Elanco (ELAN) is moving higher today after releasing first-quarter 2026 results and increasing its full-year 2026 outlook. Management pointed to broad-based volume strength across species and continued traction in newer products, alongside improving financial leverage targets.

For Q1 2026, Elanco reported revenue of $1.371 billion, up 15% year over year (10% organic constant-currency growth). The company reported adjusted EBITDA of $334 million (24.5% margin) and adjusted EPS of $0.40, up from $0.37 a year ago, with a net leverage ratio of 3.5x adjusted EBITDA as of March 31, 2026.

Elanco lifted full-year 2026 guidance to revenue of $5.010–$5.085 billion (5%–7% organic constant-currency growth), adjusted EBITDA of $975–$1.005 billion, and adjusted EPS of $1.03–$1.09. It also raised its 2026 innovation revenue target to $1.2 billion, highlighting contributions from products including Zenrelia and Credelio Quattro—an update that signals stronger expected growth and profitability than previously forecast.

Investors will be focused on whether Q1’s double-digit organic growth can normalize into the company’s raised full-year range while margin expansion initiatives scale. Near-term attention will also center on Q2 2026 guidance (revenue $1.300–$1.325 billion; adjusted EPS $0.25–$0.28) and whether leverage continues trending toward the improved year-end target of 3.0x–3.2x.