Zoetis (NYSE:ZTS) Posts Quarterly Earnings Results, Beats Estimates By $0.02 EPS

Key Points

• Zoetis beat quarterly earnings estimates with EPS of $1.87 versus the $1.85 consensus, but revenue of $2.47 billion missed estimates and was essentially flat year over year.
• Management lowered its 2026 outlook, targeting adjusted EPS of $6.15–$6.25 and organic revenue declines of 3% to 1%, citing pressure in U.S. companion-animal products, especially dermatology and parasiticides.
• Livestock revenue rose 11% and companion-animal diagnostics grew 12%, partly offsetting weakness elsewhere, while Zoetis increased promotions and rebates to defend market share—pressuring pricing and contributing to the stock’s decline.

Zoetis (NYSE:ZTS - Get Free Report) issued its quarterly earnings results on Thursday. The company reported $1.87 earnings per share for the quarter, topping analysts' consensus estimates of $1.85 by $0.02, FiscalAI reports. The company had revenue of $2.47 billion during the quarter, compared to the consensus estimate of $2.50 billion. Zoetis had a net margin of 27.80% and a return on equity of 66.85%. The firm's quarterly revenue was down .2% on a year-over-year basis. During the same quarter in the prior year, the firm posted $1.76 EPS. Zoetis updated its FY 2026 guidance to 6.150-6.250 EPS.

Here are the key takeaways from Zoetis' conference call:

• Zoetis lowered its 2026 outlook, now expecting organic revenue to decline 3%–1% and adjusted net income to decline 9%–5%; adjusted diluted EPS guidance was reduced to $6.15–$6.25.
• Second-quarter results fell short of expectations, with revenue down 1% organically and adjusted net income down 2%. U.S. revenue declined 7%, while companion animal revenue fell 6%, led by a 16% decline in key dermatology and continued pressure in parasiticides and canine OA pain.
• Management is increasing targeted rebates, promotions, cross-portfolio discounts, and point-of-sale investments to defend volume and market share, particularly in dermatology and U.S. parasiticides. These actions are expected to reduce net price realization, with full-year pricing now ranging from approximately flat to down 2% depending on performance.
• Livestock revenue grew 11% and companion animal diagnostics grew 12%, providing portfolio diversification and offsetting some companion animal weakness. Management expects livestock’s underlying growth to remain in the mid- to high-single digits, although second-quarter U.S. livestock growth benefited from transitory screwworm-related demand and supply timing.
• Zoetis is pursuing cost and productivity measures while continuing to fund R&D and its innovation pipeline, repurchased more than $550 million of shares in the quarter, and highlighted potential growth from long-acting Cytopoint, Lenivia, Portela, and Vetscan OmniMax.

Zoetis Price Performance

Shares of NYSE:ZTS traded down $4.74 during trading on Friday, hitting $72.53. 12,770,194 shares of the company were exchanged, compared to its average volume of 5,795,663. Zoetis has a 1-year low of $71.47 and a 1-year high of $160.48. The company has a market capitalization of $30.41 billion, a P/E ratio of 12.03, a price-to-earnings-growth ratio of 1.16 and a beta of 0.74. The company has a quick ratio of 1.91, a current ratio of 3.15 and a debt-to-equity ratio of 2.80. The business's 50 day moving average is $76.66 and its 200-day moving average is $100.75.

Zoetis Dividend Announcement

The business also recently declared a quarterly dividend, which will be paid on Tuesday, September 1st. Stockholders of record on Monday, July 20th will be issued a dividend of $0.53 per share. The ex-dividend date is Monday, July 20th. This represents a $2.12 annualized dividend and a dividend yield of 2.9%. Zoetis's dividend payout ratio is 35.16%.

Insider Activity at Zoetis

In other news, Director Paul Bisaro purchased 2,000 shares of the business's stock in a transaction dated Wednesday, May 13th. The shares were purchased at an average cost of $75.88 per share, with a total value of $151,760.00. Following the completion of the purchase, the director owned 27,862 shares of the company's stock, valued at $2,114,168.56. This trade represents a 7.73% increase in their position. The purchase was disclosed in a document filed with the SEC, which is available at this link. Also, Director Frank A. Damelio acquired 6,650 shares of the stock in a transaction dated Wednesday, May 13th. The stock was purchased at an average cost of $75.39 per share, with a total value of $501,343.50. Following the purchase, the director directly owned 21,458 shares of the company's stock, valued at $1,617,718.62. This trade represents a 44.91% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. Insiders have bought a total of 11,650 shares of company stock valued at $886,384 in the last 90 days. 0.22% of the stock is owned by corporate insiders.

