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PAHC beat Q3 estimates as Animal Health sales climbed 13% on strong MFA and vaccine demand.
Phibro's gross margin expanded 271 bps to 32.8%, while operating profit rose 33.5%.
PAHC raised fiscal 2026 sales guidance to $1.46B-$1.50B and reaffirmed adjusted EPS outlook.
Phibro Animal Health (PAHC - Free Report) delivered adjusted earnings per share (EPS) of 76 cents in the third quarter of fiscal 2026 compared with 64 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 5.92%.
Without adjustments, GAAP EPS in the quarter was 59 cents compared with 51 cents in the prior-year period.
Net sales in the quarter totaled $383.5 million, up 10.3% from the year-ago quarter’s level. The figure also exceeded the Zacks Consensus Estimate by 6.26%.
Following the announcement on May 6, PAHC shares fell 26.3% to close yesterday’s session at $43.16.
Phibro’s Q3 Sales by Segments
The company conducts its operations via three segments — Animal Health, Mineral Nutrition and Performance Products.
In the third quarter of fiscal 2026, Animal Health’s net sales increased 13% to $291.2 million. The figure surpassed our model’s projection of $265.7 million.
Within this, legacy MFA net sales increased 5%, driven by demand in North America and certain antimicrobials sold by the Ethanol Performance business. Sales in the acquired MFA business grew 25% over the prior-year period.
Phibro Animal Health Corporation Price, Consensus and EPS Surprise
Nutritional specialty product sales rose 8% due to increased demand in North America and higher companion animal sales.
Net vaccine sales showed a year-over-year rise of 16%, primarily due to higher international sales driven by higher demand in Israel, as well as an increase in domestic swine demand and higher sales of autogenous vaccines.
Net sales in the Mineral Nutrition segment rose 10% year over year to $73.4 million due to an increase in demand for zinc and trace minerals. Our model forecast was $67.9 million.
Net sales in the Performance Products segment fell 17% to $18.9 million due to lower demand for the ingredients used in personal care products. Our model’s projected revenues were $21.8 million.
PAHC’s Margin Performance
Phibro’s fiscal third-quarter gross profit rose 20.2% year over year to $125.6 million. The gross margin expanded 271 basis points (bps) to 32.8% despite a 6% rise in the cost of goods sold.
Selling, general and administrative expenses in the reported quarter were $81 million, up 13.9% from the year-ago quarter’s levels. The operating profit totaled $44.6 million, an increase of 33.5% year over year. The operating margin expanded 203 bps year over year to 11.6%.
PAHC’s Financial Update
The company exited the third quarter of fiscal 2026 with cash and short-term investments of $77.5 million compared with $74.5 million at the end of the second quarter.
Cumulative net cash provided by operating activities at the end of the third quarter was $44.9 million compared with $58.9 million in the year-ago period.
Phibro’s Fiscal 2026 Guidance
For the full fiscal 2026, the company now expects net sales in the range of 1.46-$1.50 billion (earlier $1.45 billion to $1.50 billion), implying 14% growth. The Zacks Consensus Estimate for the metric is pegged at $1.48 billion.
Adjusted EPS is expected in the range of $2.98-$3.10 (earlier $2.93 to $3.10). The revised outlook indicates a 45% improvement over fiscal 2025. The Zacks Consensus Estimate for the same is pegged at $3.03.
Our Take on PAHC
Phibro delivered better-than-expected earnings and revenues in the third quarter of fiscal 2026. The performance was led by strong sales growth in the Animal Health business due to robust demand across MFAs, nutritional specialties and vaccines. Phibro is seeing early signs of stabilization in dairy, even as fats continued to face pressure. Despite positive poultry demand, the company reported navigating elevated geopolitical volatility in the Middle East. The expansion of both margins in the quarter is also encouraging.
PAHC’s Zacks Rank & Other Key Picks
Phibro currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are BrightSpring Health Services (BTSG - Free Report) , Intuitive Surgical (ISRG - Free Report) and Labcorp Holdings (LH - Free Report) .
BrightSpring Health Services, currently carrying a Zacks Rank #2, reported first-quarter 2026 adjusted EPS of 36 cents, which surpassed the Zacks Consensus Estimate by 34.5%. Revenues of $3.61 billion beat the Zacks Consensus Estimate by 8.35%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BTSG has an estimated long-term earnings growth rate of 47.2% compared with the industry’s 14.5% growth. The company topped earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 14.61%.
Intuitive Surgical,carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $2.50, exceeding the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion outpaced the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% compared to the industry’s negative 0.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Labcorp,carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 3.8%. Revenues of $3.54 billion outperformed the Zacks Consensus Estimate by 1%.
LH has an earnings yield of 6.9% compared with the industry’s 4.5% yield. The company’s earnings topped estimates in each of the trailing four quarters, the average surprise being 3.31%.
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PAHC Stock Falls Despite Q3 Earnings & Revenue Beat, Margins Rise
Key Takeaways
Phibro Animal Health (PAHC - Free Report) delivered adjusted earnings per share (EPS) of 76 cents in the third quarter of fiscal 2026 compared with 64 cents in the year-ago quarter. The bottom line beat the Zacks Consensus Estimate by 5.92%.
