Zoetis Inc - Class A
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +3.07%.
Did ZTS Beat Earnings? Q2 2025 Results
Zoetis posted a notably strong second quarter of 2025, with adjusted earnings of $1.76 per diluted share beating the $1.61 consensus estimate by 9.15%, while revenue of $2.46 billion edged ahead of the $2.41 billion forecast and grew 4.2% from a year earlier. The primary engine behind the beat was companion animal, where revenue climbed 8% to $1.79 billion, propelled by the Simparica Trio parasiticide franchise and the dermatology portfolio anchored by Apoquel and Cytopoint. Gross margins expanded meaningfully as well, with adjusted cost of sales falling to 26.3% of revenue from 28.3% a year prior, reflecting improving operational efficiency. Management responded by raising full-year 2025 guidance, now calling for revenue of $9.45 billion to $9.60 billion and adjusted diluted EPS of $6.30 to $6.40, up from prior ranges on both measures. The bullish update arrives as notable institutional interest in Zoetis has grown, with at least one prominent global fund sharply increasing its position, citing the company's market leadership in a large and resilient animal health industry.
- Strong companion animal growth driven by Simparica Trio and key dermatology portfolio (Apoquel, Cytopoint)
- 8% organic operational revenue growth across segments
- Gross margin expansion with adjusted cost of sales declining to 26.3% of revenue from 28.3%
- U.S. companion animal innovative products grew 9%
- International livestock organic operational growth of 10% driven by swine, fish, poultry and cattle
- Disciplined execution and cost management
“Zoetis delivered a strong broad-based performance in the second quarter of 2025, with 8% organic operational revenue growth. Our consistent results across economic and competitive cycles reflect the strength of our innovation engine, the breadth of our diversified portfolio and the discipline of our execution in what remains one of the most compelling long-term growth sectors. As we look to the second half of the year, our focus remains clear: execute with discipline, advance meaningful innovation and stay deeply connected to our customers.”
Zoetis CEO, on the earnings call
Forward Guidance & Outlook
Zoetis raised its full year 2025 guidance across all key metrics. Revenue is now expected between $9.450 billion and $9.600 billion, with organic operational growth of 6.5% to 8.0% (up from prior guidance of $9.425–$9.575 billion and 6%–8% organic growth). Adjusted diluted EPS was raised to $6.30–$6.40 (from $6.20–$6.30). Adjusted net income is expected between $2.825 billion and $2.875 billion, with organic operational growth of 5.5% to 7.5% (from 5%–7%). Reported diluted EPS is guided at $5.90–$6.00 and reported net income at $2.650–$2.700 billion. Adjusted cost of sales is expected at approximately 28.0% of revenue. The guidance reflects foreign exchange rates as of late July and the impact of enacted and assumed tariffs.
ZTS YoY Financials
ZTS Revenue by Segment
ZTS Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.