Zoetis (NYSE:ZTS – Get Free Report) issued its quarterly earnings data on Thursday. The company reported $1.87 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $1.85 by $0.02, FiscalAI reports. The firm had revenue of $2.47 billion during the quarter, compared to the consensus estimate of $2.50 billion. Zoetis had a net margin of 27.49% and a return on equity of 70.95%. The company’s revenue for the quarter was down .2% compared to the same quarter last year. During the same quarter in the previous 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 Zoetis stock traded down $4.74 during trading hours on Friday, hitting $72.53. The company’s stock had a trading volume of 12,770,194 shares, compared to its average volume of 6,453,276. The business has a 50 day moving average price of $76.66 and a two-hundred day moving average price of $100.75. Zoetis has a 12-month low of $71.47 and a 12-month high of $160.48. The company has a market cap of $30.41 billion, a PE ratio of 11.95, a PEG ratio of 1.34 and a beta of 0.74. The company has a debt-to-equity ratio of 2.80, a quick ratio of 1.91 and a current ratio of 3.15.
Zoetis Announces Dividend
Analyst Upgrades and Downgrades
Several research firms recently weighed in on ZTS. HSBC lowered their target price on Zoetis from $140.00 to $95.00 and set a “buy” rating on the stock in a research report on Monday, July 6th. JPMorgan Chase & Co. decreased their price objective on Zoetis from $130.00 to $115.00 and set an “overweight” rating on the stock in a research note on Friday. Stifel Nicolaus lowered their price objective on Zoetis from $95.00 to $85.00 and set a “hold” rating on the stock in a research report on Friday, June 26th. UBS Group lowered their price objective on Zoetis from $85.00 to $80.00 and set a “neutral” rating on the stock in a research report on Friday. Finally, Barclays reduced their target price on shares of Zoetis from $136.00 to $85.00 and set an “equal weight” rating for the company in a report on Wednesday, July 1st. Seven equities research analysts have rated the stock with a Buy rating, nine have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, Zoetis has a consensus rating of “Hold” and a consensus target price of $115.50.
View Our Latest Stock Report on Zoetis
Trending Headlines about Zoetis
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
Insider Transactions at Zoetis
In other Zoetis news, Director Michael B. Mccallister bought 3,000 shares of the business’s stock in a transaction that occurred on Monday, May 11th. The stock was purchased at an average price of $77.76 per share, for a total transaction of $233,280.00. Following the completion of the transaction, the director owned 24,524 shares of the company’s stock, valued at $1,906,986.24. This trade represents a 13.94% increase in their position. The transaction was disclosed in a document filed with the SEC, which is available through this hyperlink. Also, Director Paul Bisaro bought 2,000 shares of the firm’s stock in a transaction that occurred on Wednesday, May 13th. The shares were acquired at an average cost of $75.88 per share, for a total transaction of $151,760.00. Following the purchase, the director directly owned 27,862 shares in the company, valued at $2,114,168.56. This trade represents a 7.73% increase in their position. The SEC filing for this purchase provides additional information. Insiders acquired a total of 11,650 shares of company stock valued at $886,384 over the last 90 days. Company insiders own 0.22% of the company’s stock.
Institutional Investors Weigh In On Zoetis
Several institutional investors and hedge funds have recently modified their holdings of the stock. FIL Ltd lifted its holdings in shares of Zoetis by 372.2% in the 4th quarter. FIL Ltd now owns 2,134,404 shares of the company’s stock worth $268,551,000 after acquiring an additional 1,682,384 shares during the last quarter. Amundi grew its holdings in Zoetis by 51.2% during the 4th quarter. Amundi now owns 4,001,317 shares of the company’s stock valued at $503,445,000 after purchasing an additional 1,354,581 shares during the last quarter. Corient Private Wealth LLC grew its holdings in Zoetis by 85.9% during the 2nd quarter. Corient Private Wealth LLC now owns 2,578,593 shares of the company’s stock valued at $400,619,000 after purchasing an additional 1,191,840 shares during the last quarter. Voloridge Investment Management LLC raised its position in Zoetis by 263.1% in the 4th quarter. Voloridge Investment Management LLC now owns 1,144,610 shares of the company’s stock worth $144,015,000 after purchasing an additional 829,415 shares during the period. Finally, Worldquant Millennium Advisors LLC raised its position in Zoetis by 737.9% in the 2nd quarter. Worldquant Millennium Advisors LLC now owns 912,477 shares of the company’s stock worth $142,301,000 after purchasing an additional 803,573 shares during the period. Institutional investors own 92.80% of the company’s stock.
About Zoetis
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.
Featured Stories
- Five stocks we like better than Zoetis
- Datadog’s Drop Says More About Expectations Than Earnings
- D-Wave’s Quantum Breakthrough Couldn’t Save QBTS From a Sell-Off
- Cloudflare’s Beat-and-Raise Quarter Puts Its AI Edge Story in Focus
- Solventum Nears Inflection Point As It Begins to Unlock Value
Receive News & Ratings for Zoetis Daily - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings for Zoetis and related companies with MarketBeat.com's FREE daily email newsletter.
