Elanco Animal Health Incorporated (ELAN) AI Stock Analysis

Elanco Animal Health Incorporated develops, manufactures, and markets products for pets and farm animals worldwide. For pets, the company provides disease prevention solutions, including parasiticides and vaccines under brands such as Seresto, Advantage, Advantix, and Advocate, as well as therapeutics for pain management, osteoarthritis, ear infections, cardiovascular issues, and dermatological conditions through brands like Galliprant and Claro. For farm animals, Elanco supplies vaccines, antibiotics, parasiticides, and nutritional health products supporting beef, dairy, pork, poultry, and aquaculture producers globally.

Elanco grew annual revenue from $4.76B in FY2021 to $4.71B in FY2025, achieving a 5-year revenue CAGR of 7.6% from FY2020 to FY2025. Annual profitability has fluctuated, with net income reporting at -$483.0M in FY2021, -$78.0M in FY2022, -$1.23B in FY2023, $338.0M in FY2024, and -$232.0M in FY2025. Operating margin was 5.3% in FY2025 compared to 5.7% in FY2024. For the latest quarter ended June 30, 2026, quarterly revenue grew 10.2% year-over-year, while quarterly earnings grew 440.5% year-over-year. Trailing twelve month revenue reached $5.02B with an operating margin of 8.6% and diluted EPS of -$0.41.

As of June 30, 2026, Elanco held $530.0M in cash and short-term investments against total debt of $3.92B, resulting in net debt of $3.39B. The company maintained a current ratio of 2.05 and a debt-to-equity ratio of 0.59 on shareholders' equity of $6.59B. Operating cash flow in FY2025 reached $560.0M, supporting capital expenditures of $276.0M and generating free cash flow of $284.0M. Share count increased by 3.8% over five years.

At a share price of $23.55 and a market capitalization of $11.76B, Elanco trades at a forward P/E of 17.4x, roughly in line with the 17.3x median of its US-listed Healthcare peers. Its enterprise value of $14.66B corresponds to an EV/EBITDA of 18.9x, above the peer median of 12.0x, while its price-to-sales multiple of 2.3x sits below the peer median of 4.1x. Over the past year, Elanco returned 14.8%, trailing the S&P 500 return of 16.8%, while its 5-year return of -27.6% lagged the index return of 83.0%.

Wall Street analysts covering Elanco hold 10 Strong Buy, 4 Buy, and 2 Hold ratings, with zero Sell or Strong Sell recommendations. The mean price target is $30.85, representing a 31.0% upside over the last close of $23.55. Consensus estimates project FY2026 EPS of $1.14 on revenue of $5.13B, followed by FY2027 EPS of $1.29 on revenue of $5.41B across 14 analysts. The company beat EPS estimates in each of the last 4 quarters, and its next earnings date is November 6, 2026.

This page is an AI-written research summary of Elanco Animal Health Incorporated (ELAN). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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