Revenue growth remains highly volatile, swinging to 14.9% in 2026Q1, while gross margins have fluctuated significantly between a low of 36.8% in 2023Q4 and a recent high of 57.3%.
| Sales/Revenue | 4.89B | 4.71B | 4.44B | 4.42B | 4.41B | 4.76B | 3.27B | 3.07B | 3.07B | 2.89B | 2.91B |
| Revenue Growth % | 10.53% | 6.22% | 0.5% | 0.14% | -7.41% | 45.54% | 6.59% | 0.14% | 6.15% | -0.84% | - |
| Cost of Goods Sold | 2.47B | 2.67B | 2.53B | 2.48B | 2.44B | 2.69B | 2.03B | 1.67B | 1.77B | 1.72B | 1.58B |
| COGS % of Revenue | - | 56.52% | 56.99% | 56.12% | 55.34% | 56.42% | 61.91% | 54.4% | 57.75% | 59.37% | 54.22% |
| Gross Profit | 2.42B | 2.05B | 1.91B | 1.94B | 1.97B | 2.08B | 1.25B | 1.4B | 1.3B | 1.17B | 1.33B |
| Gross Margin % | 49.44% | 43.48% | 43.01% | 43.88% | 44.66% | 43.58% | 38.09% | 45.6% | 42.25% | 40.63% | 45.78% |
| Gross Profit Growth % | - | 7.39% | -1.5% | -1.62% | -5.11% | 66.51% | -10.96% | 8.08% | 10.37% | -11.99% | - |
| Operating Expenses | 1.98B | 1.8B | 1.66B | 1.61B | 1.59B | 1.77B | 1.32B | 1.03B | 981.8M | 1.03B | 1.05B |
| OpEx % of Revenue | - | 38.13% | 37.35% | 36.5% | 35.96% | 37.2% | 40.44% | 33.55% | 32.01% | 35.7% | 36.06% |
| Selling, General & Admin | 1.47B | 1.43B | 1.31B | 1.28B | 1.26B | 1.4B | 996.6M | 760.2M | 735.2M | 779.8M | 784.8M |
| SG&A % of Revenue | - | 30.33% | 29.6% | 29.09% | 28.68% | 29.45% | 30.45% | 24.75% | 23.97% | 26.99% | 26.94% |
| Research & Development | 371M | 368M | 344M | 327M | 321M | 369M | 327M | 270.1M | 246.6M | 251.7M | 265.8M |
| R&D % of Revenue | - | 7.8% | 7.75% | 7.4% | 7.28% | 7.75% | 9.99% | 8.8% | 8.04% | 8.71% | 9.12% |
| Other Operating Expenses | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 438M | 252M | 251M | 326M | 384M | 304M | -76.8M | 370M | 313.8M | 142.4M | 283.2M |
| Operating Margin % | 8.95% | 5.34% | 5.65% | 7.38% | 8.71% | 6.38% | -2.35% | 12.05% | 10.23% | 4.93% | 9.72% |
| Operating Income Growth % | - | 0.4% | -23.01% | -15.1% | 26.32% | 495.83% | -120.76% | 17.91% | 120.37% | -49.72% | - |
| EBITDA | 957M | 932M | 913M | 1.02B | 1.07B | 1.02B | 440.1M | 684.5M | 609.8M | 460.8M | 537.6M |
| EBITDA Margin % | 19.56% | 19.77% | 20.57% | 23.09% | 24.17% | 21.41% | 13.45% | 22.29% | 19.88% | 15.95% | 18.45% |
| EBITDA Growth % | 6.81% | 2.08% | -10.49% | -4.32% | 4.51% | 131.77% | -35.7% | 12.25% | 32.34% | -14.29% | - |
| D&A (Non-Cash Add-back) | 519M | 680M | 662M | 694M | 682M | 716M | 516.9M | 314.5M | 296M | 318.4M | 254.4M |
| EBIT | 236M | -4M | 827M | -918M | 184M | -307M | -516M | 157.1M | 143.7M | -232.6M | -22.4M |
| Net Interest Income | -248M | -175M | -339M | -277M | -256M | -264M | -156M | -78.9M | -29.6M | 0 | 0 |
| Interest Income | 22M | 45M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 270M | 220M | 339M | 277M | 256M | 264M | 156M | 78.9M | 29.6M | 0 | 0 |
| Other Income/Expense | -635M | -476M | 237M | -1.52B | -456M | -875M | -595.2M | -291.8M | -199.7M | -375M | -305.6M |
| Pretax Income | -197M | -224M | 488M | -1.2B | -72M | -571M | -672M | 78.2M | 114.1M | -232.6M | -22.4M |
| Pretax Margin % | -4.03% | -4.75% | 10.99% | -27.05% | -1.63% | -11.99% | -20.53% | 2.55% | 3.72% | -8.05% | -0.77% |
| Income Tax | 45M | 8M | 150M | 36M | 6M | -88M | -111.9M | 10.3M | 27.6M | 78.1M | 25.5M |
| Effective Tax Rate % | -22.84% | -3.57% | 30.74% | -3.01% | -8.33% | 15.41% | 16.65% | 13.17% | 24.19% | -33.58% | -113.84% |
| Net Income | -242M | -232M | 338M | -1.23B | -78M | -483M | -560.1M | 67.9M | 86.5M | -310.7M | -47.9M |
| Net Margin % | -4.95% | -4.92% | 7.61% | -27.87% | -1.77% | -10.14% | -17.11% | 2.21% | 2.82% | -10.75% | -1.64% |
| Net Income Growth % | -164.88% | -168.64% | 127.46% | -1478.21% | 83.85% | 13.77% | -924.89% | -21.5% | 127.84% | -548.64% | - |
| Net Income (Continuing) | -242M | -232M | 338M | -1.23B | -78M | -483M | -560.1M | 67.9M | 86.5M | -310.7M | -47.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | -0.48 | -0.47 | 0.68 | -2.50 | -0.15 | -0.97 | -1.27 | 0.18 | 0.28 | -0.87 | -0.13 |
| EPS Growth % | -165.58% | -169.12% | 127.2% | -1566.67% | 84.54% | 23.62% | -805.56% | -35.71% | 132.18% | -569.23% | - |
| EPS (Basic) | - | -0.47 | 0.68 | -2.50 | -0.15 | -0.97 | -1.27 | 0.18 | 0.28 | -0.87 | -0.13 |
| Diluted Shares Outstanding | 506M | 496.4M | 497.3M | 492.3M | 488.3M | 487.2M | 441.4M | 370.3M | 313.7M | 356.2M | 356.2M |
