Elanco Animal Health Inc.: 2Q First Impressions: Solid Beat/Raise Led By Zenrelia

研报英文原文证据摘录

J P M O R G A N

North America Equity Research

05 August 2026

Elanco Animal Health Inc.

2Q First Impressions: Solid Beat/Raise Led By

Zenrelia

This morning Elanco reported better-than-expected Q2 results and raised guidance

for the year. Revenues came in $55mm ahead of expectations at $1.37bn with pet

care (+$30mm vs JPM) and farm animal (+$17mm JPM) both coming in ahead of

our forecasts. Within petcare, mgmt highlighted that Zenrelia has now reached

$100mm in sales YTD (which is well ahead of our expectations) while US farm

animal grew 11% in the qtr. GMs also beat at ~58% (+150 bps vs JPM) while opex

was inline and overall EPS came in at $0.30 (+$0.07 vs cons). ELAN also raised

guidance for the year and is now expecting revenues of $5.09-5.14bn (organic

growth of 6-7% vs 5-7% prior) and EPS of $1.10-1.16 (vs $1.03-1.09 prior). Not

surprisingly the company also raised its innovation revenue target for the year to

$1.25bn (from $1.2bn prior).

More broadly on ELAN, we continue to see the company benefiting from an

attractive innovation cycle. The launch of Credelio Quattro is progressing well

ahead of expectations and with Zenrelia now gaining traction, both products are

starting to become meaningful contributors to revenues. Experior (along with the

broader farm animal portfolio) is also performing well, which is often overlooked

by the Street. And overall, we see revenue growth accelerating at ELAN in the

coming years, which we expect will flow through the P&L supporting margin

expansion and EPS. Remain OW.

Figure 1: ELAN Variance

Source: JPM estimates, Bloomberg Finance L.P.