1.265 billion, raised full year guidance, and said it reached its 2.9x net leverage milestone ahead of schedule.
Elanco Animal Health reported third quarter 2026 results on November 6, 2026, with revenue of $1,265 million, an increase of 11% on a reported basis, or 9% on an organic constant currency basis, compared to the third quarter of 2025.1
On the product side, the company said Zenrelia achieved its largest revenue quarter ever, in both the U.S. and International, with September its largest month ever; U.S. JAK market share grew 7 points year-over-year with September its highest share month ever, with efficacy driving use through 1,600 new clinics in Q3 to approximately 19,000 in the U.S.1 Credelio Quattro also gained ground: U.S. share grew 9 points year-over-year, with September the largest sales month in Q3 and its highest share month ever, and continued clinic adoption with 1,600 clinics added in Q3, bringing total clinic penetration to over 16,500, or about 55%, making it Elanco's largest U.S. Pet Health branded product, surpassing Seresto U.S.1
On regulatory and launch timing, Elanco noted that Credelio Quattro received a positive opinion from the European Medicines Agency for expansion into the EU, with launch expected in Q1 2027, ahead of the season.1 Separately, Befrena access is now open across clinics, including corporates, with all outstanding orders expected to be filled by next week and a move into full launch in Q1 2027, with roughly 20% of clinics that bought Befrena having never used Zenrelia.1
On guidance, the company said it is raising full year revenue guidance from $5,090 to $5,140 million to $5,155 to $5,180 million, Adjusted EBITDA guidance from $1,010 to $1,035 million to $1,050 to $1,065 million, and Adjusted EPS guidance from $1.10 to $1.16 to $1.17 to $1.20.1 For the fourth quarter, Elanco guided to revenue of $1,190 to $1,215 million, Adjusted EBITDA of $185 to $200 million, and Adjusted EPS of $0.16 to $0.19.1
On balance sheet, Elanco said its net leverage ratio was 2.9x adjusted EBITDA as of September 30, 2026, a decrease of 0.7x compared to December 31, 2025.1 CFO Bob VanHimbergen said consistent top-line growth and improved profitability, alongside working capital discipline, increased free cash flow and brought the net leverage ratio to 2.9x at quarter-end, reaching the milestone earlier than anticipated and unlocking accelerated capital allocation flexibility.1
Written by readthrough’s AI from the linked primary sources and fact-checked against them automatically before publishing. Not investment advice.