Zoetis (NYSE:ZTS) Issues Earnings Results

Zoetis (NYSE:ZTS) posted its quarterly earnings data on Thursday. The company reported $1.87 earnings per share for the quarter, beating analysts’ consensus estimates of $1.85 by $0.02, FiscalAI reports. The company had revenue of $2.47 billion during the quarter, compared to analysts’ expectations of $2.50 billion. Zoetis had a net margin of 27.49% and a return on equity of 70.95%. The firm’s revenue for the quarter was down .2% on a year-over-year basis. During the same period in the prior year, the company 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 Stock Performance

NYSE:ZTS traded down $4.74 during trading hours on Friday, reaching $72.53. 12,770,194 shares of the stock were exchanged, compared to its average volume of 6,453,276. 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 firm has a 50 day simple moving average of $76.66 and a 200-day simple moving average of $100.75. Zoetis has a 52 week low of $71.47 and a 52 week high of $160.48. The stock has a market capitalization of $30.41 billion, a P/E ratio of 11.95, a P/E/G ratio of 1.34 and a beta of 0.74.

Zoetis Dividend Announcement

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

Insider Activity

In other news, Director Paul Bisaro purchased 2,000 shares of the stock in a transaction dated Wednesday, May 13th. The stock was acquired at an average cost of $75.88 per share, for a total transaction of $151,760.00. Following the acquisition, the director owned 27,862 shares of the company’s stock, valued at $2,114,168.56. The trade was a 7.73% increase in their ownership of the stock. The acquisition was disclosed in a filing with the SEC, which is accessible through this link. Also, Director Frank A. Damelio acquired 6,650 shares of Zoetis stock in a transaction that occurred on Wednesday, May 13th. The shares were purchased at an average price of $75.39 per share, for a total transaction of $501,343.50. Following the completion of the purchase, the director directly owned 21,458 shares of the company’s stock, valued at $1,617,718.62. The trade was a 44.91% increase in their ownership of the stock. The disclosure for this purchase is available in the SEC filing. In the last ninety days, insiders bought 11,650 shares of company stock worth $886,384. 0.22% of the stock is currently owned by insiders.

Institutional Investors Weigh In On Zoetis

Several institutional investors and hedge funds have recently bought and sold shares of ZTS. T. Rowe Price Investment Management Inc. lifted its holdings in shares of Zoetis by 3,311.3% in the 4th quarter. T. Rowe Price Investment Management Inc. now owns 158,250 shares of the company’s stock worth $19,912,000 after purchasing an additional 153,611 shares during the last quarter. Strive Financial Group LLC acquired a new stake in Zoetis in the fourth quarter worth $390,000. Beacon Pointe Advisors LLC lifted its stake in Zoetis by 3.6% in the fourth quarter. Beacon Pointe Advisors LLC now owns 9,525 shares of the company’s stock valued at $1,198,000 after buying an additional 327 shares during the last quarter. First Citizens Bank & Trust Co. lifted its stake in Zoetis by 34.8% in the fourth quarter. First Citizens Bank & Trust Co. now owns 58,495 shares of the company’s stock valued at $7,360,000 after buying an additional 15,115 shares during the last quarter. Finally, EP Wealth Advisors LLC acquired a new position in shares of Zoetis during the fourth quarter valued at $35,365,000. Institutional investors and hedge funds own 92.80% of the company’s stock.

Analyst Upgrades and Downgrades

Several research analysts recently commented on ZTS shares. UBS Group cut their price target on Zoetis from $85.00 to $80.00 and set a “neutral” rating on the stock in a research note on Friday. HSBC lowered their price objective on Zoetis from $140.00 to $95.00 and set a “buy” rating for the company in a research note on Monday, July 6th. JPMorgan Chase & Co. cut their target price on Zoetis from $130.00 to $115.00 and set an “overweight” rating on the stock in a research report on Friday. Citigroup reduced their target price on Zoetis from $145.00 to $112.00 and set a “buy” rating for the company in a research note on Monday, May 18th. Finally, TD Cowen decreased their price target on shares of Zoetis from $150.00 to $104.00 and set a “buy” rating for the company in a research report on Tuesday, June 30th. Seven research analysts have rated the stock with a Buy rating, nine have given a Hold rating and one has given a Sell rating to the company. Based on data from MarketBeat, the company presently has an average rating of “Hold” and a consensus target price of $115.50.

Zoetis News Roundup

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.