Track market-moving stories before they get noisy

Trane Technologies (TT - Free Report) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). An upward trend in earnings estimates -- one of the most powerful forces impacting stock prices -- has triggered this rating change.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Individual investors often find it hard to make decisions based on rating upgrades by Wall Street analysts, since these are mostly driven by subjective factors that are hard to see and measure in real time. In these situations, the Zacks rating system comes in handy because of the power of a changing earnings picture in determining near-term stock price movements.

Therefore, the Zacks rating upgrade for Trane Technologies basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock PricesThe change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. The influence of institutional investors has a partial contribution to this relationship, as these big professionals use earnings and earnings estimates to calculate the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their transaction of large amounts of shares then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for Trane Technologies imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate RevisionsAs empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, tracking such revisions for making an investment decision could be truly rewarding. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for Trane TechnologiesFor the fiscal year ending December 2026, this manufacturer is expected to earn $14.83 per share, which is unchanged compared with the year-ago reported number.

Analysts have been steadily raising their estimates for Trane Technologies. Over the past three months, the Zacks Consensus Estimate for the company has increased 0.7%.

Bottom LineUnlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of "buy" and "sell" ratings for its entire universe of more than 4,000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a "Strong Buy" rating and the next 15% get a "Buy" rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of Trane Technologies to a Zacks Rank #2 positions it in the top 20% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

SWORDS, Ireland--(BUSINESS WIRE)--Trane Technologies (NYSE: TT), a global climate innovator, is advancing sustainable and energy-efficient solutions for buildings, industry and the cold chain while continuing to strengthen its own operations. Through electrification, digital innovation and circular strategies, the company is helping customers improve efficiency, reduce emissions, lower operating costs and build resilience. In its newly released 2025 Sustainability Report, Scaling Sustainability.

Trane Technologies (TT - Free Report) closed the most recent trading day at $460.14, moving +2.45% from the previous trading session. This move outpaced the S&P 500's daily gain of 1.75%. Elsewhere, the Dow gained 1.86%, while the tech-heavy Nasdaq added 2.54%.

Heading into today, shares of the manufacturer had lost 4.65% over the past month, lagging the Business Services sector's loss of 1.26% and the S&P 500's loss of 1.63%.

Market participants will be closely following the financial results of Trane Technologies in its upcoming release. The company's earnings per share (EPS) are projected to be $4.27, reflecting a 10.05% increase from the same quarter last year. Meanwhile, our latest consensus estimate is calling for revenue of $6.16 billion, up 7.22% from the prior-year quarter.

For the full year, the Zacks Consensus Estimates are projecting earnings of $14.83 per share and revenue of $23.25 billion, which would represent changes of +13.55% and +9.05%, respectively, from the prior year.

Investors should also note any recent changes to analyst estimates for Trane Technologies. These revisions help to show the ever-changing nature of near-term business trends. As a result, upbeat changes in estimates indicate analysts' favorable outlook on the business health and profitability.

Our research demonstrates that these adjustments in estimates directly associate with imminent stock price performance. Investors can capitalize on this by using the Zacks Rank. This model considers these estimate changes and provides a simple, actionable rating system.

The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, there's been a 0.04% rise in the Zacks Consensus EPS estimate. Trane Technologies is holding a Zacks Rank of #2 (Buy) right now.

Digging into valuation, Trane Technologies currently has a Forward P/E ratio of 30.29. This represents a premium compared to its industry average Forward P/E of 16.08.

Meanwhile, TT's PEG ratio is currently 2.08. The PEG ratio bears resemblance to the frequently used P/E ratio, but this parameter also includes the company's expected earnings growth trajectory. As the market closed yesterday, the Technology Services industry was having an average PEG ratio of 1.32.

The Technology Services industry is part of the Business Services sector. This industry currently has a Zacks Industry Rank of 156, which puts it in the bottom 37% of all 250+ industries.

The Zacks Industry Rank gauges the strength of our individual industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.

You can find more information on all of these metrics, and much more, on Zacks.com.

AutoZone, Inc. (AZO) Q3 2026 Earnings Call Transcript

AutoZone Inc. on Tuesday recorded its worst trading day in more than four years despite the retailer beating Wall Street's estimates for its third-quarter fiscal results.

AutoZone stock closed off 9%, marking its worst decline since a 9.5% fall on May 18, 2022. Shares continued to fall during after-hours trading.

The company reported earnings per share of $38.07 for its latest fiscal quarter compared with $36.28 per share expected, according to average estimates compiled by LSEG. Its $4.84 billion in revenue was in line with LSEG estimates of $4.83 billion. The company's fiscal quarter ended May 9.

Analysts on the company's quarterly call Tuesday were concerned about lackluster growth internationally and margin compression that was more in line with competitors. They also questioned slowing sales year over year, which the company said was due to cooler weather.

"This slowdown in sales was caused by unseasonably cool weather impacting our heat-related categories, which normally begin to ramp this time of year as summer heat begins to take hold," AutoZone CEO Philip Daniele said Tuesday.

Auto parts stocks

Wall Street analysts also questioned executives Tuesday about continued pressures on the business from inflation, energy costs and potential supply chain disruptions caused by the Iran war, specifically possible shortages of motor oil.

AutoZone executives said they expect inflationary pressures to continue but be "slightly muted" due to year-over-year comparisons. They also weren't overly concerned about potential problems with supplies of lubricants such as motor oil that are reportedly impacting dealer operations at Toyota Motor and Nissan Motor.

"The issue around lubricants, I know there's a lot of noise out there. We're going to leave that up to the oil specialists to really say what that means. We think there's probably going to be some constraints, but we don't think that it's going to be that material," Daniele said.

Automotive website The Drive reported both Nissan and Toyota have recently issued service bulletins to dealers with instructions on rationing motor oil stocks due to an impending shortage.

A Toyota spokesman said the company has "nothing more to add on this issue at this time." A spokeswoman for Nissan said the automaker "is navigating supplier constraints affecting lubricant availability."

"Currently, we are maintaining current pricing and have implemented temporary allocation measures to help ensure consistent supply across our dealer network. We're also working with supplier partners to identify additional sourcing. Our priority remains supporting our dealers to ensure an exceptional customer experience," the Nissan spokeswoman said in an emailed statement.

AutoZone Inc (AZO) Q3 2026 Earnings Call Highlights: Strong Sales Growth Amid Margin Pressures AutoZone Inc (AZO) reports an 8.4% sales increase and robust store expansion, despite challenges in gross margins and DIY sales. Summary

Total Sales Growth: 8.4% increase to $4.8 billion.Earnings Per Share (EPS): Increased by 7.7% to $38.07.Same-Store Sales Growth: Domestic same-store sales up 4.1%; international same-store sales up 1.6% on a constant currency basis.Domestic DIY Sales Growth: Increased by 2.2%.Domestic Commercial Sales Growth: Increased by 10.4%.Gross Margin: 52.2%, down 57 basis points, impacted by a $20 million LIFO charge.Net Income: $641 million, up 5.4%.Free Cash Flow: $455 million for the quarter.Store Openings: 82 new stores globally, totaling 6,766 US stores, 933 Mexico stores, and 157 Brazil stores.Capital Expenditure: Nearly $1.6 billion planned for the year.Share Repurchase: $586 million of stock repurchased in the quarter.

Release Date: May 26, 2026

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive Points AutoZone Inc AZO reported a strong sales growth of 8.4% for the third quarter, marking the largest increase since Q2 of FY23.The company opened 82 new stores globally in the past quarter, with plans to open approximately 365 stores for the full year, indicating a robust expansion strategy.Domestic commercial sales grew by 10.4%, driven by improved inventory availability and strong execution of growth initiatives.International same-store sales were up 1.6% on a constant currency basis, with a significant positive impact from exchange rates.AutoZone Inc (AZO) continues to invest heavily in growth initiatives, with $1.6 billion in CapEx planned for the year, focusing on store growth and technology enhancements. Negative Points The company's gross margin was negatively impacted by a non-cash $20 million LIFO charge, which also affected operating profit and EPS.Domestic DIY sales growth was modest at 2.2%, with a decline in same-store DIY traffic count by 3.6%.The last two weeks of the quarter experienced a slowdown in sales due to unseasonably cool weather, affecting heat-related categories.International markets, particularly Mexico and Brazil, faced a soft macro environment, impacting same-store sales growth.The company anticipates a LIFO charge of approximately $30 million for the fourth quarter, continuing to pressure gross margins. Q & A Highlights Q: Could you refresh us on how you see same SKU inflation in the second half of '26 and concerns around supply chain and lubricants?
A: Phil Daniele, President and CEO, mentioned that inflation rates and ticket averages will likely be more muted in Q4, around 4%. While there are concerns about lubricants, they don't expect it to be materially impactful.

Q: Are you seeing incremental opportunities in national accounts, and how does the profit spread compare to up and down the street?
A: Phil Daniele stated that AutoZone is under-shared in commercial, including national accounts and up and down the street. Both segments are growing strongly, with opportunities to gain share in both. There is a slight profit spread, but both are valuable businesses.

Q: What are your expectations for fourth-quarter same-store sales, considering the weather impact at the end of Q3?
A: Phil Daniele noted that May has been cooler, but they expect a normal or hotter summer. They anticipate a normal increase in summer sales volume, supported by new store openings and additional Mega-Hubs.

Q: How should we expect gross margins to perform in the fourth quarter?
A: Jamere Jackson, CFO, indicated that they expect solid gross margin performance in Q4, similar to Q3. While commercial growth may create a mix drag, they are working to offset it with other margin improvements.

Q: Are you seeing price pressures from energy prices and resin, and how does this affect your inflation outlook?
A: Phil Daniele acknowledged potential cost increases but noted that tariffs have been in place for some time. Inflation will be slightly muted as they lap higher rates from last year. Jamere Jackson added that they are managing the situation with suppliers and expect an inflationary environment.

Q: How are the latest Mega-Hubs performing compared to historical openings?
A: Jamere Jackson stated that the new Mega-Hubs are performing well, driven by a stronger commercial business and better utilization. The demand for parts and improved service levels are fueling their strategy.

Q: Are you still confident in faster top-line growth despite recent weather disruptions?
A: Phil Daniele emphasized their ability to manage SG&A and noted that investments in new stores are outperforming expectations. They remain confident in achieving faster top-line growth and strong returns.

Q: Can we assume a sustainable level of comp growth around 4% or more in the future?
A: Jamere Jackson confirmed that with new store load-in and accelerating commercial business, they expect to achieve or exceed 4% comp growth, driving higher returns on invested capital.

Q: How do you view the potential for DIY volumes to improve as inflation moderates?
A: Jamere Jackson noted that transaction counts have been down more than usual, but there's potential for improvement in transactions and traffic, which would support comp growth.

Q: What is the impact of national accounts on gross margins and SG&A?
A: Jamere Jackson explained that national accounts are competitive but offer good returns. There is no significant difference in SG&A management between national accounts and up and down the street customers.

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

The CNN Money Fear and Greed index showed some improvement in the overall market sentiment, while the index remained in the “Greed” zone on Tuesday.

The S&P 500 gained 0.9% last week, notching its eighth consecutive winning week. The Dow surged 2.1%, while the Nasdaq rose 0.5% last week.

