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 Elanco Animal Health Reports First Quart

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

Elanco Animal Health Reports First Quarter 2026 Results

Raising Full Year Outlook and Innovation Target, Improving Year-End Net Leverage Ratio Target

First Quarter 2026 Financial Results

Revenue of $1,371 million, an increase of 15% year-over-year 10% organic constant currency growth

Reported Net Income of $57 million, Adjusted Net Income of $204 million

Adjusted EBITDA of $334 million Adjusted EBITDA Margin of 24.5%

Reported EPS of $0.11, Adjusted EPS of $0.40

Net leverage ratio of 3.5x Adjusted EBITDA

Full Year 2026 Guidance

Raising innovation revenue target to $1.2 billion

Raising revenue guidance to $5,010 million to $5,085 million, or 5% to 7% organic constant currency growth

Raising Adjusted EBITDA to $975 million to $1,005 million, a year-over-year increase of 10% at midpoint

Raising Adjusted EPS of $1.03 to $1.09, a year-over-year increase of 13% at midpoint

Improving year-end net leverage ratio target to 3.0x to 3.2x Adjusted EBITDA

Indianapolis, IN (May 6, 2026) - Elanco Animal Health Incorporated (NYSE ELAN) today reported financial results for the first quarter of 2026, provided guidance for the second quarter of 2026, and updated guidance for the full year 2026.

Elanco's strong first quarter results demonstrate the significant momentum of our innovation-led strategy, said Jeff Simmons, President and CEO of Elanco. Organic constant currency revenue growth of 10% reflects outperformance across our diverse portfolio, including Zenrelia reaching trailing 4-quarter blockbuster status, and Credelio Quattro achieving accelerating market share gains. All major species grew, driven by our basket of innovation and growth in our base business. We are improving our full year guidance across all key metrics, as our consistent execution is creating more ways for Elanco to win in this durable, attractive animal health industry.

Select Business Highlights Since the Last Earnings Call

Credelio Quattro accelerated dollar share gains of broad-spectrum sales out of U.S. vet clinics in Q1, up 3 points versus Q4** penetrated over 40% of the U.S. clinic base 53% share in U.S. clinics that carry Quattro, up 13 points in Q1 versus Q4** launched in Australia and approved in Canada, both in April

Zenrelia achieved trailing 4-quarter blockbuster status over 2 million dogs have been treated efficacy driving use in over 50% of U.S. clinics with U.S. JAK market share up 5 points versus Q4** over 50% share of JAK market in Brazil, over 35% share in Japan, and high-teens to 30%+ JAK market share in key European markets***

Befrena phased launch approach on track, with product already shipped to early experience influencers and in use, and commercialization in the U.S. expected in Q2

Added Costco and Dollar General as new retail customers for parasiticides in the U.S.

Advantage Collar for Dogs launched in April, providing four-month protection against fleas and ticks, available at pet specialty, dollar, grocery, and mass retailers

Closed the previously announced acquisition of AHV International on April 30th

***Internal estimates based on multiple data sources

(1) Organic CC Growth Represents revenue growth excluding royalty revenue that was sold to a third party and the impact of foreign exchange rates.

(2) Primarily represents revenue from arrangements in which we manufacture products on behalf of a third party and royalty revenue. Royalty revenue sold to a third party, to which we are no longer entitled but is still required to be recognized as revenue under GAAP, totaled $9 million for the three months ended March 31, 2026.

In the first quarter of 2026, revenue was $1,371 million, an increase of 15% on a reported basis, or 10% on an organic constant currency basis, compared to the first quarter of 2025.

Pet Health revenue was $710 million, an increase of 12% on a reported basis, or 7% on an organic constant currency basis. The year over year volume increase of 5% in the first quarter was primarily driven by new products, and the addition of two new retail customers benefitting parasiticides. The 2% increase from price was in line with the company's expectation. The Advantage Family of products and Seresto contributed revenue of $163 million and $159 million, respectively.

Farm Animal revenue was $642 million, an increase of 18% on a reported basis, or 13% on an organic constant currency basis. First quarter volumes were up 11%, driven by strong demand across all species, led by poultry and ruminants. Farm animal organic constant currency revenue growth included a 2% increase from price, compared to the first quarter of 2025.

Gross profit was $785 million in the first quarter of 2026, and gross margin percentage was 57.3% in the first quarter of 2026 and 2025. On an adjusted basis, gross profit was $776 million and gross margin percentage was 57.0% in the first quarter of 2026, a 40 basis point decrease compared to the first quarter of 2025 as expected. The decrease in gross margin percentage on an adjusted basis was primarily driven by product mix with strong Farm Animal growth, the timing of inflation, and a flow through of higher inventory costs, partially offset by price and sales volume benefits.

