Elanco Raises 2026 Innovation Outlook, Issues Growth Guidance After Strong Q4

Stronger cash generation supports a lower year‑end leverage target.

Overview

Q4 delivered 9% organic constant currency revenue growth, topping the high end of guidance for revenue, adjusted EBITDA, and adjusted EPS, led by U.S. farm animal up 17% and U.S. pet health up 10%.
Innovation revenue reached $892 million in 2025, with the fourth quarter the largest to date for innovation and Bifrenna’s December approval completing the company’s “Big Six.”
Management raised the 2026 innovation revenue outlook to $1.15 billion, citing contributions across multiple geographies, species, and products.
2026 guidance calls for 4%–6% organic constant currency revenue growth, adjusted EBITDA of $955–$985 million, and adjusted EPS of $1.00–$1.06.
Net leverage improved to 3.6x at year‑end 2025, with a new year‑end 2026 target of 3.1x–3.3x.