In earnings, shares of AutoZone Inc. (NYSE:AZO) fell 9% on Tuesday after reporting third-quarter results.

On the economic data front, the S&P Cotality Case-Shiller Home Price Index increased 0.8% year-over-year in March, following a 0.9% gain in February. The Chicago Fed National Activity Index climbed to +0.14 in April versus a revised reading of –0.15 in March.

Most sectors on the S&P 500 closed on a positive note, with information technology, materials and industrials stocks recording the biggest gains on Tuesday. However, consumer staples and energy stocks bucked the overall market trend, closing the session lower.

The Dow Jones closed lower by around 118 points to 50,461.68 on Tuesday. The S&P 500 rose 0.61% to 7,519.12, while the Nasdaq Composite gained 1.19% at 26,656.18 during Tuesday's session.

What Is CNN Business Fear & Greed Index?At a current reading of 60.7, the index remained in the “Greed” zone on Tuesday, versus a prior reading of 59.

The Fear & Greed Index is a measure of the current market sentiment. It is based on the premise that higher fear exerts pressure on stock prices, while higher greed has the opposite effect. The index is calculated based on seven equal-weighted indicators. The index ranges from 0 to 100, where 0 represents maximum fear and 100 signals maximum greediness.

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When a stock hits a new 52-week low, it can be due to several factors, including a poor business performance or broader macroeconomic conditions weighing on its valuation. A stock that's fallen to a new low isn't always going to recover, but it may not always be destined to go even lower, either. It's important to consider the context and to understand why a stock is performing poorly. Understanding the reason can help you assess whether it's, in fact, a deal and the market may be overreacting, or whether the business is indeed facing concerning headwinds and should be avoided.

Three stocks that recently hit fresh 52-week lows are AutoZone (AZO 0.40%), Intuit (INTU 2.76%), and PDD Holdings (PDD +0.09%). Let's take a look at why they're struggling, and if they could be good bargain buys right now.

Image source: Getty Images.

AutoZone AutoZone shares fell recently after the company reported its latest earnings numbers. Although it technically beat expectations, the auto-parts retailer still fell sharply due to concerns about slowing growth and challenges in international markets.

The company said that "unseasonably cool weather" had been slowing its sales recently. Revenue for the quarter ending May 9 was up 8% year over year, totaling $4.8 billion. But its same-store sales growth rate was 3.9%, with the growth rate in its international segment being fairly low at just 1.6%.

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This year, AutoZone's stock is down around 10%, and with its decline, it is trading at a forward price-to-earnings multiple of 17, which is based on analyst projections for its future profits. I think the stock could be a good buy at its current price, as its valuation is modest, and with AutoZone selling essential auto parts, its business should be fairly resilient over the long haul.

Intuit One stock that can't seem to stop falling is Intuit. Its shares have crashed more than 50% this year. While it recently reported earnings, which didn't help the stock, it has largely fallen this year as investors have grown concerned about software stocks and their ability to do well with artificial intelligence (AI) potentially disrupting their business models.

This is what I'd consider an overreaction in the markets. Intuit's business centers around software that finance and accounting professionals rely on, including QuickBooks and TurboTax. This is not software I believe AI can readily replace, and even if it could, professionals would not readily trust it. Intuit's business remains strong, and the company generated solid 10% revenue growth in its most recent quarter, which ended on April 30.

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At a forward P/E of only 11, I really like the stock and am contemplating buying it because of its fantastic fundamentals and extremely low valuation. This is a tech stock that could have tremendous upside for long-term investors.

PDD Holdings PDD Holdings, the company that owns online marketplace Temu, reported earnings on Wednesday morning, and its shares crashed more than 10% out of the gate. Investors weren't pleased with the numbers, and this struggling e-commerce stock hit new lows. Since the start of the year, it's now down around 25%.

While the company's top line came in at $15.4 billion for the three-month period ending March 31, which was an increase of 11% year over year, its net income fell by 15% to $1.8 billion. The company says it has begun a "deep transformation" in its business this past quarter and is investing heavily in its supply chain.

A decline in profit alongside the word "transformation" can be troubling, but PDD's stock has already been trading at reduced levels, with investors likely concerned about ongoing trade uncertainty between the U.S. and China. However, the company's profit slid mainly due to other income and expense items; its operating profit actually rose by 22% this past quarter.

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At a dirt cheap forward P/E of eight, PDD is another beaten-down stock that could make for a good contrarian pick right now. With the company investing in its supply chain and improving its operations, now may be a good time to buy and simply hang on. It'll require some patience, but investing in PDD stock right now could pay off in the long run.

Wall Street wasn't exactly happy with AutoZone's (AZO 0.40%) latest quarterly earnings. The stock initially dipped 9% on the close miss, but has since rebounded slightly as of this writing. Analysts' disappointment in the quarter really doesn't tell the whole story. So should investors buy this dip? Let's have a look.

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The auto parts retailer reported sales of $4.84 billion in the fiscal third quarter of 2026, slightly lower than analyst estimates of $4.87 billion. This is what triggered the decline in stock price, but it is likely an overreaction.

Same-store sales were up 5.5% year over year, and earnings per share hit $38.07. AutoZone is also generating substantial cash flow. The company is expanding steadily and now has 7,856 locations, adding 340 stores in the past year.

Image source: Getty Images.

International growth slowed in this latest quarter, but AutoZone still plans to open 355 to 365 new stores this fiscal year. That guidance remained intact.

For long-term investors, AutoZone is still a solid buy. While individual shares currently cost more than $3,000, the valuation metrics are attractive. With a forward P/E ratio of just over 17 and a PEG ratio of 1.42, AutoZone is fairly priced. Analysts also have an average price target of nearly $4,100 per share, which the company is currently trading well below.

Investors in AutoZone shouldn't expect massive swings in either direction; the stock's beta is just 0.44. Yet, AutoZone is still a solid long-term investment.

Catie Hogan has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Shares of AutoZone (AZO 0.40%) sank 13% this week, according to data from S&P Global Market Intelligence. The auto parts retailer was a massive winner over the past five years, only to fall back to earth in recent quarters due to slowing same-store sales growth.

AutoZone's stock is now down 32% from its highs, bringing its valuation much closer to its long-term average. Does that mean you should buy the stock?

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Slow sales and weather headwinds As a mature business in the United States, AutoZone's revenue will be driven by per-store productivity, also known as same-store sales growth. Last quarter, same-store sales growth at its domestic locations was 4.1%, below Wall Street expectations. Gross margins also compressed, though that was due to a change in its accounting practices and had nothing to do with the underlying business.

The other piece of AutoZone's business is an expansion into Mexico and Brazil. These are the two largest economies in Latin America and have strong potential if AutoZone's brand can succeed in the regions. However, international same-store sales growth was just 1.6% last quarter, which also disappointed investors.

Image source: Getty Images.

Time to buy AutoZone stock? After this fall, AutoZone's price-to-earnings ratio (P/E) has fallen back closer to its long-term average of 20. With 6,766 locations in the United States, it does not have a huge runway left to grow in the market, but it should see steady same-store sales growth in the years ahead.

Combined with the expansion internationally, and AutoZone stock may look appetizing after falling 32% from recent highs.

Brett Schafer has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

AutoZone (AZO - Free Report) is one of the stocks most watched by Zacks.com visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock.

Shares of this auto parts retailer have returned -14.5% over the past month versus the Zacks S&P 500 composite's +5.4% change. The Zacks Automotive - Retail and Wholesale - Parts industry, to which AutoZone belongs, has lost 11% over this period. Now the key question is: Where could the stock be headed in the near term?

Although media reports or rumors about a significant change in a company's business prospects usually cause its stock to trend and lead to an immediate price change, there are always certain fundamental factors that ultimately drive the buy-and-hold decision.

Revisions to Earnings EstimatesRather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings.

We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements.

AutoZone is expected to post earnings of $55.67 per share for the current quarter, representing a year-over-year change of +14.3%. Over the last 30 days, the Zacks Consensus Estimate has changed +1%.

The consensus earnings estimate of $150.46 for the current fiscal year indicates a year-over-year change of +3.9%. This estimate has changed +1% over the last 30 days.

For the next fiscal year, the consensus earnings estimate of $175.86 indicates a change of +16.9% from what AutoZone is expected to report a year ago. Over the past month, the estimate has changed +0.4%.

Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, AutoZone is rated Zacks Rank #3 (Hold).

The chart below shows the evolution of the company's forward 12-month consensus EPS estimate:

12 Month EPS

Projected Revenue GrowthWhile earnings growth is arguably the most superior indicator of a company's financial health, nothing happens as such if a business isn't able to grow its revenues. After all, it's nearly impossible for a company to increase its earnings for an extended period without increasing its revenues. So, it's important to know a company's potential revenue growth.

For AutoZone, the consensus sales estimate for the current quarter of $6.75 billion indicates a year-over-year change of +8.2%. For the current and next fiscal years, $20.48 billion and $22.02 billion estimates indicate +8.1% and +7.5% changes, respectively.

Last Reported Results and Surprise HistoryAutoZone reported revenues of $4.84 billion in the last reported quarter, representing a year-over-year change of +8.4%. EPS of $38.07 for the same period compares with $35.36 a year ago.

Compared to the Zacks Consensus Estimate of $4.86 billion, the reported revenues represent a surprise of -0.45%. The EPS surprise was +5.22%.

Over the last four quarters, AutoZone surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period.

ValuationNo investment decision can be efficient without considering a stock's valuation. Whether a stock's current price rightly reflects the intrinsic value of the underlying business and the company's growth prospects is an essential determinant of its future price performance.

While comparing the current values of a company's valuation multiples, such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), with its own historical values helps determine whether its stock is fairly valued, overvalued, or undervalued, comparing the company relative to its peers on these parameters gives a good sense of the reasonability of the stock's price.

As part of the Zacks Style Scores system, the Zacks Value Style Score (which evaluates both traditional and unconventional valuation metrics) organizes stocks into five groups ranging from A to F (A is better than B; B is better than C; and so on), making it helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued.

AutoZone is graded C on this front, indicating that it is trading at par with its peers. Click here to see the values of some of the valuation metrics that have driven this grade.

Bottom LineThe facts discussed here and much other information on Zacks.com might help determine whether or not it's worthwhile paying attention to the market buzz about AutoZone. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term.

Resources Investor Relations Journalists Agencies Client Login Send a Release News Products Contact , /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) will announce its first quarter 2026 financial results on Wednesday, May 6, 2026. Elanco will also conduct a conference call on that day with the investment community and media to further detail the company's performance.

The conference call will begin at 8:00 a.m. Eastern time. Investors, media, and the general public can access a live webcast of the conference call through the link that will be posted on Elanco's website at https://investor.elanco.com/events-and-presentations/default.aspx. A replay will also be available on the website shortly following the call.

ABOUT ELANCO
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 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 – all to Go Beyond for Animals, Customers, Society and Our People. Learn more at www.elanco.com.

