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Dec 31, 2025
Elanco Q4 2025 Earnings Report
Elanco reported 12% revenue growth in Q4 2025, driven by strength in Pet Health and Farm Animal, while posting a wider net loss due to restructuring and impairment charges.
Key Takeaways
Elanco delivered strong top-line growth in Q4 2025 with 9% organic constant currency growth, led by new product momentum in Pet Health and volume gains in Farm Animal. However, significant restructuring and impairment charges drove a reported net loss for the quarter.
Total revenue increased 12% year over year to $1144000000, with 9% organic constant currency growth.
Pet Health revenue grew 11% driven by new products including Credelio Quattro and Zenrelia.
Adjusted EBITDA rose 7% to $189000000, with a 16.7% margin.
Reported net loss widened to $276000000 due to $202000000 in impairment and restructuring charges.
Revenue by Segment
Forward Guidance
For full year 2026, Elanco guided to 4% to 6% organic constant currency revenue growth and 8% adjusted EBITDA growth at the midpoint, with continued margin expansion and deleveraging.
Positive Outlook
- Revenue guidance of $4950000000 to $5020000000 implies 4% to 6% organic constant currency growth.
- Adjusted EBITDA guidance of $955000000 to $985000000 reflects 8% growth at midpoint.
- Adjusted EPS guidance of $1.00 to $1.06 implies 10% growth at midpoint.
- Innovation revenue target raised to $1150000000 for 2026.
- Year-end net leverage ratio targeted at 3.1x to 3.3x.
Challenges Ahead
- Operating expenses expected to increase 7% year over year in Q1 2026.
- Foreign exchange impacts remain a variable component of reported results.
- Additional restructuring costs of $25000000 to $30000000 expected in 2026.
Revenue & Expenses
Visualization of income flow from segment revenue to net income
Historical Earnings Impact
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Avg. Return Before/After Earnings
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