Total operating expenses were $478 million for the first quarter of 2026, an increase of 10% compared to the first quarter of 2025. Marketing, selling and administrative expenses increased 12% to $381 million, driven by higher compensation expense, foreign currency exchange rate movements and strategic investments in the global launches of new products, partially offset by decreased expenses in certain general and administrative expenses. Research and development expenses increased 3% to $97 million driven primarily by foreign exchange rates.

Asset impairment, restructuring and other special charges were $16 million in the first quarter of 2026, compared to $9 million in the first quarter of 2025. Charges recorded in the first quarter of 2026 primarily related to $15 million of

non-cash shut-down costs for the animal studies portion of our R D facilities in Monheim, Germany. Charges recorded in the first quarter of 2025 primarily consisted of upfront payments made in relation to new licensing arrangements.

Reported net interest expense was $57 million in the first quarter of 2026, an increase of $17 million compared to the first quarter of 2025. The increase was principally due to imputed interest on our liability for sale of future revenue of $14 million, as well as interest expense related to our corporate headquarters finance lease, partially offset by lower average debt balances. Adjusted net interest expense, which excludes this imputed interest, was $43 million in the first quarter of 2026, an increase of $3 million compared to the first quarter of 2025.

The reported effective tax rate was 34.6% in the first quarter of 2026 compared to (12.2)% in the first quarter of 2025. The adjusted effective tax rate was 21.2% in the first quarter of 2026 compared to 9.2% in the first quarter of 2025.

Net income for the first quarter of 2026 was $57 million, or $0.11 per diluted share on a reported basis, compared with net income of $67 million, or $0.13 per diluted share, for the same period in 2025. On an adjusted basis, net income for the first quarter of 2026 was $204 million, or $0.40 per diluted share, an 8% increase compared with the same period in 2025.

Adjusted EBITDA was $334 million in the first quarter of 2026, a 21% increase compared to the first quarter of 2025. Adjusted EBITDA margin was 24.5% compared with 23.1% for the first quarter of 2025.

Working Capital and Balance Sheet

Cash provided by operations was $13 million in the first quarter of 2026, compared to cash used in operations of $4 million in the first quarter of 2025.

As of March 31, 2026, Elanco's net leverage ratio was 3.5x adjusted EBITDA, a decrease of 0.1x compared to December 31, 2025.

Elanco is updating financial guidance for the full year 2026, summarized in the following table.

(1) Revenue guidance excludes royalty revenue that was sold to a third party.

Our strong first quarter results underscore the powerful momentum we are carrying into 2026, said Bob VanHimbergen, Executive Vice President and CFO of Elanco Animal Health. This outperformance, driven by both volume and price, gives us the confidence to raise our full-year guidance for revenue, adjusted EBITDA, and adjusted EPS, while continuing to take a prudent, balanced approach in a dynamic macro environment. We remain disciplined in our execution of Elanco Ascend, which is already delivering meaningful efficiencies and positions us for significant, sustainable margin expansion starting this year. With accelerating free cash flow and an improved net leverage target, Elanco is operating from a position of financial strength to drive long-term shareholder value.

The company anticipates a tailwind to revenue of approximately $60 million from the favorable impact of foreign exchange rates compared to prior year. Excluding the impact of foreign exchange rates and royalty revenue sold to a third party, the company now expects revenue growth of 5% to 7% versus 4% to 6% previously. The company continues to expect an accelerating contribution from price versus 2025.

Elanco continues to expect adjusted gross margin of 55.1% to 55.5%, an increase of 40 basis points versus 2025. Adjusted EBITDA guidance reflects savings from the Elanco Ascend initiative as well as incremental strategic investments in the global launches of the company's innovation portfolio and the advancement of the R D pipeline.

Additionally, the company is providing guidance for the second quarter of 2026, as summarized in the following table

(1) Revenue guidance excludes royalty revenue that was sold to a third party.

In the second quarter, the company anticipates a tailwind to revenue of approximately $10 million from the favorable impact of foreign exchange rates compared to prior year. Excluding the impacts of foreign exchange rates and royalty revenue sold to a third party, the company expects 4% to 6% organic constant currency revenue growth. The company expects operating expenses up approximately 8% year over year in constant currency with incremental support for innovation products.

The 2026 full year and second quarter financial guidance reflects foreign exchange rates as of the end of April. Further details on guidance, including GAAP reported to non-GAAP adjusted reconciliations, are included in the financial tables of this press release and will be discussed on the company's conference call this morning.