Investor Contact: Tiffany Kanaga (765) 740-0314 [email protected]
Media Contact: Colleen Parr Dekker (317) 989-7011 [email protected]  

SOURCE Elanco Animal Health

Also from this source

/C O R R E C T I O N – Elanco Animal Health/ In the news release, Elanco's Negasunt™ Powder (Coumaphos, Propoxur, Sulfanilamide Topical Powder) and Tanidil™ (Coumaphos, Propoxur) Receive Emergency Authorization for Use Against New World Screwworm in Livestock, issued 27-Apr-2026 by Elanco Animal Health over PR Newswire, we are advised by the company that changes have been made. The complete, corrected release follows, with additional details at the end:

Elanco's Negasunt™ Powder (Coumaphos, Propoxur, Sulfanilamide Topical Powder) and Tanidil™ (Coumaphos, Propoxur) Receive Emergency Authorization for Use Against New World Screwworm in Livestock Action Prepares Veterinarians and Livestock Producers with Prevention and Treatment Options Prior to Fly Being Detected in the U.S.

Federal agencies grant emergency authorizations for New World screwworm in livestock, reinforcing Elanco's leadership in livestock health innovations   Actions underscore the commitment of the U.S. Food and Drug Administration, U.S. Environmental Protection Agency, and U.S. Department of Agriculture to act swiftly against emerging animal health threats  Early detection and immediate treatment of open wounds on livestock is critical to prevention of New World screwworm myiasis in individual animals and rapid spread of the pest An effective fly and tick control regimen is also essential, helping to avoid small bites on animals that can be an entry point for the screwworm , /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) announced it has received Emergency Use Authorization (EUA) from the U.S. Food and Drug Administration (FDA) for Negasunt Powder (coumaphos, propoxur, sulfanilamide topical powder) and a Section 18 Emergency Exemption from the U.S. Environmental Protection Agency (EPA) in cooperation with the United States Department of Agriculture (USDA) for Tanidil (coumaphos, propoxur) for the prevention and treatment of New World screwworm infestations in a variety of livestock species.

With confirmed cases of New World screwworm detected as close as 62 miles south of the U.S.-Mexico borderi, these authorizations ensure veterinarians and livestock producers have a ready-now treatment option for various livestock species should the fly enter the U.S.

Negasunt Powder and Tanidil will be available only through the U.S. Animal Plant Health and Inspection Service (APHIS) and its National Veterinary Stockpile. They will be distributed in coordination with state animal health officials and federally recognized tribal agencies. In the near future, APHIS will share additional information about the requirements for use, including tracking and reporting requirements and required safety and personal protective equipment.

With more than 70 years of on-farm experience, Elanco is standing alongside livestock producers and regulators during this challenging time by providing New World screwworm options for prevention and treatment of New World screwworm infestations, education and science-based resources if the fly enters the U.S.

"We appreciate our federal agencies' swift review of the scientific data demonstrating that these products may be effective in prevention and treatment against New World screwworm infestations," said Dr. Ellen de Brabander, Executive Vice President of Research & Development at Elanco. "We're committed to working alongside state and federal regulatory authorities to provide our support and scientific expertise. These emergency authorizations provide new, science-based solutions and treatment options to livestock producers, veterinarians, and other animal health industry stakeholders at a time when they need them most."

Effective Parasite Protection is Paramount

Elanco now offers producers and veterinarians several key products that can help prevent and treat New World screwworm infestations in a variety of livestock species. In addition to the EUA for Negasunt Powder and the Section 18 Emergency Exemption for Tanidil, the company also offers Catron IV – one of the few EPA registered products labeled for treatment against screwworm in a variety of livestock species. This screwworm and ear tick spray can help producers kill and control screwworm flies and maggots on beef and dairy cattle, sheep, goats, hogs and horses.

"The most important thing producers can do is self-education. They should be learning more about New World screwworm from credible sources, staying current with treatment protocol recommendations, and knowing where active cases are located," said Dr. M. Wayne Ayers, Elanco Sr. Technical Consultant and veterinarian. "The second most important part of preventing losses from New World screwworm is for producers to keep their 'eyes on livestock.' Looking over livestock as frequently as possible will allow early detection and treatment of infestation. Early intervention is key to minimizing tissue damage, decreasing mortality, and reducing the risk to the area by preventing the fly's potential offspring from completing their lifecycle."

Preventing Wound-Causing Parasites Also Essential

According to APHIS, an important way to prevent New World screwworm infestation is to protect livestock from other wound-causing parasites such as biting flies and ticks.ii

"Some of the surgical and care procedures we perform for livestock could result in potential sites for the female screwworm to deposit her eggs," said Dr. Ayers. "Wounds as small as fly and tick bites are potential areas to watch for as well. Therefore, treating open wounds, including those from surgical sites, and instituting a good fly and tick prevention program will play an important role in reducing the number of infestations we may see."

Elanco offers several EPA registered products to help control flies and ticks on livestock in the forms of pour-on liquids, sprays, dusts and ear tags.

Elanco recommends that livestock producers and veterinarians review the latest resources available from the USDA and FDA and consider the additional resources below in advance of the potential entry of New World screwworm into the United States.

To learn more about New World screwworm (NWS) using the following resources:

USDA NWS Alert and Fact Sheet NCBA NWS Resources FDA Information for Veterinarians on NWS Emergency Use Authorization of Negasunt Powder (coumaphos, propoxur, and sulfanilamide topical powder) for New World Screwworm (NWS)

WARNING: Neurotoxicity. Read full Fact Sheet for complete information. 

Coumaphos and propoxur can cause neurotoxicity. May be fatal if swallowed. May be fatal if inhaled. Harmful if absorbed through skin. Causes moderate eye irritation. Do not breathe dust. Avoid contact with eyes, skin, or clothing.   Use only with appropriate personal protective equipment (PPE): coveralls worn over long-sleeve shirt and long pants, shoes, socks, and protective eyewear; chemical-resistant gloves made of  barrier laminate, butyl rubber (≥ 14 mils), nitrile rubber (≥14 mils), neoprene rubber (>14 mils), natural rubber (≥14 mils), polyethylene, polyvinyl chloride (PVC) ≥14 mils, or Viton (>14 mils); and a minimum of a NIOSH-approved elastomeric half mask respirator consisting of protection factor (PF) 10 fitted with organic vapor (OV) cartridges and combination  R or P filters; or a NIOSH-approved gas mask with OV canisters; or a NIOSH-approved powered air purifying respirator with OV cartridges and combination HE filters.   This product is toxic to mammals, birds, fish, and aquatic invertebrates.  The U.S. Food and Drug Administration (FDA) has issued an Emergency Use Authorization (EUA) for the emergency use of the unapproved product Negasunt Powder for the prevention and treatment of infestations caused by New World screwworm (Cochliomyia homnivorax) larvae (myiasis) in cattle, swine, goats, sheep, horses, donkeys, domestic hybrid equids, and captive wild, exotic, and zoo mammals. Negasunt Powder is not approved for this use.

For use by employees of federal, state, local, and federally recognized tribal agencies, and persons working under their authority and at their direction. Also for use by or on the order of a licensed veterinarian in NWS infested zones and adjacent surveillance zones as defined by the U.S. Department of Agriculture (USDA). 

For additional information on the EUA and for complete safety information, please refer to the Negasunt Powder NWS Fact Sheet.  

Limitations of Authorized Use  
It is a violation of federal law to use this drug product other than as directed in the authorized Fact Sheet. 

Treated animals must not be slaughtered for human consumption within 28 days of the last treatment. 

A milk discard time has not been established for this product; do not use in animals producing milk for human consumption. 

A withdrawal period has not been established for this product in pre-ruminating calves; treated calves and calves born to treated cows must not be processed for veal. 

Do not use in horses intended for human consumption. Do not use in domestic indoor pets (e.g., dogs, cats, rodents, rabbits) nor in residences. Do not use in birds. Do not use in free-ranging wildlife. 

To avoid overexposure, each individual person cannot treat more than 3 large wounds (>2 inches diameter) a day or more than 30 small superficial wounds (≤2 inches diameter) a day (or an equivalent thereof) with Negasunt Powder or any other coumaphos-containing products.  

Negasunt Powder is authorized for this use only for the duration of the declaration that circumstances exist justifying the authorization of the emergency use of Negasunt Powder under section 564(b)(1) of the Federal Food, Drug, and Cosmetic Act (FD&C Act), 21 U.S.C. § 360bbb-3(b)(1), unless the declaration is terminated or the authorization is revoked sooner. 

Federal law prohibits the extra-label use of this drug. 

Additional Important Safety Information
Not for use in humans. Keep out of reach of children. Only handlers wearing required PPE may be in the area during application.  Do not apply in a confined, non-ventilated area; provide thorough ventilation. Call a poison control center or doctor immediately for treatment advice if Negusant Powder is swallowed, inhaled, on skin or clothing, or in eyes. Sulfonamides are contraindicated in animals that are hypersensitive to them and in animals with severe renal or hepatic impairment. For external use only on animals.  Do not contaminate water, feed, troughs, feed handling equipment, or milk or meat handling equipment. Use with caution in very young, weak, or debilitated animals.  In the case of overdose, treat with atropine sulfate or pralidoxine chloride (2-PAM) as soon as possible. The most common adverse reactions associated with organophosphate and carbamate toxicity in animals include frequent urination and defecation, muscle twitching, and watering eyes.

Important Information about Tanidil
Tanidil™ is an unregistered product for distribution and use only under a Section 18 emergency exemption. The Section 18 labeling must be in the possession of the user at the time of pesticide application.  This product may only be used to prevent or control New World screwworm in and on animal wounds on labeled animal host species.

For use only by federal, state, local, and federally recognized tribal agencies, and persons working under their supervision; personnel at quarantine stations and areas; veterinarians; veterinarians or certified applicators at livestock and game facilities, zoos, wildlife facilities, animal rehabilitation centers; and wildlife professionals. 

Read the entire label. This product must be used strictly in accordance with this label's precautionary statements and use directions, as well as with all applicable state and federal laws and regulations. Please visit the Tanidil fact sheet for more information.

Use Period: This exemption is effective on April 27, 2026 and expires on April 27, 2029. No applications of Tanidil may be made under the emergency exemption before its effective date or after its expiration date.  

ABOUT ELANCO
Elanco Animal Health Incorporated 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 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 – all to Go Beyond for Animals, Customers, Society and Our People. Learn more at www.elanco.com.

Media Contact: Season Solorio (765) 316-0233 [email protected]
Investor Contact: Tiffany Kanaga (765) 740-0314 [email protected]

Negasunt, Tanidil, Catron, Elanco and the diagonal bar logo are trademarks of Elanco or its affiliates. © 2026 Elanco or its affiliates.

Correction: Additional hyperlinks have been added to fact sheets in the release.

SOURCE Elanco Animal Health

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 , /PRNewswire/ -- 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 **Per Kynetec data
***Internal estimates based on multiple data sources

Financial Results

First Quarter Results

(dollars in millions, except per share amounts)

2026

2025

Change (%)

Organic CC
Growth (1) (%)

Pet Health

$710

$635

12 %

7 %

Farm Animal

$642

$546

18 %

13 %

Cattle

$316

$272

16 %

13 %

Poultry

$230

$189

22 %

16 %

Swine

$96

$85

13 %

9 %

Contract Manufacturing and Other (2)

$19

$12

58 %

Total Revenue

$1,371

$1,193

15 %

10 %

Gross Profit

$785

$684

15 %

Reported Net Income

$57

$67

(15) %

Adjusted EBITDA

$334

$276

21 %

Reported EPS

$0.11

$0.13

(15) %

Adjusted EPS

$0.40

$0.37

8 %

(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.