Without adjustments, GAAP EPS in the quarter was 59 cents compared with 51 cents in the prior-year period.
Net sales in the quarter totaled $383.5 million, up 10.3% from the year-ago quarter’s level. The figure also exceeded the Zacks Consensus Estimate by 6.26%.
Following the announcement on May 6, PAHC shares fell 26.3% to close yesterday’s session at $43.16.
Phibro’s Q3 Sales by Segments
The company conducts its operations via three segments — Animal Health, Mineral Nutrition and Performance Products.
In the third quarter of fiscal 2026, Animal Health’s net sales increased 13% to $291.2 million. The figure surpassed our model’s projection of $265.7 million.
Within this, legacy MFA net sales increased 5%, driven by demand in North America and certain antimicrobials sold by the Ethanol Performance business. Sales in the acquired MFA business grew 25% over the prior-year period.
Phibro Animal Health Corporation Price, Consensus and EPS Surprise
Phibro Animal Health Corporation price-consensus-eps-surprise-chart | Phibro Animal Health Corporation Quote
Nutritional specialty product sales rose 8% due to increased demand in North America and higher companion animal sales.
Net vaccine sales showed a year-over-year rise of 16%, primarily due to higher international sales driven by higher demand in Israel, as well as an increase in domestic swine demand and higher sales of autogenous vaccines.
Net sales in the Mineral Nutrition segment rose 10% year over year to $73.4 million due to an increase in demand for zinc and trace minerals. Our model forecast was $67.9 million.
Net sales in the Performance Products segment fell 17% to $18.9 million due to lower demand for the ingredients used in personal care products. Our model’s projected revenues were $21.8 million.
PAHC’s Margin Performance
Phibro’s fiscal third-quarter gross profit rose 20.2% year over year to $125.6 million. The gross margin expanded 271 basis points (bps) to 32.8% despite a 6% rise in the cost of goods sold.
Selling, general and administrative expenses in the reported quarter were $81 million, up 13.9% from the year-ago quarter’s levels. The operating profit totaled $44.6 million, an increase of 33.5% year over year. The operating margin expanded 203 bps year over year to 11.6%.
PAHC’s Financial Update
The company exited the third quarter of fiscal 2026 with cash and short-term investments of $77.5 million compared with $74.5 million at the end of the second quarter.
Cumulative net cash provided by operating activities at the end of the third quarter was $44.9 million compared with $58.9 million in the year-ago period.
Phibro’s Fiscal 2026 Guidance
For the full fiscal 2026, the company now expects net sales in the range of 1.46-$1.50 billion (earlier $1.45 billion to $1.50 billion), implying 14% growth. The Zacks Consensus Estimate for the metric is pegged at $1.48 billion.
Adjusted EPS is expected in the range of $2.98-$3.10 (earlier $2.93 to $3.10). The revised outlook indicates a 45% improvement over fiscal 2025. The Zacks Consensus Estimate for the same is pegged at $3.03.
Our Take on PAHC
Phibro delivered better-than-expected earnings and revenues in the third quarter of fiscal 2026. The performance was led by strong sales growth in the Animal Health business due to robust demand across MFAs, nutritional specialties and vaccines. Phibro is seeing early signs of stabilization in dairy, even as fats continued to face pressure. Despite positive poultry demand, the company reported navigating elevated geopolitical volatility in the Middle East. The expansion of both margins in the quarter is also encouraging.
PAHC’s Zacks Rank & Other Key Picks
Phibro currently carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks from the broader medical space are BrightSpring Health Services (BTSG - Free Report) , Intuitive Surgical (ISRG - Free Report) and Labcorp Holdings (LH - Free Report) .
BrightSpring Health Services, currently carrying a Zacks Rank #2, reported first-quarter 2026 adjusted EPS of 36 cents, which surpassed the Zacks Consensus Estimate by 34.5%. Revenues of $3.61 billion beat the Zacks Consensus Estimate by 8.35%. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
BTSG has an estimated long-term earnings growth rate of 47.2% compared with the industry’s 14.5% growth. The company topped earnings estimates in three of the trailing four quarters and missed on one occasion, the average surprise being 14.61%.
Intuitive Surgical,carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $2.50, exceeding the Zacks Consensus Estimate by 20.2%. Revenues of $2.77 billion outpaced the Zacks Consensus Estimate by 6.2%.
ISRG has an earnings yield of 2.1% compared to the industry’s negative 0.9% yield. The company’s earnings outpaced estimates in each of the trailing four quarters, the average surprise being 16.82%.
Labcorp,carrying a Zacks Rank #2 at present, posted first-quarter 2026 adjusted EPS of $4.25, exceeding the Zacks Consensus Estimate by 3.8%. Revenues of $3.54 billion outperformed the Zacks Consensus Estimate by 1%.
LH has an earnings yield of 6.9% compared with the industry’s 4.5% yield. The company’s earnings topped estimates in each of the trailing four quarters, the average surprise being 3.31%.