Animal health products manufacturer Phibro Animal Health (NASDAQ: PAHC) fell short of the markets revenue expectations in Q1 CY2026, with sales flat year on year at $347.8 million. On the other hand, the company’s outlook for the full year was close to analysts’ estimates with revenue guided to $1.46 billion at the midpoint. Its non-GAAP profit of $0.63 per share was 8.3% below analysts’ consensus estimates.
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Phibro Animal Health (PAHC) Q1 CY2026 Highlights:
- Revenue: $347.8 million vs analyst estimates of $359.7 million (flat year on year, 3.3% miss)
- Adjusted EPS: $0.63 vs analyst expectations of $0.69 (8.3% miss)
- Adjusted EBITDA: $61.9 million vs analyst estimates of $60.94 million (17.8% margin, 1.6% beat)
- Adjusted EPS guidance for the full year is $2.73 at the midpoint, beating analyst estimates by 3.4%
- EBITDA guidance for the full year is $235 million at the midpoint, above analyst estimates of $226.1 million
- Operating Margin: 11.4%, up from 9.6% in the same quarter last year
- Free Cash Flow Margin: 10.2%, similar to the same quarter last year
- Market Capitalization: $1.51 billion
Company Overview
With a portfolio of approximately 800 product lines serving farmers and veterinarians in 90 countries, Phibro Animal Health (NASDAQ: PAHC) develops, manufactures, and markets health products for livestock and companion animals, including antibacterials, vaccines, nutritional supplements, and mineral additives.
Revenue Growth
Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can have short-term success, but a top-tier one grows for years. Over the last five years, Phibro Animal Health grew its sales at a decent 11.9% compounded annual growth rate. Its growth was slightly above the average healthcare company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Phibro Animal Health’s annualized revenue growth of 18.3% over the last two years is above its five-year trend, suggesting its demand recently accelerated. 
This quarter, Phibro Animal Health’s $347.8 million of revenue was flat year on year, falling short of Wall Street’s estimates.
Looking ahead, sell-side analysts expect revenue to grow 6% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above the sector average and suggests the market is forecasting some success for its newer products and services.
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Operating Margin
Phibro Animal Health was profitable over the last five years but held back by its large cost base. Its average operating margin of 8.4% was weak for a healthcare business.
On the plus side, Phibro Animal Health’s operating margin rose by 3.1 percentage points over the last five years, as its sales growth gave it operating leverage. This performance was mostly driven by its recent improvements as the company’s margin has increased by 5.5 percentage points on a two-year basis.
In Q1, Phibro Animal Health generated an operating margin profit margin of 11.4%, up 1.8 percentage points year on year. This increase was a welcome development and shows it was more efficient.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Phibro Animal Health’s EPS grew at an astounding 17.1% compounded annual growth rate over the last five years, higher than its 11.9% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
Diving into Phibro Animal Health’s quality of earnings can give us a better understanding of its performance. As we mentioned earlier, Phibro Animal Health’s operating margin expanded by 3.1 percentage points over the last five years. This was the most relevant factor (aside from the revenue impact) behind its higher earnings; interest expenses and taxes can also affect EPS but don’t tell us as much about a company’s fundamentals.
In Q1, Phibro Animal Health reported adjusted EPS of $0.63, in line with the same quarter last year. This print missed analysts’ estimates, but we care more about long-term adjusted EPS growth than short-term movements. Over the next 12 months, Wall Street expects Phibro Animal Health’s full-year EPS of $2.47 to grow 17.3%.
Key Takeaways from Phibro Animal Health’s Q1 Results
We enjoyed seeing Phibro Animal Health beat analysts’ full-year EPS guidance expectations this quarter. We were also glad its full-year EBITDA guidance exceeded Wall Street’s estimates. On the other hand, its revenue missed and its EPS fell short of Wall Street’s estimates. Overall, this quarter could have been better. The stock remained flat at $37.29 immediately following the results.
Should you buy the stock or not? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