Financial Guidance

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

2026 Full Year

(dollars in millions, except per share amounts)

February

Guidance

May

Guidance

Revenue (1)

$4,950

to

$5,020

$5,010

to

$5,085

Adjusted EBITDA

$955

to

$985

$975

to

$1,005

Adjusted Earnings per Share

$1.00

to

$1.06

$1.03

to

$1.09

(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:

 2026 Second Quarter

(dollars in millions, except per share amounts)

Guidance

Revenue (1)

$1,300

to

$1,325

Adjusted EBITDA

$240

to

$260

Adjusted Earnings per Share

$0.25

to

$0.28

(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.

ABOUT ELANCO

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; risks related to environmental, health and safety laws and regulations; and inability to achieve our aspirations or meet the expectations of stakeholders with respect to environmental, social and governance matters. For additional information about the factors that could cause actual results to differ materially from forward-looking statements, please see the company's latest Form 10-K and Form 10-Qs filed with the Securities and Exchange Commission. Although we have attempted to identify important risk factors, there may be other risk factors not presently known to us or that we presently believe are not material that could cause actual results and developments to differ materially from those made in or suggested by the forward-looking statements contained in this press release. If any of these risks materialize, or if any of the above assumptions underlying forward-looking statements prove incorrect, actual results and developments may differ materially from those made in or suggested by the forward-looking statements contained in this press release. We caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this press release. Any forward-looking statement made by us in this press release speaks only as of the date thereof. Factors or events that could cause our actual results to differ may emerge from time to time, and it is not possible for us to predict all of them. We undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law. Comparisons of results for current and any prior periods are not intended to express any future trends or indications of future performance, unless specifically expressed as such, and should be viewed as historical data.

Use of Non-GAAP Financial Measures:

We use non-GAAP financial measures, such as revenue growth excluding the impact of divestitures, foreign exchange rate effects, royalty revenue sold to third party, EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted net income, adjusted EPS, adjusted gross profit, adjusted gross margin, net debt and net debt leverage to assess and analyze our operational results and trends as explained in more detail in the reconciliation tables later in this release.

We believe these non-GAAP financial measures are useful to investors because they provide greater transparency regarding our operating performance. Reconciliation of non-GAAP financial measures and reported U.S. generally accepted accounting principles (GAAP) financial measures are included in the tables accompanying this press release and are posted on our website at www.elanco.com. The primary material limitations associated with the use of such non-GAAP measures as compared to GAAP results include the following: (i) they may not be comparable to similarly titled measures used by other companies, including those in our industry, (ii) they exclude financial information and events, such as the effects of an acquisition or divestiture or amortization of intangible assets, that some may consider important in evaluating our performance, value or prospects for the future, (iii) they exclude items or types of items that may continue to occur from period to period in the future and (iv) they may not exclude all unusual or non-recurring items, which could increase or decrease these measures, which investors may consider to be unrelated to our long-term operations. These non-GAAP measures are not, and should not, be viewed as substitutes for GAAP reported measures. We encourage investors to review our unaudited consolidated financial statements in their entirety and caution investors to use GAAP measures as the primary means of evaluating our performance, value and prospects for the future, and non-GAAP measures as supplemental measures.

Availability of Certain Information

We use our website to disclose important company information to investors, customers, employees and others interested in Elanco. We encourage investors to consult our website regularly for important information about Elanco, including an Investor Overview presentation containing a general overview of the business, which can be found in the Events and Presentations page of our website.

Additional Information
We define innovation revenue as revenue from new products, lifecycle management and certain geographic expansions and business development transactions that is incremental in reference to product revenue in 2020 and does not include the expected impact of cannibalization on the base portfolio.

We define organic constant currency revenue growth as revenue growth excluding royalty revenue that was sold to a third party and the impact of foreign exchange rates.

Elanco Animal Health Incorporated

Unaudited Condensed Consolidated Statements of Operations

(Dollars and shares in millions, except per share data)

Three Months Ended March 31,

2026

2025

Revenue

$         1,371

$         1,193

Cost of sales

586

509

Gross profit

785

684

Research and development

97

94

Marketing, selling and administrative

381

341

Amortization of intangible assets

138

128

Asset impairment, restructuring and other special charges

16

9

Interest expense, net of capitalized interest

57

40

Other expense, net

9

12

Income before income taxes

87

60

Income tax expense (benefit)

30

(7)

Net income

$             57

$             67

Earnings per share:

Basic

$           0.11

$           0.14

Diluted

$           0.11

$           0.13

Weighted-average shares outstanding:

Basic

497.7

495.1

Diluted

506.0

499.1

Elanco Animal Health Incorporated
Reconciliation of GAAP Reported to Selected Non-GAAP Adjusted Information
(Unaudited)
(Dollars and shares in millions, except per share data)

We use non-GAAP financial measures, such as organic constant currency revenue growth, adjusted gross profit, adjusted gross margin percentage, adjusted net income, adjusted EPS, EBITDA, adjusted EBITDA and adjusted EBITDA margin and net debt and net debt leverage, that differ from financial measures reported in conformity with GAAP. The company believes these non-GAAP measures provide useful information to investors. Among other things, they may help investors assess and analyze our operational results and trends of our ongoing operations. Management also uses these non-GAAP measures internally to evaluate the performance of the business and in making resource allocation decisions. Investors should consider these non-GAAP measures in addition to, not as a substitute for or superior to, measures of financial performance prepared in accordance with GAAP. Reconciliation of non-GAAP financial measures and reported GAAP financial measures are included in the tables below.

Adjusted Gross Profit and Gross Margin Percentage

We define gross profit as total revenue less cost of sales. We define adjusted gross profit as gross profit less royalty revenue sold to a third party, less cost of sales adjustments. We define adjusted gross margin percentage as adjusted gross profit divided by total revenue, less royalty revenue sold to a third party. The following is a reconciliation of GAAP reported gross profit for the for the three months March 31, 2026 and 2025, to adjusted gross profit and adjusted gross margin percentage:

Three Months Ended March 31,

2026

2025

GAAP reported gross profit

$         785

$         684

Sold royalty revenue

(9)

—

Cost of sales adjustments

—

1

Adjusted gross profit

$         776

$         685

Adjusted gross margin percentage

57.0 %

57.4 %

Adjusted Net Income and Earnings Per Share

We define adjusted net income as net income (loss) excluding amortization of intangible assets, purchase accounting adjustments to inventory, acquisition and divestiture-related charges, including integration and separation costs, severance, goodwill and other asset impairments, gains on sales of assets and related costs, facility exit costs, the impacts from sales of future revenues, gains and losses on mark-to-market adjustments on equity securities, tax valuation allowances, certain litigation-related settlements that we consider to be unusual or infrequent and significant, and other specified significant items, such as unusual or non-recurring items that are unrelated to our long-term operations adjusted for income tax expense associated with the excluded financial items. We define adjusted earnings per share as adjusted net income divided by the number of weighted-average diluted shares outstanding for the applicable period. The following is a reconciliation of GAAP reported net income and EPS for the three months ended March 31, 2026 and 2025, to adjusted net income and EPS:

Three Months Ended March 31,
2026

Three Months Ended March 31,
2025

Net income (a)

EPS

Net income (a)

EPS

GAAP reported net income and EPS

$             57

$           0.11

$             67

$           0.13

Cost of sales

—

—

1

0.00

Amortization of intangible assets

138

0.27

128

0.26

Asset impairment, restructuring and other
special charges (1)

16

0.03

9

0.02

Sold royalty revenue

(9)

(0.02)

—

—

Interest expense, net of capitalized interest (2)

14

0.03

—

—

Other expense, net (3)

13

0.03

5

0.01

Income tax expense (benefit) (4)

(25)

(0.05)

(26)

(0.05)

Adjusted net income and EPS

$            204

$           0.40

$            184

$           0.37

(a)

Adjustments to GAAP reported net income to arrive at adjusted net income for the three months ended March 31, 2026 and 2025, included the following:

(1)

Adjustments of $16 million for the three months ended March 31, 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 associated with our 2025 Restructuring Plan. Adjustments of $9 million for the three months ended March 31, 2025, included $7 million of upfront payments made in relation to new licensing arrangements.

(2)

Adjustments of $14 million for the three months ended March 31, 2026, related to imputed interest expense on our liability for sale of future revenue.

(3)

Adjustments of $13 million for the three months ended March 31, 2026, primarily related to currency translation losses reclassified from accumulated other comprehensive loss in conjunction with the substantial liquidation of a dormant legal entity, a litigation settlement, and mark-to-market adjustments on equity investments. Adjustments of $5 million for the three months ended March 31, 2025, related to mark-to-market adjustments on equity investments and the impact of hyperinflationary accounting in Turkey.

(4)

Adjustments of $25 million for the three months ended March 31, 2026 primarily represented the income tax expense associated with the adjusted items discussed above. Adjustments of $26 million for the three months ended March 31, 2025, primarily represented the income tax expense associated with the adjusted items discussed above. The adjustments for the three months ended March 31, 2025, also reflect a $35 million benefit related to a discrete tax item recognized during the quarter.

Adjusted EBITDA and Adjusted EBITDA Margin

We define adjusted EBITDA as net income (loss) adjusted for interest expense (income), which includes debt financing charges and imputed interest on our liability for sale of future revenue, income tax expense (benefit) and depreciation and amortization, further adjusted to exclude purchase accounting adjustments to inventory, acquisition and divestiture-related charges, including integration and separation costs, severance, goodwill and other asset impairments, gains on sales of assets and related costs, facility exit costs, revenue sold to a third party, gains and losses on mark-to-market adjustments on equity securities, certain litigation-related settlements which we consider to be unusual or infrequent and significant, and other specified significant items, such as unusual or non-recurring items that are unrelated to our long-term operations.

For the periods presented, we have not made adjustments for all items that may be considered unrelated to our long-term operations. We believe adjusted EBITDA, when used in conjunction with our results presented in accordance with GAAP and its reconciliation to net income (loss), enhances investors' understanding of our performance, valuation and prospects for the future. We also believe adjusted EBITDA is a measure used in the animal health industry by analysts as a valuable performance metric for investors. The following is a reconciliation of GAAP reported net income for the three months ended March 31, 2026 and 2025, to EBITDA, adjusted EBITDA and adjusted EBITDA margin, which we define as adjusted EBITDA divided by total revenue, less royalty revenue sold to a third party, for the respective periods:

Three Months Ended March 31,

2026

2025

GAAP reported net income

$           57

$           67

Net interest expense

57

40

Income tax expense (benefit)

30

(7)

Depreciation and amortization

170

161

EBITDA

$         314

$         261

Non-GAAP adjustments:

Cost of sales adjustments

$           —

$            1

Asset impairment, restructuring and other special charges

16

9

Sold royalty revenue

(9)

—

Other expense, net

13

5

Adjusted EBITDA

$         334

$         276

   Adjusted EBITDA margin

24.5 %

23.1 %

Numbers may not add due to rounding.

