UPDATE: Elanco shares jump 16% as company raises full-year guidance

Buoyed by its performance in the first half of the year—particularly from the early success of some of its newest products—Greenfield-based Elanco Animal Health Inc. is raising its full-year 2025 revenue guidance.

The release sent shares surging—as of 12:37 p.m., Elanco shares were up 16%, to $16.22.

In its second-quarter financial report, released Thursday morning, Elanco reported quarterly revenue of $1.24 billion, up 4.8% from the $1.18 billion it reported during the same period a year earlier.

Quarterly profits were $11 million, or 2 cents per diluted share, as compared with a net loss of $50 million, or 10 cents per diluted share, during the same quarter last year.

The company also reported adjusted quarterly profits of $131 million, or 26 cents per diluted share, down 13.3% from the $147 million (30 cents per diluted share) in adjusted profits during the year-ago period.

Those results exceeded analysts’ expectations—a consensus of analysts had predicted quarterly revenue of $1.19 billion and adjusted profits of 20 cents per share.

Adjusted results do not conform to generally accepted accounting principles, or GAAP, but companies commonly take the step of reporting adjusted results to account for unusual or one-time events that can affect financial performance.

Elanco’s adjusted profits exclude the impact of a variety of factors, including acquisitions and divestitures. Since last year Elanco has sold off its aqua business to Merck Animal Health for about $1.3 billion; and acquired a contract manufacturing facility in the United Kingdom for $25 million.

“With our strong first half performance and consistent execution, we are raising our full-year outlook, even while recognizing a highly dynamic landscape with a mix of opportunities and challenges,” CEO Jeff Simmons said in a written statement.

The company, which makes vaccines, antibiotics and other animal-health products, said it now expects full-year revenue of between $4.57 billion and $4.62 billion, up about 1% from the guidance it issued three months ago. Then, the company was projecting annual revenue of between $4.51 billion and $4.58 billion.

Looking specifically at what Elanco calls “innovation revenue,” or revenue from recently launched products, Elanco said it expects to earn between $720 million and $800 million this year—up from the guidance it issued in May for between $660 million and $740 million.

The company called out several success stories among its newest products.

Among those is Credelio Quattro, a chewable tablet that protects dogs from six types of parasites, launched in Fall 2024. As of last month, the product had gained 14% of market share from sales through veterinary clinics.

Credelio Quattro was one of three new products Elanco launched last year, along with Zenrelia (a dermatology treatment for itchy dogs) and Bovaer (a feed additive to reduce bovine methane emissions). Elanco has pegged all three as potential blockbusters, which in the veterinary world refers to products that generate $100 million or more in annual revenue.

Shares of Elanco closed Wednesday at $13.95, rising 10% to $15.36 in after-hours trading.