Elanco Animal Health Inc. recently released its latest 10-Q report. Elanco is an animal health company that develops, manufactures and markets products for pets and farm animals in more than 90 countries. Its portfolio includes parasiticides, vaccines and therapeutics for dogs and cats, along with products for cattle, swine, poultry and sheep sold through distributors, retailers, veterinarians and farm animal producers.
In Item 2, management said first-quarter 2026 revenue rose 15% to $1.371 billion from $1.193 billion a year earlier. Pet health sales increased 12% to $710 million, while farm animal revenue climbed 18% to $642 million; contract manufacturing and other revenue was $19 million, up from $12 million.
The company said pet health growth was driven mainly by higher volumes, foreign exchange and pricing, with Zenrelia, AdTab and higher parasiticide sales contributing. Farm animal growth came from stronger volumes across all species, led by Rumensin in U.S. cattle and poultry sales globally, plus higher pricing and currency effects.
Gross profit increased 15% to $785 million, while cost of sales also rose 15% to $586 million. Research and development expense increased to $97 million from $94 million, marketing, selling and administrative expense rose 12% to $381 million, and amortization of intangible assets increased 8% to $138 million.
Asset impairment, restructuring and other special charges were $16 million, compared with $9 million a year earlier. Interest expense, net of capitalized interest, rose 43% to $57 million, and income before taxes increased 45% to $87 million.
Income tax expense was $30 million, compared with a $7 million tax benefit in the prior-year quarter. Net income fell to $57 million from $67 million, reflecting the higher tax burden despite stronger operating income.
Elanco also highlighted several business developments. It received final FDA approval for Zenrelia in September 2024 and launched the product in the U.S. shortly afterward; Credelio Quattro received FDA approval in October 2024 and launched in January 2025. The company said it completed the acquisition of AHV International B.V. on April 30, 2026, funded with cash and a $50 million borrowing on its securitization facility.
The 2025 restructuring plan is expected to reduce global headcount by about 300 employees, with another roughly 300 positions shifting to growth areas or lower-cost geographies. Elanco said it incurred $14 million of restructuring charges in the first quarter and expects total 2026 pre-tax charges of $25 million to $30 million, with expected savings of about $25 million in 2026 and $60 million in 2027. Following these announcements, the company's shares moved 5.46%, and are now trading at a price of $24.245. For the full picture, make sure to review Elanco Animal Health Inc's 10-Q report.
