Zoetis (NYSE:ZTS) Posts Earnings Results

Key Points

• Zoetis missed Q1 expectations, reporting $1.53 EPS versus the $1.60 consensus and revenue of $2.26 billion versus $2.30 billion expected. Revenue still rose 2.9% year over year, but the results pressured the stock.
• U.S. companion-animal weakness drove the shortfall, with management citing lower clinic traffic, pricing pressure, and heavier competition, while international sales and livestock performed better. On an organic basis, Q1 revenue was flat and adjusted net income rose about 1%.
• The company trimmed its outlook and is responding with cost cuts and new product efforts, updating FY2026 guidance to 2%–5% organic revenue growth and 2%–6% adjusted net income growth. Zoetis also highlighted a pipeline of 12 potential blockbusters and ongoing actions to improve execution and affordability.

Zoetis (NYSE:ZTS - Get Free Report) released its earnings results on Thursday. The company reported $1.53 earnings per share for the quarter, missing the consensus estimate of $1.60 by ($0.07), FiscalAI reports. The firm had revenue of $2.26 billion during the quarter, compared to analysts' expectations of $2.30 billion. Zoetis had a net margin of 27.80% and a return on equity of 61.97%. The business's revenue was up 2.9% compared to the same quarter last year. During the same quarter last year, the business earned $1.48 EPS. Zoetis updated its FY 2026 guidance to 6.850-7.000 EPS.

Here are the key takeaways from Zoetis' conference call:

• On an organic operational basis Q1 2026 revenue was flat and adjusted net income grew ~1%, with international +10% while the U.S. declined 8% — livestock up ~12% but companion animal revenue down ~4%.
• Companion-animal weakness was driven by higher clinic pricing, lower clinic traffic, greater pet-owner price sensitivity and intensified competition (notably in dermatology and parasiticides), plus generic pressure on Convenia and Cerenia.
• Management is taking decisive actions — a comprehensive cost and productivity program, sharpened commercial execution (DTC, point-of-sale affordability/loyalty, clinic engagement), faster science-to-scale launches (e.g., long-acting VABs, Convenia RTU) and the Neogen animal genomics acquisition — supported by a pipeline of 12 potential blockbusters.
• Updated FY 2026 guidance calls for 2%–5% organic operational revenue growth and 2%–6% adjusted net income growth; fiscal-year alignment shifted roughly $100M between Q4 2025 and Q1 2026 and removed an expected ~200–250 bps tailwind to growth.

Zoetis Trading Down 5.2%

Zoetis stock traded down $4.51 during midday trading on Friday, hitting $82.80. 17,182,879 shares of the stock were exchanged, compared to its average volume of 4,931,078. Zoetis has a fifty-two week low of $81.10 and a fifty-two week high of $172.23. The stock has a market capitalization of $34.83 billion, a price-to-earnings ratio of 13.73, a PEG ratio of 1.34 and a beta of 0.87. The stock's 50-day simple moving average is $118.49 and its 200 day simple moving average is $123.70. The company has a current ratio of 3.03, a quick ratio of 1.94 and a debt-to-equity ratio of 2.71.

Analyst Ratings Changes

Several research analysts recently commented on the company. Piper Sandler reissued a "neutral" rating and issued a $135.00 price objective (down from $190.00) on shares of Zoetis in a research note on Thursday, January 22nd. Citigroup assumed coverage on shares of Zoetis in a research note on Wednesday, April 15th. They set a "buy" rating and a $145.00 target price on the stock. Weiss Ratings cut shares of Zoetis from a "hold (c-)" rating to a "sell (d+)" rating in a research report on Friday, March 27th. Wall Street Zen cut Zoetis from a "buy" rating to a "hold" rating in a report on Saturday, May 2nd. Finally, William Blair reaffirmed an "outperform" rating on shares of Zoetis in a report on Monday, March 2nd. Seven equities research analysts have rated the stock with a Buy rating, seven have assigned a Hold rating and one has issued a Sell rating to the company's stock. Based on data from MarketBeat.com, the company has an average rating of "Hold" and an average price target of $141.25.

Key Zoetis News

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: JPMorgan lowered its price target on Zoetis from $190 to $130, but kept an overweight rating, implying the stock still has meaningful upside from current levels. Benzinga report on JPMorgan target cut
• Neutral Sentiment: Some analysts remain constructive overall, with recent coverage still showing buy/overweight views and price targets well above the current share price, suggesting longer-term confidence despite near-term pressure.
• Negative Sentiment: Zoetis missed Q1 earnings and revenue estimates, which immediately hurt sentiment around the stock.
• Negative Sentiment: The company cut its FY2026 guidance after seeing weaker U.S. companion animal demand and pricing pressure, raising concerns that pet owners are spending less on veterinary care and premium products. Benzinga report on weak pet care demand
• Negative Sentiment: Media coverage described the earnings release as a sharp disappointment, with reports highlighting a steep selloff after investors reacted to the softer outlook.
• Negative Sentiment: Ademi LLP announced a securities fraud investigation into Zoetis, adding another overhang for shares as investors assess potential legal risk.

Institutional Trading of Zoetis

Several hedge funds have recently made changes to their positions in ZTS. Financial Engines Advisors L.L.C. increased its holdings in shares of Zoetis by 4.4% during the 3rd quarter. Financial Engines Advisors L.L.C. now owns 2,043 shares of the company's stock worth $299,000 after buying an additional 87 shares during the last quarter. Howland Capital Management LLC grew its position in Zoetis by 4.5% in the second quarter. Howland Capital Management LLC now owns 2,137 shares of the company's stock worth $333,000 after acquiring an additional 92 shares during the period. L2 Asset Management LLC grew its position in Zoetis by 4.8% in the fourth quarter. L2 Asset Management LLC now owns 2,144 shares of the company's stock worth $270,000 after acquiring an additional 99 shares during the period. Snowden Capital Advisors LLC increased its stake in Zoetis by 0.4% during the second quarter. Snowden Capital Advisors LLC now owns 32,390 shares of the company's stock worth $5,051,000 after acquiring an additional 115 shares during the last quarter. Finally, One Capital Management LLC increased its stake in Zoetis by 5.9% during the third quarter. One Capital Management LLC now owns 2,239 shares of the company's stock worth $328,000 after acquiring an additional 124 shares during the last quarter. Hedge funds and other institutional investors own 92.80% of the company's stock.

Zoetis Company Profile

Zoetis Inc NYSE: ZTS is a global animal health company that develops, manufactures and markets a broad portfolio of products and services for companion animals and livestock. The company's offerings include pharmaceuticals, vaccines and biologics, parasiticides and anti-infectives, as well as diagnostic instruments, consumables and laboratory testing services. Zoetis serves the veterinary community, livestock producers and other animal-health customers with products designed to prevent, detect and treat disease and to support animal productivity and welfare.

Zoetis traces its roots to the animal health business of Pfizer and became an independent, publicly traded company following a 2013 separation and initial public offering.

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