Gross and Net Debt and Net Leverage Ratio

We define gross debt as the sum of the current portion of long-term debt and long-term debt excluding unamortized debt issuance costs. We define net debt as gross debt less cash and cash equivalents and finance lease liabilities on the balance sheet. We define our net leverage ratio as net debt divided by our trailing twelve month adjusted EBITDA. We believe our net debt and net leverage ratio are important measures to monitor our financial flexibility, liquidity and capital structure and may enhance investors' understanding of our ability to meet future financial obligations. In addition, a net leverage ratio is a financial measure that is frequently used by investors and creditors. The below calculations do not include covenant-related adjustments that reduce our net leverage ratio. The following is a reconciliation of gross debt to net debt as of March 31, 2026:

Long-term debt

$          3,918

Current portion of long-term debt

73

Less: Unamortized debt issuance costs

(27)

Total gross debt

4,018

Less: Cash and cash equivalents

428

Less: Finance lease liabilities

255

Net debt

$          3,335

The following table presents a calculation of our net leverage ratio as of March 31, 2026:

Net debt

$          3,335

Trailing twelve month adjusted EBITDA

$            958

     Net leverage ratio

3.5

Investor Contact: Tiffany Kanaga (765) 740-0314 or [email protected]

Media Contact: Colleen Parr Dekker (317) 989-7011 or [email protected]

SOURCE Elanco Animal Health

The animal health company also released better-than-expected first-quarter earnings.

Elanco Stock Rises On Emergency Use Authorization ApprovalsThe recent approval of Elanco’s Negasunt Powder (Coumaphos, Propoxur, Sulfanilamide Topical Powder) and Tanidil (Coumaphos, Propoxur) covers use against new world screwworm in livestock.

Elanco Animal Health reported first-quarter adjusted earnings of 40 cents, beating the consensus of 35 cents, and within management guidance of 33-36 cents.

Sales increased 15% (+10% organic constant currency growth) to $1.37 billion, beating the consensus of $1.29 billion and management guidance of $1.28 billion-$1.31 billion.

Pet Health Segment Shows Steady GrowthPet Health revenue was $710 million, up 12% (+7% on an organic constant currency basis).

Volume increased 5%, primarily driven by new products, and the addition of two new retail customers benefited parasiticides.

The 2% increase in price was in line with the company’s expectations. The Advantage Family of products and Seresto contributed revenue of $163 million and $159 million, respectively.

U.S. Pet Health achieved 6% growth despite winter storms impacting January and February at the vet clinic, then saw a sharp recovery in March to 8% growth, with April even better.

March was Zenrelia’s largest month yet, with U.S. vet clinic sell-in 30% larger than any other month to date. The company said it is at over 16,000 U.S. vet clinics or over 50% of the total, and the reorder rate is over 80%.

Farm Animal revenue was $642 million, an increase of 18% (+13%).

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.

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% a year ago.

Guidance Raised Amid Strong Start To YearIn the earnings conference call, the company said, “With our solid start to the year and accelerating trends into March and April, we are well positioned to raise our top and bottom line outlook for the full year.”

Elanco Animal Health increased its adjusted earnings guidance from $1.00-$1.06 per share to $1.03-$1.09 per share, compared to the consensus of $1.03.

The company also raised its sales guidance from $4.95 billion-$5.02 billion to $5.01 billion-$5.085 billion compared to the consensus of $5 billion.

Elanco Animal Health sees second-quarter adjusted earnings of 25-28 cents versus the consensus of 29 cents, with sales between $1.3-$1.325 billion compared to the Wall Street estimate of $1.32 billion.

ELAN Stock Price Activity: Elanco Animal Health shares were up 9.33% at $25.13 at the time of publication on Wednesday, according to Benzinga Pro data.

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Elanco Animal Health Incorporated (ELAN) Q1 2026 Earnings Call Transcript

, /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today announced that management will participate in upcoming investor conferences.

On Wednesday, May 27, Jeff Simmons, president and CEO, and Bob VanHimbergen, executive vice president and CFO, will participate in a fireside chat at the Stifel 2026 Jaws & Paws Conference at 8:00 a.m. ET.

On Tuesday, June 2, Jeff Simmons, president and CEO will present at the William Blair 46th Annual Growth Stock Conference at 3:20 p.m. CT.

Live audio webcasts will be available in the "Events and Presentations" section of Elanco's investor website. Replays will be available for a limited time at the conclusion of the event.

ABOUT ELANCO
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 – all to Go Beyond for Animals, Customers, Society and Our People. Learn more at www.elanco.com.

Investor Contact: Tiffany Kanaga (765) 740-0314 [email protected]
Media Contact: Season Solorio (765) 316-0233 [email protected]
Media Contact: Colleen Parr Dekker (317) 989-7011 [email protected]

SOURCE Elanco Animal Health

Phased launch of new anti-IL-31 monoclonal antibody is now underway, with product being used by select Early Experience Program veterinarians in clinics today

Befrena is effective for the treatment of dogs against allergic dermatitis and canine atopic dermatitis with no age or weight restrictions, and lasts 6 to 8 weeks, compared to the 4 to 8 weeks of the current market incumbent, lokivetmab Starts controlling itch within 24 hours and is given as an in-clinic injection Select Early Experience Program veterinarians are already using Befrena in clinical practice and seeing positive outcomes Meet Beaux, Penelope and Zephyr, the first early experience patients to receive Befrena and follow their journeys to itch relief Befrena is Elanco's second monoclonal antibody to launch in the U.S. pet health market, joining Trutect™, the first and only approved therapeutic solution to treat canine parvovirus and has been shown to be effective for passive immunity , /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today announced the phased launch of Befrena™ (tirnovetmab), a new anti-IL-31 monoclonal antibody (mAb) injection for treatment of canine allergic and atopic dermatitis. The launch comes at a key time, with a longer and more intense allergy season anticipated across the country this year.i With nearly 2 in 3 itchy dogs experiencing worse itch during allergy seasonii, Befrena expands Elanco's dermatology portfolio by offering a new treatment option that starts controlling allergic itch within 24 hours. By neutralizing IL-31, a key cytokine involved in sending itch signals to the brain, Befrena offers a differentiated 6 to 8 weeks dosing interval, providing veterinarians and pet owners with a new level of convenience and efficacy.

Beaux, a 6-year-old Yorkie from Austin, TX before receiving his first Befrena injection on March 31st, 2026

Beaux, a 6-year-old Yorkie from Austin, TX on April 21st, 2026, just 3 weeks after receiving his first Befrena injection Benefits of Befrena:  

Offers at least 6 to 8 weeks of itch relief, in contrast to the 4 to 8 weeks of the current market incumbent, lokivetmab Starts controlling itch within 24 hours Given as an in-clinic injection administered by, or under the supervision of, a licensed veterinarian Elanco received approval of Befrena from the U.S. Department of Agriculture (USDA) in December 2025, making it the company's second dermatology product, alongside Zenrelia™ (ilunocitinib tablets), to be approved and launched in the past two years.

Elanco is also now the only pet health company with two USDA approved mAb products – Befrena and Trutect. Trutect is the first and only approved therapeutic solution to treat canine parvovirus.

"The commercial launch of Befrena into the $1.3 billion U.S. canine dermatology marketiii is another exciting milestone in our innovation journey," said Bobby Modi, Executive Vice President, U.S. Pet Health and Global Digital Transformation. "We are seeing positive results from our Early Experience Program veterinarians who have started using Befrena in their clinics and will continue to increase supply of this new monoclonal antibody, as we scale our bioreactors with the anticipated manufacturing ramp-up."

Make Best Friends Better – Meet the First Dogs Treated with Befrena

Nearly 9 in 10 dogs in the U.S. are "itchy dogs" according to their pet owners, having experienced symptoms of itch at any point throughout the yearii. Data in Elanco's America's Itchy Dogs Report also found that veterinarians say that itchy dog owners wait too long before bringing in their dog, resulting in raw and infected skin and an irritated dog owner who wants their dog to experience relief quickly.ii

As a part of the Befrena Early Experience Program, select veterinarians and veterinary dermatologists have already started using Befrena in their clinics and seen initial improvements in itchy dogs.

Beaux from Austin, TX was the first dog treated with Befrena after experiencing significant hair loss due to his constant itch.

According to Dr. Matt Lane at Liberty Animal Hospital at Beaux's 3-week checkup appointment, "Beaux is doing amazing, and his owner is excited to see his hair growing back. He stopped itching within 24 hours of receiving the injection and his owner and I are extremely pleased with the results."

Penelope and Zephyr were also treated with Befrena at Gigi's Animal Shelter in Columbus, OH. Both dogs experience seasonal allergies that impact their behavior and quality of life and after discussing with their veterinarian both owners chose Befrena to control their dogs' itch.

"We want to get these dogs relief and make sure they have the most comfortable experience as possible, and I think Befrena shows some real promise for that," said Dr. Meghan Herron, Senior Director of Behavior, Research, and Education at Gigi's.

Zephyr's owner is also a licensed veterinary technician at Gigi's and helped administer Zephyr's injection. You can follow along their journey below.

https://elanco.wistia.com/medias/5nbmg3s2hk

"I have been involved with two clinical trials and the Early Experience Program which has shown Befrena to be a highly safe and effective product," said Dr. Tom Lewis, veterinary dermatologist and founder of Dermatology for Animals, a group of veterinary dermatology clinics committed to caring for pets with allergies. "This will become a very important treatment option for many allergic dogs and I am excited to use Befrena in my clinic."*

"I've used Befrena in a few patients so far and while it's still relatively early, I'm very optimistic and excited about what's going to happen with these cases," said Dr. Jason Pieper, veterinary dermatologist and tenured associate professor of dermatology at Iowa State University College of Veterinary Medicine. "I've had several patients respond very well including one unique case that has failed multiple other treatments for atopic dermatitis. And so far, two weeks after receiving Befrena, this dog's doing quite well, it's wonderful."*

Learn more about Befrena and sign up for future news and webinars at www.befrenaforvets.com.

*Drs. Pieper and Lewis are consultants for Elanco.

ABOUT ELANCO
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 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 – all to Go Beyond for Animals, Customers, Society and Our People. Learn more at www.elanco.com.

INDICATIONS
Zenrelia is a prescription medication used to control itching and inflammation associated with skin allergies for dogs over 12 months of age.

IMPORTANT SAFETY INFORMATION
Read the package insert, including the Boxed Warning, before using this drug. For full prescribing information speak with your veterinarian, call 1 888 545 5973 or visit www.elancolabels.com/us/zenrelia.

WARNING: INADEQUATE IMMUNE RESPONSE TO VACCINES. Based on results of the vaccine response study, dogs receiving Zenrelia are at risk of an inadequate immune response to vaccines. Discontinue Zenrelia for at least 28 days to 3 months prior to vaccination and withhold Zenrelia for at least 28 days after vaccination. Dogs should be up to date on vaccinations prior to starting Zenrelia. Do not use in dogs less than 12 months old or dogs with a serious infection. Dogs should be monitored for infections because Zenrelia may increase the chances of developing an infection. Neoplastic conditions (benign and malignant) were observed during clinical studies. The most common side effects were vomiting, diarrhea and tiredness. Zenrelia has not been tested in dogs used for breeding, pregnant, or lactating dogs and has not been evaluated in combination with glucocorticoids, cyclosporine, or other immune suppressive drugs.

