Elanco Animal Health Surges 79% in 2025 Amid Protein Demand and Pet Care Boom

Elanco Animal Health (ELAN) delivered a standout performance in 2025, with its stock climbing 79% over the year. The surge reflects robust demand across animal health markets, particularly in livestock protein production and companion animal care. The company reported a 23% year-over-year increase in revenue, reaching $1.8 billion, fueled by higher sales of vaccines, therapeutics, and nutritional supplements for poultry, swine, and cattle. The expansion of the global middle class and shifting dietary preferences toward high-quality animal protein have intensified the need for efficient, safe livestock production systems. Elanco's innovations in feed additives and disease prevention solutions positioned the company as a key enabler for farmers and agribusinesses. Additionally, the pet care segment contributed 41% of total revenue, up from 36% in 2024, as pet owners continue to prioritize premium health and wellness products. Operating margins improved to 27.4%, a 2.1 percentage point gain year-over-year, due to optimized manufacturing efficiency and strong pricing power. Net income rose 31% to $412 million, while free cash flow reached $389 million, supporting continued investment in R&D and strategic acquisitions. These results underscore Elanco’s dual momentum in both agricultural and consumer-facing animal health markets. The stock’s performance has drawn increased institutional interest, with mutual funds and ETFs increasing their holdings in ELAN by 18% over the last quarter. Analysts note that continued innovation in precision health solutions and expanding presence in emerging markets, particularly in Southeast Asia and Latin America, could sustain momentum beyond 2025.