Zoetis Inc - Class A
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.55%.
Did ZTS Beat Earnings? Q3 2025 Results
Zoetis delivered a mixed but broadly solid third quarter, clearing the earnings bar while falling just short on revenue as macro pressures and a strategic portfolio divestiture clouded an otherwise steady performance. Adjusted diluted EPS came in at $1.70, ahead of the $1.62 consensus estimate by 4.83%, while revenue of $2.40 billion grew just 0.5% year-over-year and edged fractionally below the $2.41 billion analysts had expected. The most material drag on reported results was the divestiture of the medicated feed additive portfolio, which weighed on U.S. livestock figures even as the segment grew 14% organically; strip that noise away and the underlying business showed genuine momentum, with total organic operational revenue expanding 4%. International operations added a constructive counterbalance, growing 6% organically on broad companion animal and livestock strength. Looking ahead, Zoetis trimmed its full-year revenue guidance to $9.40 billion to $9.48 billion, below prior consensus estimates, while maintaining adjusted diluted EPS guidance of $6.30 to $6.40, a combination that has investors debating whether the company's premium valuation is still justified given a more modest growth outlook.
- Parasiticides portfolio growth including Simparica and Revolution/Stronghold franchises
- Diagnostics revenue growth
- Key dermatology product growth including Apoquel Chewable
- Improved supply of ceftiofur products driving U.S. livestock organic growth of 14%
- Broad-based international livestock growth across all core species
- Cost discipline with adjusted cost of sales as a percentage of revenue improving to 28.4% from 29.3%
“We reported 4% organic operational revenue growth and 9% growth in adjusted net income on an organic operational basis, thanks to the relentless focus and consistent execution of our colleagues across the world. While growth moderated in the third quarter in line with our expectations, we achieved significant regulatory milestones, including major new product approvals, geographic expansions and differentiating lifecycle innovations across products and species. With our manufacturing excellence, strong customer relationships and a robust pipeline, we are well positioned to advance animal care, bring new products to market and deliver sustainable growth and value for our shareholders.”
Zoetis CEO, on the earnings call
Forward Guidance & Outlook
Zoetis revised its full year 2025 revenue guidance to $9.400 billion to $9.475 billion (down from $9.450 billion to $9.600 billion), reflecting organic operational growth of 5.5% to 6.5%. Adjusted diluted EPS guidance was maintained at $6.30 to $6.40. Adjusted net income guidance was set at $2.800 billion to $2.840 billion with organic operational growth narrowed to 5.5% to 7.0% (from 5.5% to 7.5%). Reported diluted EPS is expected at $5.90 to $6.00. Reported net income is expected between $2.625 billion and $2.665 billion. The guidance reflects foreign exchange rates as of late October and enacted/assumed tariff impacts.
ZTS YoY Financials
ZTS Revenue by Segment
ZTS Revenue by Geography
Figures from SEC filings and company reports. Not investment advice.