FOR IMMEDIATE RELEASE Investor Contact: Tiffany Kanaga (765) 740-0314 or tiffany.kanaga@elancoah.com Media Contact: Colleen Parr Dekker (317) 989-7011 or colleen.dekker@elancoah.com **Per Kynetec Q3 and Q4 data ***Internal estimates based on multiple data sources Elanco Animal Health Reports Fourth Quarter and Full Year 2025 Results Raising 2026 Innovation Target; Full Year 2026 Guidance of 4%-6% Organic Constant Currency Revenue Growth, 6%-9% Adjusted EBITDA Growth In Line with Investor Day Outlook Indiana ...

Core Insights - Elanco Animal Health reported significant financial results for Q4 and full year 2025, with a focus on growth, innovation, and cash generation, and provided guidance for 2026 [1][2][3] Financial Performance - Q4 2025 revenue reached $1,144 million, a 12% increase year-over-year, with 9% organic constant currency growth [2][3] - Full year 2025 revenue was $4,715 million, up 6% on a reported basis and 7% in organic constant currency [1][2] - Adjusted EBITDA for Q4 2025 was $189 million, with a margin of 16.7%, while full year adjusted EBITDA was $901 million, representing a margin of 19.2% [1][2] - The company reported a net loss of $276 million for Q4 2025 and a net loss of $232 million for the full year [2][3] Business Segments - Pet Health segment revenue for Q4 2025 was $489 million, an 11% increase, driven by new products like Credelio Quattro and Zenrelia [2][3] - Farm Animal segment revenue was $640 million in Q4 2025, a 12% increase, supported by volume growth in cattle and poultry [2][3] Innovation and Growth Strategy - Elanco exceeded its innovation revenue target for 2025, achieving $892 million, and raised the target for 2026 to $1.15 billion [1][2] - The company plans to continue its focus on innovation, with expectations of five to six blockbuster-potential approvals over the next six years [1][2] Financial Guidance - For full year 2026, Elanco expects revenue between $4,950 million and $5,020 million, representing 4% to 6% organic constant currency growth [1][3] - Adjusted EBITDA guidance for 2026 is set at $955 million to $985 million, with adjusted EPS expected to be between $1.00 and $1.06 [1][3] Restructuring and Cost Management - The company recorded $155 million in restructuring costs in Q4 2025, with expected savings of approximately $25 million in 2026 and $60 million in 2027 [1][2] - Elanco's net leverage ratio improved to 3.6x adjusted EBITDA by the end of 2025, with a target of reducing it to below 3x by 2027 [1][3]

Elanco Animal Health Incorporated (NYSE:ELAN) is one of the best pet stocks to buy according to hedge funds. On January 30, BofA raised the price target on Elanco Animal Health Incorporated (NYSE:ELAN) to $28 from $25 while maintaining a Buy rating on the shares. The firm told investors that it raised its price target on the stock heading into the fiscal Q4 earnings season to reflect stronger execution and operational results. Why Elanco Animal Health Incorporated (ELAN) Skyrocketed On Wednesday In anoth ...

Analysts on Wall Street project that Elanco Animal Health Incorporated (ELAN) will announce quarterly earnings of $0.11 per share in its forthcoming report, representing a decline of 21.4% year over year. Revenues are projected to reach $1.09 billion, increasing 7.1% from the same quarter last year.The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.Prior ...

Board of Directors Update - Elanco Animal Health Incorporated announced that R. David Hoover and Deborah Kochevar will not stand for re-election at the 2026 Annual Meeting of Shareholders in May [1] - R. David Hoover, the founding Chairman, is retiring after joining the Board in September 2018, playing a crucial role during the company's IPO and initial years as a public entity [1] - Dr. Deborah Kochevar, who joined the Board in March 2019, is also concluding her service, having led the Innovation, Science and Technology committee [1] Leadership Contributions - Lawrence E. Kurzius, Chairman of the Board, praised Hoover's foundational leadership and strategic direction during Elanco's transformation into an independent company [1] - Jeff Simmons, Elanco President and CEO, credited Hoover's insights for positioning Elanco as a global leader and emphasized the company's strong future [1] - Kochevar's expertise in veterinary medicine was highlighted as critical for supporting Elanco's innovation pipeline and maintaining a culture of scientific excellence [1] Future Board Composition - Following the departures, the Board will consist of nine directors, indicating a streamlined governance structure [1]

Core Insights - Elanco Animal Health Incorporated (NYSE:ELAN) is recognized as a promising healthcare stock priced under $50, with recent positive adjustments in its stock ratings and price targets from multiple financial institutions [1][2]. Group 1: Rating Updates - BofA raised its price target for Elanco to $28 from $25 on January 30, maintaining a Buy rating, citing stronger operational results [1]. - UBS increased its price target to $30 from $27 on January 29, also reaffirming a Buy rating [1]. - Piper Sandler upgraded Elanco to Overweight from Neutral on January 22, raising the price target to $30 from $24, indicating positive developments observed at the VMX conference [2]. Group 2: Business Overview - Elanco Animal Health is engaged in providing services and products aimed at preventing and treating diseases in both pets and farm animals, with a diverse portfolio that includes species such as cats, dogs, cattle, swine, poultry, and sheep [3].

