Zoetis (NYSE:ZTS) Releases Earnings Results, Beats Expectations By $0.24 EPS

Zoetis (NYSE:ZTS) issued its quarterly earnings data on Thursday. The company reported $1.75 earnings per share for the quarter, beating the consensus estimate of $1.51 by $0.24, FiscalAI reports. The firm had revenue of $2.39 billion for the quarter, compared to the consensus estimate of $2.30 billion. Zoetis had a net margin of 27.49% and a return on equity of 74.89%. Zoetis’s quarterly revenue was down 1.3% compared to the same quarter last year. During the same period last year, the firm posted $1.70 EPS.

Here are the key takeaways from Zoetis’ conference call:

• Q3 revenue fell 1% to $2.4 billion, while adjusted net income declined 7%. Adjusted EPS rose 1% to $1.75, helped by share repurchases.
• Companion animal revenue declined 5%, with key dermatology down 16% amid competition, softer clinic visits, and affordability pressures. Promotions slowed U.S. dermatology share loss, but did not stop it.
• Livestock revenue grew 7% on broad-based demand, and companion animal diagnostics rose 13%, providing areas of strength amid weakness in core pet-care franchises.
• Zoetis narrowed its 2026 revenue outlook to an organic decline of 1%–2% and raised adjusted net income guidance to $2.60–$2.64 billion and adjusted EPS guidance to $6.25–$6.35.
• Management said it will plan prudently for 2027, assuming no improvement in macro conditions or pet-owner spending and expecting competitive pressures to persist. Upcoming launches are expected to contribute modestly in 2027, with greater impact later and into 2028.

Zoetis Price Performance

ZTS traded down $2.61 on Friday, reaching $79.50. The company had a trading volume of 6,023,502 shares, compared to its average volume of 3,857,472. The company has a fifty day moving average of $75.68 and a 200-day moving average of $92.60. The company has a market capitalization of $32.85 billion, a P/E ratio of 13.52, a PEG ratio of 1.23 and a beta of 0.67. The company has a current ratio of 3.08, a quick ratio of 1.84 and a debt-to-equity ratio of 2.87. Zoetis has a one year low of $68.77 and a one year high of $132.49.

Zoetis Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Tuesday, December 1st. Investors of record on Friday, October 30th will be given a $0.53 dividend. This represents a $2.12 dividend on an annualized basis and a yield of 2.7%. The ex-dividend date is Friday, October 30th. Zoetis’s dividend payout ratio is currently 34.93%.

Analyst Ratings Changes

Several equities research analysts have commented on ZTS shares. Zacks Research upgraded shares of Zoetis from a “strong sell” rating to a “hold” rating in a research note on Monday, October 26th. Weiss Ratings upgraded Zoetis from a “sell (d)” rating to a “sell (d+)” rating in a research report on Thursday, October 29th. JPMorgan Chase & Co. reduced their price objective on Zoetis from $130.00 to $115.00 and set an “overweight” rating for the company in a research report on Friday, August 7th. Piper Sandler decreased their price objective on Zoetis from $90.00 to $80.00 and set a “neutral” rating for the company in a report on Monday, August 10th. Finally, Morgan Stanley lowered their target price on Zoetis from $85.00 to $82.00 and set an “overweight” rating on the stock in a research report on Thursday, October 29th. Eight equities research analysts have rated the stock with a Buy rating, twelve have assigned a Hold rating and one has given a Sell rating to the company. According to MarketBeat, the company presently has a consensus rating of “Hold” and an average price target of $101.25.

Key Zoetis News

Here are the key news stories impacting Zoetis this week:

• Positive Sentiment: Adjusted EPS of $1.75 topped the $1.51 consensus, while revenue of $2.39 billion exceeded expectations of $2.30 billion. Zoetis also raised its full-year 2026 profit outlook. Zoetis Lifts Annual Outlook While Braces For Cautious Pet Economy
• Positive Sentiment: Livestock revenue grew 7% to $797 million, helping offset softness in companion-animal products. Jefferies also raised its price target to $85 from $83. Zoetis: 3 Key Takeaways for Long-Term Investors
• Negative Sentiment: Investors appear focused on ongoing pressure in the pet-health business: owners are cutting back on veterinary visits, and Zoetis is taking a cautious view of 2027. Competitive pressures and margin headwinds also weigh on the outlook. Zoetis plans cautiously for 2027 as pet owners cut back on vet visits, shares fall ZTS Q3 2026 deep dive: Competitive pressures and margin headwinds weigh on outlook
• Negative Sentiment: Despite beating estimates, quarterly revenue declined 1.3% year over year, reinforcing concerns that strength in livestock may not fully offset weaker companion-animal demand. Zoetis reports third-quarter results

About Zoetis

Zoetis is an animal health company that discovers, develops, manufactures and markets medicines, vaccines, diagnostic products and other services for animals. Its products support both companion animals, such as dogs and cats, and livestock, including cattle, pigs, poultry, sheep and fish.

The company’s offerings include treatments for pain, infections and skin conditions, as well as vaccines, parasiticides, diagnostic tools and genetic testing services. Zoetis serves veterinarians, livestock producers and other animal health professionals around the world.

Zoetis originated as Pfizer’s animal health business and became an independent public company in 2013.