Phibro Animal Health Q2 2026 earnings snapshot

Phibro Animal Health (PAHC) just posted Q2 2026 results with revenue of US$373.9 million and basic EPS of US$0.68, while trailing twelve month figures stand at US$1.5 billion in revenue and basic EPS of US$2.27. The company has seen quarterly revenue move from US$309.3 million in Q2 2025 to US$373.9 million in Q2 2026, with basic EPS shifting from US$0.08 to US$0.68 over the same period. This sets up a scenario where investors may weigh these higher earnings against how durable the current margin profile appears.

With the latest numbers on the table, the next step is to see how this earnings profile lines up with the prevailing narratives around Phibro Animal Health, and where the data pushes back on those stories.

Margins step up with 6.3% trailing net margin

• Over the last twelve months, Phibro generated US$1.5b in revenue and US$92.1 million in net income, which works out to a 6.3% net margin compared with 1.7% a year earlier based on the analysis summary.
• What stands out for a bullish view is that this margin picture sits alongside TTM basic EPS of US$2.27 and a very large 1 year earnings increase. At the same time, the five year trend shows a 2.8% per year decline, so investors who are optimistic need to weigh the recent improvement against that longer term pattern.

Valuation signals are mixed at 22x P/E

• The stock is trading on a 22x P/E, which is slightly above the US Pharmaceuticals industry average of 21.1x and well above the peer average of 13.9x. However, the input DCF fair value of US$100.50 sits well above the current US$50.00 share price.
• What is interesting for a bullish angle is that the shares are described as trading about 50.2% below that DCF fair value while still carrying higher than peer P/E multiples. This means some investors may see earnings quality and the recent US$92.1 million of TTM net income as enough to justify the higher multiple even though revenue is only forecast to grow around 3% per year versus a cited 10.3% for the broader US market.

Earnings jump contrasted with modest 3% revenue outlook

• GAAP earnings are reported to have grown about 377% over the past year, while revenue is forecast to grow around 3% per year and earnings around 13% per year, both below the cited US market expectations of 10.3% revenue growth and 15.7% earnings growth.
• Critics highlight that debt is described as not well covered by operating cash flow, so the very strong recent earnings and the move in net margin to 6.3% are being weighed against slower expected revenue growth and the balance sheet risk. This can matter a lot if the 4 consecutive quarters of basic EPS between roughly US$0.43 and US$0.68 do not continue at the same level.

Want a bigger picture view that ties these numbers to long term stories and different investor opinions about Phibro Animal Health, including how they think about risks and future growth paths, Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on Phibro Animal Health's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

Explore Alternatives

Phibro's story combines a higher 6.3% net margin with relatively modest 3% revenue growth expectations and concerns around debt not being well covered by operating cash flow.

If that balance sheet risk makes you uneasy, you might want to focus on companies that start from a stronger footing using our solid balance sheet and fundamentals stocks screener (46 results) tailored precisely for this kind of concern.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.