| Basic Shares Outstanding | 497.7M | 496.4M | 494M | 492.3M | 488.3M | 487.2M | 441.4M | 369M | 313.7M | 356.2M | 356.2M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - | - | - |
High debt leverage sensitivity
According to the provided quarterly data, Elanco's revenue growth has fluctuated significantly, reaching a recent peak of 14.9% in 2026Q1 after periods of contraction, suggesting that the company's top-line trajectory remains highly sensitive to product launch cycles and seasonal demand shifts within its core segments.
The recent acceleration to 14.9% revenue growth in 2026Q1 indicates a potential stabilization in market demand, though investors should monitor whether this is sustainable or merely a reflection of easier year-over-year comparisons. The historical inconsistency in growth rates suggests that Elanco's reliance on new product innovation to offset legacy portfolio erosion remains a primary execution risk.
As reported in the financial statements, Elanco's gross margin has experienced wide swings, ranging from a low of 36.8% in 2023Q4 to a high of 57.3% in 2026Q1, highlighting the structural challenges of maintaining consistent profitability amidst shifting product mixes and manufacturing cost pressures.
The significant variance in gross margins suggests that the company's cost structure is highly susceptible to fluctuations in input costs and potential inefficiencies in its manufacturing footprint. This lack of margin stability makes it difficult to forecast long-term profitability, as the company struggles to achieve the consistent margin profile seen in more specialized industry peers.
Based on the income statement data, Elanco's operating income has shown extreme volatility, swinging from a $5 million loss in 2024Q3 to a $307 million profit in 2026Q1, which indicates that the company has yet to achieve reliable operating leverage across its diverse business segments.
The erratic nature of operating income suggests that SG&A expenses are not scaling efficiently with revenue growth, potentially due to the high costs associated with maintaining a dual-channel sales force. Investors should investigate whether the recent improvement in operating margins is a permanent shift or a temporary result of aggressive cost-cutting measures.
As evidenced by the provided figures, Elanco's net income has been highly erratic, including a notable $364 million gain in 2024Q3 followed by significant losses in subsequent periods, suggesting that non-operating items and accounting adjustments continue to obscure the underlying earnings quality of the core business.
The frequent swings between net losses and profits indicate that GAAP earnings are likely influenced by non-recurring charges or accounting noise related to past acquisitions. Analysts should look past these headline figures to evaluate the company's true cash-generating capability, as the current net income volatility makes it a poor indicator of operational health.
Based on the reported figures, the persistent volatility in both gross and operating margins warrants caution, as the company's inability to maintain consistent profitability levels suggests that competitive pressures and high debt-servicing costs may continue to constrain future earnings growth and overall financial flexibility.
Short-term improvements in profitability may be masking deeper structural issues, such as the erosion of legacy product pricing power and the high cost of defending market share against better-capitalized competitors. The market may be overestimating the company's ability to deleverage, given the ongoing need for significant R&D and SG&A investment to support its innovation pipeline.
Quick answers to the most common questions about buying ELAN stock.
For fiscal year 2025, Elanco Animal Health Incorporated (ELAN) reported total revenue of $4.71B. This represents a 61.8% increase compared to $2.91B in 2016.
Elanco Animal Health Incorporated (ELAN) reported a net loss of $232.0M for the fiscal year ending 2025.
Elanco Animal Health Incorporated (ELAN) reported an operating income of $252.0M, resulting in an operating profit margin of 5.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Elanco Animal Health Incorporated (ELAN) generated $2.05B in gross profit for the year, representing a gross profit margin of 43.5%. This demonstrates the company's core pricing power and production efficiency.