Elanco Animal Health Inc (ELAN) stock is soaring 11.11% in pre-market trading on Thursday, following the release of impressive second-quarter results and an upward revision of its full-year 2025 guidance. The animal health company has demonstrated resilience and growth in a challenging market environment.

Elanco reported Q2 adjusted earnings of $0.26 per share, surpassing analysts' expectations of $0.20. While this represents a slight decrease from $0.30 in the same period last year, it showcases the company's ability to maintain profitability. Revenue for the quarter reached $1.24 billion, up 5% year-over-year from $1.18 billion, exceeding the FactSet consensus estimate of $1.19 billion. The company's adjusted EBITDA stood at $238 million, significantly higher than the estimated $214.3 million.

Investors are particularly enthused by Elanco's improved outlook for 2025. The company has raised its full-year guidance, now projecting 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. This combination of strong current performance and optimistic future outlook has fueled investor enthusiasm, driving the significant pre-market rally.