Companies /Healthcare

Zoetis Inc - Class A

NYSE: ZTS Drug Manufacturers - Specialty & Generic
$75.82
▼ $0.47 (−0.62%) today
Markets closed · 4:33pm ET

Q2 2026 Earnings

Reported Aug 6, 2026, 7:06am ET · SEC source
$1.87
Beat +1.63%
EPS · est. $1.84 Adjusted
$2.5B
Miss +0.00%
Revenue · est. $0
1 quarter
Consecutive EPS beats

Market Reaction

% change · around the report
0+3%+6%Aug 6Aug 7report 7:06am ETearnings+0.2%+0.5%
0+3%+6%Aug 6Aug 7earnings+0.2%+0.5%
ZTS +0.5%S&P 500 +0.2%
0+3%+6%Aug 6Aug 7report 7:06am ETearnings+1.1%+0.5%
0+3%+6%Aug 6Aug 7earnings+1.1%+0.5%
ZTS +0.5%NASDAQ +1.1%
−3%0+3%Aug 5Aug 14report 7:06am ETearnings+1.0%+0.3%
−3%0+3%Aug 5Aug 14earnings+1.0%+0.3%
ZTS +0.3%S&P 500 +1.0%
−3%0+3%Aug 5Aug 14report 7:06am ETearnings+2.8%+0.3%
−3%0+3%Aug 5Aug 14earnings+2.8%+0.3%
ZTS +0.3%NASDAQ +2.8%
+3.87%
Day of report
−5.97%
Next session
−1.85%
One week

Did ZTS Beat Earnings? Q2 2026 Results

Zoetis posted a narrow beat in Q2 2026, but the headline numbers masked a more troubling story underneath. The animal health giant reported adjusted diluted EPS of $1.87, edging past the $1.84 consensus by 1.63%, while revenue of $2.47 billion crept just 0.3% higher year-over-year, a result that reflected deep strain in the U.S. Companion Animal segment rather than any broad-based momentum. That segment slid 11% to $1.04 billion, as softer veterinary clinic visits, pet owner price sensitivity, and intensifying competition in dermatology and parasiticide franchises weighed heavily on Simparica Trio and the dermatology portfolio. A 23% surge in U.S. Livestock and 8% international revenue growth cushioned the blow but could not fully offset the domestic weakness. With those headwinds expected to persist, Zoetis sharply lowered its full-year 2026 revenue guidance to $9.12 billion to $9.32 billion and cut adjusted diluted EPS guidance to $6.15 to $6.25, signaling that the recovery in companion animal spending remains elusive.

Key Takeaways
  • U.S. Companion Animal declined 11% due to softer end-market demand, price sensitivity, and generic competition on Cerenia and Convenia
  • U.S. Livestock grew 23% driven by favorable beef cattle producer economics and poultry vaccine demand from disease outbreaks
  • International Companion Animal grew 8% led by parasiticides portfolio including Simparica Trio, Revolution, and Stronghold
  • International Livestock grew 8% driven by cattle and poultry
  • Key dermatology franchise and Simparica Trio faced persistent macro-driven price sensitivity and heightened competitive pressure

“Second quarter results reflected a more pressured Companion Animal market, as lower clinic visits and pet owner price sensitivity reduced demand across parts of our portfolio and heightened competition in key categories.”

Zoetis CEO, on the earnings call

Forward Guidance & Outlook

Zoetis significantly lowered its full year 2026 guidance. Revenue is now expected at $9.120–$9.320 billion (organic operational decline of 3% to 1%), down from prior guidance of $9.680–$9.960 billion. Adjusted diluted EPS is now expected at $6.15–$6.25 (down from $6.85–$7.00), with adjusted net income of $2.570–$2.620 billion (organic operational decline of 9% to 5%). Reported diluted EPS guidance is $5.55–$5.65. The guidance reflects continued pressure in the Companion Animal market from lower clinic visits, pet owner price sensitivity, and heightened competitive dynamics.

ZTS YoY Financials

Q2 2026 vs Q2 2025 · SEC filings Q2 2025 Q2 2026
$0$700.0M$1.4B$2.1B$2.5B$2.5BRevenue$1.8B$1.8BGross Profit$989.0M$866.0MOperating Income$718.0M$691.0MNet Income
$0$700.0M$1.4B$2.1BRevenueGross ProfitOperating IncomeNet Income

ZTS Revenue by Segment

Companion Animal$1.7B−5.0%
Dogs and Cats$1.6B−5.0%
Livestock$731.0M+12.0%
Cattle$390.0M+21.0%
Swine$117.0M−1.0%
Poultry$115.0M+11.0%
Horses$74.0M+4.0%
Fish$83.0M+2.0%

ZTS Revenue by Geography

United States$1.3B−7.0%
Rest of World
Brazil$103.0M+11.0%
Australia$94.0M+13.0%
United Kingdom$72.0M−11.0%
Canada$72.0M+1.0%
China$62.0M−7.0%
Germany$69.0M+21.0%

Figures from SEC filings and company reports. Not investment advice.