Befrena, Zenrelia, Trutect, Elanco and the diagonal bar logo are trademarks of Elanco or its affiliates. © 2026 Elanco or its affiliates

PM-US-26-0849

i Asthma and Allergy Foundation of America, (2026). 2026 Allergy Capitals. Retrieved from allergycapitals.org.
ii Elanco Animal Health. Data on File. REF-28442
iii Elanco Animal Health. Data on File. REF-29772

Investor Contact: Tiffany Kanaga (765) 740-0314 [email protected]
Media Contact: Season Solorio (765) 316-0233 [email protected]  

SOURCE Elanco Animal Health

Elanco Animal Health Incorporated (ELAN) Presents at Stifel Jaws & Paws Conference 2026 Transcript

, /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN), a global leader in animal health, today released new consumer research showing pet owners continue to prioritize spending on their pets, underscoring the robust and resilient nature of the industry.

According to Elanco's latest survey of 1,409 U.S. pet owners conducted May 29-31, even with rising costs across spending categories including higher gas prices, pet health and wellness remain an absolute priority for pet owners as a protected budget item.

Pet owner data 2026. Stable Expectations for Pet Owner Spend: 91% of pet owners have at least maintained their spending on pet health and wellness products in recent years, with 38% of pet owners increasing spend. This remains stable with February research prior to rising fuel prices. Increasing Pet Care Spend Despite Rising Costs of Living: 31% of pet owners say they've increased spending on their pets' health and wellness in the past three months, despite increasing economic challenges. Further, 90% of pet owners expect their spending to stay the same or increase (37%) in the year ahead.   Pet Health & Wellness as a Top Priority and Core Expenditure: 95% of pet owners see pet health and wellness care as a priority that they will not reduce due to economic pressure. Even when consumers face personal financial challenges, they are willing to cut spending on themselves – dining out, travel – before their pets. In fact, pet health and wellness was the last item in the surveyed categories that consumers would cut if required to reduce expenses.  Elanco's latest research reveals a powerful and enduring shift in consumer behavior shaped by a new kind of pet owner – one who is more engaged, more informed and more empowered than ever before. Pets are no longer just companions – they're family. With fewer kids and more pets, pet owners are demonstrating an increased expectation of care and desire for longer, healthier lives for their pets. This profound commitment translates directly into a strong and durable willingness to invest in their wellbeing, with 88% of pet parents saying their pet's happiness and wellbeing is as important as their own.

"Our research consistently shows that pet care is not a discretionary expense; it's a deeply emotional and highly prioritized investment for pet parents," said Bobby Modi, Executive Vice President, U.S. Pet Health and Digital Transformation. "Pet owners are demonstrating an unwavering commitment to their animals' health, driving demand for innovative, high-quality solutions. This fundamental consumer trend underpins the resilience and growth potential of the companion animal industry, and Elanco is strategically positioned to capitalize on it."

These findings reinforce the broader industry data showing the animal health industry is one of the most compelling and resilient sectors, with a 20-year track record of continual growth, averaging about 5% annually. Elanco estimates the industry expanded by 7% in 2025. Deep consumer commitment to pets and a surging demand for animal protein are driving sustained growth. With a long runway ahead, the animal health industry is projected to grow from $42 billion in 2025 to $60 billion in the next decade.

Key pet health trends further amplify this opportunity:

Omnichannel Access & Convenience: Modern pet owners seek convenience and diverse access points for care. While vet visit volumes may fluctuate, spending on vet services continues to grow, indicating a strong willingness to spend on innovation. Further, approximately 40% of pet care sales are subscription-based. Additionally, many consumers spend outside the vet clinic. The 2024 APPA National Pet Owners Survey indicated approximately one-third of all dog and cat owners didn't take their pet to a veterinarian in the previous year. Elanco is well-positioned with an omnichannel approach to meet pet owners where, when, and how they choose to engage. Comprehensive Portfolios & Innovation: Pet owners are willing to spend on innovation, which creates the value that drives industry pricing. Elanco is well-positioned with its market-leading growth in U.S. Pet Health through a basket of innovation, #1 standing in OTC1 and status as just one of two industry providers with a complete portfolio. Expanding Diagnostic Opportunities: Currently, only one in five pet visits includes diagnostics, meaning the true spectrum of disease is often unknown. As diagnostics expand what can be detected, and AI accelerates what can be learned, the opportunity to improve pet health and drive value is substantial. Elanco remains committed to providing pet owners with a wide range of innovative solutions at a variety of price points where they want to shop, that deliver on pet owners' desire to help their pets live longer, healthier, more active lives.

ABOUT ELANCO
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 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 – all 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 expected consumer trends, market dynamics and industry growth.  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, and additional factors that could cause actual results to differ materially from forward-looking statements described in the company's latest Form 10-K and Form 10-Qs filed with the Securities and Exchange Commission. We caution you against relying on any forward-looking statements, which should also be read in conjunction with the other cautionary statements that are included elsewhere in this press release. Any forward-looking statement made by us in this press release speaks only as of the date thereof. We undertake no obligation to publicly update or to revise any forward-looking statement, whether as a result of new information, future developments or otherwise, except as may be required by law.

________________________________

1 Internal estimates based on multiple data sources, as provided with our financial results reported on May 6, 2026

Investor Contact: Tiffany Kanaga (765) 740-0314 [email protected]
Media Contact: Colleen Dekker (317) 989-7011 [email protected]

SOURCE Elanco Animal Health

Company offers portfolio of treatment options and expert guidance following first confirmed case in the United States 

New World screwworm has officially reached the United States, with the first confirmed case in U.S. livestock in Texasi  New World screwworm can infest any warm-blooded animals – including livestock and pets – posing a significant threat to animal health, welfare, and producer livelihood  Elanco offers a portfolio of options for both livestock and pets that can treat infestations caused by New World screwworm larvae  , /PRNewswire/ -- Elanco Animal Health Incorporated (NYSE: ELAN) today reaffirms its commitment to providing veterinarians, livestock producers, and pet owners with resources and treatment options for their animals against the escalating threat posed by New World screwworm (NWS). The fly recently reached the United States, with the first case confirmed in U.S. livestock in Texas.i 

The emergence of New World screwworm in the U.S. creates a threat for veterinarians, livestock producers and pet owners that has not been seen north of the Florida Keys since the fly was eradicated from the United States more than 50 years ago.ii New World screwworm (Cochliomyia hominivorax) larvae feed on living tissue and can affect a wide range of warm-blooded animals, including livestock, companion animals, wildlife, and even humans.ii 

"New World screwworm could have a devastating impact on animal health, welfare, and producer livelihoods," said Jeff Simmons, President and CEO, Elanco Animal Health. "We want to thank the FDA, EPA and USDA, for all their work to prepare for this threat. We're committed to supporting our customers during this challenging time by delivering innovation, scientific expertise, and available resources to help treat New World screwworm and support the health and well-being of animals." 

With more than 70 years of animal health experience, including helping mitigate, prevent and treat New World screwworm in other parts of the world, Elanco is working alongside the U.S. animal health industry to help them fight against this parasite, offering a portfolio of options for pets and livestock that can help treat New World screwworm larvae infestations. 

Available Elanco Treatment and/or Prevention Options  

Product Name 

Indication  

Species 

Regulatory Status 

Credelio Quattro™- CA1 
(lotilaner, moxidectin, praziquantel, and pyrantel chewable tablets) 

Treats New World screwworm larvae infestations 

Dogs 

FDA Conditional Approval 

Credelio™ (lotilaner) 

Treats New World screwworm larvae infestations

Dogs 

FDA Emergency Use Authorization (EUA) 

Credelio™ CAT (lotilaner) 

Treats New World screwworm larvae infestations

Cats 

FDA Emergency Use Authorization (EUA) 

Negasunt™ Powder (coumaphos, propoxur, and sulfanilamide topical powder) 

Treats and Prevents New World screwworm larvae infestations

Variety of Livestock and other Species

FDA Emergency Use Authorization (EUA) 

Tanidil™ (Coumaphos, Propoxur) 

Prevents and Controls New World screwworm larvae infestations 

Variety of Livestock and other Species 

EPA Section 18 Emergency Exemption 

Catron® IV (Permethrin) 

Kills and controls screwworm fly and maggots 

Livestock 

EPA Approved 

Negasunt Powder and Tanidil will be available only through the U.S. Animal Plant Health and Inspection Service (APHIS) and its National Veterinary Stockpile. They will be distributed in coordination with state animal health officials and federally recognized tribal agencies. In the near future, APHIS will share additional information about the requirements for use, including tracking and reporting requirements and required safety and personal protective equipment. 

As New World screwworm enters the United States, Elanco is committed to working alongside producers as they continuously evolve management practices and to help them implement prevention and treatment protocols to use the right product at the right time. 

To learn more about Elanco's ongoing efforts and historical perspective on New World screwworm, please visit our previous coverage: 

Elanco's Negasunt™ Powder (Coumaphos, Propoxur, Sulfanilamide Topical Powder) and Tanidil™ (Coumaphos, Propoxur) Receive Emergency Authorization for Use Against New World Screwworm in Livestock  Elanco's Credelio Quattro™-CA1 (lotilaner, moxidectin, praziquantel, and pyrantel chewable tablets) Receives First FDA Conditional Approval for Treatment of New World Screwworm in Dogs  Elanco's Credelio™ CAT (lotilaner) Receives First FDA Emergency Use Authorization (EUA) for Treatment of New World Screwworm (NWS) in Cats  Elanco's Credelio™ (lotilaner) Receives First Ever FDA Emergency Use Authorization (EUA) against New World Screwworm (NWS) in Dogs  To learn more about New World screwworm (NWS) using the following resources: 

USDA NWS Alert and Fact Sheet  NCBA NWS Resources  FDA Information for Veterinarians on NWS  About Elanco Animal Health 

Elanco Animal Health Incorporated 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 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 – all to Go Beyond for Animals, Customers, Society and Our People. Learn more at www.elanco.com. 

Indications for Credelio Quattro/Credelio Quattro-CA1 

Credelio Quattro is indicated for the prevention of heartworm disease and the treatment and control of roundworm, hookworm, and tapeworm infections. Credelio Quattro kills adult fleas and is indicated for the treatment and prevention of flea infestations and the treatment and control of tick infestations for 1 month in dogs and puppies 8 weeks of age and older and weighing 3.3 pounds or greater. Credelio Quattro is indicated for the prevention of Lyme disease infections as a direct result of killing black-legged ticks. 

Credelio Quattro-CA1 is conditionally approved for the treatment of infestations caused by New World screwworm (NWS) larvae in dogs and puppies 8 weeks of age and older and weighing 3.3 pounds or greater. 

