Zoetis Q3 2026: EPS Beats by 16% as Livestock Offsets Pet Softness

Zoetis posted adjusted diluted EPS of $1.75 for the third quarter of 2026, clearing the consensus estimate of $1.51 by nearly 16%. Revenue came in at $2.39 billion, topping the $2.30 billion estimate by about 4%, even as total sales edged down 0.4% from a year earlier.

U.S. companion animal revenue fell 8%, weighed down by generic competition, pricing pressure from pet owners feeling macroeconomic strain, and increased competition in dermatology. That drag was partly absorbed by a 7% gain in the Livestock segment and a 23% surge in fish revenue, with international livestock growing 9% on an organic basis.

Net income fell 18% year over year, and GAAP diluted EPS landed at $1.44 rather than the adjusted $1.75, reflecting $89 million in asset impairment charges tied to PetMedix in-process R&D and $30 million in restructuring costs. Investors watching the adjusted beat should keep those one-time items in view.

Despite the companion animal softness, management raised its full-year adjusted diluted EPS guidance to $6.25 to $6.35, up from a prior range of $6.15 to $6.25. Full-year revenue guidance was narrowed to $9.22 to $9.32 billion. CEO Kristin Peck described the quarter as in line with expectations, citing the breadth of the portfolio in livestock and diagnostics as a partial counterweight to companion animal pressure.

On the pipeline front, Zoetis received FDA approval in October for Convenia RTU for dogs and noted that select product approvals originally anticipated in 2027 are now expected in the fourth quarter of 2026. The lower diluted share count, 411.6 million versus 443.2 million a year ago, also provided a tailwind to per-share earnings growth. The key variable heading into Q4 is whether the U.S. companion animal segment shows any signs of stabilizing.