Q1 26 EPS
$1.53
MISS 5.29%
Est. $1.62
Q1 26 Revenue
$2.26B
MISS 1.70%
Est. $2.30B
vs S&P Since Q1 26
-30.5%
TRAILING MARKET
ZTS -29.1% vs S&P +1.4%
Market Reaction
Did ZTS Beat Earnings? Q1 2026 Results
Zoetis Inc. Delivered a disappointing first quarter for fiscal 2026, missing on both the top and bottom lines as a bruising U.S. Companion animal market weighed heavily on results. The animal health giant posted revenue of $2.26 billion, up just 1.9%… Read more Zoetis Inc. Delivered a disappointing first quarter for fiscal 2026, missing on both the top and bottom lines as a bruising U.S. Companion animal market weighed heavily on results. The animal health giant posted revenue of $2.26 billion, up just 1.9% year over year but falling short of the $2.30 billion consensus by 1.70%, while adjusted EPS of $1.53 trailed the $1.62 estimate by 5.29%, snapping a streak of four consecutive quarterly consensus beats. The core culprit was the U.S. Segment, which dropped 8% to $1.09 billion as heightened price sensitivity among pet owners, softer veterinary visit volumes, and intensifying competition in dermatology and parasiticides pressured key franchises. International operations provided a meaningful offset, surging 17% to $1.15 billion. Morningstar trimmed its long-term valuation assumptions for the company, a move that aligns with management's own revised full-year 2026 outlook, which now calls for revenue of $9.68 billion to $9.96 billion and adjusted diluted EPS of $6.85 to $7.00, reflecting the tougher near-term operating backdrop.
Key Takeaways
- • International segment revenue grew 17% on a reported basis and 10% organically, benefiting from approximately $100 million from Fiscal Year Alignment timing
- • Livestock revenue grew 15% driven by broad-based strength across cattle, swine, poultry, and fish
- • U.S. companion animal declined 11% due to softer end-market demand, competitive pressure in dermatology and parasiticides, and macroeconomic-driven price sensitivity
- • Cattle performance driven by favorable beef producer economics and New World screwworm response
- • Poultry benefited from increased vaccine sales tied to disease outbreak activity
- • Reduced share count from buybacks supported 6% growth in reported diluted EPS despite flat net income
ZTS Forward Guidance & Outlook
Zoetis revised its full year 2026 guidance to reflect the challenging U.S. companion animal environment. Revenue is now expected at $9.680 billion to $9.960 billion, with organic operational revenue growth of 2% to 5%. Adjusted diluted EPS guidance is $6.85 to $7.00, with organic operational growth in adjusted net income of 2% to 6%. Reported diluted EPS is guided at $6.35 to $6.50 and reported net income at $2.680 billion to $2.760 billion. Adjusted net income is expected at $2.870 billion to $2.950 billion. The company expects adjusted cost of sales as a percentage of revenue to be approximately 28.5%, adjusted SG&A expenses of $2.350 billion to $2.400 billion, adjusted R&D expenses of $735 million to $745 million, and an effective tax rate on adjusted income of approximately 20.5%. Guidance reflects foreign exchange rates as of April 24, 2026.
ZTS YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
ZTS Revenue by Segment
With YoY comparisons, source: SEC Filings
ZTS Revenue by Geography
With YoY comparisons, source: SEC Filings
“The first quarter unfolded in a more challenging operating environment than we anticipated. Pet owners demonstrated increased price sensitivity, resulting in a decline in veterinary visits and softer demand for premium innovative products, where Zoetis leads. At the same time, competition intensified across key pet care categories, including dermatology and parasiticides. We are taking decisive action to sharpen commercial execution, unlock revenue and continue to drive disciplined cost management. The breadth of our portfolio remains a strength, reflected in the performance of International, livestock, and diagnostics in the quarter.”
— Kristin Peck, Q1 2026 Earnings Press Release
ZTS Earnings Trends
ZTS vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
ZTS EPS Trend
Earnings per share: estimate vs actual
ZTS Revenue Trend
Quarterly revenue: estimate vs actual
ZTS Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 MISS | $1.62 | $1.53 | -5.29% | $2.26B | -1.70% |
| Q4 25 BEAT FY | $1.40 | $1.48 | +5.47% | $2.39B | +1.08% |
| FY Full Year | $6.34 | $6.41 | +1.13% | $9.47B | +0.27% |
| Q3 25 BEAT | $1.62 | $1.70 | +4.83% | $2.40B | -0.23% |
| Q2 25 BEAT | $1.61 | $1.76 | +9.15% | $2.46B | +2.18% |
| Q1 25 BEAT | $1.40 | $1.48 | +5.79% | $2.22B | +1.24% |