Elanco Lifts 2025 Outlook After Strong Q1 Earnings

Elanco Animal Health reported first-quarter 2025 revenue of $1.19 billion, flat year-over-year but ahead of analyst estimates, and adjusted earnings per share of $0.37, significantly above projections. The company raised its full-year 2025 revenue guidance to $4.51–$4.58 billion, maintaining adjusted EPS guidance at $0.80–$0.86. Revenue was impacted by the divestiture of the aqua segment, but Elanco improved operating margins to 28.8% and saw net income more than double compared to the previous year. Shares rose nearly 9% in premarket trading following the strong results and optimistic outlook. Over the past five years, Elanco has achieved a compounded annual revenue growth rate of 8.1%, driven by product innovation and resilience. Despite these gains, the stock has underperformed the broader market this year, highlighting ongoing industry challenges.