Shares of Elanco Animal Health Inc (ELAN) surged 11.11% in pre-market trading on Thursday, following the release of the company's impressive second-quarter results and an upward revision of its full-year 2025 guidance. The animal health company's strong performance and optimistic outlook have sparked investor enthusiasm, driving the significant stock price rally.

Elanco reported Q2 adjusted earnings of $0.26 per share, surpassing analysts' expectations of $0.20. Revenue for the quarter reached $1.24 billion, up from $1.18 billion a year earlier and exceeding the consensus estimate of $1.19 billion. The company's adjusted EBITDA stood at $238 million, also beating the expected $214.3 million.

In light of these strong results, Elanco has raised its full-year 2025 outlook. The company now projects adjusted earnings per share between $0.85 and $0.91, up from the previous forecast of $0.80 to $0.86. Revenue guidance for 2025 has also been increased to a range of $4.57 billion to $4.62 billion, compared to the earlier projection of $4.51 billion to $4.58 billion. Additionally, Elanco has increased its 2025 debt paydown range to $500-$550 million and targets an improved year-end net leverage ratio of 3.8x to 4.1x, further boosting investor confidence in the company's financial health and future prospects.