ELAN Filings — Elanco Animal Health Incorporated - FilingSpy
ELAN
Elanco Animal Health Incorporated
A maker of medicines and products for pets and farm animals, Elanco sells familiar brands like the Seresto flea-and-tick collar, the Advantage parasite treatments, and feed additives that help livestock eat more efficiently. It was born inside the drug giant Eli Lilly, which set up its animal-health work in 1954 and coined the name "Elanco" in 1960, then spun it off into an independent company in 2019. Today it sells in more than 90 countries, and even makes Bovaer, a feed ingredient that helps cattle belch less methane.
Pet Health revenue rose 12% on new products, but interest costs from a royalty sale cut into net income.
New product launches continued to reshape Elanco's . Revenue rose 10.2% to $1,368 million, with Pet Health up 12% on Zenrelia and Credelio Quattro, while was $54 million as a $15 million charge from the XDEMVY royalty monetization weighed on the bottom line. The growth story is intact, but the cost of financing it is rising.
Key takeaways
rose 10.2% to $1,368 million, driven by a 12% increase in Pet Health from new products including Zenrelia and Credelio Quattro, and a 9% increase in Farm Animal on ruminant and poultry strength.
was $54 million, up from $11 million a year earlier, as higher and were partially offset by a $15 million charge on the liability for the sale of future XDEMVY royalty .
improved 0.9 points to 58.3%, benefiting from favorable product mix and pricing, partially offset by higher costs.
Section summaries
Management's Discussion and Analysis
Revenue grew 10% to $1.37B in Q2 2026, driven by new pet health products and farm animal volume, while net income rose to $54M.
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Total Q2 2026 increased 10% to $1,368 million, with pet health up 12% on new products like Zenrelia and Credelio Quattro, and farm animal up 9% on ruminant and poultry strength.
improved to 58.3% from 57.5% a year ago, benefiting from favorable product mix and pricing, partially offset by higher costs.
Marketing, selling and administrative expenses rose 12% to $449 million, reflecting higher compensation and strategic investments behind global new product launches.
was $277 million for the quarter, up 16.9% , while rose 35.6% to $244 million.
The company used $76 million in the first half of 2026 to acquire AHV International, expanding its farm animal portfolio.
What changed
The generic Seresto collar launch flagged for January 2026 did not prevent Pet Health from rising 12% in Q2, though the filing does not isolate Seresto's specific performance.
The Vietnam antibiotic ban effective January 2026, which was expected to affect 24% of shared-class and animal-only antibiotic , did not prevent Farm Animal revenue from rising 9% on ruminant and poultry strength.
The $15 million quarterly on the XDEMVY royalty sale liability, first noted as a $14 million charge in Q1, increased to $15 million and is now a recurring drag on .
The 2025 Restructuring Plan, which had $25-$30 million in charges expected in 2026, is not mentioned as a material factor this quarter, while improved to $56 million from $25 million a year ago.
What to watch
Q3 2026 Pet Health to show whether Zenrelia and Credelio Quattro momentum continues against the U.S. generic Seresto collar and broader parasiticide competition.
The recurring $15 million quarterly charge on the XDEMVY royalty sale liability and its effect on through the remainder of 2026.
Realization of from the 2025 Restructuring Plan's facility closures, with $25-$30 million in charges still expected in 2026.
Q3 2026 Farm Animal to confirm whether ruminant and poultry strength persists despite the Vietnam antibiotic ban.
Marketing, selling and administrative expenses rose 12% to $449 million, driven by higher compensation and strategic investments in global new product launches.
increased 23% to $59 million, primarily due to $15 million in on the liability for sale of future related to the XDEMVY royalty .
was $290 million for the first half of 2026, up from $233 million, while $76 million was used for the acquisition of AHV International to expand the farm animal portfolio.
Quantitative and Qualitative Disclosures About Market Risk
The company manages foreign-exchange and interest-rate risks through natural offsets and derivatives, with ~80% of long-term debt at fixed rates.
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Foreign-exchange risk arises from translating non-U.S. subsidiaries' results and from transactions not in a subsidiary's , with primary exposures to the Euro, British pound, and seven other currencies.
Turkey is treated as hyperinflationary ( changed to U.S. dollar), but its and assets each represent less than 1% of consolidated totals.
As of June 30, 2026, $2,300 million notional of interest-rate swaps converted variable-rate debt to fixed, and forward-starting swaps of $1,450 million notional become effective in August 2026.
Including the effect of swaps, approximately 80% of long-term indebtedness (excluding finance lease liabilities) bore interest at fixed rates.
See Note 12. Commitments and Contingencies to the condensed consolidated financial statements for a summary of our legal proceedings. This item should be read in conjunction with "Legal Proceedings" in Part I, Item 3 of our 2025 Form 10-K.
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See Note 12. Commitments and Contingencies to the condensed consolidated financial statements for a summary of our legal proceedings. This item should be read in conjunction with "Legal Proceedings" in Part I, Item 3 of our 2025 Form 10-K.
Our risk factors are documented in Item 1A of Part I of our 2025 Form 10-K. There have been no material changes from the risk factors previously disclosed in the 2025 Form 10-K.
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Our risk factors are documented in Item 1A of Part I of our 2025 Form 10-K. There have been no material changes from the risk factors previously disclosed in the 2025 Form 10-K.