Important Safety Information for Credelio Quattro/Credelio Quattro-CA1 

Lotilaner, an ingredient in Credelio Quattro/Credelio Quattro-CA1, belongs to the isoxazoline class and has been associated with neurologic adverse reactions like tremors, incoordination, and seizures even in dogs without a history of seizures. Use with caution in dogs with a history of seizures or neurologic disorders. Dogs should be tested for existing heartworm infections before Credelio Quattro/Credelio Quattro-CA1 administration as it is not effective against adult heartworms. The safe use in breeding, pregnant, or lactating dogs has not been evaluated. The most frequently reported adverse reactions in clinical trials were vomiting and diarrhea. 

Credelio Quattro-CA1 is conditionally approved by the FDA pending a full demonstration of effectiveness under application number 141-619. If you suspect that your dog is infested with NWS larvae, seek veterinary care immediately for treatment to include removal of larvae and appropriate wound care. 

For complete safety information, please see the Credelio Quattro/Credelio Quattro-CA1 product label or ask your veterinarian. 

Emergency Use Authorization of Credelio (lotilaner) Chewable Tablets for New World Screwworm (NWS) 

The U.S. Food and Drug Administration (FDA) has issued an Emergency Use Authorization (EUA) for the emergency use of the approved product Credelio (lotilaner) chewable tablets for the treatment of infestations caused by NWS (Cochliomyia hominivorax) larvae (myiasis) in dogs and puppies. Credelio is not approved for this use. 

Credelio (lotilaner) is approved for other uses in dogs and puppies. 

For additional information on the EUA, please refer to the Credelio NWS Fact Sheet. 

Limitations of Authorized Use 

Credelio (lotilaner) chewable tablets is authorized for this use only for the duration of the declaration that circumstances exist justifying the authorization of the emergency use of Credelio (lotilaner) chewable tablets under section 564(b)(1) of the Federal Food, Drug, and Cosmetic Act (FD&C Act), 21 U.S.C. § 360bbb-3(b)(1), unless the authorization is terminated or revoked sooner. 

Indications for Credelio 

Credelio kills adult fleas and is indicated for the treatment and prevention of flea infestations and treatment and control of tick infestations (lone star tick, American dog tick, black-legged tick, brown dog tick, and longhorned tick) for one month in dogs and puppies 8 weeks and older and 4.4 pounds or greater. Credelio is indicated for the prevention of Lyme disease infections as a direct result of killing black-legged ticks. 

Important Safety Information for Credelio 

Lotilaner is a member of the isoxazoline class of drugs. This class has been associated with neurologic adverse reactions including tremors, incoordination, and seizures. Seizures have been reported in dogs receiving this class of drugs, even in dogs without a history of seizures. Use with caution in dogs with a history of seizures or neurologic disorders. The safe use of Credelio in breeding, pregnant or lactating dogs has not been evaluated. The most frequently reported adverse reactions are weight loss, elevated blood urea nitrogen, increased urination, and diarrhea. For complete safety information, please see Credelio product label or ask your veterinarian. 

Emergency Use Authorization for Credelio CAT (lotilaner) for New World Screwworm (NWS) 

The U.S. Food and Drug Administration (FDA) has issued an Emergency Use Authorization (EUA) for the emergency use of the approved product Credelio CAT (lotilaner) for the treatment of infestations caused by NWS (Cochliomyia hominivorax) larvae (myiasis) in cats and kittens. Credelio CAT is not approved for this use. 

Credelio CAT is approved for other uses. 

For additional information on the EUA, please refer to the Credelio Cat NWS Fact Sheet. 

Limitations of Authorized Use 

Credelio CAT (lotilaner) is authorized for this use only for the duration of the declaration that circumstances exist justifying the authorization of the emergency use of Credelio CAT (lotilaner) under section 564(b)(1) of the Federal Food, Drug, and Cosmetic Act (FD&C Act), 21 U.S.C. § 360bbb-3(b)(1), unless the authorization is terminated or revoked sooner. 

Indications for Credelio CAT 

Credelio CAT kills adult fleas and is indicated for the treatment and prevention of flea infestations for one month in cats and kittens 8 weeks of age and older and weighing 2 pounds or greater. 

Credelio CAT is also indicated for treatment and control of black-legged tick infestations for one month in cats and kittens 6 months of age and older and weighing 2 pounds or greater. 

Important Safety Information for Credelio CAT 

Lotilaner is a member of the isoxazoline class of drugs. This class has been associated with neurologic adverse reactions including tremors, incoordination and seizures. Neurologic adverse reactions have been reported in cats receiving isoxazoline class drugs, even in cats without a history of neurologic disorders. Use with caution in cats with a history of neurologic disorders. The safety of Credelio CAT has not been established in breeding, pregnant and lactating cats. The effectiveness of Credelio CAT against black-legged ticks in kittens less than 6 months of age has not been evaluated. The most frequently reported adverse reactions are weight loss, rapid breathing and vomiting. For complete safety information, please see Credelio CAT product label or ask your veterinarian. 

Emergency Use Authorization of Negasunt Powder (coumaphos, propoxur, and sulfanilamide topical powder) for New World Screwworm (NWS) 

WARNING: Neurotoxicity. Read full Fact Sheet for complete information. 

Coumaphos and propoxur can cause neurotoxicity. May be fatal if swallowed. May be fatal if inhaled. Harmful if absorbed through skin. Causes moderate eye irritation. Do not breathe dust. Avoid contact with eyes, skin, or clothing.  Use only with appropriate personal protective equipment (PPE): coveralls worn over long-sleeve shirt and long pants, shoes, socks, and protective eyewear; chemical-resistant gloves made of  barrier laminate, butyl rubber (≥ 14 mils), nitrile rubber (≥14 mils), neoprene rubber (>14 mils), natural rubber (≥14 mils), polyethylene, polyvinyl chloride (PVC) ≥14 mils, or Viton (>14 mils); and a minimum of a NIOSH-approved elastomeric half mask respirator consisting of protection factor (PF) 10 fitted with organic vapor (OV) cartridges and combination  R or P filters; or a NIOSH-approved gas mask with OV canisters; or a NIOSH-approved powered air purifying respirator with OV cartridges and combination HE filters.  This product is toxic to mammals, birds, fish, and aquatic invertebrates.  The U.S. Food and Drug Administration (FDA) has issued an Emergency Use Authorization (EUA) for the emergency use of the unapproved product Negasunt Powder for the prevention and treatment of infestations caused by New World screwworm (Cochliomyia homnivorax) larvae (myiasis) in cattle, swine, goats, sheep, horses, donkeys, domestic hybrid equids, and captive wild, exotic, and zoo mammals. Negasunt Powder is not approved for this use. 

For use by employees of federal, state, local, and federally recognized tribal agencies, and persons working under their authority and at their direction. Also for use by or on the order of a licensed veterinarian in NWS infested zones and adjacent surveillance zones as defined by the U.S. Department of Agriculture (USDA). 

For additional information on the EUA and for complete safety information, please refer to the Negasunt Powder NWS Fact Sheet. 

Limitations of Authorized Use 

It is a violation of federal law to use this drug product other than as directed in the authorized Fact Sheet. 

Treated animals must not be slaughtered for human consumption within 28 days of the last treatment. 

A milk discard time has not been established for this product; do not use in animals producing milk for human consumption. 

A withdrawal period has not been established for this product in pre-ruminating calves; treated calves and calves born to treated cows must not be processed for veal. 

Do not use in horses intended for human consumption. Do not use in domestic indoor pets (e.g., dogs, cats, rodents, rabbits) nor in residences. Do not use in birds. Do not use in free-ranging wildlife. 

To avoid overexposure, each individual person cannot treat more than 3 large wounds (>2 inches diameter) a day or more than 30 small superficial wounds (≤2 inches diameter) a day (or an equivalent thereof) with Negasunt Powder or any other coumaphos-containing products. 

Negasunt Powder is authorized for this use only for the duration of the declaration that circumstances exist justifying the authorization of the emergency use of Negasunt Powder under section 564(b)(1) of the Federal Food, Drug, and Cosmetic Act (FD&C Act), 21 U.S.C. § 360bbb-3(b)(1), unless the declaration is terminated or the authorization is revoked sooner. 

Federal law prohibits the extra-label use of this drug. 

Additional Important Safety Information 
Not for use in humans. Keep out of reach of children. Only handlers wearing required PPE may be in the area during application. Do not apply in a confined, non-ventilated area; provide thorough ventilation. Call a poison control center or doctor immediately for treatment advice if Negusant Powder is swallowed, inhaled, on skin or clothing, or in eyes. Sulfonamides are contraindicated in animals that are hypersensitive to them and in animals with severe renal or hepatic impairment. For external use only on animals. Do not contaminate water, feed, troughs, feed handling equipment, or milk or meat handling equipment. Use with caution in very young, weak, or debilitated animals. In the case of overdose, treat with atropine sulfate or pralidoxine chloride (2-PAM) as soon as possible. The most common adverse reactions associated with organophosphate and carbamate toxicity in animals include frequent urination and defecation, muscle twitching, and watering eyes. 

Important Information about Tanidil 
Tanidil™ is an unregistered product for distribution and use only under a Section 18 emergency exemption. The Section 18 labeling must be in the possession of the user at the time of pesticide application. This product may only be used to prevent or control New World screwworm in and on animal wounds on labeled animal host species. 

For use only by federal, state, local, and federally recognized tribal agencies, and persons working under their supervision; personnel at quarantine stations and areas; veterinarians; veterinarians or certified applicators at livestock and game facilities, zoos, wildlife facilities, animal rehabilitation centers; and wildlife professionals. 

Read the entire label. This product must be used strictly in accordance with this label's precautionary statements and use directions, as well as with all applicable state and federal laws and regulations. Please visit the Tanidil fact sheet for more information. 

Use Period: This exemption is effective on April 27, 2026 and expires on April 27, 2029. No applications of Tanidil may be made under the emergency exemption before its effective date or after its expiration date. 

Credelio, Credelio Quattro, Negasunt, Tanidil, Catron, Elanco and the diagonal bar logo are trademarks of Elanco or its affiliates. © 2026 Elanco or its affiliates 

Investor Contact: Tiffany Kanaga (765) 740-0314 [email protected]
Media Contact: Colleen Parr Dekker (317) 989-7011 [email protected]
Media Contact: Mika Takahashi (765) 335-4070 [email protected]
Media Contact: Season Solorio (765) 316-0233 [email protected]

SOURCE Elanco Animal Health

By Reuters

April 24, 20263:05 AM UTCUpdated April 24, 2026

Item 1 of 2 An Audi E5 Sportback is displayed during a media day for the Auto Shanghai show in Shanghai, China April 23, 2025. REUTERS/Go Nakamura/File Photo

[1/2]An Audi E5 Sportback is displayed during a media day for the Auto Shanghai show in Shanghai, China April 23, 2025. REUTERS/Go Nakamura/File Photo Purchase Licensing Rights, opens new tab

CompaniesBEIJING, April 24 (Reuters) - China ​and Germany will contribute ⁠their strongest ​capabilities to the ​Audi brand, an SAIC VW executive said on ​Friday, with ​the establishment of a ‌new ⁠SAIC-Audi research centre representing the start of the ​3.0 ​era ⁠of joint venture partnership.

(This story has been refiled to correct reporting credits to say reporting by Zoey Zhang and David Dolan in Beijing)

The Reuters Inside Track newsletter is your essential guide during the World Cup. Sign up here.

