$ELAN · Elanco Animal Health Inc
Elanco Animal Health filed its Q3 FY2026 10-Q. Revenue grew 11.3% year over year to $1.265B, with gross profit up to $720M (56.9% margin) from $607M. Net income swung to $18M ($0.04 diluted EPS) from a $34M loss ($0.07 loss) a year earlier. Nine-month revenue reached $4.004B versus $3.571B, with net income of $129M versus $44M.
- Q3 revenue $1.265B, up 11.3% YoY from $1.137B.
- Q3 net income $18M vs a $34M loss a year ago; diluted EPS $0.04 vs -$0.07.
- Gross margin 56.9% on $720M gross profit, up from $607M.
- Nine-month net income $129M vs $44M; revenue $4.004B vs $3.571B.
- Pet Health revenue $608M in Q3, up from $533M; Farm Animal $631M vs $593M.
Shares rose 4.10% to $24.65 in the regular session, consistent with a swing to profitability and double-digit revenue growth.
Elanco's return to profitability with double-digit revenue growth marks a clear inflection from the prior-year loss.
Pet Health led growth (+14% YoY), while Farm Animal rose modestly, reflecting resilient companion-animal demand across the animal health peer group.
The $309M liability for sale of future revenue carries an 18.4% effective interest rate, adding $44M of imputed interest expense in nine months. Substantial indebtedness ($3.63B long-term debt) and goodwill/intangibles write-down risk remain flagged.