Core Insights - The article discusses the current state of healthcare stocks, particularly focusing on the impact of proposed changes to Medicare Advantage payments, which are expected to be minimal, leading to negative implications for major insurers [2][3]. Industry Overview - The healthcare sector has been described as "precarious" for investment over the past couple of years, with the recent Medicare Advantage proposal causing a shock to the system [3][4]. - Investors had anticipated a turnaround year, but the current outlook suggests a period where earnings may not grow as expected, indicating a challenging environment for healthcare investments [4]. Company Highlights - **Genmab A/S (NASDAQ:GMAB)**: - Reported worldwide net trade sales of DARZALEX at $14.351 billion for 2025, with $8.266 billion from the U.S. and $6.085 billion from the rest of the world [10]. - Analysts have adjusted price targets, with H.C. Wainwright setting it at $39 and BofA at $38.50, both maintaining a Buy rating, citing a "catalyst-rich" fiscal 2026 [11]. - The company focuses on developing human antibody therapeutics for cancer and other diseases, with a strong product pipeline [12]. - **Elanco Animal Health Incorporated (NYSE:ELAN)**: - Received multiple rating updates, with BofA raising the price target to $28 and UBS to $30, both maintaining Buy ratings due to stronger operational results [13][14]. - Piper Sandler upgraded the stock to Overweight, increasing the price target to $30, highlighting the company's progress in corporate channels [14]. - Elanco provides products and services for disease prevention and treatment in pets and farm animals, serving a diverse range of species [15].

Group 1: Fund Performance - Baron Health Care Fund rose 13.10% in Q4 2025, outperforming the Russell 3000 Health Care Index which gained 11.92% and the Russell 3000 Index which gained 2.40% [1] - For the full year, the Fund returned 10.28%, compared to 14.56% and 17.15% gains for the respective indexes [1] - Strong stock selection in biotechnology contributed to the Fund's relative gains in the quarter [1] Group 2: Investment Focus - The Fund seeks to invest in businesses with secular growth opportunities, sustainable competitive edges, and strong management [1] - The healthcare sector is viewed as a strong area in the U.S. economy, offering attractive investment opportunities with positive momentum heading into 2026 [1] Group 3: Elanco Animal Health Incorporated - Elanco Animal Health has a market capitalization of $12.079 billion and closed at $24.31 per share on February 5, 2026 [2] - The stock gained 3.58% over the past month and 111.02% over the last 52 weeks [2] - Elanco operates in an attractive industry with growth drivers such as increased pet ownership and higher spending on pets [3] Group 4: Innovation and Growth Potential - Elanco's management expects innovation revenue to reach $840 million to $880 million in 2025, increasing to $1.1 billion in 2026 [3] - Key innovation products include Credelio Quattro, Zenrelia, Befrena, Bovaer, and Experior, which are expected to drive growth and gross margin expansion [3] - The innovation pipeline includes five to six additional products expected to be approved between 2026-2031, with potential peak sales of $2 billion [3] Group 5: Financial Targets - Management targets 200-350 basis points of EBITDA margin expansion from 2025-2028 [3] - The company aims for $1 billion of cumulative free cash flow from 2026-2028 to pay down debt and reduce net debt to EBITDA from 3.7-3.8 times at the end of 2025 to 2.0-2.5 times by the end of 2028 [3]

Group 1: Market Overview - Global equity markets showed strong performance in Q4 2025, supported by easing inflation and positive economic data [1] - The Hardman Johnston Global Equity Strategy achieved a return of 2.91%, while the MSCI AC World Net Index gained 3.29% [1] - The Financials and Consumer Staples sectors positively impacted performance, whereas the Industrials and Consumer Discretionary sectors had a negative effect [1] Group 2: Elanco Animal Health Incorporated - Elanco Animal Health Incorporated (NYSE:ELAN) is highlighted as a leading company in the animal health sector, with a market capitalization of $12.233 billion [2] - The stock closed at $24.62 per share on January 27, 2026, with a one-month return of 8.79% and a three-month gain of 100.33% [2] - The company has initiated a turnaround strategy under a new CFO, focusing on a balanced mix of companion and farm animals, with a shift towards companion animals expected to enhance margins and growth [3] - Elanco plans to launch seven potential blockbuster products from 2023 to 2026, which is anticipated to lead to margin expansion and improved portfolio leverage [3] - The sale of its aqua business has reduced the company's net debt/EBITDA ratio to below 4x, indicating improved financial health [3] Group 3: Hedge Fund Interest - Elanco Animal Health is not among the top 30 most popular stocks among hedge funds, with 26 hedge fund portfolios holding the stock at the end of Q3 2025, an increase from 25 in the previous quarter [4] - Despite its potential, some analysts suggest that certain AI stocks may offer greater upside potential and lower downside risk compared to Elanco [4]

Group 1 - The soft commodity sector, including grains, livestock, and dairy products, is gaining momentum and attracting market attention, alongside the strong performance of hard commodities like gold and silver [1] - The VanEck Agribusiness ETF (MOO.US) offers diversified exposure across the agricultural value chain, including fertilizers, machinery, and food processing, rather than solely betting on spot prices [1] - Nutrien (NTR.US) has seen a nearly 20% increase over the past two weeks and is considered a strong stock in the agricultural sector [1] Group 2 - CF Industries Holdings (CF.US) has risen over 18% year-to-date and has recorded four consecutive weeks of gains, marking its longest winning streak since last year [2] - Archer Daniels Midland (ADM.US) has increased approximately 17% this year, with a dividend yield close to 3%, and has recently broken through the key $65 resistance level [2] - Darling Ingredients (DAR.US) has seen a cumulative increase of about 23% over the past three months, with its stock price recently surpassing the critical $40 resistance level [2]