WEBCAST CONFERENCE CALL DETAILS

Elanco will host a webcast and conference call at 8 00 a.m. Eastern Time today, during which company executives will review first quarter financial and operational results, discuss second quarter and full year 2026 financial guidance, and respond to questions from analysts. Investors, analysts, members of the media and the public may access the live webcast and accompanying slides by visiting the Elanco website at https investor.elanco.com and selecting Events and Presentations. A replay of the webcast will be archived and made available a few hours after the event on the company's website, at https investor.elanco.com events-and-presentations default.aspx#module-event-upcoming.

Elanco Animal Health Incorporated (NYSE ELAN) is a global leader in animal health dedicated to innovating and delivering products and services to prevent and treat disease in farm animals and pets, creating value for farmers, pet owners, veterinarians, stakeholders and society as a whole. With more than 70 years of animal health heritage, we are committed to breaking boundaries and going beyond to help our customers improve the health of animals in their care, while also making a meaningful impact on our local and global communities. At Elanco, we are driven by our vision of Food and Companionship Enriching Life and our purpose - to Go Beyond for Animals, Customers, Society and Our People. Learn more at www.elanco.com.

Cautionary Statement Regarding Forward-Looking Statements

This press release contains forward-looking statements within the meaning of the federal securities laws, including, without limitation, statements concerning product launches and revenue from such products, our 2026 full year and second quarter guidance and long-term expectations, our expectations regarding debt levels, and expectations regarding our industry and our operations, performance and financial condition, and including, in particular, statements relating to our business, growth strategies, distribution strategies, product development efforts and future expenses.

Forward-looking statements are based on our current expectations and assumptions regarding our business, the economy and other future conditions. Because forward-looking statements relate to the future, by their nature, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict. As a result, our actual results may differ materially from those contemplated by the forward-looking statements. Important risk factors that could cause actual results to differ materially from those in the forward-looking statements include regional, national or global political, economic, business, competitive, market and regulatory conditions, including but not limited to the following

operating in a highly competitive industry

the success of our research and development (R D), regulatory approval and licensing efforts

the impact of disruptive innovations and advances in veterinary medical practices, animal health technologies and alternatives to animal-derived protein

competition from generic products that may be viewed as more cost-effective

changes in regulatory restrictions on the use of antibiotics in farm animals

an outbreak of infectious disease carried by farm animals

risks related to the evaluation of animals

consolidation of our customers and distributors

an increased use of alternative distribution channels or changes within existing distribution channels

our dependence on the success of our top products

our ability to complete acquisitions and divestitures and to successfully integrate the businesses we acquire

our ability to implement our business strategies or achieve targeted cost efficiencies and gross margin improvements

manufacturing problems and capacity imbalances, including at our contract manufacturers

fluctuations in inventory levels in our distribution channels

risks related to the use of artificial intelligence in our business

our dependence on sophisticated information technology systems and infrastructure, including the use of third-party, cloud-based technologies, and the impact of outages or breaches of the information technology systems and infrastructure we rely on

the impact of weather conditions, including those related to climate change, and the availability of natural resources

demand, supply and operational challenges associated with the effects of a human disease outbreak, epidemic, pandemic or other widespread public health concern

the loss of key personnel or highly skilled employees

adverse effects of labor disputes, strikes and or work stoppages

the effect of our substantial indebtedness on our business, including restrictions in our debt agreements that limit our operating flexibility and changes in our credit ratings that lead to higher borrowing expenses and restrict access to credit

changes in interest rates that adversely affect our earnings and cash flows

risks related to the write-down of goodwill or identifiable intangible assets

the lack of availability or significant increases in the cost of raw materials

risks related to foreign and domestic economic, political, legal and business environments

risks related to foreign currency exchange rate fluctuations

risks related to underfunded pension plan liabilities

our current plan not to pay dividends and restrictions on our ability to pay dividends

the potential impact that actions by activist shareholders could have on the pursuit of our business strategies

risks related to tax expense or exposures

actions by regulatory bodies, including as a result of their interpretation of studies on product safety

the possible slowing or cessation of acceptance and or adoption of our farm animal sustainability initiatives

the impact of increased regulation or decreased governmental financial support related to the raising, processing or consumption of farm animals

risks related to tariffs, trade protection measures or other modifications of foreign trade policy

the impact of litigation, regulatory investigations and other legal matters, including the risk to our reputation and the risk that our insurance policies may be insufficient to protect us from the impact of such matters

challenges to our intellectual property rights or our alleged violation of rights of others

misuse, off-label or counterfeiting use of our products

unanticipated safety, quality or efficacy concerns and the impact of identified concerns associated with our products

insufficient insurance coverage against hazards and claims

compliance with privacy laws and security of information