Reporting ​by Zoey Zhang ​and ⁠David Dolan in Beijing; Writing ⁠by ​Farah ​Master in Hong Kong; Editing ​by Muralikumar Anantharaman

Our Standards: The Thomson Reuters Trust Principles., opens new tab

National Capitol Classic golf fundraiser at the historic Army Navy Country Club, co-hosted with SAIC and Amazon Web Services, raised funds to support these veterans and their families and expand Building Homes for Heroes' impact nationwide

, /PRNewswire/ -- Building Homes for Heroes, joined by corporate partners Science Applications International Corp. (NASDAQ: SAIC) and Amazon Web Services, announced yesterday it will gift mortgage-free homes to U.S. Air Force Staff Sergeant, Gregory Walker and Army Specialist, Ryan Heard, two injured veterans whose service and sacrifice exemplify the very best of our armed forces. The home gifts will provide long-term stability for both veterans and their families as they continue their road to recovery.

Members of Building Homes for Heroes, SAIC and AWS gather at the second annual National Capitol Classic golf outing at Army Navy Country Club in Washington, D.C., where Building Homes for Heroes announced mortgage-free home gifts for two injured veterans. (PRNewsfoto/Building Homes For Heroes) These gifts are made possible through the steadfast support of Building Homes for Heroes' valued partners, SAIC and AWS, and were the highlight of the second annual National Capitol Classic golf outing hosted by the three organizations at the historic Army Navy Country Club. The event brought together corporate partners, community supporters, and veterans to raise awareness and support for Building Homes for Heroes' mission of building better and brighter lives for our nation's heroes.

The announcement was the culmination of a day of celebration of our nation's heroes, as patriotic corporations, hundreds of supporters, and dozens of veterans gathered for the golf outing in support of Building Homes for Heroes' mission. As the organization marks its 20th anniversary in 2026, it continues to build on its commitment with their 50+500+5,000 campaign: constructing, gifting and modifying a record 50 homes this year, reaching its milestone 500th home before the end of 2026, and supporting more than 5,000 veterans, first responders, and their family members through all its programs since 2006.

The Veterans Receiving Mortgage-Free Homes

Walker enlisted in the Air Force in 2008 and served for more than 12 years, including three deployments to Afghanistan. During his service and in the years following, Walker was diagnosed with Synovial Sarcoma, a rare cancer that ultimately resulted in the amputation of his left leg below the knee. Despite these challenges, he has remained deeply committed to his fellow veterans and the adaptive sports community, competing in the Invictus Games and training to become a Paralympic athlete.

"Presenting Staff Sergeant Walker and Specialist Heard with mortgage-free homes is a powerful reminder of our responsibility to the men and women who have served our country," said Andy Pujol, founder and CEO of Building Homes for Heroes. "Between Staff Sergeant Walker's determination in the face of a life-changing diagnosis, and Specialist Heard's courage under fire in Afghanistan and his ongoing recovery from a traumatic brain injury, these are the stories that drive our mission every day. Homes like these are made possible through our valued partnerships with organizations like SAIC and AWS, whose unwavering support allows us to create life-changing moments for deserving heroes and their families."

Inspired by his father's 23 years of service in the Florida National Guard and driven by the events of September 11, 2001, Heard enlisted in the Army in February 2007 out of Jacksonville, Florida. During his more than six years of service, Heard completed two deployments to Iraq and one to Afghanistan. On July 7, 2013, while conducting a counter-IED mission in Afghanistan's Logar Province, he and three fellow soldiers triggered a pressure-plate IED. The explosion left him with a severe traumatic brain injury, and despite his injuries, he helped treat wounded comrades and coordinate medical evacuation before losing consciousness. Today, Heard lives with a TBI, PTSD, chronic migraines, and numerous other service-connected conditions, and has found healing through nature-based therapy, including fishing, kayaking, and equine therapy programs for veterans. He is a Purple Heart recipient, and together with his partner, is raising two young children, driven by his dreams of providing a stable home for his family in Tampa, Florida.

"Helping warriors like Staff Sergeant Walker and Specialist Heard with mortgage-free homes is a great way to take purposeful action during Military Appreciation Month," said SAIC CEO Jim Reagan. "SAIC is proud to collaborate with Amazon Web Services and the many other corporate partners who attended today's golf fundraiser for Building Homes for Heroes, an extraordinary organization that is making a huge difference for veterans, their families, and Gold Star families."

About Building Homes for Heroes
Building Homes for Heroes builds and gifts mortgage-free homes, and completes home modifications, for veterans, emergency first responders and their families, and provides further services along their road to recovery to help them live a promising and fulfilling life ahead. The organization reached a 96% program rating in 2025, the 13th straight year earning a program rating of at least 93%. It also received a perfect 4-star rating from Charity Navigator for seven straight years, including a 100% in transparency and accountability.

Media Contact
David Weingrad, Building Homes for Heroes, Director of Communications, (516) 643-0325

SOURCE Building Homes For Heroes

On May 22, 2026, Science Applications International Corp SAIC shares rose 4.1% to a current price of $100.01. This movement comes amidst a 52-week trading range of $81.08 to $123.16, indicating notable volatility in its recent price history.

GF Value™ verdict: Current price of $100.01 is 19.1% below the GF Value™ estimate of $123.66, indicating the stock is undervalued.GF Score™: The company holds a score of 77/100, which classifies it as above average in terms of overall quality and performance metrics.Most notable signal: Insider activity shows that there has been no selling with insiders buying $0.0M in the last three months, indicating confidence in the company’s future prospects. Is SAIC Overvalued or Undervalued? The current price of Science Applications International Corp SAIC at $100.01 is significantly below the GF Value™ estimate of $123.66, which suggests that the stock is undervalued by approximately 19.1%. This creates a margin of safety for potential investors, as the difference between the current market price and the intrinsic value indicates room for price appreciation. The GF Valuation label describes SAIC as "Modestly Undervalued," hinting at a potential opportunity for long-term growth if market conditions align favorably.

While being undervalued presents a potential investment opportunity, caveats remain. Market conditions can be unpredictable, influencing stock prices independent of intrinsic value calculations. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates. Therefore, while the current valuation may suggest a favorable entry point, investors should consider broader economic factors and company fundamentals before making any decisions.

How Does SAIC's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 13.0x 17.0x Forward P/E 10.5x N/A Currently, SAIC’s P/E ratio of 13.0x is well below its 5-year median P/E of 17.0x, indicating that the stock is trading at a discount compared to its historical valuation. The forward P/E of 10.5x further supports the notion that the stock is attractively priced relative to its past performance. This P/E analysis aligns with the GF Value™ verdict of being undervalued, reinforcing the idea that the stock may present an appealing opportunity for long-term growth.

What Does SAIC's GF Score™ Tell Us? Metric Rating GF Score™ 77/100 Financial Strength 5/10 Profitability 9/10 Growth 6/10 Valuation 8/10 Momentum 2/10 The GF Score™ of 77/100 suggests that SAIC is positioned above average in terms of its overall quality and performance. The strongest aspect of SAIC's profile is its profitability, scoring 9/10, indicating robust earnings capabilities. However, the momentum rank of 2/10 highlights a potential concern, suggesting that the stock may not be experiencing favorable price trends at this time. Overall, the combination of a high profitability rank and moderate scores in other categories suggests that while SAIC has strong foundational elements, it could benefit from improved momentum in the market.

What Are Insiders Doing with SAIC Stock? Recent insider activity for Science Applications International Corp shows that there have been no significant transactions, with insiders having not sold any shares and reported buying $0.0M in the last three months. This lack of selling activity can indicate that insiders are confident in the company's future performance and outlook, which can be a positive signal for potential investors.

What This Means for Investors Based on the GF Value™ assessment, Science Applications International Corp SAIC appears to be undervalued at its current price of $100.01, compared to the intrinsic value of $123.66. This suggests a potential opportunity for investment, provided that investors consider the broader market context and company fundamentals.

For the complete analysis, visit the Science Applications International Corp SAIC stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is SAIC's GF Score™?

SAIC has a GF Score™ of 77/100, indicating that it is above average in terms of quality and performance based on multiple key metrics.

Is SAIC overvalued or undervalued?

SAIC is currently undervalued, with a GF Value™ of $123.66, suggesting there is potential for price appreciation from its current level of $100.01.

What is SAIC's P/E ratio?

SAIC's P/E ratio is 13.0x, which is significantly lower than its 5-year median P/E of 17.0x, indicating that the stock is trading at a discount compared to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

May 29, 2026 08:10 ET  | Source: SAIC, Inc.

RESTON, Va., May 29, 2026 (GLOBE NEWSWIRE) -- Science Applications International Corp. (NASDAQ: SAIC) announced today that the company’s board of directors declared a cash dividend of $0.37 per share of the company’s common stock payable on July 24, 2026 to stockholders of record on July 10, 2026.

SAIC intends to continue paying dividends on a quarterly basis, although the declaration of any future dividends will be determined by the board of directors each quarter and will depend on earnings, financial condition, capital requirements and other factors.

About SAIC
SAIC® is a premier mission integrator focused on advancing the power of technology and innovation to serve and protect our world. Our robust portfolio of offerings across the defense, space, intelligence, and civilian markets includes secure high-end solutions in mission IT, enterprise IT, engineering services, and professional services. We integrate emerging technology, rapidly and securely, into mission critical operations that modernize and enable critical national imperatives.

We are approximately 23,000 strong; driven by mission, united by purpose, and inspired by opportunities. Headquartered in Reston, Virginia, SAIC has annual revenues of approximately $7.3 billion. For more information, visit saic.com. For ongoing news, please visit our newsroom.

Forward-Looking Statements
Certain statements in this release contain or are based on “forward-looking” information within the meaning of the Private Securities Litigation Reform Act of 1995. In some cases, you can identify forward-looking statements by words such as “expects,” “intends,” “plans,” “anticipates,” “believes,” “estimates,” “guidance,” and similar words or phrases. Forward-looking statements in this release may include, among others, estimates of future revenues, operating income, earnings, earnings per share, charges, total contract value, backlog, outstanding shares and cash flows, as well as statements about future dividends, share repurchases and other capital deployment plans. Such statements are not guarantees of future performance and involve risk, uncertainties and assumptions, and actual results may differ materially from the guidance and other forward-looking statements made in this release as a result of various factors. Risks, uncertainties and assumptions that could cause or contribute to these material differences include those discussed in the “Risk Factors,” “Management’s Discussion and Analysis of Financial Condition and Results of Operations” and “Legal Proceedings” sections of our Annual Report on Form 10-K, as updated in any subsequent Quarterly Reports on Form 10-Q and other filings with the SEC, which may be viewed or obtained through the Investor Relations section of our website at saic.com or on the SEC’s website at sec.gov. Due to such risks, uncertainties and assumptions you are cautioned not to place undue reliance on such forward-looking statements, which speak only as of the date hereof. SAIC expressly disclaims any duty to update any forward-looking statement provided in this release to reflect subsequent events, actual results or changes in SAIC’s expectations. SAIC also disclaims any duty to comment upon or correct information that may be contained in reports published by investment analysts or others.

Media Contact:
Darryn James
[email protected]

Investor Relations Contact:
Jon Raviv
[email protected]