Hedge Funds Weigh In On Zoetis

Several large investors have recently modified their holdings of the business. Brighton Jones LLC grew its position in shares of Zoetis by 180.4% in the 4th quarter. Brighton Jones LLC now owns 4,629 shares of the company's stock valued at $754,000 after buying an additional 2,978 shares during the last quarter. Empowered Funds LLC raised its position in shares of Zoetis by 6.2% during the first quarter. Empowered Funds LLC now owns 11,293 shares of the company's stock worth $1,859,000 after acquiring an additional 657 shares during the last quarter. Intech Investment Management LLC raised its position in shares of Zoetis by 17.2% during the first quarter. Intech Investment Management LLC now owns 8,347 shares of the company's stock worth $1,374,000 after acquiring an additional 1,224 shares during the last quarter. Sivia Capital Partners LLC lifted its stake in shares of Zoetis by 73.8% in the second quarter. Sivia Capital Partners LLC now owns 3,348 shares of the company's stock worth $522,000 after acquiring an additional 1,422 shares during the period. Finally, Glenview Trust co boosted its holdings in Zoetis by 11.8% in the second quarter. Glenview Trust co now owns 4,780 shares of the company's stock valued at $745,000 after acquiring an additional 506 shares during the last quarter. Institutional investors own 92.80% of the company's stock.

Wall Street Analysts Forecast Growth

Several equities research analysts have weighed in on ZTS shares. Weiss Ratings cut Zoetis from a "sell (d+)" rating to a "sell (d)" rating in a research note on Friday, June 12th. Barclays decreased their price target on Zoetis from $136.00 to $85.00 and set an "equal weight" rating on the stock in a research note on Wednesday, July 1st. TD Cowen dropped their price objective on Zoetis from $150.00 to $104.00 and set a "buy" rating for the company in a research report on Tuesday, June 30th. UBS Group reduced their price objective on Zoetis from $85.00 to $80.00 and set a "neutral" rating on the stock in a research note on Friday. Finally, Morgan Stanley set a $85.00 target price on Zoetis in a research report on Friday. Seven equities research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has assigned a Sell rating to the company. According to MarketBeat.com, the stock presently has a consensus rating of "Hold" and an average price target of $115.50.

Zoetis News Summary

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: Zoetis reported second-quarter adjusted earnings of $1.87 per share, above the $1.84–$1.85 analyst consensus and up from $1.76 a year earlier. The earnings beat provides some support for the stock. Zoetis Surpasses Q2 Earnings Estimates
• Positive Sentiment: JPMorgan lowered its price target from $130 to $115 but maintained an Overweight rating, implying substantial potential upside from recent levels. The target reduction reflects more conservative estimates rather than a bearish long-term view.
• Neutral Sentiment: Zoetis appointed James “Jay” Saccaro as executive vice president and chief financial officer, with the announcement also describing an expanded finance and operating leadership role. The change may improve execution, but its near-term effect on results is unclear. Zoetis Appoints Jay Saccaro
• Negative Sentiment: Second-quarter revenue was $2.47 billion, below the $2.50 billion consensus and essentially flat year over year. Management cited weaker veterinary traffic, customer price sensitivity and competitive pressure in companion-animal products, with promotions being used to defend market share. ZTS Q2 Earnings Call Flags Deeper Companion Animal Pressure
• Negative Sentiment: Zoetis cut fiscal 2026 guidance to adjusted EPS of $6.15–$6.25 from expectations near $6.87, and revenue guidance to $9.1–$9.3 billion versus consensus of roughly $9.8 billion. The outlook reduction is the primary reason the stock has declined despite the quarterly earnings beat. Zoetis Q2 Earnings Beat Estimates, Revenues Miss, 2026 View Cut

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.

This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to contact@marketbeat.com.

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