Shares of Elanco Animal Health Incorporated (NYSE:ELAN) are trading higher on Wednesday, following a recent announcement regarding the approval of its products, Negasunt Powder and Tanidil, which received emergency use authorization.

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

Elanco Stock Rises On Emergency Use Authorization Approvals

The 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 Growth

Pet 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 Year

In 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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