Elanco Animal Health Inc's stock surged 5.21% in intraday trading on Tuesday, following the company's release of better-than-expected fourth-quarter results and optimistic guidance for 2026.

The animal health company reported Q4 2025 revenue of $1.144 billion, beating analyst estimates of $1.093 billion and representing 12% year-over-year growth. Adjusted earnings per share came in at $0.13, exceeding the consensus estimate of $0.11. For the full year 2026, Elanco projected revenue between $4.95 billion and $5.02 billion, above the FactSet estimate of $4.93 billion, with adjusted EPS guidance of $1.00 to $1.06 compared to the $1.03 estimate.

Key growth drivers included strong performance from new products like Credelio Quattro and Zenrelia in pet health, with Zenrelia reaching approximately 50% of U.S. clinics. The company also raised its 2026 innovation revenue target to $1.15 billion and highlighted recent USDA approval for Befrena, a new treatment for canine allergic dermatitis. CEO Jeff Simmons credited growth across all business units, supported by price increases and volume growth in most major markets.